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Five Stocks of the Week

Technology Stock of the Week: ASML (ASML)

AI and broader technology stocks are seeing an increase in selling pressure as investors remain concerned about valuations, but one company is maintaining its relative strength in the industry, ASML.

Last month, the company delivered a strong third-quarter report, with earnings slightly ahead of expectations and continued strength in EUV system demand.

Q4 revenue was guided higher between €9.2 and €9.8 billion and forecasted 15% revenue growth for 2025. Margins remain near 52%, a €1.60 dividend was declared, and the buyback program was extended. The result: long-term conviction from institutions remains intact.

Shares have reclaimed the $1,000 level and are now preparing for another leg higher.

Wall Street sentiment is still behind the curve with only 66% of analysts rating the stock a “Buy,” and the average price target below current levels. ASML has picked up two upgrades since earnings, and more are likely as targets adjust to reflect the bullish setup.

Technically, the stock bounced off its rising 20-month moving average near $950 and reestablished its long-term uptrend.

With semiconductors entering their strongest seasonal stretch of the year, institutional rotation back into infrastructure plays like ASML is accelerating.

Bottom line: the bullish setup we highlighted ahead of earnings remains intact and ASML remains an attractive long-term bullish investment. The company continues to be one of the best-positioned AI manufacturing infrastructure trades into year-end and beyond.

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Growth Stock of the Week: American Electric Power (AEP)

American Electric Power (AEP) isn’t your typical utility stock. Yes, it offers a reliable 3.5% dividend yield—but the real story here is growth.

Over the last year, AEP has quietly transformed from a slow-moving income play into one of the strongest large-cap utility uptrends in the market.

The company is on pace to return to its long-term revenue growth rate of roughly 5% year over year as demand for electricity accelerates across the country. The biggest catalyst is the surge in power-hungry data centers, a trend that is forcing utilities to expand capacity, upgrade transmission infrastructure, and modernize their grids. AEP is positioned directly in this growth lane with operations tied to multiple high-demand regions.

That fundamental backdrop is aligned with AEP’s strong technical setup. The stock is trading at all-time highs above $122, riding a clearly defined long-term bull market trend.

Shares have advanced more than 30% year to date, signaling persistent institutional accumulation. Short-term momentum is equally strong, with shares holding above every major moving average and showing the kind of steady, low-volatility climb that defines true defensive leadership.

Investors shifting into “safe haven” sectors—utilities and consumer staples—are rewarding companies that pair stability with upside. AEP fits that profile better than most.

With robust cash flow, a rising growth outlook, and a 3.5% yield that enhances total returns rather than masking weak performance, AEP stands out as a rare utility that delivers both defense and genuine upside potential in an unpredictable market.

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Stock Under $10 of the Week: Cemex (CX)

This “Under $10” gem is positioning itself for a great opportunity as the stock has pulled back from $10.50 to support at $10.

CX is more than 75% off its April lows, with both the 50-day and 200-day moving averages sloping higher.

The short- and long-term bullish setup remains intact, with strong technical support forming near $10.00. Any near-term pullbacks toward that level would likely be met with renewed buying.

Fundamentals continue to support the move. U.S. infrastructure spending is accelerating, and Cemex is positioned directly in the flow of capital. The company has expanded its U.S. footprint with targeted acquisitions and launched a $150 million cost-cutting initiative to boost margins—both key drivers of future earnings growth.

The $10 area should act as support for a longer-term bounce. Add to that the trend momentum and macro tailwinds in place and CX looks set to move toward $12 in the coming weeks.

Bottom line: Cemex is in a confirmed long-term bull market trend with a near-term price target of $12.

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Income Stock of the Week: Duke Energy (DUK)

Utility stocks like Duke Energy (DUK) are seeing more interest as investors look for safe haven stock amid an increase in volatility.

Shares of DUK are up 19% year-to-date and rallied from $120 to nearly $128 in October. The consolidation we’re seeing now is healthy and likely a setup for the next breakout. A move above $128 would confirm a bullish continuation pattern, opening the door for a run to the $135–$140 zone.

Technically, the stock remains in a strong uptrend. Momentum is stable, and moving averages continue to slope upward—both confirming that buyers remain in control.

Beyond technicals, the fundamental setup is strengthening. Duke pays a dividend yield above 3.5%, putting it in the high-income category. But what separates DUK from other utilities is its growth potential.

As one of the few regional power companies positioned to partner with AI and data center operators, Duke could emerge as a critical infrastructure provider in the next energy cycle.

As interest rates drift lower and the market searches for income with upside, Duke Energy remains a top-tier play in the utilities sector.

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Bearish Stock of the Week: Darden (DRI)

We hit the charts on Darden a few weeks ago, but now it’s really crunch time for the consumer discretionary stock.

Consumer discretionary spending is slowing as inflation and economic uncertainty build. We're starting to see a rise in defaults on auto loans and other subprime credit—early signals that the mid- to lower-income consumer is pulling back.

That weakness is starting to show in restaurant stocks like Darden (DRI).

Shares of DRI are now trading below their 50-day and 200-day moving averages—clear signs of a short-term bear market. The latest earnings report failed to spark any positive momentum, and price action remains heavy.

Even more concerning, DRI just triggered a Death Cross, with the 50-day moving average crossing below the 200-day—typically a bearish trend confirmation.

Technically, the next support zone doesn’t come into play until the $150 level. That’s the near-term target traders should expect if consumer conditions continue to deteriorate.

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