TipRanks
Working the stock market is a data game. Getting the best information, in a timely way, and knowing how to use it, are keys to success. So, here are some numbers to think about. According to industry market research, artificial intelligence companies and products are on the verge of explosive growth. The AI market was valued at $9.5 billion in 2018, over $27 billion in 2019, and is projected 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 making its way into almost every industry. Data collection and collation, automation systems from factories to self-driving cars, even online shopping site they all benefit from AI applications. And this has not been ignored by Wall Street. Analysts say that plenty of compelling investments can be found within this space. With this in mind, weve opened up TipRanks database to find two AI stocks that have gotten the seal of approval from 5-star analysts, stock pros rated among the top 3% of their peers. Lets find out why they recommend these two AI plays. Veritone, Inc. (VERI) The first AI stock we're looking at is Veritone, a software company whose flagship product, an AI-powered operating system called aiWARE, allows the user to coordinate machine learning models and integrate disparate data sources including audio and visual into actionable intelligence results. The system boasts an open architecture, and has been applied in the entertainment, government, legal, and media sectors. At the beginning of March, Veritone released its 4Q20 earnings, showing record quarterly revenue at $16.8 million a year-over-year gain of 35%. The increase was driven by yoy sales gains in aiWARE SaaS, which was up 53%, and Advertising, which was up 50%. However, Veritone stock saw a 49% fall from the peak value it hit in February. Investors liked the strong financials, but there is some worry about the companys future guidance. Management is predicting a non-GAAP net loss in the range of $3.9 million to $4.4 million in 1Q21, and while that represents a 38% improvement at the mid-point from 1Q20, investors do want to see a profit. Roth Capital's 5-star analyst Darren Aftahi, however, thinks this new, lower stock price could offer new investors an opportunity to get into VERI on the cheap. Aftahi sees this stock as a well-positioned AI growth story. VERI put up better 4Q results, but more importantly, accelerating topline growth in both AI SaaS and Advertising (both over 50%). If our assumption about its Content and Licensing business returning to 2019 levels (with modest growth) is correct in 2021, it implies its 2021 guide (which was much better by the way) for advertising and AI SaaS is north of 40% growth (~30% for Advertising and ~low 60%s for AI). Most importantly, its AI SaaS line was guided to 60-65% growth, showing a doubling of growth y/y, Aftahi noted. In line with his comments, Aftahi rates the stock a Buy, and his $50 price target implies growth of 104% in the year ahead. (To watch Aftahis track record, click here) All in all, with a share price of $24.53 and a consensus average price target of $38.75, VERI shares offer investors a chance for 58% share growth this year. The analyst consensus rating, a Moderate Buy, is based on 3 Buy reviews and 1 Sell. (See VERI stock analysis on TipRanks) Verint Systems (VRNT) Verint stock has appreciated 107% over the last 12 months, with a large part of that gain coming in a 31% jump at the beginning of February. That jump came in reaction to the companys split into two entities Cognyte, the spin-off, took on the parents intelligence and cyber operations, while Verint continued as a pure-play, AI-powered customer engagement service. The company uses its combination of market experience and AI and analytic products to enable customers to optimize their automation, knowledge, and workforce. Verints fiscal year 2021 ended on January 31, the day before the split, and the company reported its Q4 and full year results at the end of March. Those results beat expectations for the quarter, with $349 million in total revenue a 3% year-over-year gain. For the full year, however, the $1.27 billion in revenue was a shade below the $1.3 billion reported in the previous year. The Q4 data bodes for the Verint in its pure-play customer engagement incarnation, as those AI cloud sectors grew more than 30% year-over-year in that quarter. Calling Verint a "unique AI engagement company," Oppenheimer's 5-star analyst Timothy Horan sees the new Verint in a strong position to move forward. VRNT reported solid 4Q21 earnings and is now a pure play customer engagement AI company following its split. VRNT is successfully executing its transition to a SaaS/ Cloud model. New perpetual license bookings (PLE) was up 15% this quarter. The transition away from licensed sales is difficult but largely behind it as revenue growth should accelerate from this quarter onward. Cloud demand has seen a healthy 50/50 split between existing and new customers. Getting to the bottom line, Horan adds, It exited the year with strong momentum in cloud and bookings. We think it can continue to sign large cloud deals across contact center and other verticals. These are upbeat comments, and Horan backs them with an Outperform (i.e., Buy) rating, and a $60 price target indicating room for ~32% growth in the next 12 months. (To watch Horans track record, click here) Overall, there is broad agreement on Wall Street that Verint is a stock to Buy, as shown by the unanimous Strong Buy analyst consensus rating. This is based on 6 recent positive reviews. The shares have an average price target of $59.33, suggesting ~30% upside potential from the current trading price of $45.50. (See VRNT stock analysis on TipRanks) To find good ideas for AI stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights. 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.
Continue reading here:
Rockwell Automation Stock Appears To Be Significantly Overvalued - Yahoo Finance
- The Automation Conference - December 9th, 2016 [December 9th, 2016]
- The Best Home Automation Systems of 2016 | Top Ten Reviews - December 24th, 2016 [December 24th, 2016]
- Compact Automation - Actuators, Hydraulic Cylinders, Linear ... - December 24th, 2016 [December 24th, 2016]
- What is Home Automation? | Home Automation Systems - December 24th, 2016 [December 24th, 2016]
- Job Seekers - Automation Personnel Services - December 24th, 2016 [December 24th, 2016]
- iAutomation - December 25th, 2016 [December 25th, 2016]
- Beyond Automation - hbr.org - December 25th, 2016 [December 25th, 2016]
- Automation The Car Company Tycoon Game on Steam - December 25th, 2016 [December 25th, 2016]
- Automation - Wikipedia - December 25th, 2016 [December 25th, 2016]
- Build automation - Wikipedia - December 26th, 2016 [December 26th, 2016]
- Home - Enerwave Home Automation - December 27th, 2016 [December 27th, 2016]
- Automation | Technologies | Systems | Integrator ... - December 27th, 2016 [December 27th, 2016]
- Automation - DESHAZO - December 27th, 2016 [December 27th, 2016]
- Custom Automation & Machine Design | Automation GT - December 27th, 2016 [December 27th, 2016]
- IT Automation - BMC - December 27th, 2016 [December 27th, 2016]
- Werner Electric | Automation - January 28th, 2017 [January 28th, 2017]
- Automationtechies | Automation Engineering Recruiting - January 28th, 2017 [January 28th, 2017]
- Automation - Mazak Corporation - January 28th, 2017 [January 28th, 2017]
- Automation | Food Engineering - January 28th, 2017 [January 28th, 2017]
- Test Automation Services for Development of Regression ... - January 28th, 2017 [January 28th, 2017]
- UI Automation Overview - msdn.microsoft.com - February 5th, 2017 [February 5th, 2017]
- The Evolution of Automation and What It Means for the Integration Industry - Commercial Integrator - February 7th, 2017 [February 7th, 2017]
- Automation, robots could replace 250000 public sector workers in the next 15 years - Computer Business Review - February 7th, 2017 [February 7th, 2017]
- New telecom transformation goals require service automation - TechTarget - February 7th, 2017 [February 7th, 2017]
- Automation expected to displace insurance underwriters, real estate brokers - CIO Dive - February 7th, 2017 [February 7th, 2017]
- The Perks Of Automation And The Risks: Why To Think Twice About Getting Into That Driverless Uber - Forbes - February 7th, 2017 [February 7th, 2017]
- Voices Reinventing enterprise finance by overhauling AP automation - Accounting Today - February 7th, 2017 [February 7th, 2017]
- DFLabs Launches the First Security Automation and Orchestration Platform based Upon Supervised Active Intelligence - Business Wire (press release) - February 7th, 2017 [February 7th, 2017]
- VIDEO: Going Big on Automation in a Small Footprint Facility - ENGINEERING.com - February 7th, 2017 [February 7th, 2017]
- Building a better model of human-automation interaction - Phys.org - Phys.Org - February 7th, 2017 [February 7th, 2017]
- Cruise Automation Is Testing an App For Hailing Self-Driving Cars - Fortune - February 8th, 2017 [February 8th, 2017]
- AlixPartners examines automation in manufacturing and logistics management - Logistics Management - February 8th, 2017 [February 8th, 2017]
- Women need to look out for each other in automated workplaces - The Guardian - February 8th, 2017 [February 8th, 2017]
- Automation vs. the H-1B visa program: Which matters to employees? - TechTarget - February 8th, 2017 [February 8th, 2017]
- Automation is the unavoidable future of the economy - The Daily Cougar - February 8th, 2017 [February 8th, 2017]
- Speeders beware: Legislation would allow automation crackdown ... - SFGate - February 9th, 2017 [February 9th, 2017]
- Robots versus bureaucrats: Why public sector work is ripe for automation - Financial Post - February 9th, 2017 [February 9th, 2017]
- Rockwell Automation Surged 10% in January as Growth Picked Up Steam - Motley Fool - February 9th, 2017 [February 9th, 2017]
- Global Medical Automation Market to Reach Approximately $75.6 Billion by 2025 - By End User, Application ... - PR Newswire (press release) - February 10th, 2017 [February 10th, 2017]
- Automation 'key' to advancing Thai production - The Nation - February 10th, 2017 [February 10th, 2017]
- WorkWave Releases New Lead Management And Marketing ... - PR Newswire (press release) - February 10th, 2017 [February 10th, 2017]
- 'We employ insane levels of automation' Kris Canekeratne - Times of India - February 10th, 2017 [February 10th, 2017]
- Most people are optimistic about workplace automation, social data suggests - ZDNet - February 10th, 2017 [February 10th, 2017]
- Yes, there's a job creation argument for automation and technology ... - The Hill (blog) - February 10th, 2017 [February 10th, 2017]
- Technobabble: Automation and the modern worker - CIO Dive - February 10th, 2017 [February 10th, 2017]
- Improving Behavior Through Automation of Vehicle Systems - School Transportation News (blog) - February 11th, 2017 [February 11th, 2017]
- Automation Nightmare: Philosopher Warns We Are Creating a World Without Consciousness - Big Think - February 11th, 2017 [February 11th, 2017]
- Why Don't We See More Automation in Federal Networks? - Nextgov - February 11th, 2017 [February 11th, 2017]
- Automation can revitalize the US workforce - Fox News - February 11th, 2017 [February 11th, 2017]
- Readers Write (Feb. 12): The moose population; jobs, start-ups and automation; diversity in the funny pages - Minneapolis Star Tribune - February 12th, 2017 [February 12th, 2017]
- Automation can replace bureaucrats and save taxpayers money - Hot Air - February 12th, 2017 [February 12th, 2017]
- TigerStop hopes to ride automation to new heights - The Columbian - February 12th, 2017 [February 12th, 2017]
- Your Most Valuable Resource is Time Get More of it through Automation - CMS Critic (press release) (blog) - February 13th, 2017 [February 13th, 2017]
- What Does Device Automation Mean for Users? - Medical Device and Diagnostics Industry (blog) - February 13th, 2017 [February 13th, 2017]
- How To Beat Automation And Not Lose Your Job - Forbes - February 13th, 2017 [February 13th, 2017]
- Logistics firm gets automation boost - The Straits Times - February 14th, 2017 [February 14th, 2017]
- PP Control & Automation launch new video to kick-start exciting plans for 2017 - Manufacturer.com - February 14th, 2017 [February 14th, 2017]
- Automation's Impace on Data Center Monitoring Alerts - The Data Center Journal - February 14th, 2017 [February 14th, 2017]
- Hollysys Automation Technologies Reports Unaudited Financial Results for the First Half Year and the Second Quarter ... - PR Newswire (press release) - February 15th, 2017 [February 15th, 2017]
- 4 Automation Hacks to Save You Money and Manpower - Yahoo Finance - February 15th, 2017 [February 15th, 2017]
- Istuary Innovation Group and Bluewrist Partner to Bring Robotics and Automation into China's Manufacturing Sector - Yahoo Finance - February 15th, 2017 [February 15th, 2017]
- Redwood Software Named a Strong Performer in Independent Robotic Process Automation (RPA) Report - Yahoo Finance - February 15th, 2017 [February 15th, 2017]
- Boeing ramps up automation, innovation as it readies 737MAX | The ... - The Seattle Times - February 15th, 2017 [February 15th, 2017]
- Robots and AI are coming for our jobs, but can augmentation save us from automation? - Digital Trends - February 15th, 2017 [February 15th, 2017]
- The Impact of Bad Data in Automation: Why Quality Management is Critical - R & D Magazine - February 16th, 2017 [February 16th, 2017]
- Automation: Are We Empowering Human Interaction Or Displacing It? - Business 2 Community - February 16th, 2017 [February 16th, 2017]
- Life in the Fast LaneAutomation with Software-Defined Intelligence - InfoWorld - February 16th, 2017 [February 16th, 2017]
- Luddite Lefty Journalists Apparently Think Workplace Automation is Conservatives' Fault [VIDEO] - Daily Caller - February 16th, 2017 [February 16th, 2017]
- Will automation define the future of network technology? - TechTarget - February 16th, 2017 [February 16th, 2017]
- Editorial: Improving automation - The Motorship - February 17th, 2017 [February 17th, 2017]
- TigerText Unveils Role-based Scheduling Automation, Amazon Alexa integration - HIT Consultant - February 17th, 2017 [February 17th, 2017]
- 89% people want automation at workplace: Adobe - Economic Times - February 18th, 2017 [February 18th, 2017]
- Delta veers to EV parts, automation - Bangkok Post - February 18th, 2017 [February 18th, 2017]
- Robotic process automation makes nearshore outsourcing more ... - CIO - February 18th, 2017 [February 18th, 2017]
- The working-class job that Trump could save from automation - Washington Post - February 18th, 2017 [February 18th, 2017]
- China must be ready for automation - Basic Income News - February 18th, 2017 [February 18th, 2017]
- Bill Gates Says Robots Should Be Taxed Like Workers - Fortune - February 18th, 2017 [February 18th, 2017]
- Trump and automation challenge India's IT industry - VentureBeat - February 18th, 2017 [February 18th, 2017]
- Both Trump and Automation Are Challenging India's IT Industry - Fortune - February 20th, 2017 [February 20th, 2017]
- 89% people want automation at workplace: Adobe - ETCIO.com - February 20th, 2017 [February 20th, 2017]