Artificial intelligence (AI) is hardly new to the world of stock-picking. Until recently, however, it's pretty much been available only to institutional investors with deep pockets.
Danelfin is trying to change all that. The financial technology firm's AI-driven analytics platform aims to level the playing field, giving regular folks access to institutional-level technology.
The platform, which offers both free and premium plans, uses artificial intelligence to analyze more than 900 fundamental, technical and sentiment data points per day for all U.S.-listed shares and 600 stocks listed in Europe.
After churning through 10,000 daily indicators, Danelfin's algos produce a series of scores.
The AI Score, which ranges from one to 10, indicates a stock's probability of beating the market in the next three months, or roughly 60 trading sessions. (Higher scores are better.)
Danelfin also assesses stocks' volatility and their potential for nasty drawdowns. Stocks with superior Low Risk Scores should help tactical investors and traders sleep better at night.
AI picks stocks
The last step is to combine the AI Score with the Low Risk Score to suss out stocks that offer not only the highest probability for short-term outperformance, but also the lowest risk of loss.
Below please find three stocks to watch, based on Danelfin's AI platform awarding them the highest AI Risk/Reward Scores as of September 11.
For good measure, we also took a look at what Wall Street analysts have to say about these names' prospects in the next 12 months or so.
Please remember that we're talking about the probability of a stock beating the market in the next few months or so, not days, not years.
That means the platform is pointing to the best stocks to buy for tactical investors and traders, not necessarily long-term investors.
Share prices and other market data are as of September 11. AI Scores and rankings are courtesy of Danelfin as of September 11. Analysts' consensus recommendations and other data are courtesy of S&P Global Market Intelligence, unless otherwise noted.
Intercontinental Exchange
- Market value: $100.5 billion
- AI Score: 10.0
- Low Risk Score: 7.0
Intercontinental Exchange (ICE) stock is beating the market by a healthy margin so far in 2025 and Danelfin's algos say it's poised for more outperformance with limited risk.
Shares in the exchange operator best known as the owner of the New York Stock Exchange (NYSE) have a high probability of beating the market in the next three months, thanks to strong marks for fundamentals and technicals, as well as a perfect sentiment score.
Per Danelfin's model, ICE stock could add nearly 16% in the next 60 or so trading sessions.
Analysts, who typically look 12 months ahead, are bullish on the financial stock, too. Of the 16 analysts covering the stock surveyed by S&P Global Market Intelligence, eight call it a Strong Buy, six say Buy, three have it at Hold and one rates it at Sell. That works out to a consensus recommendation of Buy, with high conviction.
Sponsored Content
Republic Services
- Market value: $72.3 billion
- AI Score: 10.0
- Low Risk Score: 7.0
Republic Services (RSG) stock is up 15% so far this year on a price basis to lead the broader market by more than 3 percentage points — and has more outsized upside ahead, according to Danelfin.
The firm's AI model signal gives shares in the waste management company about a 66% probability of beating the S&P 500 in the next three months — with a comparatively low risk of suffering a nasty drawdown. Perfect readings on technical and sentiment indicators — and solid marks on fundamentals — support the buy signal on RSG.
Wall Street likes RSG too. Of the 22 analysts covering the industrial stock, 11 rate it at Strong Buy, two call it a Buy, eight rate it at Hold, and one says Sell. That works out to a consensus recommendation of Buy, with solid conviction.
Sponsored Content
CME Group
- Market value: $94.3 billion
- AI Score: 9.0
- Low Risk Score: 7.0
CME Group (CME) stock is beating the broader market by a slight margin so far this year, and Danelfin's AI model expects it to widen its lead in the next few months.
Shares in the exchange operator, which happens to be ICE's main competitor, gets a solid mark for fundamentals, and near-perfect ratings on technical indicators and sentiment.
Taken together, CME stock has nearly a 64% chance of beating the S&P 500 over the next 60 trading days – with potential price upside of 10%.
That said, the Street is split on CME stock's prospects in the next 12 months or so. Of the 18 analysts covering CME polled by S&P Global Market Intelligence, three call it a Strong Buy, three say Buy, and eight rate it Hold.
Another three analysts say it's a Sell and one slaps a Strong Sell rating on the name. That works out to a consensus recommendation of Hold.
Related content
Sponsored Content
-
Original Medicare vs Medicare Advantage Quiz: Which is Right for You?Quiz Take this quick quiz to discover your "Medicare Personality Type" and learn whether you are a Traditionalist, or a Bundler.
-
Ask the Editor: Capital Gains and Tax PlanningAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on capital gains tax rates and end-of-year tax planning
-
Time Is Running Out to Make the Best Tax Moves for 2025Don't wait until January — investors, including those with a high net worth, can snag big tax savings for 2025 (and 2026) with these strategies.
-
Time Is Running Out to Make the Best Moves to Save on Your 2025 Taxes
Don't wait until January — investors, including those with a high net worth, can snag big tax savings for 2025 (and 2026) with these strategies.
-
4 Smart Ways Retirees Can Give More to Charity, From a Financial AdviserFor retirees, tax efficiency and charitable giving should go hand in hand. After all, why not maximize your gifts and minimize the amount that goes to the IRS?
-
I'm an Insurance Pro: If You Do One Boring Task Before the End of the Year, Make It This One (It Could Save You Thousands)Who wants to check insurance policies when there's fun to be had? Still, making sure everything is up to date (coverage and deductibles) can save you a ton.
-
Small Caps Hit a New High on Rate-Cut Hope: Stock Market TodayOdds for a December rate cut remain high after the latest batch of jobs data, which helped the Russell 2000 outperform today.
-
What Investors May Face in the New Year: InterviewKeith Lerner, the chief market strategist and chief investment officer for Truist Wealth, speaks with Kiplinger.
-
3 Year-End Tax Strategies for Retirees With $2 Million to $10 MillionTo avoid the OBBB messing up your whole tax strategy, get your Roth conversions and charitable bunching done by year's end.
-
'Politics' Is a Dirty Word for Some Financial Advisers: 3 Reasons This Financial Planner Vehemently DisagreesYour financial plan should be aligned with your values and your politics. If your adviser refuses to talk about them, it's time to go elsewhere.
-
For a Move Abroad, Choosing a Fiduciary Financial Planner Who Sees Both Sides of the Border Is CriticalWorking with a cross-border financial planner is essential to integrate tax, estate and visa considerations and avoid costly, unexpected liabilities.
