We recently published a list of 10 Best Predictive Analytics Stocks to Invest in Now. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against other predictive analytics stocks to invest in now.
Data is at the forefront of many inventions today and is the primary ingredient of innovation. Of the many branches of data usage, predictive analytics is garnering immense traction, especially with the advent of artificial intelligence. Predictive analytics is the use of data, statistics, modeling, and machine learning to forecast, predict, and plan future events. There are different types of predictive analytics including regression analysis, time-series analysis, and machine learning algorithms.
According to a report by Fortune Business Insights, the global predictive analytics market was valued at $14.71 billion in 2023. The global predictive analytics market is expected to grow to $95.3 billion by 2032 from $18.02 billion in 2024 at a compound annual growth rate (CAGR) of 23.1%. The report attributes the growth in the industry to the growing investments in data by the government and large corporations followed by IoT and AI integrations. The use of predictive analytics is bifurcated into multiple segments including life sciences, automotive, retail, energy, telecom, and healthcare, to name a few.
Startups Disrupting the Predictive Analytics Space
There are a range of startups in the predictive analytics space that are revolutionizing the industry. One such name is Pecan AI. The automated predictive analytics platform is developed and designed intricately to meet the needs of data scientists. Data scientists can use the platform to build powerful predictive AI capabilities and machine learning models that drive business impact. Data scientists do not need coding or data science skills to make use of the platform. The platform is used by a range of companies including Johnson & Johnson, SciPlay, Hydrant, Kenvue, Proper Cloth, and DME Acquire. Earlier in January, the company introduced predictive generative AI to transform enterprises. Pecan AI also has partnerships with some of the largest tech corporations and platforms including Azure and AWS.
DataRobot is another leader in the predictive analytics industry that delivers revolutionary AI use cases for businesses. Its AI platform consists of core AI features such as generative AI, predictive AI, AI governance, AI observability, and AI foundation. The platform promises 83% faster deployment and secures nearly 1.4 billion predictions every day. Users can run models in minutes by skipping manual data preparation and cleaning. Additionally, the platform eliminates the need for repetitive coding, by streamlining feature discovery and defining elements of datasets automatically. Users can connect data from warehouses such as AWS and Azure into a singular workspace. Some of the predictive use cases facilitated by DataRobot include time series modeling, clustering and seasonality, cold start forecasting, nowcasting, and anomaly detection.
Now that we have studied the predictive analytics industry and some revolutionary startups, let’s take a look at the 10 best predictive analytics stocks to invest in now.
Our Methodology
To come up with the 10 best predictive analytics stocks to invest in now we went through multiple reports on the internet, ETFs, and stock screeners. We then examined the analyst upside of each stock and ranked the ones with the highest percentage. Our list is in ascending order of the analyst upside as of November 11, 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of actuaries and engineers at a computer looking at the data and finding the best reinsurance solution for a client.
Alphabet Inc. (NASDAQ:GOOGL)
Analyst upside as of November 11, 2024: 16%
Alphabet Inc. (NASDAQ:GOOGL) is one of the biggest technology companies in the world that ranks fifth on our list of the best predictive analytics stocks to invest in. It owns a range of products, including Google Search, Google Maps, YouTube, Google Cloud, and Waymo.
The company is a pioneer in data analytics and has been making use of predictive metrics in Google Analytics for years now. Alphabet Inc. (NASDAQ:GOOGL) offers a range of solutions where predictive analytics comes into play. For example, its data science solution consists of a complete suite of data management, analytics, and machine learning tools that help entities garner insights from data and generate value. In addition to that, its marketing analytics solution helps companies significantly improve the overall customer journey and experience using crucial insights from existing data.
Businesses can use the myriad of tools available at Alphabet Inc. (NASDAQ:GOOGL) to simply develop machine-learning models that are able to recognize and identify patterns in datasets and provide crucial insights to entities. On the AI front, BigQuery, Google’s AI-optimized data analytics platform is developed to make data analysis easier and faster. Users can create large language models using enterprise data without having to copy or move data from elsewhere to someplace else.
Overall, Alphabet’s (NASDAQ:GOOGL) breadth of tools and expertise is challenging to replicate, positioning the company as one of the leaders in data management and analytics. Analysts also favor the stock and their median price target implies an upside of 16% from current levels, as of November 11.
Polen Capital Polen Focus Growth Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q3 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) and Amazon were also top absolute detractors. Alphabet’s better-than-expected results were overshadowed by an adverse ruling related to the U.S. Department of Justice’s (“DoJ”) anti-trust case against the company. We expected an adverse ruling and are monitoring potential remedies recommended by the DoJ and subsequently ruled on by the judge. This will likely take a few years to play out; in the meantime, we see many mitigating factors that the company can pursue to protect its competitive position and growth. We trimmed our positions in Alphabet and Microsoft by 1.5% each to fund the purchase of Oracle. They both remain top five holdings at the new weights.”
Overall, GOOGL ranks 5th on our list of best predictive analytics stocks to invest in now. While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.