TipRanks
AI is here; 3 ‘strong buy’ actions that benefit
Hi tech is the cool kid in the investment sectors, offering an unbeatable combination of high-end chic and long-term stock market returns. It’s understandable; our digital world has clearly surpassed a point of no return in integrating technology with our daily lives. Technology companies, whether large or small, are clearly in a position to profit from this trend, offering products and innovations that will facilitate and expand the growth of our high-tech footprint. Artificial Intelligence, or AI, is at the forefront of the technological wave. AI systems, which allow machines to learn from experience, adapt to change and process more information faster than ever before, are driving the evolution of technology. New AI systems are enabling autonomous vehicles, personalizing sales and marketing and accelerating the networked systems that hold the digital universe together. From an investor’s point of view, companies that are building and using AI systems are now in a position to make gains in the near future. AI is here and will only expand its presence. With that in mind, we opened the TipRanks database to obtain information on three “strong buy” actions, according to the community of analysts, who are making profitable use of AI technology and competing for positions from the beginning. iCAD, Inc. (ICAD) We will start in the medical technology segment, where iCAD produces solutions, including advanced image analysis, radiation therapy and workflow to facilitate early identification and treatments for cancer. ICAD offers a comprehensive hardware and software platform. The company’s ProFound AI Risk tool is an integrated platform that streamlines the diagnosis and treatment of breast cancer; 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 powered platforms use common diagnostic tools and improve their accuracy. It is part of a natural trend in medical technology, with greater integration of tools and treatments. The field, like much of the medical industry, is growing, and iCAD reported $ 10.5 million in revenue in 4Q20, a 47% sequential gain, which was driven by a 70% sequential gain in product revenue from ProFound AI. Compared to the previous year, quarterly revenue grew by 11%, and sales of ProFound AI, in particular, increased by 21%. Covering these actions for Oppenheimer, analyst François Brisebois sees ProFound AI as a powerful winner for the company. “We believe that growing investors will be rewarded over the years, as ICAD gains even more participation in a growing TAM, providing transformative AI-driven breast cancer detection products, as well as targeted and efficient solutions. of cancer therapy (quality over quantity). We believe that ICAD represents an attractive vehicle for investors seeking exposure to biotechnology innovation themes and AI data growth waves. Ultimately, although ProFound AI Risk is in its early stages of launch, we believe it represents a great example of the potential of AI in changing treatment paradigms, “Brisebois opined. Unsurprisingly, Brisebois classifies ICAD as Outperform (ie, Purchase), along with a target price of $ 27. This figure implies an increase of 63% in one year. (To see Brisebois’ history, click here) Strong Buy’s unanimous consensus rating on ICAD shares shows that Wall Street is in agreement with the Oppenheimer analyst; there are 7 buy-side classifications for ICAD shares. The average target price of $ 21.57 implies an increase of 30% compared to the trade price of $ 16.55. (See ICAD stock analysis at TipRanks) Baidu, Inc. (BIDU) Not all high-tech AI stocks are based in the USA. Shifting our view to China, we will take a look at Baidu, the Asian giant’s largest search engine. In fact, Baidu is the largest Internet search platform in the world’s largest language, used daily by more than 1.3 billion people. Baidu has a huge user base, and just because Western and Chinese internet systems are not interconnected, that does not mean that Western investors should ignore BIDU’s actions. Baidu’s earnings are driven by a series of initiatives. The company benefits, like Google, from placing targeted ads on the search platform, ads that are powered by AI software. In addition, Baidu has been expanding the potential of its AI, moving to 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 earnings and revenues for 4Q20, with slightly mixed results. Net revenue stood at US $ 4.6 billion, just below the forecast of US $ 4.7 billion, but still increased 12% year on year; EPS, on the other hand, at $ 3.08, fell 25% year-on-year, despite exceeding the forecast by more than 10%. Among the bulls at BIDU is Fawne Jiang, a 5-star analyst at Benchmark, who writes: “BIDU is making great strides by monetizing new AI initiatives, including smart transportation and driving, that should fuel the company’s long-term growth. We believe that BIDU is well positioned to become a significantly expanded TAM, taking advantage of opportunities for cloud growth, smart transportation, smart driving and other AI initiatives. ”In line with these optimistic comments, Jiang classifies BIDU as a purchase and sets a target price of $ 385, which indicates confidence in a 65% upside potential. (To see Jiang’s history, click here) With 14 recent buy ratings, as opposed to just 4 arrests, BIDU’s shares have gained a strong buy from analysts’ consensus. The stock is selling for $ 232.68, and its average price target of $ 343.44 implies a ~ 48% increase from that level. (See BIDU stock analysis at TipRanks) Five9 (FIVN) Let’s take a look at the cloud now, where Five9 offers a scalable contact center platform using AI cloud technology. Contact centers have been a segment of successful growth for the past few decades, and cloud computing has changed the way we use software. AI, by making computers smarter and data analysis faster, more efficient and more accurate, has revolutionized both; Contact centers using ‘smart’ AI clouds can track and route calls, process information and direct callers and service agents to each other more quickly for better results. In 4Q20, the most recent report, the company presented a 39% growth in revenue year on year, to US $ 127.9 million – a company record. EPS, however, was negative, with the loss reaching 11 cents per share. This was an unfortunate turnaround in the 1 cent EPS profit recorded in the previous year’s quarter. On a more positive note, the company ended 2020 with $ 67.3 million in operating cash flow, an increase of 31% over the previous year. Also of interest to investors, Five9 announced on March 4 that it was selected as a cloud computing provider for CANCOM, a leading IT company in the UK. The partnership makes Five9 the platform that CANCOM will use to expand its call center services and gives Five9 a strong position in the European market. Weighing Craig-Hallum, 5-star analyst Jeff Van Rhee noted: “Digital transformations have been driven at high speed by COVID and the genius is not returning to the bottle. In addition, FIVN has been very aggressive in recent years, migrating to the public cloud across the stack and in layers in excellent AI resources. It has been observed that the demand for AI plays an extremely important role in many of the largest businesses … there is little doubt about the timing, performance and opportunities remaining for FIVN. ”Van Rhee places a Buy rating on the stock, along with a target price of $ 215, implying a 40% appreciation in one year. (To see Van Rhee’s history, click here) Once again, we are looking at strong buying stock. The analyst consensus rating here 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, resulting in a 12-month high of ~ 32%. (See FIVN’s stock analysis at TipRanks) To find good ideas for trading AI stocks with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that gathers all the information about TipRanks stock. Disclaimer: The opinions expressed in this article are exclusively those of the analysts presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investment.