We recently published a list of Top 10 Stocks Market Is Watching Today. In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against other top stocks market is watching today.
Chris Grisanti, MAI Capital Management chief market strategist, said in a latest program on CNBC that the market is going through a shift towards value stocks from growth stocks.
“A lot of investors miss is that you have to choose a great company, but you also have to choose a great entry price. And the valuation, especially over the last several years, has really gotten out of whack as growth has outperformed value by the most ever that we’ve ever seen. So now we’re just kind of getting back.”
The analyst warned that the latest selloff is not the “healthy correction” we used to see in the past.
“The economically sensitive stocks leading the way down. You’ve got banks that are tanking, you got airlines that are tanking, the worst groups are the financials, the industrial, and the consumer discretionary like retailers. So this is the market saying economic slowdown. Now is it right? You know the old saw about the market predicting eight of the last two recessions—maybe it’s wrong. The problem is one, it’s different this time so people should pay attention, and two, what generally happens is things can fall even on irrational fears, and then they become self-fulfilling.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article we picked 10 stocks Wall Street is currently focusing on. With each stock we have mentioned the number of hedge fund investors. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A software engineer focused on a computer screen, writing code to create a conversational assistant.
SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Funds Investors: 11
Senior markets reporter George Tsilis said in a latest program on Schwab Network that SoundHound AI, Inc. (NASDAQ:SOUN) AI shares have fallen considerably compared with their past highs. The analyst mentioned how the company’s business is growing.
“Overall sales are improving, and even the net losses on an annualized basis are improving as well. They reported a loss of 5 cents, while expectations were for a loss of 10 cents. They also reported more than a 100% increase in sales, around 34.5 million versus 33.7 million, compared to the same quarter last year. They did reiterate their relationships with Nvidia, and they are now in 10,000 restaurant locations. They also have strategic partners, such as AI voice recognition technologies for call centers, Mastercard, Snapchat, and a few others, including Netflix. These are customers of SoundHound AI, Inc. (NASDAQ:SOUN).
I think this is an interesting name. Not just because the price of the stock is very low, but if you consider right now, the stock has retraced about 50% of the gains from late last year at around $3 and 5 billion. If you look at the annualized sales estimates going forward, it’s still trading around 20 times sales, but it was trading at over 100 times sales not too long ago. They continue to expect improving topline sales growth, as well as improving EBITDA margins. If you look at the estimates for fiscal year 26, they were expected to lose around 25 cents for the full year, but that’s now been cut down to around 14 cents.”
Overall, SOUN ranks 10th on our list of top stocks market is watching today. While we acknowledge the potential of SOUN as an investment, our conviction lies in the belief that under the radar 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 SOUN 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.
