Can Stocks Picked by Artificial Intelligence Beat the Market? 3 Stocks to Watch

Artificial intelligence (AI) is hardly new to the world of stock picking. Until recently, however, it’s pretty much been available only to institutional investors with deep pockets

Danelfin is trying to change all that. The financial technology firm’s AI-driven analytics platform aims to level the playing field, giving regular folks access to institutional-level technology. The platform, which offers both free and premium plans, uses artificial intelligence to analyze more than 900 fundamental, technical and sentiment data points per day for all U.S.-listed shares and 600 stocks listed in Europe.

After churning through 10,000 daily indicators, Danelfin’s algos produce a series of scores. The AI Score, which ranges from 1 to 10, indicates a stock’s probability of beating the market over the next three months, or roughly 60 trading sessions. (Higher scores are better.) Danelfin also assesses stocks’ volatility and their potential for nasty drawdowns. Stocks with superior Low Risk Scores should help tactical investors and traders sleep better at night.

AI picks stocks

The last step is to combine AI Score with Low Risk Score to suss out stocks that offer not only the highest probability for short-term outperformance, but also the lowest risk of loss.

Below please find three stocks to watch, based on Danelfin’s AI platform awarding them the highest AI Risk/Reward Scores as of May 14. For good measure, we also took a look at what Wall Street analysts have to say about these names’ prospects over the next 12 months or so. 

Please remember that we’re talking about the probability of a stock beating the market over the next few months or so, not days, and not years. That means the platform is pointing to the best stocks to buy for tactical investors and traders, not necessarily long-term investors.