The AI revolution may make these two stocks higher
Trading in the stock market is a data game. Getting the best information in time and knowing how to use them is the key to success. Therefore, here are some figures to consider. According to industry market research, artificial intelligence companies and products are on the verge of explosive growth. The value of the AI market in 201
8 was 9.5 billion U.S. dollars, exceeding 27 billion U.S. dollars in 2019, and is expected to exceed 250 billion U.S. dollars by 2027. AI refers to the use of data to simulate human intelligence processes, including machine learning, reasoning and self-correction. Artificial intelligence is entering almost every industry. From factories to self-driving cars and even online shopping sites for data collection and sorting, automated systems, they all benefit from AI applications. Wall Street did not ignore this. Analysts say that many compelling investments can be found in this area. With this in mind, we opened the TipRanks database to find two AI stocks recognized by 5-star analysts. The professionals of these stocks are rated as the top 3% of their peers. Let’s find out why they recommend these two AI games. Veritone, Inc. (VERI) The first AI stock we are looking for is Veritone, a software company whose software flagship product, an AI-driven operating system called aiWARE, allows users to coordinate machine learning models and integrate different Data sources-including audio and video-are transformed into actionable intelligence results. The system has an open architecture and has been used in entertainment, government, law and media fields. In early March, Veritone released its 20Q4 quarterly earnings, showing a record quarterly revenue of $16.8 million, a year-on-year increase of 35%. The driving factor for growth is that aiWARE SaaS grew by 53% year-on-year, while advertising grew by 50% year-on-year. However, Veritone’s stock price fell 49% from its peak in February. Investors like strong financials, but have some concerns about the company’s future guidance. Management predicts that non-GAAP net losses will be between $3.9 million and $4.4 million in the first quarter of 21. Although this is an improvement of 38% from the midpoint of the first quarter of 20, investors do want to see profits. Darren Aftahi, a five-star analyst at Roth Capital, believes that this new lower share price may provide new investors with an opportunity to enter VERI at a bargain price. Aftahi believes that this stock is well positioned for AI development. “VERI achieved better fourth-quarter results, but more importantly, it accelerated the revenue growth of AI SaaS and advertising (both more than 50%). If we return to the level of 2019 (moderate growth in the content and licensing business) The assumption of) is correct in 2021, it shows that its advertising and AI SaaS guidelines in 2021 (much better by the way) will exceed a 40% growth rate (~ 30% advertising costs and about 60% artificial intelligence costs). Importantly, the growth rate of its AI SaaS product line reached 60-65%, indicating that it has tripled year-on-year.” Aftahi pointed out. According to his comments, Aftahi rated the stock as “Buy” and its $50 target price means a 104% increase in the coming year. (To view the history of Aftahi, click here.) All in all, the price of VERI stock is $24.53 and the consensus average target price is $38.75, providing investors with a 58% share growth opportunity this year. The analyst’s consensus rating is “medium buy”, which is based on 3 buy comments and 1 sell. (See VERI stock analysis on TipRanks) Verint Systems (VRNT) has gained 107% in the past 12 months, a large part of which jumped 31% in early February. This growth is a response to the company’s split into two entities-the spin-off Cognyte assumed the parent company’s intelligence and network operations, while Verint continued to provide purely manual, AI-based customer engagement services. The company combines the advantages of market experience, artificial intelligence and analytical products to enable customers to optimize their automation, knowledge and workforce. Verint’s 2021 fiscal year ended on January 31, the day before the split, and the company reported its fourth quarter and full year results at the end of March. These results exceeded expectations for the quarter, with total revenue of US$349 million, a year-on-year increase of 3%. However, the annual revenue was US$1.27 billion, slightly lower than the US$1.3 billion in the same period last year. Verint’s fourth-quarter data heralds the reflection of its pure customer engagement, as those AI cloud divisions experienced year-on-year growth of more than 30% during the quarter. Timothy Horan, a five-star analyst at Oppenheimer, calls Verint a “unique AI participating company,” and he believes that the new Verint is in a good position to move forward. “VRNT announced strong results for the fourth quarter of fiscal year 21. After the split, it is now a pure customer interaction AI company. VRNT is successfully executing the transition to the SaaS/Cloud model. New perpetual license reservations this quarter ( PLE) increased by 15%. The transition from license sales is difficult, but it is largely lagging behind, because starting this quarter, revenue growth will accelerate. Cloud demand between existing and new customers has reached a healthy level 50/50 ratio…”. Horan added: “By the end of the year, cloud and bookings have grown strongly, ending the year. We think it can continue to sign large cloud transactions in contact centers and other verticals.” These are all optimistic comments. Holland said with ” They are supported by a “Outperform” (ie “buy”) rating and a price target of $60, which indicates that there is still room for 32% growth in the next 12 months. (To view Horan’s track record, click here.) Overall, Wall Street generally believes that Verint is a stock to buy, as indicated by the consensus rating of Strong Buy analysts. This is based on 6 recent positive reviews. The stock’s average target price is $59.33, which is about 30% upside from the current trading price of $45.50. (See VRNT stock analysis on TipRanks) To find a great idea for trading AI stocks with attractive valuations, please visit TipRanks’ “Best Stocks to Buy”, a newly launched tool that combines all of TipRanks’ assets Combine insights. Disclaimer: The views expressed in this article are only those of the main analyst. The content is for reference only. Before making any investment, it is very important to conduct your own analysis.