3 AI Growth Giants That Are Looking Like Value Stocks
These stocks are dirt cheap right now.
Overview
Artificial intelligence (AI) stocks, leaders in this bull market over the past three years, weren't always cheap. In fact, during most of their time soaring, they were pretty expensive. Investors piled into AI stocks before the big wave of AI-driven earnings growth, and valuations climbed. These investors aimed to get in early on this technology that could revolutionize how the world operates and result in the revenue and profit of many companies exploding higher.
In more recent times, earnings of many AI companies have indeed surged, but at the same time, their stock prices have come down amid general market concerns and worries about the sustainability of AI spending.
Details
As a result, certain compelling AI players are trading at bargain levels, even rivaling those of value stocks. The average forward price-to-earnings ratio for value stocks early this year was a little over 17, according to Siblis Research. The following three AI growth giants are trading close to that level or lower, making them look more like value stocks today. And considering that the long-term AI story continues to look bright, these players make excellent bargain buys right now.
Source
Originally published at www.fool.com.