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 Snowflake Inc. (NYSE:SNOW) 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).
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Snowflake Inc. (NYSE:SNOW)
Analyst upside as of November 11, 2024: 37%
Snowflake Inc. (NYSE:SNOW) ranks first on our list of the best predictive analytics stocks to invest in now. The cloud-based data storage company was founded in 2012 and has experienced a solid growth trajectory since becoming one of the leading AI cloud services providers. The company has more than 10,200 global customers who benefit from its data storage, processing, and analytics products. Some of its notable customers include Adobe, AT&T, HP, Mastercard, PepsiCo, and Yamaha.
Snowflake Inc.’s (NYSE:SNOW) predictive analytics features leverage data from diagnostic and descriptive analytics to detect patterns that facilitate predictive data modeling for future trends. The company’s data cloud helps companies process semi-structured data and develop predictive modeling to enjoy faster speed and improved functionality without having to copy the data. In addition, its unified platform allows users to bring all cross-functional teams together in building scalable data preparation and model inference pipelines. Such is supported by the endless tools and features launched by Snowflake Inc. (NYSE:SNOW) to expand data analytics capabilities in the cloud platform.
To advance its predictive analytics capabilities, Snowflake Inc. (NYSE:SNOW) has forged partnerships and collaborations with key stakeholders in the industry. For instance, Tableau, a business intelligence and analytics software by Salesforce is integrated into Snowflake’s data cloud platform. The revolutionary integration allows users to store and analyze data on the same platform without extensive data transfers. More recently, in June, the company partnered with Neo4J, a graph database and analytics company. The partnership brings Neo4J’s native graph data science solution to Snowflake’s AI data cloud eliminating the need to move out data from the Snowflake ecosystem.
The company takes pride in its analytical capabilities and is confident its expertise is challenging to replicate. This positions Snowflake Inc. (NYSE:SNOW) as a leader in data analytics and data modeling, contributing to its ranking on our list.
Overall, SNOW ranks 1st on our list of best predictive analytics stocks to invest in now. While we acknowledge the potential of SNOW 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 SNOW 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.