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TipRanks
AI is here; 3 “ Strong Buy ” actions that will benefit
Hi tech is the cool kid of investment sectors, offering an unbeatable combination of classy, cutting edge and long-term stock returns. It’s understandable; our digital world has clearly passed a point of no return in integrating technology into our daily lives. Technology companies, whether large or small, have a clear position to capitalize on this trend, delivering the products and innovations that will facilitate and broaden the growth of our high-tech footprint. Artificial intelligence, or AI, is at the forefront of the technological wave. AI systems, which enable machines to learn from experience, adapt to change, and process more information faster than ever before, are fueling the evolution of technology. New AI systems are making autonomous vehicles possible, personalizing sales and marketing, and accelerating networked systems that hold the digital world together. From an investor perspective, companies that build and use AI systems are now in a position to make gains in the near future. The AI is here and will only expand its presence. With that in mind, we’ve opened up the TipRanks database to get the scoop on three “Strong Buy” stocks, according to the analyst community, who are making profitable use of AI technology and looking to position themselves from the get-go. . iCAD, Inc. (ICAD) We will start with the medical technology segment, where iCAD produces solutions including advanced image analysis, radiation therapy and workflow to facilitate early identification and treatment of cancer. . iCAD offers a complete hardware and software platform. 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 the detection of colon polyps. Medical technology is in high demand, and iCAD’s AI-based platforms use common diagnostic tools and improve their accuracy. This is part of a natural trend in medical technology, towards greater integration of tools and treatments. The field, like much of the medical industry, is growing, and iCAD reported $ 10.5 million in revenue for 4Q20, a sequential gain of 47%, fueled by a sequential gain of 70% in revenue. ProFound AI products. Year over year, quarterly revenue increased 11% and sales of ProFound AI, in particular, increased 21%. Covering this title for Oppenheimer, analyst François Brisebois sees ProFound AI as a strong winner for the company. “We believe that growing investors will be rewarded over the years as ICAD earns its share in a growing TAM by providing transformative AI-based breast cancer detection products as well as treatment solutions. targeted and effective cancer (quality rather than quantity). an attractive vehicle for investors seeking exposure to biotech innovation themes and waves of AI data growth. Ultimately, while ProFound AI Risk is in its very early stages of launch, we believe it represents a prime example of AI’s potential to change processing paradigms, “Brisebois opined. Unsurprisingly, Brisebois attributes at ICAD an outperformance (i.e. a buy) with a target price of $ 27. This figure implies a 63% increase over one year. (To see Brisebois’ track record, click here) Unanimous Strong Buy consensus rating on ICAD stocks shows Wall Street agrees with analyst Oppenheimer; there are 7 long ratings on ICAD stocks. Average price target of $ 21.57 implies upside by 30% from the trading price of $ 16.55. (See ICAD Stock Analysis on TipRanks) Baidu, Inc. (BIDU) Not all high-end AI stocks are based on United States. Shifting our perspective to China, let’s take a look at Baidu, the world’s largest search engine. che of the Asian giant. In fact, Baidu is the world’s largest language Internet search platform, used by more than 1.3 billion people daily. Baidu has a massive user base, and just because the Western and Chinese Internet systems are not interconnected, Western investors should not overlook BIDU’s actions. Baidu’s gains are driven by a series of initiatives. The company benefits, like Google, from placing targeted ads on the search platform, ads powered by AI software. In addition, Baidu has broadened the potential of its AI, moving towards cloud computing and autonomous vehicles. In the past year, the company even started launching an autonomous vehicle system, the 14-passenger Apolong bus, in Guangzhou. In February, Baidu reported 4Q20 earnings and revenue, with slightly mixed results. Premium end revenues were $ 4.6 billion, just below the forecast of $ 4.7 billion, but were still up 12% year-over-year; In contrast, EPS, at $ 3.08, slipped 25% year-on-year despite exceeding expectations by more than 10%. Among BIDU’s bulls is Fawne Jiang, 5-star analyst at Benchmark, who writes, “BIDU is making great strides in monetizing new AI initiatives, including smart transportation and smart driving, which are expected to fuel long-term growth. term of the company. We believe BIDU is well positioned to become a significantly expanded TAM by capitalizing on growth opportunities in the cloud, smart transportation, smart driving, and other AI initiatives. In line with these optimistic comments, Jiang rates BIDU as a buy and sets a price target of $ 385 which indicates confidence in a 65% upside potential. (To see Jiang’s history, click here) With 14 recent buy ratings, down from just 4 takes, BIDU shares got a strong buy by analyst consensus. The stock is selling for $ 232.68 and its average price target of $ 343.44 implies an increase of about 48% from that level. (See BIDU stock market analysis on TipRanks) Five9 (FIVN) Now let’s take a look at the cloud, where Five9 offers a scalable contact center platform using cloud AI technology. Contact centers have been a successful growth segment over the past two decades, and cloud computing has changed the way we use software. AI, by making computers smarter and analyzing data faster, more efficient and more accurate, has revolutionized both; Contact centers using AI “ smart ” clouds can track and route calls, process information, and direct callers and service agents to each other faster for better results. In 4Q20, the most recent reported, the company posted 39% year-over-year revenue growth to $ 127.9 million – a company record. EPS, however, was negative, with the loss reaching 11 cents per share. This was an unfortunate turnaround from the 1 cent EPS profit posted in the last quarter. On a brighter note, the company ended 2020 with $ 67.3 million in operating cash flow, up 31% from the previous year. Also of interest to investors, Five9 announced on March 4 that it had been selected as a cloud computing provider for CANCOM, a leading UK IT company. This partnership makes Five9 the platform CANCOM will use to expand its call center services and gives Five9 a strong foothold in the European market. Weighing in for Craig-Hallum, 5-star analyst Jeff Van Rhee noted: “Digital transformations have been propelled into high gear by COVID and the genie is not returning to the bottle. In addition, FIVN has been very aggressive over the past few years in moving to the public cloud for the entire stack and adding exceptional AI capabilities. It was noted that the demand for AI plays an extremely important role in many of the larger transactions… there is no doubt about the momentum, performance and remaining opportunities for FIVN. Van Rhee gives the stock a buy rating, along with a price target of $ 215 implying a 40% year-over-year increase. (To see Van Rhee’s track record, click here) Once again, we’re looking at a Strong Buy stock. The analyst consensus rating is based on 17 recent reviews, including 15 purchases and 2 holds. The shares are trading at $ 153.81 and have an average price target of $ 202.31, which is up 12 months ~ 32%. (See FIVN Stock Market Analysis on TipRanks) To find great ideas for AI stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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