The 3 Best Value AI Stocks to Buy Right Now
In 2023, it is impossible to have no knowledge about artificial intelligence () everywhere. When a new trend is imposed on the market, many ambitious investors want to snap up options as soon as they arise. But, instead of immediately giving in to the FOMO, we must analyze all the existing stocks thoroughly. If you do not want to be left out of this trend, here are three options of the best value AI Stocks.
Due to being undervalued, I consider them to be quality stock options. I’d recommend including them in your AI stocks portfolio for this July 2023:
Zebra Technologies (ZBRA)
Zebra Technologies (NASDAQ:ZBRA) creates smart solutions to connect data, assets and people, thereby helping businesses improve operations. The company’s product range includes barcode scanners and mobile computers, making inventory and workflow management easier.
In Q1 2023, Zebra reported sales of $1.4 billion, slightly lower than the previous year. However, it managed costs effectively, boosting its profit margin. Innovation is at the heart of its approach, using AI to analyze data, empowering businesses’ decision making and productivity.
One of Zebra’s latest innovations is the TC22/TC27, a powerful mobile computer designed for various organizations. This remarkable device caters to businesses, including smaller ones, in sectors like retail, logistics and field services. It offers advanced scanning capabilities and a hybrid point of sale solution. The TC22/TC27 is easy to manage without complicated IT processes.
For hospitality and entertainment businesses, it supports Apple (NASDAQ:AAPL) VAS and Google (NASDAQ:GOOGL, NASDAQ:GOOGL) Smart Tap, simplifying ticket validation and membership checks stored in mobile wallets. With this launch, Zebra demonstrates its commitment to providing intelligent business solutions.
The company prioritizes making products affordable, user friendly, data-driven and technologically advanced. Zebra remains a major player in enabling businesses in different sectors to thrive in today’s interconnected world.
Arista Networks (ANET)
Arista Networks (NYSE:ANET) is a well-known company specializing in cloud networking solutions. It offers various products and services tailored for enterprise security and IT operations. Arista’s key platform, CloudVision, serves as the foundation for its offerings. Recently, at the RSA Conference, Arista unveiled a new cloud-based service called Arista Guardian for Network Identity (CV AGNI).
This service leverages AI to enhance enterprise cybersecurity by establishing a zero-trust networking approach. CV AGNI enables organizations to securely onboard all network users, associated endpoints and Internet of Things (IoT) devices. This move is crucial as the rising IoT devices in healthcare networks create critical management and security challenges.
Arista had a strong first quarter, achieving a revenue of $1.351 billion, a 5.9% increase compared to the previous quarter and an impressive 54.1% increase from the same period last year. Additionally, the company’s GAAP net income reached $436.5 million, or $1.38 per diluted share, indicating significant growth compared to the same quarter in the previous year.
All in all, Arista is making remarkable progress in the cloud networking industry. It is utilizing AI-driven solutions to provide secure and efficient networking services to enterprises worldwide.
Honeywell International (HON)
Honeywell International (NASDAQ:HON) is a leading industrial manufacturing company with products and solutions catering to different sectors, including aerospace, building technologies, high-performance materials and safety products.
Recently, Honeywell has shown a solid performance with reported sales increasing by 6% and organic sales by 8%. Moreover, the company’s operating margin has risen to 19.1%, and segment margin to 22.0%. It has exceeded expectations in terms of earnings per share and adjusted earnings, surpassing expectations by $2.07, resulting in a historic record backlog, now standing at $30.3 billion.
As for AI, Honeywell has embraced the AI revolution cautiously but with determination. It has acknowledged the enormous potential of this technology and is exploring ways to improve the company’s internal processes and meet its customers’ needs. For instance, it is looking into using AI to streamline coding and software development, making it more efficient.
Honeywell also sees significant potential in automating technical support, benefiting both its employees and customers. The company plans to leverage AI to enhance its products by utilizing data monetization and collaborating with customers and partners to find tailored solutions for industry-specific challenges.
However, while the company is excited about AI’s potential, Honeywell CEO, Vimal Kapur, emphasizes the importance of translating this excitement into tangible results and practical applications. It wants to ensure that AI truly benefits its operations and customers. While the technology is thrilling, Honeywell remains focused on finding realistic and valuable implementations that bring real benefits to its business and its customers’ businesses.
As of this writing, Gabriel Osorio-Mazzilli did not hold (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.