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2 AI Stocks Under $5
Welcome to Episode #430 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey talks with Zacks Small Cap Stock Analyst, Mark Zinski, about two small cap companies investing in artificial intelligence, or AI, products. Their stocks are also trading under $5.
Both companies are looking for AI opportunities in the software space, one in regulatory data and the other in healthcare.
Will the tools using AI turn out to be better investments than the infrastructure of AI, such as chips and data centers?
2 AI Stocks Under $5
1. FiscalNote Holdings, Inc. (NOTE - Free Report)
FiscalNote is a technology provider of global policy and market intelligence. Its software helps companies manage policy, address regulatory developments, and mitigate global risk. FiscalNote has a market cap of $168 million.
Zacks has earnings estimates from several analysts so FiscalNote has a Zacks Rank. It is currently a Zacks Rank #3 (Hold) stock. It’s cheap for an AI stock on a price-to-sales basis as it is trading at less than 3x sales. Many other big-cap AI stocks trade at 10x sales, or even higher.
Should FiscalNote be on your AI watch list?
2. iCAD Inc. (ICAD - Free Report)
iCAD is a software company with a market cap of $52 million. iCAD offers the ProFound Breast Health Suite which provides AI-powered mammography analysis for breast cancer detection, density assessment and risk evaluation. Available in over 50 countries, it’s used by thousands of providers serving millions of patients.
iCAD does not have a Zacks Rank. But in the third quarter, revenue rose 4% to $4.2 million and it had gross profit margins of 86%.
iCAD also has an attractive price-to-sales ratio for a software technology company at just 2.7.
Should iCAD be on your AI watch list?
What Else Do You Need to Know About FiscalNote, iCAD and small cap AI stocks?
Tune into this week’s podcast to find out.
[In full disclosure, Mark owns shares of NOTE and ICAD in his family portfolio. Tracey does not own either stock.]