Innodata (INOD)
Entry: Unlock
Price target: 46.50-47.50
Second PT: Unlock
Innodata, Inc. is a data engineering company that provides AI software and services through three segments. Digital Data Solutions (DDS) leverages AI and human expertise to organize unstructured data. Synodex helps insurance and healthcare clients digitize and analyze medical records. Agility offers tools and services for PR and communications professionals to manage and measure media impact.
The company had already earned a spot on our watchlist back in February around 42.00 with a price target set at 54.00 at that time. The stock raced to our price target and gained more than 25% following our analysis, but since then moved back to around the same initial level as markets corrected and pulled back in light of tariffs. Although the stock’s price seems to fluctuate a lot, the company itself is performing at a very impressive pace. Revenue growth has been above 120% per quarter over the past three quarters, and net income has equally impressed.
Last week, the Trump administration tapped Palantir to begin compiling a master database on every American, a move that was bound to happen in the modern age of technology. While this is not directly related to Innodata, it can foreshadow what kind of opportunities are available for data AI data companies. Innodata’s already impressive growth can exponentially increase if they can tap into these large contracts, something they’ve already been doing with the U.S. government.
INOD is an attractive buy at their current $1.23 billion market cap, especially when looking at the company’s future revenue, which is expected to double in the next three years. Leadership has done an impressive job at keeping a healthy balance sheet that shows $125 million in assets and $50 million in liabilities, and free cash flow has grown to a small, but respectable $30 million.
With all that being said, INOD is not yet a “buy and forget” type of investment. The company is growing rapidly, but investors must watch for consistency in future reports.
Please note that this may take longer than one week to come around to targets. We'll be updating the stock as needed for the Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
ASML Holdings (ASML)
Entry: Unlock
Price target: 870.00-880.00
Second PT: Unlock
European technology companies may see a boost this week as the CEO of Nvidia Jensen Huang visits multiple countries and meets with the biggest companies. Huang intends to collaborate with European countries to develop their AI infrastructure and potentially establish “AI factories,” emphasizing AI as a crucial part of national infrastructure. One of the companies that will likely see a boost is ASML, which is Europe’s largest technology company by market cap and one that plays a crucial role in the semiconductor industry.
ASML specializes in photolithography systems that enable the optical etching of circuit patterns onto silicon wafers. The company is the sole producer of high-end extreme ultraviolet (EUV) lithography systems, essential for manufacturing the world’s smallest, most efficient, and highest-density chips. The world’s leading chip companies, including Taiwan Semiconductor Manufacturing, Samsung, and Intel, rely on these systems.
Looking at their financial statements, ASML has had an impressive growth story in the past five years. Revenue has doubled from $16B in 2020 to ending 2024 with more than $30B in sales. The company’s bottomline has also doubled, reaching more than $8 billion last year and bringing their price to earnings ratio to 31x. Although that’s higher than the S&P 500’s average of 28x, ASML is still a compelling buy because of the strong outlook they currently have. The company is expected to continue growing at double digit percentage points, which will eventually bring P/E down as profits grow. Moreover, ASML’s management impressively grew its balance sheet by 29% last year, reaching $19 billion in positive equity. And free cash flow significantly jumped by 177% to more than $10 billion.
From a technical perspective, ASML has lagged far behind the market, but the financial performance suggests buyers may take interest in this if a positive catalyst surfaces. Huang’s visit to Europe this week may ignite the spark, but even if it doesn’t, the company’s next earnings in July may bring about buyers.
Please note that this may take longer than one week to come around to targets. We'll be updating the stock as needed for the Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
C3.ai (AI)
Entry: Unlock
Price target: 34.00-36.00
Second PT: Unlock
It may be time to look at C3.ai again as a buying opportunity after the company’s latest earnings report shunned many fears and alleviated past concerns. The company has been around since 2009, but only recently became a popular name thanks to the AI boom, which aligns perfectly with its core business. C3.ai focuses on providing AI software for digital transformation, delivering their AI suite for developing and operating large-scale models, predicative analytics, and IoT applications. Their customers are concentrated in the oil and energy space, but have they’ve also gained partnerships with large names like Coca-Cola and Amazon in recent years, helping spread their market share.
The biggest concerns C3.ai faced in recent years were around the company’s profitability and revenue sustainability. Although their revenue growth has been impressive, the company’s losses continued to widen. This could be due to the higher interest rate environment and the costs it takes to maintain their business, but there is a turnaround story insight, which suggests that the company will begin reporting profits in 2028. Investors who raised concerns about revenue sustainability will also be happy to hear that C3.ai’s agreement with Baker Hughes, whom makes up a fifth of the company’s total revenue, was also renewed through 2028. These are both notches on the “pros” section for the company, and could suggest that as markets look forward, they’ll see opportunity in this name.
Looking at its technicals, the stock has a history of high volatility and currently has a high short-float percentage. Every time buyers have attempted to take the stock higher, short-sellers forced their hand back down, making this name a particularly high risk name to hold. Our approach on this is the “breakout” strategy, which we’ll apply if the stock breaks above the highs of its recent earnings gap-up. We’ll be using the chart and entry / exit points above.
Please note that this may take longer than one week to come around to targets. We'll be updating the stock as needed for the Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
___________________________________
The stocks posted above are the preliminary stocks and set ups we’ll be watching this week. All price points are subject to change based on market performance and sector health. Please do your own research and analysis on these companies/charts before taking on any set ups. Trade at your own risk and as always, good luck!