The list of major corporations includes Apple (NASDAQ: AAPL), Alphabet (NYSE: GOOGL), Microsoft, Meta Platforms, and Amazon.
While the mega-cap class of system stocks will receive the majority of the attention, there are a number of quickly expanding names that are expected to experience strong earnings and sales growth due to the rising demand for their cutting-edge goods and services.
As artificial intelligence and machine learning continue to have promising growth prospects, here are five stocks for owning in advance of their weekly reports.
AI-driven solutions from Palantir (NYSE: PLTR) are anticipated to be a major factor in the company’s future sales growth, especially as companies and governments around the world increasingly rely on sophisticated data-driven decision-making.
The Denver, Colorado-based firm is scheduled to release its fourth-quarter earnings and revenue release on Monday, February 5. Rising demand for its innovative conceptual AI platform, which it calls AIP, is anticipated to boost results.
Experts are growing more optimistic about the information mining expert ahead of the display.
All 12 of the analysts polled over the past 90 days upward revised their income forecast to reveal a gain of 72% from their original estimates, according to an InvestingPro study.
Palantir is required by Consensus to report Q4 earnings per share of $0.07, up 75% from EPS of $0.04 in the same quarter last year.
As a result of the strong demand for Palantir’s data analytics tools and services from both government and commercial clients in the current environment, revenue is expected to rise 18.6% from the year-ago period to $603.5 million.
Due to its amazing gross profit margins, rising gross salary, and promising revenue leads, Palantir is in good financial health, according to ProTips.
ProTips points out that Palantir trades at higher earnings and profit multiples, which highlights the risks of valuation.
Having said that, many assessment models on InvestingPro indicate that PLTR investment appears to be trading at a superior.
The average “Fair Value” for Palantir is $13.89, suggesting a potential drawback of -15.6% from current levels.
The mobile app technology and marketing platform Applovin (NASDAQ: APP), which aids app developers in making money off of their creations, incorporates AI to enhance user engagement and ad targeting.
As AppLovin continues to use AI in the fiercely competitive mobile apps ecosystem, this individualized approach increases user satisfaction and increases ad effectiveness, positioning it for significant sales growth.
When the Palo Alto, California-based technology company releases its fourth-quarter update on February 14, triple-digit revenue growth is anticipated.
Unsurprisingly, a study of researcher earnings revisions by InvestingPro shows that optimism is growing ahead of print, and Wall Street is becoming more and more enthusiastic about the mobile app technology company.
13 analysts have a Buy-equivalent standing on the investment compared to six Hold-similar ratings and one Sell-equivalent rating, and the last three analyst EPS revisions have all been forward.
AppLovin is now profitable at $0.75 per share, up 457% from a loss of -$0.21 during the difficult year-ago period, according to Wall Street. If that is the case, it would be the company’s most successful third in its 12-year story.
However, the software maker’s income is anticipated to rise 32.1% year over year to $927.7 million, primarily as a result of the powerful roll-out of its most recent AI-based advertising engine.
ProTips points out that AppLovin is in excellent financial health due to strong revenue and profit growth leads, combined with its beautiful pricing, demonstrating the power and endurance of its business.
It also mentions that administration has actively repurchased stocks.
In fact, the InvestingPro unit indicates that the current assessment of APP stock suggests that it is a deal. A +30.1% increase from last night’s closing price is possible, bringing it closer to its “Fair Value” set at $57.32 per share.
A cloud data platform called Snowflake (NYSE: SNOW) uses AI and machine learning to manage information processing, find insightful perspectives, and improve decision-making.
Snowflake’s AI-driven capabilities are anticipated to fuel its sales growth as businesses significantly adopt cloud-based solutions, meeting the growing demand for robust and effective data management solutions.
When it reports fourth-quarter financial results on Thursday, February 29, the Bozeman, Montana-based information sky business is expected to deliver violent revenue and profit growth.
According to an InvestingPro review, earnings estimates have increased 24 times over the past three months, compared to only five upward revisions, as Wall Street gains more confidence in the data logistics industry.
For the final three months of 2023, Snowflake’s earnings per share are anticipated to be $0.17, an increase of 21.4% from the EPS of $0.14 from last year, according to consensus estimates from Investing.com.
Due to an anticipated increase in consumption from large corporations for its cloud-based data warehouse applications, revenue is expected to increase 28.8% year over year to $758.5 million.
That would be Snowflake’s highest quarterly sales complete in its story, if confirmed.
ProTips from InvestingPro paints a generally favorable picture of Snowflake, highlighting its spotless balance sheet and promising sales growth prospects.
However, as ProTips points out, there are doubts about assessment and worries that the investment will be overvalued by warrant investors.
According to InvestingPro, SNOW stock may actually experience a -9.9% decline from its current market value, bringing shares even closer to their $185.59 “Fair Value.”
Leading identity and access management company Okta (NASDAQ: OKTA) is utilizing AI to improve security procedures and simplify user authentication.
This AI-driven strategy strengthens Okta’s services and positions the business to meet the rising demand for sophisticated identification management solutions.
When it releases third-quarter results on Thursday, February 29, the identity-and-access management specialist based in San Francisco, California, is anticipated to report solid double-digit profit and sales growth.
According to an InvestingPro study, Wall Street is very upbeat about the Q4 release, with researchers raising their EPS estimates 36 times in the last three months to reveal a gain of about 250% from their original expectations.
According to forecasts, Okta will earn $0.51 per share, up 70% from a $0.30 profit in the same period last year. If that is the case, it would be the most successful fourth since Okta went public in April 2017.
As a result of the company’s strong demand from large corporations for its cloud-based identity and access management applications, revenue is expected to increase 15.1% year over year to $587.2 million.
According to InvestingPro’s ProTips, Okta has a share profile that is largely beneficial, with various optimistic tailwinds working in its favor, such as an impressive balance sheet, robust free cash flows, and an expectation of high profitability.
Additionally, it’s important to note that OKTA stock will gain +20.1% over the following 12 months, bringing shares closer to their $101.46 “Fair Value” price target.
SentinelOne (NYSE: S), a leader in security, incorporates AI into its program to provide cutting-edge threat detection and response abilities.
SentinelOne’s AI-centric strategy improves its capacity to offer cutting
-edge solutions, boosting its planned sales growth as the cybersecurity landscape changes quickly.
On Wednesday, March 13, the Mountain View, California-based cybersecurity company is scheduled to release its third quarter financial results, and sell-side confidence is at an all-time high.
According to InvestingPro, EPS estimations have undergone 22 higher revisions in the last 90 days as a sign of growing optimism. This is due to increased security spending in light of the widespread increase in cyberattacks.
As the protection software company continues to move closer to success, Consensus estimates call for a loss of -$0.04 per share for the third quarter, narrowing significantly compared to -$0.13 in the year-ago time.
Profit is anticipated to increase by 34.3% year over year to $169.4 million, despite significant security spending as a result of the complicated geopolitical environment.
SentinelOne has a number of favorable trends that are working in its favor, such as an optimistic development view and improved profitability styles, which are highlighted in InvestingPro’s ProTips.
However, ProTips’ mention of the security company’s increased income valuation multiple raises worries.
It is important to note that SentinelOne’s stock currently appears to be reasonably valued, according to the statistical models in InvestingPro, which indicate a potential benefit of just 3.7% from their current market value.
To keep informed about the market trend and what it means for your buying, make sure to check out InvestingPro. It’s important to do extensive research before making any judgments, just like with any purchase.
By offering a thorough analysis of undervalued stocks with the potential for significant market back, InvestingPro helps investors make informed decisions.
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Disclosure: As of right now, I am heavily invested in the S&P 500, the Nasdaq 100, and the Invesco QQQ Trust ETF. On the Technology Select Sector SPDR ETF (NYSE: XLK), I’ve been active for a while.
Based on continuing risk assessments of both the economic environment and businesses’ finances, I often rebalance my portfolio of individual securities and ETFs.
The opinions expressed in this article are only the author’s personal judgment and should not be interpreted as investment advice.
