eyeQ: 10 actionable trading signals for week beginning 12 January 2026

“Our signals are crafted through macro-valuation, trend analysis, and meticulous back-testing. This combination ensures a comprehensive evaluation of an asset's value, market conditions, and historical performance.” eyeQ

• Discover: eyeQ analysis explained | eyeQ: our smart machine in action | Glossary

This series of weekly articles uses eyeQ’s smart machine to highlight 10 stocks whose share price trades at either a discount or premium to eyeQ’s Model Value price (where macro conditions say the share 'should' trade).

A minus figure in these tables indicates a share trading below eyeQ’s Model Value, implying they are ‘cheap’ versus macro conditions. A plus figure screens as rich because the current share price is above eyeQ’s Model Value.

All companies must have a model relevance above 65%, which means the macro environment is critical and any valuation signals carry strong weight.

Here are definitions of terms used in the analysis:

Model value

Where our smart machine calculates that any stock market index, single stock or exchange-traded fund (ETF) should be priced (the fair value) given the overall macroeconomic environment.

Model relevance

How confident we are in the model value. The higher the number the better! Above 65% means the macro environment is critical, so any valuation signals carry strong weight. Below 65%, we deem that something other than macro is driving the price.

Fair Value Gap (FVG)

The difference between our model value (fair value) and where the price currently is. A positive Fair Value Gap means the security is above the model value, which we refer to as “rich”. A negative FVG means that it's cheap. The bigger the FVG, the bigger the dislocation and therefore a better entry level for trades.

Long Term model

This model looks at share prices over the last 12 months, captures the company’s relationship with growth, inflation, currency shifts, central bank policy etc and calculates our key results - model value, model relevance, Fair Value Gap.

UK Top 10

Source: eyeQ. Long Term strategic models. Data correct as at 9 January 2026.

Tesco

Last week’s sharp sell-off in Tesco (LSE:TSCO) takes the stock 11.5% cheap to macro conditions. eyeQ model value is falling but the sharp decline after last week’s trading statement has gone too far on our metrics. With macro relevance popping above our 65% threshold, the stock is back in a regime, which means the fair value gap (FVG) is sufficient to trigger a bullish signal. 

That regime suggests the grocer needs a mix of reflation and easy financial conditions, which tallies with the company’s trading update where they worried about the health of the UK consumer.

So, in short, right now the economic bears are in charge. But, if the Bank of England keeps monetary policy easy and that underpins the domestic economy, Tesco offers some value down here. 

International Top 10

Source: eyeQ. Long Term strategic models. Data correct as at 9 January 2026.

International

For the second week there’s a pronounced skew. The stocks that screen as cheapest have only modest fair value gaps; those that screen as rich have noticeably bigger fair value gaps.

The biggest is United Parcel Service Inc Class B (NYSE:UPS), which was upgraded at Citibank after it raised the price target to $126 last week. At the company level there is an optimistic story - an efficiency plan that aims to boost volumes, costs and margins. 

At the macro level there’s a word of caution. Macro fair value is flatlining rather than increasing, so the recent rally has opened up a noticeable fair value gap. The stock now sits around 9.5% rich, which is enough to trigger a bearish signal. From the macro perspective, the risk/reward isn’t great here and the bulls should consider waiting for pullbacks.