Latest news with #smallCapStocks
Yahoo
5 days ago
- Business
- Yahoo
Bank of America is bullish on these 4 under-the-radar AI stocks
Bank of America sees additional AI investing opportunities in small and mid-cap stocks. AI mentions on earnings calls have increased, especially among Russell 2000 companies. The bank shared four buy-rated AI stock picks that go beyond the Magnificent Seven. The Magnificent Seven and the AI trade have become synonymous, but there are opportunities for investors to get exposure to the AI mega-trend outside of the biggest names in the market. Small and mid-cap companies are adopting AI technology to drive earnings growth, according to Bank of America analysts. As the AI trade progresses, the next wave of beneficiaries will be companies that adopt AI into their product offerings and revenue models. While AI infrastructure companies like Nvidia benefit from size and scale, more small-cap companies are participating in the next leg of the AI trade. Jill Carey Hall, equity and quant strategist at Bank of America, wrote in a recent report that earnings calls of Russell 2000 companies have mentioned AI more frequently over the last few quarters. Software companies are particularly well-positioned to take advantage of the nascent trend of agentic AI, or AI systems that operate autonomously with limited human supervision, according to the bank. Senior technology research analyst Brad Sills reported increased signs of "green shoots" in the development of agentic application adoption at the bank's Global Technology Conference earlier this month. Examples include increased database activity to handle running AI applications and more AI-focused code. Small-cap companies in particular present AI opportunity for active stock pickers. While the overall category has lagged behind its large-cap counterpart, the current backdrop allows investors to buy up promising high-growth companies at a discounted price. Additionally, Hall sees the potential for easing inflation and a pick-up in M&A transaction volume to provide a boost to small-cap technology valuations. Below are Bank of America's four top buy-rated small and mid-cap AI picks, along with their 12-month price targets and relevant analyst commentary. Datadog Ticker: DDOG Market cap: $42.1 billion Price target: $138 Company description: Datadog provides cloud-based tools that help tech teams monitor application performance and infrastructure in real time. BofA commentary: "We believe Datadog is a share gainer in the generative AI theme, as AI-native companies are already driving 8.5% of its annual recurring revenue (ARR). As more AI-native companies scale, and non-AI native organizations release their own AI experiences, we believe Datadog stands to benefit. We believe Datadog has the potential to deliver durable 20%+ revenue growth and attractive 20%+ free cash flow margins over the coming year." Seagate Technology Ticker: STX Market cap: $27.8 billion Price target: $135 Company description: Seagate designs and manufactures data storage products, including hard drives and SSDs, for consumer and enterprise use. BofA commentary: "Seagate's HAMR ramp has begun after announcing the 2nd & 3rd hyperscaler qualifications at the May 2025 Analyst Day (1st qual. was December 2024). The company has already achieved record margins coming out of the 2023 HDD downcycle and we believe the HAMR ramp in C2H25 will propel margins higher." Kyndryl Holdings Ticker: KD Market cap: $9.3 billion Price target: $44 Company description: Kyndryl, spun off from IBM, is an IT services company that provides infrastructure services including cloud, data center, and network modernization to enterprises around the world. BofA commentary: "We continue to view Artificial Intelligence (AI)/Generative AI (GenAI) as a net tailwind for the [IT services industry] … Recent large deal signings at attractive high-single-digit pre-tax-income margins provide incremental visibility into out-year earnings power." JFrog Ticker: FROG Market cap: $4.8 billion Price target: $48 Company description: JFrog offers a DevOps platform known for its artifact repository manager, Artifactory, which streamlines software development by enabling continuous integration and delivery across the software release lifecycle. BofA commentary: "Increasing binaries from AI-related packages (Docker, Hugging Face, Python, etc.) are driving increasing usage of the platform. We think that it should benefit from increased usage as generative AI likely catalyzes the pace of software development over the medium-term." Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Bank of America is bullish on these 4 under-the-radar AI stocks
Bank of America sees additional AI investing opportunities in small and mid-cap stocks. AI mentions on earnings calls have increased, especially among Russell 2000 companies. The bank shared four buy-rated AI stock picks that go beyond the Magnificent Seven. The Magnificent Seven and the AI trade have become synonymous, but there are opportunities for investors to get exposure to the AI mega-trend outside of the biggest names in the market. Small and mid-cap companies are adopting AI technology to drive earnings growth, according to Bank of America analysts. As the AI trade progresses, the next wave of beneficiaries will be companies that adopt AI into their product offerings and revenue models. While AI infrastructure companies like Nvidia benefit from size and scale, more small-cap companies are participating in the next leg of the AI trade. Jill Carey Hall, equity and quant strategist at Bank of America, wrote in a recent report that earnings calls of Russell 2000 companies have mentioned AI more frequently over the last few quarters. Software companies are particularly well-positioned to take advantage of the nascent trend of agentic AI, or AI systems that operate autonomously with limited human supervision, according to the bank. Senior technology research analyst Brad Sills reported increased signs of "green shoots" in the development of agentic application adoption at the bank's Global Technology Conference earlier this month. Examples include increased database activity to handle running AI applications and more AI-focused code. Small-cap companies in particular present AI opportunity for active stock pickers. While the overall category has lagged behind its large-cap counterpart, the current backdrop allows investors to buy up promising high-growth companies at a discounted price. Additionally, Hall sees the potential for easing inflation and a pick-up in M&A transaction volume to provide a boost to small-cap technology valuations. Below are Bank of America's four top buy-rated small and mid-cap AI picks, along with their 12-month price targets and relevant analyst commentary. Datadog Ticker: DDOG Market cap: $42.1 billion Price target: $138 Company description: Datadog provides cloud-based tools that help tech teams monitor application performance and infrastructure in real time. BofA commentary: "We believe Datadog is a share gainer in the generative AI theme, as AI-native companies are already driving 8.5% of its annual recurring revenue (ARR). As more AI-native companies scale, and non-AI native organizations release their own AI experiences, we believe Datadog stands to benefit. We believe Datadog has the potential to deliver durable 20%+ revenue growth and attractive 20%+ free cash flow margins over the coming year." Seagate Technology Ticker: STX Market cap: $27.8 billion Price target: $135 Company description: Seagate designs and manufactures data storage products, including hard drives and SSDs, for consumer and enterprise use. BofA commentary: "Seagate's HAMR ramp has begun after announcing the 2nd & 3rd hyperscaler qualifications at the May 2025 Analyst Day (1st qual. was December 2024). The company has already achieved record margins coming out of the 2023 HDD downcycle and we believe the HAMR ramp in C2H25 will propel margins higher." Kyndryl Holdings Ticker: KD Market cap: $9.3 billion Price target: $44 Company description: Kyndryl, spun off from IBM, is an IT services company that provides infrastructure services including cloud, data center, and network modernization to enterprises around the world. BofA commentary: "We continue to view Artificial Intelligence (AI)/Generative AI (GenAI) as a net tailwind for the [IT services industry] … Recent large deal signings at attractive high-single-digit pre-tax-income margins provide incremental visibility into out-year earnings power." JFrog Ticker: FROG Market cap: $4.8 billion Price target: $48 Company description: JFrog offers a DevOps platform known for its artifact repository manager, Artifactory, which streamlines software development by enabling continuous integration and delivery across the software release lifecycle. BofA commentary: "Increasing binaries from AI-related packages (Docker, Hugging Face, Python, etc.) are driving increasing usage of the platform. We think that it should benefit from increased usage as generative AI likely catalyzes the pace of software development over the medium-term." Read the original article on Business Insider Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
B.P. Marsh & Partners And 2 Other Undiscovered Gems In The UK Market
In the current landscape, the United Kingdom's market has faced headwinds as evidenced by the FTSE 100's recent decline, influenced by weak trade data from China and its impact on global commodity demand. Despite these challenges, there remain opportunities within the UK market to identify promising small-cap stocks that may not be on every investor's radar. In this context, finding a good stock often involves looking for companies with strong fundamentals and unique growth potential that can weather broader economic uncertainties. Name Debt To Equity Revenue Growth Earnings Growth Health Rating B.P. Marsh & Partners NA 38.21% 41.39% ★★★★★★ BioPharma Credit NA 7.22% 7.91% ★★★★★★ Anglo-Eastern Plantations NA 8.55% 11.10% ★★★★★★ Rights and Issues Investment Trust NA -7.87% -8.41% ★★★★★★ Andrews Sykes Group NA 2.08% 5.03% ★★★★★★ Nationwide Building Society 277.32% 10.61% 23.42% ★★★★★☆ FW Thorpe 2.95% 11.79% 13.49% ★★★★★☆ Goodwin 37.02% 9.75% 15.68% ★★★★★☆ AltynGold 73.21% 26.90% 31.85% ★★★★☆☆ Law Debenture 17.80% 11.81% 7.59% ★★★★☆☆ Click here to see the full list of 55 stocks from our UK Undiscovered Gems With Strong Fundamentals screener. Here we highlight a subset of our preferred stocks from the screener. Simply Wall St Value Rating: ★★★★★★ Overview: B.P. Marsh & Partners PLC is a company that focuses on investing in early-stage financial services intermediary businesses both in the United Kingdom and internationally, with a market cap of £255.45 million. Operations: Revenue for B.P. Marsh & Partners primarily stems from the provision of consultancy services and trading investments in financial services, totaling £115.24 million. B.P. Marsh & Partners, a nimble player in the financial sector, has shown remarkable growth with earnings surging 134% over the past year, outpacing its industry peers. The firm operates debt-free and trades at a discount of 36.6% below its estimated fair value, signaling potential undervaluation. Recently, it reported net income of £99.5 million for the fiscal year ending January 2025, up from £42.53 million previously. Additionally, they have been active in share repurchases and proposed a dividend increase to 6.78 pence per share pending shareholder approval in July 2025. Delve into the full analysis health report here for a deeper understanding of B.P. Marsh & Partners. Gain insights into B.P. Marsh & Partners' historical performance by reviewing our past performance report. Simply Wall St Value Rating: ★★★★★★ Overview: James Halstead plc is a company that manufactures and supplies flooring products for both commercial and domestic uses across various international markets, with a market cap of approximately £664.77 million. Operations: James Halstead generates revenue primarily from the manufacture and distribution of flooring products, amounting to £268.52 million. The company's operations span multiple international markets, contributing to its financial performance. James Halstead, a standout in the UK market with a price-to-earnings ratio of 15.7x, offers value below the broader market average of 16.1x. Despite facing a negative earnings growth of 4.6% last year, which is slightly better than the building industry's average of 5.5%, it remains profitable with robust free cash flow standing at £49.54 million as of March 2024. The company has reduced its debt-to-equity ratio from 0.2% to just 0.1% over five years, indicating prudent financial management and more cash than total debt on hand, ensuring stability and potential for future growth initiatives like dividend increases recently announced by the firm. Get an in-depth perspective on James Halstead's performance by reading our health report here. Learn about James Halstead's historical performance. Simply Wall St Value Rating: ★★★★☆☆ Overview: The Law Debenture Corporation p.l.c. is an investment trust that offers independent professional services globally to a diverse range of clients, with a market capitalization of £1.31 billion. Operations: Law Debenture generates revenue primarily from its investment portfolio (£35.91 million) and independent professional services (£61.66 million). The net profit margin is a key indicator of financial performance, reflecting the company's ability to convert revenue into profit after covering all expenses. Law Debenture, a promising player in the UK market, has seen its earnings soar by 29% over the past year, outpacing the Capital Markets industry's 11.1% growth. The company's price-to-earnings ratio of 13.5x is attractive compared to the broader UK market's 16.1x, suggesting good value for investors. With a net debt to equity ratio standing at a satisfactory 13.6%, Law Debenture's financial health appears robust, further supported by an impressive interest coverage of 18.2x EBIT over interest payments. Recent dividend announcements reflect confidence in its ongoing performance and shareholder returns strategy. Navigate through the intricacies of Law Debenture with our comprehensive health report here. Evaluate Law Debenture's historical performance by accessing our past performance report. Investigate our full lineup of 55 UK Undiscovered Gems With Strong Fundamentals right here. Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly. Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:BPM AIM:JHD and LSE:LWDB. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Exploring Asian Markets With First Philippine Holdings And 2 Other Promising Small Caps
Amidst geopolitical tensions and fluctuating trade dynamics, Asian markets have been navigating a complex landscape that has seen mixed performances across key indices. As small-cap stocks face unique challenges and opportunities in this environment, identifying potential growth stories becomes crucial for investors seeking to capitalize on emerging market trends. Name Debt To Equity Revenue Growth Earnings Growth Health Rating Hangzhou Xili Intelligent TechnologyLtd NA 11.73% 9.57% ★★★★★★ Hubei Three Gorges Tourism Group 11.24% -15.32% 17.90% ★★★★★★ Soft-World International NA -1.24% 5.77% ★★★★★★ Anji Foodstuff NA 9.26% -13.65% ★★★★★★ Tohoku Steel NA 5.34% -2.26% ★★★★★★ Tibet Rhodiola Pharmaceutical Holding 12.48% 17.01% 23.89% ★★★★★☆ Zhejiang Chinastars New Materials Group 38.79% 0.20% 4.21% ★★★★★☆ BIOBIJOULtd 6.87% 72.99% 117.16% ★★★★★☆ Shenzhen Easttop Supply Chain Management 58.49% -20.86% -2.24% ★★★★★☆ ASRock Rack Incorporation 26.93% 225.32% 6287.64% ★★★★☆☆ Click here to see the full list of 2604 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener. Let's dive into some prime choices out of from the screener. Simply Wall St Value Rating: ★★★★★☆ Overview: First Philippine Holdings Corporation operates in the Philippines with a focus on power generation, real estate development, energy solutions, and construction, and has a market capitalization of ₱39.81 billion. Operations: First Philippine Holdings generates significant revenue primarily from power generation, amounting to ₱137.81 billion, followed by real estate development and construction services with ₱19.87 billion and ₱16.29 billion respectively. The energy solutions segment contributes ₱6.16 billion to the total revenue stream. First Philippine Holdings, a relatively small player in the electric utilities sector, has shown resilience with earnings growth of 1.9%, outpacing the industry's 0.8%. The company's net debt to equity ratio stands at a satisfactory 39.9%, reflecting prudent financial management as it reduced from 75.3% over five years. With interest payments well covered by EBIT at 5.6 times, FPH demonstrates strong fiscal health. Recently, they appointed Dr. Cielito F. Habito as a director, bringing extensive economic expertise to the boardroom which could bolster strategic decisions moving forward while trading below estimated fair value by nearly 24%. Click here and access our complete health analysis report to understand the dynamics of First Philippine Holdings. Gain insights into First Philippine Holdings' historical performance by reviewing our past performance report. Simply Wall St Value Rating: ★★★★★☆ Overview: Zhejiang Runtu Co., Ltd. is a company that produces and sells dyes in China, with a market capitalization of approximately CN¥8.96 billion. Operations: The primary revenue stream for Zhejiang Runtu comes from its specialty chemical segment, generating approximately CN¥5.29 billion. The company has a market capitalization of around CN¥8.96 billion. Zhejiang Runtu, a noteworthy player in the chemicals sector, has shown robust earnings growth of 587% over the past year, outpacing its industry peers. The company trades at 23% below its estimated fair value, suggesting potential undervaluation. Despite an increase in debt to equity from 0.8% to 2.7% over five years, it holds more cash than total debt and covers interest payments comfortably. Recent financials reveal a net income rise to CNY 213 million for 2024 from CNY 46 million previously. Additionally, Zhejiang Runtu repurchased shares worth CNY 178 million under its buyback program announced last year. Navigate through the intricacies of Zhejiang Runtu with our comprehensive health report here. Understand Zhejiang Runtu's track record by examining our Past report. Simply Wall St Value Rating: ★★★★★★ Overview: Hunan Junxin Environmental Protection Co., Ltd. operates in the environmental protection industry with a market cap of CN¥13.10 billion. Operations: The company generates revenue primarily from its environmental protection services, with total revenue reaching CN¥13.10 billion. It has a net profit margin of 15%, indicating the portion of revenue that translates into profit after all expenses. Hunan Junxin Environmental Protection, a lesser-known player in the environmental sector, has shown promising financial health with earnings rising by 11% last year, surpassing industry growth of 0.9%. Their debt to equity ratio impressively dropped from 108.4% to 30.8% over five years, demonstrating effective debt management. The company reported net income of CNY 536 million for 2024 and a price-to-earnings ratio of 22x, below the CN market average of 38x. Despite recent shareholder dilution and share price volatility, their interest payments are well covered by EBIT at a robust coverage ratio of nearly 15x. Unlock comprehensive insights into our analysis of Hunan Junxin Environmental Protection stock in this health report. Review our historical performance report to gain insights into Hunan Junxin Environmental Protection's's past performance. Dive into all 2604 of the Asian Undiscovered Gems With Strong Fundamentals we have identified here. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PSE:FPH SZSE:002440 and SZSE:301109. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
10-05-2025
- Business
- Yahoo
Pampa Energia (PAM): Among Billionaire Rob Citrone's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Rob Citrone's 10 Small-Cap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Pampa Energia S.A. (NYSE:PAM) stands against Billionaire Rob Citrone's other small-cap stock picks with huge upside potential. Rob Citrone founded Discovery Capital Management in 1999. Based in Connecticut, Discovery Capital is one of the Tiger Cub hedge funds. Rob Citrone worked as a portfolio manager at Fidelity Investments and Julian Robertson's Tiger Management before founding Discovery Capital. Citrone was also a wrestler in high school and today owns a small slice of his favorite football team, the Pittsburgh Steelers. His firm focuses on liquidity, valuation multiples, past and potential growth in picking stocks, and has a focus on technology, services, basic materials, and financial sectors. The last reported 13F filing for Q4 2024 included $1.47 billion in managed 13F securities and a top 10 holdings concentration of 44.09%. Robert Citrone recently cut his long equity portfolio. In his January monthly letter, obtained by the Institutional Investor, the firm halved its net equity exposure to 25% from a peak of 50% just at year-end to go flat to short in developed markets. He has been expecting a stock market correction of 5% to 7%. He believes it is meaningful enough to reduce risk and potentially be short, even though it's not a large sell-off. Citrone thinks the market is expensive in historical terms, especially relative to interest rates. Still, the majority of global investors are long corporate America, including venture, private equity, private credit, long-only equity, and/or credit long-short hedge funds, even as the US enters tariff uncertainty and no more Fed cuts are anticipated in the near term. To compile the list of billionaire Rob Citrone's 10 small-cap stock picks with huge upside potential, we sifted through the Q4 2024 13F filings of Discovery Capital Management from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 50 stock picks that were trading between $1 billion and $10 billion and ranked the stocks in ascending order of this upside potential. We have also added Discovery Capital Management's stake in each company and the hedge fund sentiment around each stock. Note: All data was sourced on May 8. 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). Modern machinery at an offshore oil platform, symbolizing the importance of exploration and production. Discovery Capital Management's Stake: $13.38 million Number of Hedge Fund Holders: 12 Market Capitalization as of May 8: $3.98 billion Average Upside Potential as of May 8: 27.15% Pampa Energia S.A. (NYSE:PAM) is an integrated power company in Argentina. It operates through Oil & Gas; Generation; Petrochemicals; and Holding, Transportation, & Others segments. It generates electricity through thermal plants, hydroelectric plants, and wind farms with a 5,472 MW installed capacity. It also explores for and produces oil & gas. The company's Upstream Gas Production achieved record gas output in 2024 and marked a 21% year-over-year increase in average production and an 80% increase since 2017. This growth is attributed to the performance of Pampa's wells in Vaca Muerta. In Q4 specifically, gas production rose by 11% year-on-year, with shale gas increasing its share of the total gas production, from 32% in 2023 to ~50% in 2024. While Pampa Energia (NYSE:PAM) is diversifying into shale oil by developing Rincon de Aranda, natural gas from Vaca Muerta continues to be a key revenue generator. JPMorgan recently upgraded the price target on the stock from $59 to $93.5. JPMorgan remains optimistic about Argentina's oil and gas industry and believes there is still room for growth in the area. Overall, PAM ranks 6th on our list of Billionaire Rob Citrone's small-cap stock picks with huge upside potential. While we acknowledge the growth potential of PAM, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PAM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
