eyeQ: 10 actionable trading signals for week beginning 18 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 15 August 2025.

Prudential 

From May to the end of July, eyeQ model value and the Prudential (LSE:PRU) share price moved in tandem - moving higher in sync. However, macro conditions have started to deteriorate - model value has fallen nearly 6% over the last few weeks. That divergence leaves the Pru sitting 5.84% rich on our metrics.

That’s not sufficient to fire a bearish signal. But the message is that these aren’t great levels to add to any holdings. Our smart machine suggests the stock needs an improved outlook for UK and global economic growth plus a weaker pound for the macro picture to improve.

International top 10

Source: eyeQ. Long Term strategic models. Data correct as at 15 August 2025.

SAP

Germany’s SAP SE (XETRA:SAP) is one of Europe’s comparatively few tech success stories. The last month, however, has not been kind. First, while earnings were strong, forward guidance for the rest of the year disappointed some analysts. Second has been the threat that all European companies have faced with regard to US tariffs. And then there’s a change in the mood music around software stocks, which are seen as potentially vulnerable to AI.

The macro picture is lacking a clear trend. For months now, eyeQ model value has been moving sideways around the EUR 265 area. The sell-off has taken spot SAP over 12% below where macro conditions says it “should” trade and that suggests that a lot of bad news is in the price down here.