14 AI Stocks to Stay Away From
Artificial intelligence (AI) sounds vague, but the reality is it is just a computer that mimics human cognition. This allows it to be used in areas like robotics, machine learning, linguistics, and even psychology and philosophy! It’s also why AI is for more than a tool for just the tech sector.
So, in today’s Market360, I’ll share how three different sectors use AI and a list of 14 companies that incorporate AI that I wouldn’t touch with a 10-foot pole.
Let’s get to it!
1. Transportation
One well-known use of AI technology is in self-driving cars as auto manufacturers race to develop the first truly self-driving car. Currently, none of the “self-driving” cars on the road are fully autonomous; they still need the driver behind the wheel. Eventually, though, the car will be able to drive in any condition, so the drivers will be able to sit back and relax, thanks to AI.
This might sound unsafe, but it’s actually quite the opposite. According to the NHTSA, 94% of serious car accidents were caused by human mistakes (i.e., texting, falling asleep at the wheel, drinking and driving). Out of that 94%, a whopping 1.25 million people died in those accidents. This equates to about 3,287 deaths a day! If you remove the human element, self-driving cars are expected to reduce car-related deaths by up to 94%. That would be more than 350,000 lives saved over the next 10 years in the United States alone.
2. Manufacturing
The speed of AI, which provides real-time updates with no lag allows for real-time monitoring, helps with a wide array of manufacturing tasks. This includes production bottlenecks and on-time delivery. About 30% of AI technology in the manufacturing sector are for maintaining machinery and production.
3. Healthcare
The healthcare industry’s uses of AI technology have been vital. From autonomous surgical robots, automated image diagnosis and advanced data processing of huge amounts of information that helped roll out vaccines faster, AI in the healthcare sector is a hugely important tech advancement.
And if you thought that robotic surgery is still years and years away, you’d be wrong. Last year, over 15% of all surgeries were robotic! This ranged from general surgery to neurology to even dental implants.
Bottom line: Artificial intelligence isn’t just for the tech companies; it can be used for a variety of sectors.
But does a company that uses AI automatically make it a great stock investment? Absolutely not. The reality is a company has to have strong fundamentals in order to succeed over the long term.
With that in mind, let’s take a look at some AI-related stocks that are not worth your time and money.
All of the companies above utilize AI in some form. Large airlines, like Southwest Airlines Co. (NYSE:LUV) use AI to optimize customer relations, social media analysis, and air safety and fuel optimization.
Health technology companies like Biogen Inc. (NASDAQ:BIIB) and Boston Scientific Corporation (NYSE:BSX) use AI to help treat patients. In addition, Biogen has actually teamed up with an analytics company to create an easy to comprehend database of the company’s drugs and their uses for customer service reps who need to talk to physicians about them.
AT&T Inc. (NYSE:T) is using AI to assist with customer interactions, advertising, its software-defined network and next-gen technologies. Other communications companies like Anterix Inc. (NASDAQ:ATEX) optimize their business by using the analytic and automation power of AI.
TeleNav, Inc. (NASDAQ:TNAV) and similar technology services companies use AI and machine learning to develop algorithms that help other companies. One example is TeleNav’s connected car and location-based platform services, which help create more accurate maps for vehicles and other GPS services.
Even older companies like Xerox Holdings Corporation (NYSE:XRX) incorporate AI through automatically generated workflow assistants and smart algorithms to help with direct mail and job submissions that are more relevant to each individual.
But as you can see, they rate poorly in Portfolio Grader. Each company receives an F-rating for its Total Grade, making them all “Strong Sells.” Simply put, even though all of these companies utilize AI to optimize their business, their fundamentals are sorely lacking.
How I Use AI to Find the Best Stocks
Now I don’t want to scare you away from the AI stocks — far from it! Investing in AI stocks or AI-related companies that use it can be very lucrative. If you get it right, you can make a fortune. I just want you to be aware that just because a company has an AI element to it doesn’t automatically make it a buy. It’s why it’s so important that you invest in fundamentally superior companies.
If you’re not sure where to look, that’s okay. My Project Mastermind system, which uses AI to find high-quality stocks, can do that for you. This system finds lesser known but fundamentally superior stocks that are well-positioned for major growth ahead, several of which are profiting from the AI revolution.
Project Mastermind uses eight key qualities to uncover fundamentally superior stocks. These are super-performing stocksset to dominate their industries. (Click here to learn more about how it works.)
Of course, I’m not interested in just AI stocks. After all, there are thousands of stocks to choose from! So, what’s great about my Project Mastermind system is that it sifts through those stocks and finds the crème de la crème — companies with strong fundamentals and growing sales and earnings, as well as positive guidance.
Speaking of which, my Project Mastermind system just flagged two new fundamentally superior stocks for my Accelerated Profits Buy List. Both stocks recently reported triple-digit earnings grow for the most-recent quarter and posted double-digit earnings surprises. Even better: Both companies also have triple-digit forecasted earnings growth.
These stocks have trekking nicely higher in recent weeks, but it’s not too late to jump in. Both names are still under my buy limit prices, so now is the time to join Accelerated Profits before these stocks really take off.
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And for full details on my Project Mastermind system, you can watch a special video briefing here. I gave everyone a glimpse at my system and revealed my number-one stock pick. This company smashed analysts’ expectations for its most-recent quarter, reporting a whopping 76.9% earnings surprise and 9.5% sales surprise. Get the name by clicking here.
Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owned the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
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Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
