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 Microsoft Corporation (NASDAQ:MSFT) 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 development team working together to create the next version of Windows.
Microsoft Corporation (NASDAQ:MSFT)
Analyst upside as of November 11, 2024: 20%
Microsoft Corporation (NASDAQ:MSFT) is a technology giant that is spending generously on artificial intelligence and data. As the company ventures into new technologies and AI, it does represent a breakthrough stock that can influence the future.
Microsoft Corporation (NASDAQ:MSFT) is pioneering predictive analytics and we say that because of its strong data and machine learning capabilities. Azure Synapse Analytics is an analytics service that provides enterprise data warehousing and big data analytics. The platform can be run either serverless or with dedicated resources, giving users extended autonomy over their data use cases. Users can generate insights across data warehouses and big data systems. In addition to that, the platform also offers technologies for big data, log and time series analytics, data integration, and deep integration with other Azure services namely Power BI and AzureML.
The company is increasingly making use of artificial intelligence to unlock real-time insights. On May 21, Microsoft Corporation (NASDAQ:MSFT) announced that users can now access real-time insights with AI-powered analytics in Microsoft Fabric, the company’s new unified data analytics platform. On this incredible feat, Tammy Wigg, Chief Data Analytics Officer at Aurizon, a user of Microsoft Fabric stated:
“With Microsoft Fabric, we’ve answered many of our questions about navigating future growth, to remove legacy systems, and to streamline and simplify our architecture. A trusted data platform sets us up to undertake complex predictive analytics and optimizations that will give greater surety for our business and drive commercial benefits for Aurizon and our customers in the very near future.”
Microsoft Fabric is a complete data platform that significantly improves real-time analytics to help users analyze high-volume data. These improvements have significantly increased the customer base for Microsoft Corporation (NASDAQ:MSFT).
Overall, MSFT ranks 3rd on our list of best predictive analytics stocks to invest in now. While we acknowledge the potential of MSFT 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 MSFT 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.