Axyon AI, an Italian fintech specialising in Predictive AI-driven solutions for asset managers and hedge funds, has published its latest insight from 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 provides 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
- Information Technology: The sector continues to benefit from ongoing innovation, driven by substantial investment in AI and cloud computing—highlighted by Google Cloud’s strategic acquisition of Wiz.
- Axyon AI’s view: Leading positions for top performers such as Palo Alto Networks and Apple Inc. reflect positive analyst sentiment and sustained strength across key technical indicators.
- Financials: Headlines on the dynamics of future interest rates are reshaping market expectations and opportunities for stocks in the broader Financials sector.
- Axyon AI’s view: Stocks with significant exposure to Finance or Insurance like Loews Corporation and Ameriprise Financial exhibit analyst confidence and robust sector-driven signals for overperformance potential.
Underperforming Sectors – US Market
- Consumer Staples: Macroeconomic volatility and tariff-related news headwinds still weigh on the performance outlook of staples-focused equities.
- Axyon AI’s view: Stocks like Campbell Soup Co. and Conagra Brands rank low due to negative trends in technical indicators, compounded by global economic pressures
- Energy: Impacted by shifting energy demands and a continuing degree of geopolitical uncertainty within major oil-producing markets.
- Axyon AI’s view: Stocks like Valero Energy and Chevron may struggle to cope with analyst downgrades and macroeconomic concerns, reflecting underperformance risks.
Promising Stocks – US Large-Cap Equities
- Garmin Ltd.: Garmin maintains a leading position, supported by robust technical indicators and steady performance within its sector. Low volatility metrics further strengthen its positive ranking outlook.
- Palo Alto Networks: Recognised as a top performer, supported by strong analyst estimates and solid technical indicators. Positive Q3 2025 earnings—marked by revenue growth and upbeat Q4 projections—further enhance its favourable outlook.
- Apple Inc.: Positive ranking supported by solid technical indicators and healthy fundamentals. The company maintains its strong positioning despite no recent market-driving news mentions.
Unattractive Stocks – US Large-Cap Equities
- Alphabet Inc.: Continues to face downward ranking pressures driven by negative analyst sentiment and challenges in technical performance. Despite strong Q1 revenue and EPS beating expectations, upcoming regulatory changes affecting ad revenues are a notable concern.
- Henry Schein Inc.: Ranked poorly due to weak technical indicators and increased macroeconomic challenges. Restructuring efforts and currency exchange impacts contribute additional complexities to the company’s financial trajectory.
- Campbell Soup Co.: Suffering from declining predictions, attributed to overly weak technical indicators despite modest positive gains in price momentum. Tariff-related pressures and mixed earnings results also dampen its near-term potential.
European Market Predictions
Outperforming Sectors – European Market
- Financials: The sector is supported by stable policymaking and strong performance among major European banks, further reinforced by analyst confidence. Interest rate dynamics may offer modest gains in lending profitability.
- Axyon AI’s view: Stocks such as UniCredit SpA and Banco Santander SA show positive ranking momentum, largely driven by favourable analyst estimates and recent market developments—suggesting continued potential for outperformance.
- Industrials: Performance influenced by the infrastructure investment and innovation trends, particularly in automation and data-driven markets. Companies in this sector navigate global economic shifts with a strategic emphasis on growth areas.
- Axyon AI’s view: Schneider Electric ranks strongly due to clear revenue opportunities in system solutions for data centres, indicating sector leadership and overperformance potential.
Underperforming Sectors – European Market
- Consumer Discretionary: Higher interest rates and reduced consumer spending dampen growth in the luxury and automotive sectors. Escalating financial pressures compound challenges in this space.
- Axyon AI’s view: Stocks like Kering and BMW reflect weakening performance driven by negative sentiment and muted analyst outlooks, signalling sector underperformance.
- Healthcare: Mixed economic trends and regulatory unpredictability weigh on the sector. Limited pricing power and static innovation cycles contribute to prevailing challenges.
- Axyon AI’s view: Companies like Bayer AG face ranking declines, driven by a combination of negative analyst expectations and external market uncertainties, signalling possible continued struggles on the way to enhanced profitability.
Promising Stocks – European Large-Cap Equities
- UniCredit SpA: The company maintains a high-ranking position, driven by robust analyst estimates. Sustained news and analyst interest in the company stems from the Italian government’s confirmation of conditions for its acquisition of Banco BPM SpA. This regulatory clarity highlights a firm stance on the acquisition efforts, reflecting positively on the company’s strategic trajectory.
- Banco Santander SA: Listed with a higher probability of outperforming the benchmark, driven by its leading role in the issuance of significant risk transfers (SRTs) across Europe. Enhanced financial competitiveness and a strong sector position—bolstered by positive analyst estimates and recent market sentiment—contribute to its favourable outlook.
- Schneider Electric: Despite facing challenges from foreign currency fluctuations, the company benefits from positive analyst outlooks. Strong demand in the data centre segment has been a critical driver of growth, backed by a clear long-term commitment to structural and organic revenue growth strategies.
Unattractive Stocks – European Large-Cap Equities
- Infineon Technologies AG: Plagued by uncertainties surrounding potential U.S. tariffs on semiconductor chips, the company has faced downward revisions in revenue and operating margin expectations. Analyst estimates and sentiment reflect these pressures, suggesting near-term headwinds.
- Kering: Lower performance estimation driven by escalating debt issues from prior acquisitions, market challenges in the luxury goods sector, and a declining popularity of Gucci. Financial strain limits its flexibility, as reflected in unfavourable sentiment and analyst concerns.
- BASF SE: Sale of its coatings business reflects efforts to streamline and focus on core operations. Still, negative sentiment and weak analyst outlooks signal ongoing concerns about market positioning and financial strategy.
Giovanni Beliossi, Head of Investment Strategies, Axyon AI said: “We’re delighted to share our latest Market Pulse to the investment management industry. Each month, we provide views from our AI models for 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 model generates 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.”
