Normally I cover a “Technology Stock of the Week, but this week we’re doing something different.
Jerome Powell’s Jackson Hole speech was the spark housing-sensitive stocks needed to begin their next 4–6 month rally. Homebuilders had recently scaled back production as inventories swelled, but that pressure will ease in the first half of 2026 if lower interest rates drive the next buying cycle.
Toll Brothers (TOL) is leading the move. The stock just registered a bullish Golden Cross, a technical signal that points to stronger price action over the next three to six months.
This comes as Toll Brothers emerges from a six-month bear market that cut shares nearly in half—down 48% from 2024 highs. Now, both short- and long-term momentum have turned positive, aligning with expectations for a renewed housing market.
The technical setup and macro backdrop combine to target a return to Toll Brothers’ all-time highs near $170.
Growth Stock of the Week: Aflac (AFL)
The S&P Insurance ETF has spent the past ten months locked in a wide range as investors waited for the Fed to hint at lower rates. That signal finally came Friday from Jerome Powell’s Jackson Hole speech, and insurance stocks like Aflac (AFL) are primed to rally.
Lower rates directly benefit insurers since their portfolios are heavily weighted toward bonds, which gain in value as yields fall. The last time the Fed cut aggressively—during the 2020 pandemic cycle—Aflac shares rose 185%.
Fundamentals may also be turning a corner. Aflac’s most recent earnings report topped expectations, even though revenue fell short. That resilience gives the stock a stronger base heading into the next leg higher.
Technically, the setup is bullish. Shares recently bounced from support at $100 and are now pushing toward a breakout above $110. The 50-day moving average flipped higher on August 8, confirming a new intermediate-term rally. Within the next two weeks, Aflac will also register a Golden Cross as the 50-day crosses above the 200-day—an historically reliable bullish signal projecting higher prices over the next three to six months.
Target price: $125.
Stock Under $10 of the Week: SoundHound AI (SOUN)
SoundHound AI (SOUN) is setting up for another rally after a volatile August.
The stock surged more than 70% in less than a week following its August 8 earnings report, driven by a spike in trading volume and positive analyst commentary. After peaking at $17, shares underwent a healthy correction, pulling back to $12, still 20% higher than the pre-earnings price.
Technically, $12 has emerged as strong support. This level often acts as a floor for stocks breaking out of the sub-$10 trading range, where institutional money begins to take a closer look.
The next key trigger is a move back above $13. A breakout from there would confirm renewed momentum and set up a 3–6-month rally back to the August highs near $17.
Bottom line: SoundHound shares are stabilizing at higher levels, and the chart points to another leg higher. Support at $12 is firm, resistance sits at $17, and the path forward favors the bulls.
Income Stock of the Week: Altria (MO)
Lower rates from the Fed are likely to push investors out of bonds and into high-yield equities. One clear standout is Altria Group (MO).
Shares of Altria currently offer a 6.3% dividend yield and are up 33% year-to-date—a rare combination of income and capital appreciation. For dividend investors, that’s as close to a sweet spot as it gets.
Altria remains one of the world’s largest tobacco producers and marketers, with an additional footprint in medical products tied to tobacco-related illnesses. As a consumer staples stock, it carries defensive appeal heading into a potential economic slowdown. Demand for its products is highly inelastic, making the company more resistant to inflationary pressure compared to most sectors.
Consumer staples like Altria, Procter & Gamble (PG), and Colgate-Palmolive (CL) are often favored in recessions because their products see steady demand regardless of economic conditions. That makes them less volatile than cyclical growth names when markets tighten.
Technically, Altria has been in a long-term bull market trend since early 2024. Prior to that, shares spent three years locked in a wide trading range, consistently rewarding investors through dividends.
Considered one of the best dividend stocks on the market, Altria’s outlook remains bullish, with a potential price target of $80.
Bearish Stock of the Week: Albertsons (ACI)
Albertsons (ACI) shares have officially crossed into a long-term bear market trend.
The stock has lacked direction since the failed merger with Kroger (KR), and in April management cut 2026 guidance while shifting focus toward e-commerce, app revenue, and same-day delivery.
Wall Street has issued several upgrades over the past two months, but retail investors aren’t buying it. Momentum has weakened steadily. In July, the 50-day moving average turned lower, and this week it is on track to fall beneath the 200-day — a Death Cross. This formation signals rising bearish momentum and typically forecasts lower prices over the next three to six months.
The recent break below $20 triggered heavy selling before a brief pause at $19, but pressure remains firmly to the downside. With technical strength eroding and resistance overhead, investors should prepare for a $15 target on Albertsons shares.
— Chris Johnson
$3 billion+ in operating income. Market cap under $8 billion. 15% revenue growth. 20% dividend growth. No other American stock but ONE can meet these criteria... here's why Donald Trump publicly backed it on Truth Social. See His Breakdown of the Seven Stocks You Should Own Here.
Source: Money Morning