eyeQ: 10 actionable trading signals for week beginning 25 August 2025

“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 22 August 2025.

International top 10

Source: eyeQ. Long Term strategic models. Data correct as at 22 August 2025.

This week’s top 10 biggest fair valuegGaps (FVGs) have some very interesting patterns.

Three of the Magnificent Seven stocks are among the cheapest relative to macro conditions. Tesla Inc (NASDAQ:TSLA), Meta Platforms Inc Class A (NASDAQ:META) and Amazon.com Inc (NASDAQ:AMZN) are all trading below where the macro environment says they should be.

None of the FVGs are big enough to trigger bullish signals but what does stand out is the ongoing strength in macro momentum, especially in Meta where eyeQ’s macro-warranted fair value has just hit a new high at $780.42.

For anyone believing a possible Federal Reserve rate cut next month can spark additional upside for equities, these look attractive levels to take advantage of.

Two other observations. Among the US tech giants, Apple Inc (NASDAQ:AAPL) is now rich to macro.

Second, with NVIDIA Corp (NASDAQ:NVDA) earnings dominating the week ahead, note the contrast between two other semiconductor stocks. Both Taiwan Semiconductor Manufacturing Co Ltd ADR (NYSE:TSM) and Advanced Micro Devices Inc (NASDAQ:AMD) are enjoying a strong uptrend in eyeQ model value. Macro conditions are a tailwind for both.

But AMD has already discounted a fair degree of that good news and sits 14% rich to eyeQ model value, while TMS is lagging and screens as 5.5% cheap.

Tactical investors should consider using AMD as an efficient way to play any disappointment around Nvidia’s earnings; TMS looks the better bet should Wednesday’s earnings report fuel further upside.