3 Strong Buys from our AI Model

Artificial Intelligence is — and has been, for some time now — the biggest story in the world of investing. 

Most people tend to focus on the flashy stories, such as the stratospheric valuations and triple-digit gains in the stock prices of AI companies. However, there is an entirely separate dimension of this latest development — and it’s one that has made it into more than just the next big thing in tech.

The ability to crunch vast sums of data, analyze thousands of stocks, and end up with actionable insight — that’s something that has traditionally been the domain of institutional investors. 

AI has democratized that ability to a large extent — now, your average investor has access to research tools that, frankly, would have sounded like sci-fi just 10 years ago.

But not all tools are made equal. 

It’s easy to slap the AI sticker on a tool and call it a day — but the discerning investor is looking for a clear, confirmed track record, a tool that is easy to use, and that can be adapted to a variety of approaches or market outlooks.

If that sounds like something you might be interested in, you ought to take a gander at our…

AI Factor Stock Strategy

Our proprietary quant rating system, Zen Ratings, offers an intuitive way for everyday traders to gain access to professional research-grade intelligence.

By taking into account 115 unique factors that span everything from growth prospects, valuations, and financials to momentum and analyst sentiments, the system provides a complete analysis of the stocks that have the highest likelihood of producing outsized gains.

All you have to do is focus your attention on the stocks that have a Zen Rating of A. That covers roughly 230 stocks, or the top 5% — but if you’d like to narrow the search down even further, you might want to take a look at our Zen Strategies.

There are 11 Zen Strategy portfolios in total — and each one consists of just 7 stocks that have gone through a rigorous selection process.

So — remember how we were talking about AI? 

Each Zen Rating is a composite score derived from 7 Component Grade ratings — one of which is Artificial Intelligence. 

This rating is derived from the findings of a neural network trained on more than two decades of market data. At the end of each quarter, it gets updated data — so it continues to get better and smarter at finding the best stocks as time goes on.

The AI Component Grade rating forms the basis of top-performing strategy, which has an all-time annual return of 48.54%

To boot, it has outperformed the S&P 500 by double digits in all but one year since 2006. Today, we’ll be taking a look at 3 of the stocks in our AI Factor Stock Strategy.

IHS Holding (IHS)

Our first entry for today is in the telecommunications business. IHS ranks in the top 2% of the stocks that we track, and is the 3rd highest-rated stock in its industry. In a quarterly report from two months ago, the company delivered double the earnings per share (EPS) that analysts were expecting — and that wasn’t a one-off.

IHS Holding’s growth trajectory is undeniable — in the past three quarters, we’ve seen EPS growth on a YoY basis of 127%, 102%, and 153%. As a result, the stock has rallied by 102.20% since the start of the year — which places it in the top 5% of equities in terms of Momentum.

But, that’s not all — even with that monster rally accounted for, the stock is trading at a P/E of just 18.91x — so we’re also in the 95th percentile in terms of Value. Best of all? The company’s earnings are expected to grow at double the pace of its industry — and IHS also ranks in the top 9% with regard to Growth.

All of this hasn’t gone unnoticed — the average 12-month price forecast for IHS Holdings shares set by Wall Street sits at $9.85, and implies a hefty 53.19% upside. Finally, our neural network has also given its seal of approval to IHS — per its Artificial Intelligence rating, it’s in the top 7%.

Global Industrial (GIC)

Global Industrial is yet another behind-the-scenes pick. The company sells industrial products and office supplies — and GIC is currently the top-rated stock in its industry. It also happens to be our 5th highest-rated stock overall (out of roughly 4,600). In terms of its AI rating, the stock is in the top 18%.

The latter half of 2024 was rough for the business — but there’s a bit of a turnaround going on, as GIC has managed to outperform analyst estimates by a large margin in the last two quarters by focusing on large, strategic clients. 

Global Industrial has successfully managed to flip the script — as evidenced by the stock’s 43.13% YTD gain. That puts it in the 91st percentile according to Momentum. However, it’s still trading at a P/E of just 19.86x, so it also ranks in the top 25% in terms of Value — while also ranking in the top 19% according to Growth.

Those recent beats have gone a long way in shoring up the company’s already impressive war chest. Global Industrial’s margins have been steadily increasing, while debt has been going down. The most impressive thing about GIC is that it ranks in the top 1% in terms of Financials — so there’s plenty of room to finance new high-margin opportunities and see the course-correction toward large clients through.

Extreme Networks (EXTR)

Our previous entry, GIC, is our 5th highest-rated stock — and our final entry, EXTR, is our 6th highest-rated stock overall. Extreme Networks is a leader in cloud-driven AI networking, and the company is in the middle of an earnings beat streak, having notched five consecutive quarters of outperformance. In the last two quarters, management also raised guidance.

As it happens, our very own neural network has singled out Extreme Networks as a likely outperformer, placing it in the top 7% of stocks in terms of the Artificial Intelligence Component Grade rating.

EXTR ranks in the top 1% of stocks in terms of Growth — and Wall Street seems to be catching on. Rosenblatt researcher Mike Genovese (a top 3% rated analyst) currently issues the Street-high forecast — he believes the stock could reach a price of $25 in the next 12 months, which would equate to a 28.34% rally.

So, to sum it all up — great growth prospects, what’s looking like the start of a beat-and-raise cycle, and a strong balance sheet. That rally that Genovese is anticipating could ignite soon, by the way — in exactly two weeks, the company will release another quarterly report. 

Interested In More Great Stock Picks?

The 3 stocks highlighted above are just a fraction of what you get from our proven AI Factor strategy. 

That’s because each day our system recalibrates — and Zen Strategies members get access to the 7 top AI Factor stocks based on 115 different parameters that point to outperformance. 

See all Top 7 AI Factor stocks here > 

However, maybe stocks based upon AI factors are not your thing. Perhaps you would like to see all 11 of our market beating strategies. Each featuring the top 7 stocks. 

We spell it all out in this timely presentation below:

77 Best Stocks Now! > 

Want to get in touch? Email us at news@wallstreetzen.com.