S&P 500's New AI Play? Walmart In Buy Zone, Leads Five Stocks To Watch Amid Volatile Market

Amidst a volatile market, several stocks are under investor scrutiny. Walmart (WMT) surged 5.8% last week following a new shopping partnership with OpenAI's ChatGPT, pushing its stock above a key buy point despite previous earnings misses and tariff risks. Other notable mentions include FTAI Aviation (FTAI), which has seen over 100% gains since April ahead of its Q3 earnings; Alnylam Pharmaceuticals (ALNY), buoyed by strong EPS growth and a raised price target from Morgan Stanley; Guardant Health (GH), showing sales expansion and analyst upgrades despite current unprofitability; and Cloudflare (NET), which declined but is positioned with strong AI ties and projected Q3 profit and sales growth.

Analysis

Walmart (WMT) experienced a significant 5.8% stock advance, closing at 107.73, following its new shopping partnership with OpenAI's ChatGPT, pushing shares above its 104.72 flat base buy point and reaching a record high of 109.58. This strategic AI integration signals a potential enhancement of its e-commerce capabilities, despite the company having missed Q2 earnings estimates and providing a lower sales forecast in August, and facing ongoing tariff risk concerns. The market's positive reaction highlights the perceived value of AI-driven innovation in retail.

FTAI Aviation (FTAI) saw weekly gains pared to 2.2%, closing at 166.67, but has surged over 100% since April and flashed an early buy signal, indicating strong underlying momentum ahead of its Q3 earnings on October 27. Alnylam Pharmaceuticals (ALNY) advanced 4.6% to 481.67, buoyed by expectations of robust Q3 sales for its Amvuttra drug, leading Morgan Stanley to raise its price target to 475 from 405. Both companies face potential volatility surrounding their upcoming Q3 earnings reports.

Guardant Health (GH) gained 1.9% to 65.46, with analysts expecting a narrower Q3 loss and 23% revenue growth to $235.6 million, and Barclays raising its price target to 70, reflecting improved sentiment in the life science tools sector. Conversely, Cloudflare (NET) shares fell 1.8% to 210.01, undercutting its 50-day moving average, despite strong projected Q3 profit growth of 15% and sales growth of 27% to $545 million, and its strategic ties to generative AI leaders like OpenAI and Anthropic. The mixed market reaction to NET suggests caution despite strong fundamentals and AI exposure.

Key Decisions for Investors

• Investors should monitor Walmart's Q3 earnings in late November for validation of its OpenAI partnership's impact and any revised sales forecasts, given its recent stock surge despite prior misses.
• Evaluate FTAI Aviation and Alnylam Pharmaceuticals' upcoming Q3 earnings for sustained growth trajectories and potential volatility, particularly given recent price movements and analyst upgrades.
• For Cloudflare, assess if Q3 results and strategic AI integrations can reverse recent technical weakness, while for Guardant Health, observe Q3 progress towards profitability and revenue growth against analyst expectations.