As an investor, there are few issues extra satisfying than figuring out a prime worth inventory, then watching it recuperate.

Everyone likes bagging a cut price. Whether or not it’s within the retailers or the inventory market. Everyone likes to be proved proper too, particularly once they’ve made a troublesome name. Even higher if the dividend is greater than it could have been. And the expansion rolls in too.

It isn’t straightforward although. If it was, everyone can be doing it. I’m at all times on the hunt, and this morning I referred to as in ChatGPT to assist with my search.

AI charges Taylor Wimpey shares right now

I by no means take ChatGPT’s outcomes too critically and it has severe limitations. Normally, it’s simply lifting solutions from articles written by human beings who’ve carried out the laborious yards and never being very imaginative both.

Nonetheless, I received’t quibble as a result of the 2 FTSE 100 worth shares that ChatGPT tipped are each in my portfolio. It stated they “have faced challenges but exhibit potential to rebound in the next 12 months”.

The primary was housebuilder Taylor Wimpey (LSE: TW). My robotic buddy praised the UK housing market’s resilience, with costs rising regardless of financial uncertainty. Regardless of that, the Taylor Wimpey share price is down 18% over 12 months, “reflecting investor concerns over persistent inflation and its impact on interest rates”.

However with Rightmove forecasting 2.5% home price progress this yr, and Metropolis analysts anticipate a 23% earnings soar in 2025, it may very well be heading for a “significant rebound” within the coming yr.

I agree with all of that. That’s why I maintain it. Together with its irrresistible 8.3% yield. In a single respect, I’m in no hurry for the inventory to recuperate, as a result of my reinvested dividends will decide up extra Taylor Wimpey inventory at right now’s decrease price.

I wasn’t shocked to see my chatbot chum flag up Diageo (LSE: DGE), the worldwide beverage large identified for manufacturers like Johnnie Walker, Bailey’s and Guinness. This can be a inventory in pressing want of a pick-me-up.

I’ve been assured that Taylor Wimpey will struggle again in some unspecified time in the future, however harbour doubts about Diageo. So I’m happy to see ChatGPT bigging it up.

The Diageo share price is a downer

The Diageo share price is down nearly 25% over the past 12 months (and 40% over two years) as the worldwide slowdown hit gross sales, notably in Latin America the place it’s additionally confronted stock points.

Diageo made a giant push into the premium drinks market, solely to search out to customers tightening their belts amid financial pressures.

ChatGPT reckons shopper spending will decide up as soon as international rates of interest lastly decline, “providing a favourable environment for Diageo’s growth and recovery in 2025”. 

It additionally notes that Diageo is shifting progress to its consideration to quicker rising elements of the market, together with non-alcoholic drinks. Nevertheless it doesn’t point out one huge issue that worries me. Youthful individuals are consuming much less. I nonetheless can’t work out whether or not this can be a fad, or they’re severe about sober residing. The reply might decide Diageo’s destiny.

But the shares are low relative to former highs, buying and selling at 16.5 time earnings, whereas yielding greater than I can bear in mind at 3.7%. So I’ll cling on, plough again my dividends, and hope ChatGPT is true on each counts.