As the curtain falls on 2024, a strange phenomenon is creeping into the market. I’ll call it AI fatigue. There is a feeling that AI may be a bubble on its way to the end.
Some analysts are keen to get beyond the novelty of generative AI and big language models and get to the good stuff, which to them means how companies will make money from AI.
No one can predict the future, but the next wave of AI will include interactive and autonomous AI. While the real payoff may be years away, many companies are making inroads into these areas today. That’s why investors may want to consider these three stocks for their portfolios in 2025.
UiPath is leading the way in workforce automation
Uipath today
(As of 12/13/2024 ET)
- 52 week range
- $10.37
▼
$27.87
- Price target
- $17.50
Uipath company New York Stock Exchange: Track It is a software company specializing in Robotic Process Automation (RPA) technology. This technology provides users with the tools to automate processes that occur regularly. The company’s UiPath platform advances the path toward agentic automation, a state in which agents, robots, people, and models integrate seamlessly to enable autonomous processes that will lead to smarter decision-making.
The company is not consistently profitable, but revenues are increasing year after year. Growth is slowing, but that was expected after rapid growth in 2023. However, the company faces competition in this space from more established players like Microsoft. To this end, UiPath continues to spend on marketing as well as research and development.
However, the company is well capitalized and has no debt. Analysts have raised their price targets for PATH stock, which has a consensus price target of $17.71. This gives investors a 21% upside from its closing price on December 11.
Intuitive Surgical Stock is expensive but continues to provide value
Intuitive Surgical Today
Surgical intuitive
(As of 12/13/2024 ET)
- 52 week range
- $320.26
▼
$556.23
- P/E ratio
- 86.75
- Price target
- $550.28
Intuitive Surgical Company Nasdaq: ISRG It is a leading company in the field of robotic surgery assistance. The company is the brains behind the da Vinci robotic surgical system, which is now in its fifth generation. Intuitive Surgical uses artificial intelligence and machine learning (ML) technologies to generate insights that can help surgeons learn from cases ranging from low- to high-complexity, including cases with anomalies and complications.
ISRG stock is up 61% in 2024, easily outperforming the broader market. However, the stock is a good example of how a stock can be expensive and also offer good value. In this case, Intuitive Surgical has a forward P/E of over 100x. With the company expected to generate approximately US$6.57 in earnings per share for the full year, you can see why the analysts have raised their price targets to US$650 per share.
Expansion is driving the bullish case for iRhythm
iRhythm Technologies today
iRhythm techniques
(As of 12/13/2024 ET)
- 52 week range
- $55.92
▼
$124.11
- Price target
- $107.82
Digital healthcare company iRhythm Technologies Inc. Nasdaq: IRTC It designs and manufactures medical devices that provide ambulatory cardiac monitoring services to help patients diagnose arrhythmias. The company says its latest product, Zio, features the most advanced heart monitoring artificial intelligence based on more than 1 million hours of heart rhythm data.
The company’s current products are used by 6.4 million patients in the United States. However, iRhythm plans to expand its market to include a wider range of symptomatic patients. It is also planning international expansion, which will increase its size Total addressable market exceeds one billion. Revenues are growing, but the company is not profitable and is not expected to be so next year.
Despite a nearly 20% increase in the past three months, IRTC stock is still down 15% in 2024. That’s not stopping analysts from placing higher bids for the stock. The consensus target price of $107.82 is approximately 20% above the stock’s December 11 closing price. However, several analysts have much higher price targets, including Canaccord Genuity Group, which raised its price target from $125 to $152.
Before you consider iRhythm Technologies, you’ll want to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up… and iRhythm Technologies was not on the list.
While iRhythm Technologies currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these 5 stocks are better buys.
View the five stocks here
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