Machine learning (“ML”) has been gaining precedence over the past few years as organizations are rapidly implementing ML solutions to increase efficiency by delivering more accurate results as well as providing a better customer experience. Notably, when it comes to automation, ML has become a driving force as it involves training the Artificial Intelligence (“AI”) to learn a task and carry it out efficiently, minimizing the need for human intervention.
In any case, ML was already witnessing rapid adoption and the outbreak of the COVID-19 pandemic last year helped in accelerating that demand, as organizations began to rely heavily on automation to carry out their operations.
Markedly, ML is gradually becoming an integral part across various sectors as the trend of digitization is picking up. Notably, ML is finding application in the finance sector as among other usages, it helps in better fraud detection and enabling automated trading for investors. Meanwhile, ML is also making its way into healthcare as with the help of algorithms, big volumes of data like healthcare records can be studied to identify patterns related to diseases, thereby allowing practitioners to deliver more efficient and precise treatments.
Moreover, the retail segment has been using ML to optimize the experience of their customers by providing streamlined recommendations. Interestingly, ML also helps retailers in gauging the current market situation and determine the prices of their products accordingly, thereby increasing their competitiveness. Meanwhile, virtual voice assistants are also utilizing ML to learn from previous interactions and in turn, provide a much-improved user experience over time.
Hyperautomation Driving the Need for ML
In its Top 10 Strategic Technology Trends for 2020
report
, Gartner mentioned hyperautomation as one of the top-most technological trends. Notably, it involves the use of advanced technologies like AI and ML to automate processes and augment humans. This means that in tasks where hyperautomation will be implemented, the need for human involvement will gradually reduce as decision-making will increasingly become AI-driven.
Machine Learning Poised to Grow
Reflective of the positive developments that ML is bringing to various organizations spread across multiple sectors, the ML market looks set to grow. A
report
by Verified Market Research stated that the ML market is estimated to witness a CAGR of 44.9% from 2020 to 2027. Moreover, businesses are also using Machine Learning as a Service (“MLaaS”) models to customize their applications with the help of available ML tools. Notably, a report by Orion Market Reports stated that the MLaaS is estimated to grow at an annual average of 43% from 2021 to 2027, as mentioned in a
WhaTech article
.
4 Stocks to Watch Out For
Machine learning has been taking the world of technology by storm, allowing computers to learn by studying huge volumes of data and deliver improved results while reducing the need for human intervention. This makes it a good time then to look at companies that can make the most of this ongoing trend. Notably, we have selected four such stocks that carry a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Alphabet Inc.
’s
GOOGL
Google has been using ML across various applications like YouTube, Gmail, Google Photos, Google Voice Assistant and so on, to optimize the user experience. Moreover, Google’s Cloud AutoML allows developers to train high-quality models suited to their business needs. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 27.3% over the past 60 days. The company’s expected earnings growth rate for the current year is nearly 50%.
NVIDIA Corporation
NVDA
offers ML and analytics software libraries to accelerate the ML operations of businesses. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 2.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 35.6%.
Microsoft Corporation
MSFT
provides it Azure platform for ML, allowing developers to build, train and deploy ML models. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 5.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 35.4%.
Amazon.com, Inc.
AMZN
is making use of ML models to train its virtual voice assistant Alexa. Moreover, Amazon’s AWS platform offers ML services to suit specific business needs. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 11.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 31.7%.
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