Don’t Miss the Boom: 3 Machine Learning Stocks Set to Explode Higher
The United States has been facing a confluence of threats that risk more turbulence. Currently, there are several potential challenges to contend with, including the prospect of extended autoworkers, strikes, the possibility of a prolonged government shutdown, the restart of student loan payments and the escalation of oil prices. Together all of these things create a damaging force, especially given the optimistic ‘soft landing’ that the Federal Reserve hoped for. According to Gregory Daco, chief economist at EY-Parthenon: “It’s that quadruple threat of all elements that could disrupt economic activity.” However, these tests on the resilience of our economy will not cause any real harm and in fact, for a short period only, will open the door to catch these machine learning stocks that are set to explode in growth once the economy catches its footing again.
Alteryx Incorporated (AYX)
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Alteryx Incorporated (NYSE:AYX) is a SaaS company that specializes in developing software used for data science and analytics. Yahoo! Finance’s analysts predict a 1-year price range on AYX stock between $30.00 and $64.00.
Alteryx shows healthy financials with $188 million in revenue for Q2 2023 growing 3.8% YoY. The company has demonstrated its superior profitability through an 85.9% gross profit margin and a $10.7 million FCF growing at a 144.6% 1-year CAGR. Management can strongly grow capital with $1.73 billion in total assets, improving 18.5% YoY.
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One driving factor for future growth is the partnerships forged this year. Alteryx is expanding its partnership with Alphabet’s (NASDAQ:GOOGL, NASDAQ:GOOG) Google Cloud to improve the speed of analytics services for businesses using Google Cloud. This further improves the efficiency and productivity of business customers. Global business consulting firm Protiviti has also partnered with Alteryx to utilize its analytics software with machine learning capabilities. Protiviti will be able to apply insights from Alteryx’s analytics software to improve the solutions developed for clients.
New developments from Alteryx also is another growth catalyst. Using Amazon’s (NASDAQ:AMZN) AWS, Alteryx has developed Smart Finance Automation Software to help clients adapt financial analysis to changing market conditions. This software is predicted to save up to $6 million dollars in costs for clients, reducing operational expenditures significantly. Alteryx recently launched AiDIN, a ML and generative AI engine that enhances analytics cloud platforms. It automates data summaries, facilitates customization for clients and streamlines workflow audits for users.
AYX is a stock that prospective investors do not want to miss because of its healthy financials, multiple partnerships and new SaaS developments.
Netflix (NFLX)
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Netflix (NASDAQ:NFLX) is a subscription-based streaming service featuring a vast library of original and licensed TV shows and movies. Analyst at Yahoo! Finance forecast a 1-year price range for NFLX of $293.00 to $600.00.
The video streaming market is projected to reach $842.93 billion by 2027 from a 12.0% CAGR since 2020. GlobeNewswire’s report assesses key players, growth strategies, factors driving market growth and technological influences in regions worldwide.
NFLX reported robust Q2 2023 financials as revenue totaled to over $8.2 billion. Net profit margin stands at 10.5%, showcasing significant improvement YoY. The company anticipates a minimum $5 billion FCF this year, a significant increase from the previous $3.5 billion estimate.
Despite a recent slowdown in subscriber growth, Netflix remains an attractive investment. According to MoffettNathanson’s projections, Netflix is poised for international expansion, likely reaching over 360 million subscribers by 2025. A significant portion of Netflix’s revenue is generated in Asian markets, such as India and Japan. Netflix is a wise investment due to its strategy of tailoring by regional preference, while also creating universally appealing shows. Additionally, the recent ban on password sharing, coupled with a more affordable ad-supported plan, has gained popularity with nearly 5 million subscribers.
With robust financials and positive community feedback in international expansionary efforts, NFLX stock is a sound long-term investment choice.
Oracle Corporation (ORCL)
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Oracle Corporation (NYSE:ORCL) is a computer technology corporation best known for its software products such as Java, whose flagship product is its database.
ORCL stock is up 24.67% YTD and has been maintaining this strong growth. Although revenue missed analyst expectations by 0.14%, it still grew at a remarkable 16.86% YoY. Diluted EPS of $1.18 beat analyst expectations by growing 4.08% YoY. In addition, a net income of $3.32 billion grew 4.08% YoY. Overall, the numbers indicate that Oracle will be a profitable and worthwhile stock in the long-term.
Additionally, Oracle prioritized growing its global presence through a partnership with Telefonos de Mexico (OTCMKTS:TMXLF). This collaboration entails the delivery of Oracle Cloud Infrastructure services to organizations throughout Mexico.
Yahoo! Finance reports 26 analysts having a 12-month mean price target of $128.23 on ORCL stock, with the range spanning from $55.00 to $150.00. Overall, ORCL is a solid option in machine learning stocks to buy.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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