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The AI revolution could send these two stocks higher
The work of the stock market is a computer game. It is the key to success to get the best information on time and know how to use it. Here are some numbers to think about. According to industry market research, artificial intelligence businesses and products are on the verge of explosive growth. The AI market was valued at $ 9.5 billion in 2018, more than $ 27 billion in 2017 and is expected to exceed $ 250 billion in 2027. AI refers to the use of data to simulate human intelligence processes, including learning, reasoning, and self-correction by machines. AI is coming into almost every industry. Data collection and collection, automation systems from factories to self-driving cars, even online shopping malls – they all benefit from AI applications. And it’s not ignored by Wall Street. Analysts believe that there are many compelling investments within this space. With this in mind, we opened up the TipRanks database to find two AI stocks that received the approval of 5-star analysts. Let’s find out why they recommend these two AI plays. Veritone, Inc. (VERI) The first AI inventory we look at is Veritone, a software industry whose flagship product, an AI-powered operating system called aiWARE, enables the user to coordinate machine learning models and integrate diverse data sources – including audio and video – to feasible intelligence results. The system has an open architecture and is applied in the entertainment, government, legal and media sectors. At the beginning of March, Veritone announced its 4Q20 earnings, with a record quarterly revenue of $ 16.8 million – a year-on-year gain of 35%. The increase was driven by yoy sales in aiWARE SaaS, which rose 53%, and Advertising, which rose 50%. However, Veritone shares fell 49% from the highest value it achieved in February. Investors like the strong financial, but there are concerns about the future leadership of the company. Management predicts a non-GAAP net loss in the region of $ 3.9 million to $ 4.4 million in the first quarter of 21, and although this represents a 38% improvement in the middle of 1K20, investors want well have profit. However, 5-star analyst at Roth Capital Darren Aftahi thinks that this new, lower share price could offer new investors the opportunity to go cheap at VERI. Aftahi views this stock as a well-positioned AI growth story. “VERI has achieved better 4Q results, but more importantly, the acceleration of top-line growth in both AI SaaS and Advertising (both more than 50%). If our assumption that the content and licensing industry returns in 2021 (with moderate growth) in 2021 is correct, it implies its 2021 guide (which was much better by the way) for advertising and AI SaaS is north of 40% growth ( ~ 30% for ads and ~ low 60% for AI). The most important thing is that its AI SaaS line was led to 60-65% growth, which shows a doubling of growth y / y, ”Aftahi noted. Consistent with its comments, Aftahi rates the stock as a buy, and its $ 50 price target implies a 104% growth in the coming year. (To view Aftahi’s record, click here. Overall, with a share price of $ 24.53 and a consensus average price target of $ 38.75, VERI equities offer investors a chance at 58% share growth this year. The consensus rating of the analyst, a moderate buy, is based on 3 buy reviews and 1 sell. (See VERI stock analysis on TipRanks) Verint Systems (VRNT) Verint stock has risen 107% over the past twelve months, with a much of the profit, which rose by 31% at the beginning of February, comes in response to the division of the business into two entities – Cognyte, the cutting-edge path, took over the parent’s intelligence and cyber operations, while Verint continued As a pure, AI-driven customer service, the company uses its combination of marketing experience and AI and analytics products to enable customers to optimize their automation, knowledge and workforce. Verint’s 2021 financial year ends on 31 January, the day before the split, and the m company reported its Q4 results and full year results at the end of March. These results beat expectations for the quarter, with $ 349 million in total revenue – a 3% year-over-year profit. For the full year, however, revenue of $ 1.27 billion was a shadow below the $ 1.3 billion reported in the previous year. The Q4 data predicts for the Verint in its incarnation of pure customer engagement, as the AI cloud sector grew more than 30% year-on-year in that quarter. Ointheimer’s five-star analyst Timothy Horan, who calls Verint a ‘unique venture for AI engagement’, sees the new Verint in a strong position to move forward. “VRNT has generated a solid 4Q21 revenue and is now a pure AI business for customer engagement after its split. VRNT successfully executes the transition to a SaaS / Cloud model. New Permanent License Discussions (PLE) rose 15% this quarter. The transition to licensed sales is difficult, but largely behind, as revenue growth should accelerate from this quarter. The demand for clouds saw a healthy distribution of 50/50 between existing and new customers … ”Horan adds: ‘It has passed the year with a strong momentum in clouds and discussions. We think it can continue to sign big cloud deals in contacts and other verticals. These are optimistic remarks and Horan supports them with a better performance (ie buy) and a price target of $ 60 which indicates room for ~ 32% growth in the next 12 months. (Click here to see Horan’s record.) Overall, there is a broad consensus on Wall Street that Verint is a stock to buy, as shown by the unanimous consensus rating of the strong buy analyst. It is based on 6 recent positive reviews. The stock has an average price target of $ 59.33, indicating an upward potential of ~ 30% from the current trading price of $ 45.50. (See VRNT stock analysis on TipRanks.) To find great ideas for AI stocks that trade at attractive valuations, visit TipRanks’ best stocks to buy, a newly introduced tool that unites all TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the proposed analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.