10 Emerging AI Stocks that Outperformed the Broader Market This Month

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1. Innodata Inc. (NASDAQ:INOD)

30-day Stock Price Performance: 85%

Innodata Inc. (NASDAQ:INOD) focuses on AI data preparation, data engineering, medical record processing, and marketing communications, serving industries such as banking, insurance, technology, media, and finance. Innodata’s (NASDAQ:INOD) stock price performance is highly credited to its Q3 financial performance reported on November 7. Between November 7 and 8, the company’s stock price was up nearly 76%. Its GAAP EPS outperformed the estimates by a huge margin of $0.38, posting an EPS of $0.51. It also generated a revenue of $52.22 million, up over 135% year-over-year, in addition to a 337% rise in adjusted EBITDA.

Management increased 2024 revenue growth guidance to 88%- 92% and reported $26.4 million in cash with no debt. Based on this performance, Maxim Group’s analyst Allen Klee raised the company’s price target to $54 from $38 and maintained a Buy rating on the stock. Klee also sees the company as a leader in the AI sector.

While we acknowledge the potential of Innodata Inc. (NASDAQ:INOD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than INOD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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