(BTW at the bottom of this article I share how you can find the top 21 stocks selected by our AI ratings system. However, probably best that you read it all to get a quick primer on what is so special about our AI stock selection model).
Artificial Intelligence (AI) is the hottest concept around.
This truly feels like the late 1990’s all over again with the birth of the internet and how it did indeed change almost every aspect of our lives. At this stage it’s nearly impossible to picture a world without the internet.
Same will prove true for AI.
Gladly there are already profitable applications of AI in the investing space. That includes its inclusion in our proprietary Zen Ratings model.
The background story is that the data analytics firm we hired to create the Zen Ratings has been developing market beating investment strategies for over 20 years.
All that knowledge and wisdom was packed into their AI model which took over 2 years to develop.
Here is what matters…it works!
More specifically the ratings model without the AI factors produced an annual return closer to 28% for the A rated stocks.
Adding in the AI factors boosted those annual returns to +32.52%.
Even better is the improvement in the returns from the past few years.
That’s because AI is meant to get smarter over time. Learning what works…and what doesn’t to find more outperformance as it moves forward.
Indeed that is proving to be the case with the AI packed inside the Zen Ratings and believe it will only get better over time.
For those who want a deeper understanding of how the AI works in our model, I will share with you how our data analytics partner explained it to us:
“(The Zen Ratings model) leverages cutting-edge machine learning technology to enhance its rating system, using a Neural Network model trained on over 20 years of historical fundamental and technical data. This model analyzes patterns and relationships in vast amounts of data that would be impossible for humans to detect, offering a more comprehensive and nuanced view of stock performance.
The AI model incorporates advanced cross-validation techniques, ensuring the system isn’t just optimized for past performance but is robust enough to adapt to future market conditions. Cross-validation helps avoid overfitting, which means the AI isn’t just learning how to excel in specific historical periods—it’s learning to generalize across different types of market environments.
What sets AI factor apart is the ability to combine numerous variables (such as earnings, cash flow, stock price movement, and industry trends) into a singular, actionable insight. For retail investors, this means accessing insights that are grounded in years of data and refined by advanced algorithms to provide a forward-looking perspective on potential stock performance.”
Again, here is what matters…it works!
What to Do Next?
Check out our AI Stock Ideas Screen
Here we combine A/B overall Zen Rating with A/B score for AI to quickly narrow down to 267 attractive stocks.
Free members will be able to see the first 5 of these stocks which is a nice start.
Whereas Premium members will be able to see all the stocks.
Plus they can implement a couple quick tweaks to the screening filters to narrow down to just 21 stocks that only score A for both these vital criteria.
See Top AI rated stocks here >
Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
Editor-in-Chief of WallStreetZen
What to Do Next?
Want to get in touch? Email us at news@wallstreetzen.com.