In today’s world, digital tech rules. And that means, artificial intelligence is vital. AI powers our apps, it makes our devices ‘smart,’ and it underpins our computing technology. For investors, this makes AI-related stocks a prime target.
So, how to get in? Are we looking for robots, for thinking machines that can walk and talk? We’re not there yet, no matter what the science fiction movies show us on the big screen. But we do have a host of lower-key choices, applications of AI to the daily activities of our ordinary world. From paying our bills to parsing our data, there’s very little we do that doesn’t interact with an AI system, somewhere.
Bearing this in mind, we’ve used the TipRanks platform to pinpoint two stocks that are tied to AI – but in quite different ways. Moreover, both tickers earn Moderate or Strong Buy consensus ratings from the analyst community, and boast considerable upside potential. Here are the details.
Opportunity Financial (OPFI)
The first stock we’ll look at is Opportunity Financial, a fintech, or financial technology, company in the consumer credit sector. This company lives up to its name, providing credit access to ‘the median US consumer.’ This target market is employed, has a bank account, and earns approximately $50,000 annually – but lacks a strong credit score, and so has difficulty entering the traditional banking/credit system. OppFi fills that gap, using AI to quickly and accurately parse raw consumer data.
The company provides customers with easy access to credit applications, through a digital process via smartphone. The decision process is fair and transparent, and customer service is held to a high standard. OppFi’s services include loans, payroll-linked credit, and a same-day access credit card.
There is a strong market for OppFi credit access business. Approximately 58% of American consumers have less than $1,000 in savings, and some 115 million people are living ‘paycheck to paycheck.’ These problems are exacerbated by lack of access to liquidity; 51% of consumers reported being denied a loan in the last 12 months, while 72% were denied a line of credit.
OppFi uses AI tech to power its app, mitigating the inherent risks of providing credit to this target market.
OppFi’s numbers show up the need for its services in the US economy. The company reported a 25% year-over-year increase in net loan origination for 3Q21, to $165 million. Top line revenue came in at $92 million, for a 47% yoy gain. EPS was flat from …….
Source: https://finance.yahoo.com/news/ai-2-stocks-stand-benefit-015817831.html