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Introduction
This article identifies the 10 AI stocks that still exhibit more room to run in 2024 based on their current excellent Price-to-Earnings (1-year) Growth (PEG) Ratio valuation metrics.
Why the PEG Ratio?
Given that growth is a key component of a stock’s expected return, the PEG ratio provides a simple way for investors to see how cheap a stock is relative to its growth rate and to compare a stock to its competitors. The lower the PEG ratio – lower than 1.0 is best – the more the stock may be undervalued given its future earnings expectations while a ratio between 1.0 and 2.0 suggests a stock is overvalued.The PEG ratio should be used along with the balance sheet, debt burden, and cash flow, or other valuation metrics that use the income statement. It’s also important to understand things like a company’s competitive advantage, its addressable market, and its long-term growth prospects.
The Top 10 Best Value AI Stocks
This article highlights the performances of the 10 “best value” AI&R stocks in March (as of March 27th), in descending order of their respective PEG ratios, their latest stock performances MTD (as of March 27th) as well as YTD and in the past 5 months since the sector took off at the end of October, 2023:
- UP 3.6% in March; DOWN 11.8% YTD; No Change in the last 5 months
- UP 12.9% in March; UP 16.9% YTD; UP 47.7% in the last 5 months
- DOWN 1.7% in March; UP 28.9% YTD; UP 80.5% in the last 5 months
- UP 10.2% in March; UP 10.9% YTD; UP 14.2% in the last 5 months
- UP 18.1% in March; UP 260.0% YTD; UP 327.3% in the last 5 months
- UP 6.2% in March; UP 31.4% YTD; UP 58.4% in the last 5 months
- UP 14.1% in March; UP 82.2% YTD; UP 121.3% in the last 5 months
- DOWN 6.7% in March; UP 21.8% YTD; UP 83.3% in the last 5 months
- DOWN 3.6% in March; DOWN 12.3% YTD; UP 15.8% in the last 5 months
- UP 0.8% in March; UP 39.5% YTD; UP 122.1% in the last 5 months
Summary
On average, the above 10 AI stocks had a PEG Ratio of 0.92; a March increase of 10.0%; a YTD increase of 94.6% and an average increase of 122.1% in the last 5 months. In comparison, the Global X Artificial Intelligence and Technology ETF (AIQ) of 91 stocks is UP 2.1% MTD; UP 9.1% YTD and UP 30.0% since the end of October 2023.More By This Author:Which Is The Better Choice? Investing In A Meme ETF Or An AI ETF?
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