7 Biometric Stocks to Watch as AI Rises

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biometric stocks - 7 Biometric Stocks to Watch as AI Rises

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Previously relegated to the fantastical world of science-fiction movies, biometrics have increasingly penetrated our daily lives. For instance, it’s not uncommon nowadays for workers to clock in their hours with fingerprint or retinal scans. With additional uses along the way, now is a great time to consider biometric stocks.

One of the driving forces behind this new artificial-intelligence based technology is its force-multiplier component. Prior innovations usually only impacted the target sector. But with biometrics, it has profound implications for virtually all segments of society, invariably lifting biometric stocks. Off the top, we’re talking billion-dollar industries such as finance, healthcare, and cyber-security.

Better yet, advancements in digitalization don’t have to be so high-brow. Instead, AI is moving at a point where facial-recognition systems can make passports and long security lines at airports obsolete. As a frequent flyer, I personally can appreciate anything to make my journey easier. Similarly, if you’re a trends-based investor, you should definitely focus on facial recognition stocks.

Best of all, increased interest towards artificial intelligence stocks as a market segment will only increase. Consumers today demand both convenience and accuracy. With humans, this is usually an effort in futility. But with robotics and AI mechanisms, we’re stepping closer to the singularity.

In the meantime, you can step closer to profitability with these seven biometric stocks:

Biometric Stocks: Synaptics (SYNA)

Biometric Stocks: Synaptics (SYNA)

Source: Apple

One of Synaptics’ (NASDAQ:SYNA) marketing slogans is “advancing the human interface.” It’s rare that an organization aligns with its hype, but Synaptics is doing exactly that. Known earlier for their touchpads for laptop computers, SYNA has advanced to areas such as fingerprint biometrics technology for smartphones.

As we dive further into the digital era, I believe SYNA stock will deliver long-term gains for current stakeholders. I say this because companies like Apple (NASDQ:AAPL) and Samsung have continuously pushed the boundaries for biometrics and facial recognition. That trend won’t stop, which makes SYNA indefinitely relevant.

Like other biometric stocks, SYNA hasn’t enjoyed the best market performance. However, increased utilization for its products and services makes Synaptics a viable discounted opportunity.

International Business Machines (IBM)

Biometric Stocks: International Business Machines (IBM)

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Over the last several years, International Business Machines (NYSE:IBM) has earned an unfortunate reputation as a boring dividends play. In terms of speculative excitement, IBM really doesn’t register among today’s leading artificial intelligence stocks.

But look underneath the hood, and you’ll find a wealth of information and innovation. Although it doesn’t always generate headlines, IBM is actually one of the top facial recognition stocks. Currently, they offer IBM Verify, which ties authentication with a worker’s mobile device. They’re also actively developing full-scale biometrics for both corporations and government agencies.

Finally, a key benefit favoring IBM is that it’s boring. Biometric stocks, while enjoying significant upside potential, also have substantial downside risk. Sticking IBM in your portfolio helps balance out the volatility while maintaining exposure to the AI sector.

Nvidia (NVDA)

Biometric Stocks: Nvidia (NVDA)

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With technological advancements permeating throughout society, it’s easy to take everything for granted. We live in a time where, given enough funds, we can perform virtually all personal functions without leaving the house. However, isolated, lone-wolf events like terrorism or mass shootings can cripple a metropolitan area’s economic well-being.

To prevent that dreadful and asymmetric scenario, Nvidia (NASDAQ:NVDA) pioneered smart-surveillance technologies. While most people recognize NVDA as a gaming-centric semiconductor firm, the company also is one of the most compelling facial recognition stocks. For instance, its AI-powered surveillance program constantly scans faces 24/7.

This technology allows law enforcement to quickly track down suspects and persons of interest. Also, Nvidia can provide critical help in missing persons cases. With so many vital applications, look for NVDA stock to work its way out of its present funk.

Alibaba (BABA)

Biometric Stocks: Alibaba (BABA)

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Typically, I’m hesitant when dealing with Chinese companies. Although China is supposedly the future, I can’t get over certain red flags. For me, lack of transparency at both the governmental and corporate levels represents a significant hindrance. Plus, we have an ongoing trade war that may or may not find a workable solution.

But if buying one of the best facial recognition stocks is enough to overcome these broader risks, do check out Alibaba (NYSE:BABA). Although best known as China’s answer to Amazon (NASDAQ:AMZN), BABA offers exposure to areas outside e-commerce. For instance, the company’s “smile to pay” program allows payments using your likeness as the defining verification factor.

As facial recognition stocks improve in sentiment and visibility, I think Alibaba has a competitive edge. First, China has 1.4 billion people. That’s plenty of opportunity for BABA to perfect this innovation. Second, the country is in the middle of a technological renaissance which only bolsters the case for Alibaba shares.

CACI International (CACI)

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After months of tantalizing rumors and the possibility of watching a Washington train wreck, the Robert Mueller investigation ended with a disappointing whimper. Undoubtedly, given President Donald Trump’s poor job-approval rating, many hoped for impeachment proceedings. That’s probably not going to happen.

But what this fiasco provided was a valuable lesson. Although we’re the greatest country on earth, we’re no longer invincible. In particular, we experienced the devastation of a foreign-operated misinformation campaign. To prevent such incidents in the future, CACI International (NYSE:CACI) develops security and biometrics solutions for its government clients.

CACI has always been one of the top biometric stocks. However, recent geopolitical events have made the company exponentially more relevant. Despite some wild choppiness, CACI should prove viable over the longer-term. The ramifications behind the Mueller investigation means security concerns will play a significant role in the upcoming 2020 elections.

Gentex (GNTX)

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When it comes to driving, I like going old school: I’m talking manual transmissions (that’s three pedals instead of two), and no parking assists or flashy infotainment systems. But people like me are increasingly being phased out, and admittedly, I can understand why.

Today, modern cars practically drive themselves, and eventually, they’ll literally do just that. To take advantage of this growing trend, I’d take a long look at Gentex (NASDAQ:GNTX). One of the top artificial intelligence stocks, Gentex offers several automotive safety features, including blind-zone indicators and forward-looking sensors. Anything that can help distracted drivers is a plus in my book.

Additionally, GNTX has shifted some of its resources to biometrics and facial recognition. With home products making full use of this innovation, GNTX offers wide-ranging exposure to these exciting sectors.

BIO-key (BKYI)

Biometric Stocks: BIO-key (BKYI)

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As Equifax (NYSE:EFX) demonstrated a year-and-a-half ago, security breaches are bad. Though EFX shares are in a much better place today than they were in 2017 following the oversight that compromised the personal data of millions, Equifax would rather not repeat their mistake.

To help prevent similar crises, BIO-key (NASDAQ:BKYI) offers a simple, but revolutionary, solution. Rather than depend on hackable passwords, BKYI ties access to sensitive information with fingerprint analyses. This way, only authorized individuals gain admission. More importantly, the authorized person must be physically present to go through the biometric assessment.

Curiously, though, the markets generally have a dim view on one of the most compelling biometric stocks. Since the second half of last year, BKYI is down 46%. However, shares are on a decisive comeback trail this year, and I expect this momentum to continue.

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


Article printed from InvestorPlace Media, https://investorplace.com/2019/04/7-biometric-stocks-to-watch-as-ai-rises/.

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