10 Best Machine Learning Stocks According to Analysts

2. PROS Holdings, Inc. (NYSE:PRO)

Number of Hedge Fund Investors  in Q1 2024: 17

Analyst Average Share Price Target: $40.56

Upside: 61%

PROS Holdings, Inc. (NYSE:PRO) is a small Texas based company which provides revenue and sales optimization products to the airline industry. It offers machine learning for product and pricing optimization through its PROS AI platform. Since it’s a SaaS company, key to PROS Holdings, Inc. (NYSE:PRO)’s hypothesis is its ability to grow revenue and beef up margins. On this front, the stock price is influenced by PROS Holdings, Inc. (NYSE:PRO)’s goal to become a Rule of 40 firm by 2026 by delivering at least 16% to 21% in revenue growth and 19% to 24% in free cash flow margin. Coupling this with the firm’s business model which is mostly levered towards customer facing firms that are sensitive to economic conditions, PROS Holdings, Inc. (NYSE:PRO)’s growth and recurring revenue is contingent on a vibrant economy. While this might mean that the firm can find it difficult to keep up with its growth trend (revenue growth was 10% in Q1), PROS Holdings, Inc. (NYSE:PRO) is making some moves to expand its market presence.

These include a partnership with tech giant Microsoft to offer CoPilot for machine learning and AI driven pricing information. PROS Holdings, Inc. (NYSE:PRO)’s management elaborated on this platform during the Q1 2024 earnings call where it shared:

In Q1, we officially launched the PROS Copilot for Sales Plugin in partnership with Microsoft. In today’s environment, customers place a premium on speed and efficiency, and research shows that 35% to 50% of sales go to the vendor that responds first.

The PROS Copilot for Sales Plugin seamlessly integrates PROS AI-powered quote insights into Microsoft Copilot for Sales, empowering sellers to deliver fast, personalized offers to customers directly from email threads. PROS is the first vendor to integrate quote insights into Microsoft’s Copilot for Sales, uniquely harnessing the power of data from across PROS Smart CPQ, Microsoft 365 apps, and CRM platforms to drive AI- powered offers that win. Our platform innovations are resonating, evidenced by our wins across industries. I will share a few of our exciting wins, starting with new customers. In Q1, ECE Group and Les Schwab made the strategic decision to adopt the PROS Platform. ECE Group, a global leader in real estate management, chose to activate Smart CPQ to power offers for their retail rental spaces to accelerate time-to-quote and drive a better customer experience.