Under-the-radar stocks have provided compelling returns in 2023. Indeed, the rally this year has been mostly concentrated in a few key sectors, such as technology and artificial intelligence. However, snapping up oversold stocks typically sets up portfolios for substantial long-term gains. That’s no different right now than at any other time in history.
Of course, finding these hidden gems is not easy, especially when the market is flooded with hype and noise. I’ll be using Google’s Bard AI today to give me three under-the-radar stocks that it thinks will soar in June. Bard has shown the ability to outperform other AI bots and beats humans, analyzing vast data and identifying hidden patterns and trends.
Of course, blindly following the recommendations of AI is not a good idea. Thus, I will be offering my own due diligence on each stock. So, without further ado, let’s start.
Me: Hi Bard, I am writing an article titled “Best Under-the-Radar Stocks: 3 That AI Predicts Will Soar in July” Do you have any recommendations?
Nano Dimension (NNDM)
Bard: “This 3D printing company is developing advanced printed electronics that could revolutionize the manufacturing process. NNDM’s technology poised to capitalize on rising demand for electronic components, garnering significant customer interest.”
Nano Dimension (NASDAQ:NNDM) is a great way to start off this list. Indeed, NNDM stock stands out with a favorable price range despite recent gains, in contrast to other high-priced AI stocks. As Bard explained, this company has its hands in multiple up-and-coming sectors, such as 3D printing and printed electronics. Notably, the company developed DragonFly LDM, a rapid circuit board printing technology, enabling quick production of complex boards and sensors.
Nano Dimension doesn’t leave much to be desired regarding financials either. It had a 43.5% year-over-year revenue growth to $15 million in Q1 and earnings before tax at $22 million. While long-term profitability may be uncertain, the company’s strong financial position is notable, s the company’s cash position exceeds its valuation.
Indeed, this is a speculative play, but NNMD stock can see substantial appreciation this month. Interestingly, this is also a stock that ChatGPT recommended in June in one of Josh Enomoto’s articles.
Digital Turbine (APPS)
Bard: “This mobile advertising company helps app developers and publishers reach their target audiences. Digital Turbine’s platform serves major app publishers, poised to capitalize on the expanding mobile app market.”
Digital Turbine (NASDAQ:APPS) is another under-the-radar AI stock that has been punished by the market this year. Despite a 51% decline over the past year, I disagree with Bard’s optimistic outlook on the stock’s potential. Sure, it can surge this month, but the financials here post a grim picture.
Analysts expect sales to decline 7.6% and earnings to decline nearly 39% this year. While a strong recovery is possible next year, the long-term outlook appears to be less-than-promising.
Digital Turbine’s platform simplifies the app discovery and delivery process for both users and advertisers. The company’s technology pre-installs apps on new devices and promotes them through targeted ads and notifications.
The advertising market faced a tumultuous 2022, and it has recovered to some extent. However, Digital Turbine remains an outlier with no rebound in sight.
With that in mind, I wouldn’t rate this a buy. A “hold” rating would be the best way to categorize APPS stock, considering it still offers decent value.
Bard: “This biotechnology company develops and commercializes cancer-fighting drugs. Seagen’s approved products and pipeline hold potential for significant future revenue in cancer treatment.”
Seagen (NASDAQ:SGEN) is the last stock on this list, but certainly not the least. As a top player in oncology, the company specializes in developing targeted ADC therapies that deliver potent toxins to cancer cells.
The company has three approved products in its portfolio: Adcetris, Padcev, and Tukysa. These drugs treat blood cancers and solid tumors like Hodgkin lymphoma, bladder cancer, and breast cancer. The company also has several other candidates in its pipeline in various clinical development stages.
The company has been growing its revenue in a robust fashion, posting 22% year-over-year growth in the first quarter of 2023. However, I do have concerns about its profitability. SGEN stock is already trading at an elevated level, and has soared almost 50% over the past six months. Thus, keeping up with investor expectations will be a challenge.
In that regard, I will only recommend buying SGEN stock if you are okay with further near-term losses. There are better deals in the market, and I personally rate this a “hold” as well. But again, if you believe Bard, this is not a bad buy either. Of course, there is one key catalyst that can make SGEN a winner, which is the acquisition of Seagen by Pfizer (NYSE:PFE).
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.