Hey,

Charles here.

Andrew’s scanner has been working overtime, and this week it flagged two names on opposite sides of the trade.

One is a household name quietly riding the AI wave without the software drama.

The other is a finance stock flashing warning signs that scream trouble ahead.

Both picks come down to what Andrew does best, finding the gap between what a stock is worth and what the market thinks it is worth.

The common thread? Traders are revaluing entire sectors right now, and that creates opportunity in both directions.

Here’s Andrew’s breakdown.

One to Love: The Unsung Beneficiary of AI

AI 2.0 is still on my mind as I check my scanner for new stocks. In truth, I am looking at how vanilla companies run, the ones that make things. AI should be a big improvement, but my upgraded scanner is still looking for early plays before they become a long-term buy. Procter & Gamble (PG) is fitting the bill. Now that the tariff confusion is over, consumer durables are still priced well.

My Fingerprint Scanner looks for momentum, and PG has it. My new scanner is now set up for only positive moves after earnings, which is what I wanted in the first place. I just had to set it up right. PG was sneaky in that it rallied the day after.

The stock has a solid dividend if the current AI software swoon has you in stitches.

1 YEAR PG

I expect consumer durables to be very healthy this year, and AI benefits hit the bottom line. Generally, stocks exhibiting this up-and-out pattern on my scanner have done very well the last few weeks. PG is the ticket for me this week.

One to Hate: The 16 Percent Yield That Won’t Last

Credit worries are this week’s software bomb. Arbor Realty Trust (ABR) is looking like a stock that is going to palookaville.

Of the stocks that list LEAPS, 65 are near or within three percent of a 52-week low. What I have found here is many stocks that are close to the 52-week low finally go the distance and tap it.

As long as finance companies have “rumors” of credit problems, the stocks will go down.

ABR has a May dividend coming, and that might very well be less than the 30 cents it is advertising.

Stocks yielding 16.3 percent normally do not stay that way for long, and my scanner picked it up.

ABR 1 YEAR CHART

I expect ABR to drift below $7 at least until the dividend picture is more clear.

To Your Trading Success,

AG

Andrew is doing what he always does, following the math where it leads.

A consumer durables giant riding quiet AI momentum on one side, and a high-yield finance stock cracking under credit pressure on the other.

The scanner does not care about headlines or hype. It cares about patterns, and right now the patterns are loud.

The real question is which stock Andrew and the team will pick for subscribers this Monday.

Join the Ticker Highlight Show Premium before Monday at 10:30 AM ET to find out.

See you there,

Charles Delvalle

Managing Editor, Option Pit