Axyon AI, an Italian fintech specialising in Predictive AI-driven solutions for asset managers and hedge funds, has launched Market Pulse, a monthly barometer of stock market insights based on the predictions of its AI models.
To build its Market Pulse insights, Axyon AI uses a combination of sourcing from reputable, market-leading providers, including Factset, Refinitiv, Morningstar, Ravenpack and robust internal processes to ensure the data powering its AI models is accurate and reliable.
Each month, Axyon AI will provide a roundup of the latest AI model predictions across European and US-based Large-Cap Equities, focusing on two key areas:
- Axyon AI model views on the sectors that are most likely to outperform and those that could underperform.
- Key insights on stocks with the highest and lowest potentials segmented by market.
Anyone wishing to subscribe to Market Pulse can register [here.]
This month’s Market Pulse reveals:
US Market Predictions
Outperforming Sectors – US Market
Consumer Discretionary: Driven by a rebound in retail and strong earnings reports from key players such as AutoZone.
– Axyon AI’s view: Positive predictions for AutoZone highlight its robust sector positioning and favourable sentiment around earnings and stock performance.
– Health Care: Ongoing focus on technological innovations and demand within the sector supports its growth. Companies like NortonLifeLock transition into this space through adjacent niches, in this case Cybersecurity.
– Axyon AI’s view: Promising upward stock movement seen in the sector is driven by strengthened financial forecasts and strategic positioning.
Underperforming Sectors – US Market
- Energy: Tariff-related constraints and geopolitical uncertainties add to the challenges this sector already faces.
– Axyon AI’s view: Stocks such as Devon Energy and Phillips 66 are likely to underperform, driven by adverse macroeconomic signals and weak predictions around their price momentum. - Industrials: Lingering supply chain challenges and macroeconomic pressures impact sector stability.
– Axyon AI’s view: Stocks like General Electric and Caterpillar show weaker rankings, primarily influenced by negative technical drivers and increased volatility.
Promising Stocks – US Large-Cap Equities
- Palo Alto Networks: The company ranks highly due to strong analyst estimate dynamics and technical indicators, with additional support from favourable macroeconomic trends. Its upcoming earnings announcement cycle and leadership in cybersecurity contribute positively to market sentiment-driven outperformance.
- AutoZone Inc.: Improved predictions driven by robust technical indicators and favourable analyst estimates. Strong revenue growth and a positive consensus rating further reinforce the stock’s outlook.
- NortonLifeLock: Gaining traction with a favourable outlook supported by solid growth in earnings and revenues. Strong macroeconomic signals and a commitment to transparent financial reporting boost investor confidence.
Unattractive Stocks – US Large-Cap Equities
- Constellation Brands: Recent predictions reflect concerns over the impact of newly imposed tariffs and reduced revenue growth expectations. Despite a solid fiscal quarter, the disappointing outlook and strategic challenges weigh on performance projections.
- Kroger Co.: Weak position in the ranking driven by declining revenue and subdued market activity. While operational efficiency has marginally improved, broader retail sector pressures hinder the stock’s potential.
- Keurig Dr Pepper Inc.: Negative predictions led by weak technical indicators and macroeconomic pressures. News of a large share sale by a major shareholder may add further uncertainty to its market performance.
European Market Predictions
Outperforming Sectors – European Market
- Financials: Supported by strong earnings results across key stocks in the sector, with updates on higher profits and fee income despite challenges from narrowing interest rate margins.
– Axyon AI’s view: Financial leaders like Allianz SE and Intesa Sanpaolo demonstrate robust rankings, driven by strong analyst estimates and favourable sentiment data, contributing to positive outlooks in the sector. - Consumer Discretionary: Benefiting from increased spending on luxury goods and services, although growth remains uneven across companies within the sector.
– Axyon AI’s view: Companies like Ferrari show excellent rankings due to growth in European and American markets, reinforced by positive financial sentiment and steady analyst support.
Underperforming Sectors – European Market
- Information Technology: Competition and global tariff concerns weigh on key players in the sector.
– Axyon AI’s view: Companies like Nokia and Adyen maintain underperformance predictions due to negative sentiment linked to declining profits and operational challenges. - Energy: Geopolitical tensions and fluctuating energy prices create uncertainty in the sector.
– Axyon AI’s view: Stocks like TotalEnergies may underperform as negative macro and sentiment factors dampen investor optimism.
Promising Stocks – European Large-Cap Equities
- Allianz SE: Ranked as the top-performing stock, benefiting from strong analyst estimates and positive sentiment derived from recent earnings call transcripts. News of a record operating profit, strategic asset sales, and an upcoming dividend boost investor confidence in its financial stability and growth outlook.
- Ferrari: Financial results exceeded expectations, with improved net revenue and EBITDA growth driven by robust demand for luxury supercars and personalised upgrades. This excellent performance, bolstered by strong analyst estimates and favourable sentiment, underscores its competitive edge in the consumer discretionary sector.
- Intesa Sanpaolo SPA: A strong financial report with higher-than-expected net profits and significant growth in trading income and fees has contributed to its favourable ranking. Positive sentiment in earnings call transcripts further reflects market confidence in its resilient performance despite sector challenges.
Unattractive Stocks – European Large-Cap Equities
- BMW: Despite a short-term boost in auto EBIT margins and positive tariff adjustments anticipated in July 2025, the stock remains burdened by concerns over supply chain risks and prolonged tariff uncertainties. Negative sentiment linked to its financial outlook weighs on performance rankings.
- Kering: A sharp decline in sales, particularly at Gucci, has driven negative analyst sentiment. Aggressive cost-cutting measures and leadership changes cast doubt on the speed and effectiveness of recovery for the luxury retail group.
- Nokia Oyj: Suffering from a decline in profits and ongoing tariff challenges, Nokia’s performance ranking is hindered by negative news sentiment and slower-than-expected growth in its key markets, despite efforts to expand its manufacturing footprint and focus on 5G innovation.
Giovanni Beliossi, Head of Investment Strategies, Axyon AI said: “We’re delighted to bring Market Pulse to the investment management industry. Each month we will share views from our AI models for both the US and European markets, highlighting a range of invaluable insights, including outperformance of stocks and sectors, underperformance and promising stocks.
“Our AI models analyse a broad set of securities to predict their future relative performance. By identifying which securities are expected to perform best (and worst), the models generate forward-looking insights that help guide investment decisions.
“These insights can be applied at multiple levels—whether assessing individual stocks or aggregating data to evaluate specific sectors or geographic regions. Investors can leverage these signals to craft tailored strategies, from long-only portfolios designed to outperform benchmarks to long/short approaches aimed at achieving market-neutral returns. In essence, our AI-powered models deliver data-driven intelligence that empowers investors to make smarter, more strategic decisions in an ever-evolving market landscape.”
To subscribe to Market Pulse, click here: https://axyon.ai/market-pulse-newsletter
