7investing Lead Advisor Anirban Mahanti's top stock to buy in May 2022 is transforming a trillion dollar industry using machine learning.
May 1, 2022
Artificial intelligence (AI) is transforming every aspect of our lives. While AI enabling new products and services that were previously unimaginable receives much attention, something else is less discussed. And that’s the opportunity to apply data science to transform age-old industries that play a massive role in modern society. The latter can be equally great opportunities, not just for society but also for investors.
7investing Lead Advisor Anirban Mahanti’s recommendation for May 2022 has built an AI platform for an industry that might well be regarded as the lifeblood of a modern economy. This company is growing quickly, rapidly innovating, and has only just scratched the tip of an enormous market opportunity. It is also growing profitability quickly and the sell off in growth stocks gives us an opportunity to buy at a price that increases our odds of market-beating returns.
My top stock idea this month is using machine learning to upend decades-old processes in an industry ripe for disruption. The opportunity is massive, and this company is methodologically planting flags to capture a significant portion of its enormous opportunity. The best part is that the business’ underlying economics are fantastic. It is an early stage business, but unlike many it is actually nicely profitable, and with the ongoing volatility in the market we’ve the opportunity to pick up shares for around 30-times trailing earnings.
Yes, that’s right. About 30-times earnings for a hypergrowth early stage growth company.
How quickly will the company expand its client base?
Will the business enjoy similar economics as they expand into adjacent opportunities?
Will the company have an unassailable data moat if its platform finds wides acceptance?
Of course, we don’t know the answers to those questions, but early signs suggest we have a company that has made winning a habit.
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Hi, I am Anirban Mahanti, and we are 7investing.
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