10 Stocks Outperform Wall Street Indices on Wednesday

1. ZoomInfo Technologies Inc. (NASDAQ:ZI)

ZoomInfo’s shares skyrocketed by 23.08 percent on Wednesday to end at $11.73 apiece as investor sentiment was fueled by the company’s bullish outlook for the year.

In its latest earnings release, ZI said it expects revenues for fiscal year 2025 to settle between $294 million to $297 million, which is way higher than the analyst consensus of $292.4 million.

Earnings per share was also pegged at a range of 22 cents to 23 cents, versus analyst consensus of 22 cents.

During the fourth quarter of the year, ZI swung to a net income of $14.6 million, reversing a net loss of $5.5 million in the same period a year earlier despite revenues dipping by 2.3 percent to $309.1 million from $316.4 million year-on-year.

Meanwhile, net income for the full year 2024 dropped by 73 percent to $29.1 million from $107.3 million in 2023, while revenues dipped by 2 percent to $1.214 billion from $1.239 billion year-on-year.

While we acknowledge the potential of ZI as an investment, our conviction lies in the belief that some 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 as promising as ZI 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

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.