Machine learning stocks are experiencing illustrious growth due to the increasing application of advanced data analytics for commercial purposes. In fact, the machine learning industry is anticipated to grow by an annual rate of 34.8% until 2030, illustrating its systematic potential.

Considering the above, I decided to search for three undervalued machine learning stocks as I believe an industry multiplier growth story is evident. Methodologically, my screening process focused on fundamental aspects, valuation metrics, and market-driven events. Moreover, I included technical analysis to overlay the analysis.

Machine learning stocks may not be for everyone. However, if your risk appetite aligns with my industry-based outlook, here are three machine-learning stocks to consider.

Snowflake (SNOW)

Snowflake’s (NYSE:SNOW) machine learning exposure stems from its integrated cloud platform, which includes a wide range of languages, such as Python and R. The firm’s cloud offerings leverage these languages to produce time series and cross-sectional analyses.

I like the look of SNOW stock because its broad-based profile is well-aligned. Sure, Snowflake’s machine learning is salient. However, other variables might assist its stock in the short term. For example, the company recently suffered from hackers’ data breaches, compromising approximately 165 of its client accounts. Morgan Stanley (NYSE:MS) was fast to react to the situation and suggested the breach was an isolated “event.”

The abovementioned provides SNOW stock with event-driven support, which could combine with its operating cash flow growth rate of 36.89% to lead its stock higher. Moreover, SNOW stock seems grossly undervalued, as its price-to-sales ratio of 14.89x is at a cyclical discount of about 64.92%.

I’m very bullish here!

Oracle (ORCL)

Oracle (NYSE:ORCL) is a household name that needs little introduction. However, its machine-learning activities need some highlighting.

The company’s presence in the cloud space provides it with integration opportunities. Oracle has numerous end-market integrations, including Spark and data mining services. It is critical to note that machine learning allows for non-linear statistical analysis, which is exceptionally valuable to a company like Oracle due to the company’s intense data management and storage requirements. As such, I’m optimistic about machine learning’s value additivity.

Furthermore, Oracle’s short-term variables are well-aligned. For example, the firm recently released its fourth-quarter earnings report, and although it fell short of estimates, Oracle revealed 19.7% year-over-year growth in its cloud revenue. I know some might be pessimistic about Oracle’s earnings report. However, I think cloud growth is what we should be focused on as it is a long-term driver, as opposed to an earnings target miss, which is an incremental blip.

Lastly, Oracle looks good from a financial markets-based perspective. For example, ORCL stock has breached its 10-, 50-, 100-, and 200-day moving averages, suggesting a momentum trend has shaped. Additionally, ORCL’s forward price-to-earnings ratio of 23.12x is understated for a growth stock, leading me to the conclusion that ORCL is underpriced.

CrowdStrike (CRWD)

CrowdStrike’s (NASDAQ:CRWD) stock is a much-talked-about asset. The stock rose to prominence during the pandemic amid exponential growth in affordable cybersecurity products. Despite arguably surging into overbought territory, I remain optimistic about CRWD stock’s prospects; here’s why.

The company’s exposure to the machine learning domain seems cross-sectional, meaning it leverages machine learning to identify isolated cyber threats rather than solely focusing on a time series of events. CrowdStrike’s successful machine learning integration explains why the firm recently exceeded $1 billion in a single downstream sales channel to its lifetime partner, CDW (NASDAQ:CDW).

Furthermore, CrowdStrike has experienced sensational financial market-based support. For example, the company’s stock was recently included in the S&P 500 index five years after it was listed as a public company. This is a tremendous achievement and illustrates the loyalty of CRWD stock’s investor base.

Some might have reservations about CRWD stock’s valuation, which includes a price-to-earnings ratio of 107.94x. Nevertheless, as mentioned before, I’m upbeat about CRWD stock’s prospects. Its exceptional growth will likely adjust its justified price multiples higher, allowing for additional gains!

On the date of publication, Steve Booyens did not hold (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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.