The fast-paced digitalization globally and with it the drive to create smart operations is propelling the growth of the artificial intelligence (AI) market. Decision making, speech recognition, social and general intelligence are some AI applications gaining popularity in the digital era. Indeed, the global artificial intelligence market is expected to reach $284.4 billion by 2026, registering an impressive 29.4% CAGR.
Real estate companies are increasingly using AI in buying, selling, and home financing. Also, AI is becoming a popular source of professional advice. Some big data management companies believe that AI could be a key solution in managing and retaining employees in an organization. And investors’ interest in artificial intelligence stocks is evident in the Global X Robotics & Artificial Intelligence ETF’s (BOTZ) 38.1% gains over the past year.
Gartner, Inc. (IT)
IT is a global research and advisory firm that provides information, objective insights, and tools in information technology, finance, HR, marketing sales, and many other sectors. The Stamford, Conn., company operates through three segments: Research; Conferences; and Consulting.
This month, IT identified three steps security and risk leaders should take to shift from a defensive to an offensive leadership position, provide critical strategy and guidance to respond to a threat landscape, and to increase impact among executive leadership.
IT’s total revenues increased 16.3% year-over-year to $1.16 billion for the third quarter, ended September 30, 2021. The company’s operating income grew 162.5% from its year-ago value to $230.2 million. Its net income rose 775.3% from the prior-year quarter to $148.8 million. Also, the company’s EPS increased 826.3% year-over-year to $1.76.
For the fiscal year 2021, analysts expect IT’s revenue to be $4.69 billion, representing 14.3% year-over-year growth. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. In addition, its EPS is expected to increase 77.5% in the current year. The stock has surged 88% in price over the past nine months and 111.1% over the past year.
It is no surprise that IT has an overall A rating, which equates to a Strong Buy in our POWR Rating system. Also, the stock has an A grade for Quality, and a B for Sentiment.
Note that IT is one of the few stocks handpicked by our Chief Growth Strategist, Jaimini Desai, currently in the POWR Growth portfolio. Learn more here.
Materion Corporation (MTRN)
Incorporated in 1931, MTRN in Mayfield Heights, Ohio, is an advanced materials supplier that keeps electrical connectors connected. The company’s optics alloys and clad metals are used in a car’s auto navigation system. In addition, MTRN operates through Performance Alloys and Composites; Advanced Materials; and Precision Optics segments.
This month, MTRN acquired an electronic materials business, H.C. Starck Solutions. This strategic and transformational acquisition should strengthen MTRN’s strong position in the semiconductor industry, drive its market growth, expand margins, and help it deliver consistent double-digit EPS growth.
MTRN’s net sales increased 35.1% year-over-year to $388.03 million for the third quarter, ended October 1, 2021. The company’s gross margin grew 64% from its year-ago value to $74.31 million. Its net income rose 231.9% from the prior-year quarter to $18.16 million. Also, the company’s EPS increased 225.9% year-over-year to $0.88.
For its fiscal year 2021, analysts expect MTRN’s revenue to be $1.54 billion, representing 31% year-over-year growth. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. In addition, its EPS is expected to increase 87.7% in the current year. MTRN has surged 35.3% in price over the past nine months and 54.2% over the past year.
MTRN’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, equating a Buy in our proprietary rating system. Also, the stock has an A grade for Sentiment, and a B grade for Growth and Momentum.
IT shares were trading at $334.96 per share on Thursday morning, down $0.06 (-0.02%). Year-to-date, IT has gained 109.10%, versus a 26.61% rise in the benchmark S&P 500 index during the same period.
About the Author: Priyanka Mandal
Priyanka is a passionate investment analyst and financial journalist. After earning a master’s degree in economics, her interest in financial markets motivated her to begin her career in investment research. More…