AI is there; 3 strong buy stocks that can benefit
Hi Tech is the cool kid of the investment industry and offers an unbeatable combination of modern chic and long-term stock market returns. It is understandable; Our digital world has clearly passed a point of no return in integrating technology into our daily lives. Tech companies large and small are clearly in a position to benefit from this trend, offering products and innovations that facilitate and expand our high-tech footprint. Artificial intelligence or AI is at the forefront of the tech wave. AI systems that enable machines to learn from experience, adapt to changes and process more information faster than ever before are driving technological development. New AI systems enable autonomous vehicles, personalize sales and marketing, and accelerate the networked systems that hold the digital universe together. From an investor’s perspective, the companies that build and deploy AI systems are now in a position to make a profit in the near future. The AI is here and will only expand its presence. With this in mind, we opened the TipRanks database to inform three “Strong Buy” analysts who are making profitable use of AI technology and are battling for position outside the gate. iCAD, Inc. (ICAD) We start in the medtech segment, where iCAD produces solutions including advanced image analysis, radiation therapy and workflow to facilitate the early detection and treatment of cancer. iCAD offers a comprehensive platform for hardware and software. The company’s ProFound AI Risk tool is an integrated platform that streamlines breast cancer diagnosis and treatment. The VeraLook platform uses similar advanced technology to improve image processing in colon polyp detection. Medical technology is in high demand, and iCAD’s AI-powered platforms use common diagnostic tools and improve their accuracy. It’s part of a natural trend in medical technology, a greater integration of tools and treatments. The field, like much of the medical industry, is growing, and iCAD recorded $ 10.5 million in revenue in the fourth quarter of 20, a sequential profit of 47% that was offset by a sequential profit of 70% on ProFound AI’s product revenue was driven. Quarterly revenue increased 11% year over year, and ProFound AI sales in particular increased 21%. Analyst Francois Brisebois, who covers this stock for Oppenheimer, sees ProFound AI as a strong win for the company. “We believe that growth investors will be rewarded over the years as ICAD takes another stake in a growing TAM by providing transformative, AI-driven breast cancer detection products as well as targeted, efficient cancer therapy solutions (quality over quantity). We believe ICAD is one Attractive tool for investors looking to grapple with biotech innovation topics and waves of AI data growth. Ultimately, while ProFound AI Risk is in a very early stage, we believe it is a great example of the potential of AI in changing treatment paradigms ” , so Brisebois said. Unsurprisingly, Brisebois rates ICAD at outperform (i.e. buy) with a price target of $ 27. This number implies an upward trend of 63% within a year. (To see Brisebois’ track record, click here.) The unanimous Strong Buy consensus rating on ICAD stocks shows Wall Street broadly in line with Oppenheimer’s analyst. There are 7 buy-side ratings for ICAD stocks. The average target price of USD 21.57 implies an upward movement of 30% from the trading price of USD 16.55. (See ICAD stock analysis on TipRanks) Baidu, Inc. (BIDU) Not every high-end AI stock is based in the US. If we shift our gaze to China, let’s take a look at Baidu, the largest search engine from the Asian giant. In fact, Baidu is the largest internet search platform in the world’s largest language, used by well over 1.3 billion people every day. Baidu has a massive user base, and just because Western and Chinese internet systems aren’t interconnected doesn’t mean Western investors should overlook BIDU stock. Baidu’s profits are driven by a number of initiatives. Like Google, the company benefits from the placement of targeted ads on the search platform, ads powered by AI software. In addition, Baidu has expanded the capabilities of its AI and specializes in cloud computing and autonomous vehicles. Last year, the company even started launching an autonomous vehicle system, the 14-passenger Apolong bus, in Guangzhou. In February, Baidu reported 20 fourth quarter earnings and sales with slightly mixed results. Revenue was $ 4.6 billion, just below the forecast of $ 4.7 billion. However, it was still 12% higher than the previous year. EPS, on the other hand, was down 25% year-on-year at USD 3.08, although the forecast was exceeded by over 10%. BIDU’s bulls include Fawne Jiang, a 5-star analyst at Benchmark, who writes, “BIDU is making great strides in monetizing new AI initiatives, including smart transportation and smart driving, that should fuel the company’s longer-term growth. We believe BIDU is well positioned to become a significantly expanded TAM, leveraging growth opportunities in the cloud, intelligent transportation, intelligent driving and other AI initiatives. “In line with these bullish comments, Jiang rates BIDU as a buy and sets a price target of $ 385, indicating confidence in an upside of 65%. (To see Jiang’s track record, click here.) With 14 current buy ratings versus just 4 holds, BIDU shares have made a strong buy from analyst consensus. The stock is selling for $ 232.68, and the average target price of $ 343.44 implies an uptrend of ~ 48% from that level. (See BIDU stock analysis on TipRanks.) Five9 (FIVN) Now let’s take a look at the cloud, where Five9 offers a scalable contact center platform powered by AI cloud technology. Contact centers have been a successful growth segment over the past few decades, and cloud computing has changed the way we use software. AI has revolutionized both by making computers smarter and data analysis faster, more efficient, and more accurate. Contact centers using intelligent AI clouds can track and route calls faster, process information, and connect callers and service agents faster for better results. In the fourth quarter of 20, the company recently reported revenue growth of 39% year over year to $ 127.9 million – a company record. However, EPS was negative and the loss was 11 cents per share. This was an unfortunate turnaround from the 1-cent EPS gain in the prior-year quarter. On a more positive note, the company ended 2020 with $ 67.3 million in cash flow from operations, up 31% year over year. Five9, which is also of interest to investors, announced on March 4th that it had been selected as a cloud computing provider for CANCOM, a leading UK IT company. The partnership makes Five9 the platform on which CANCOM will expand its call center services and gives Five9 a strong foothold in the European market. 5-star analyst Jeff Van Rhee, who weighed Craig-Hallum, noted, “The digital transformations have been ramped up by COVID and the spirit is not going back into the bottle. Additionally, FIVN has been very aggressive over the past few years in moving to the public cloud for the entire stack and layering outstanding AI capabilities. The demand for AI has been found to be an extremely important part of many of the biggest deals. There is little doubt about the dynamics, performance and remaining opportunities for FIVN. “Van Rhee has given the stock a buy rating and a target price of $ 215, which is an upward trend of 40% for a year. (To see Van Rhee’s track record, click here.) We’re looking at another strong buy stock. The analysts’ consensus rating is based on 17 current ratings, including 15 purchases and 2 holds. The shares trade for $ 153.81 with an average target price of $ 202.31, which is a 12 month uptrend of ~ 32%. (See FIVN stock analysis on TipRanks.) To find great ideas for trading AI stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.