As a powerful tool in stock trading, alternative data helps investors understand a company’s performance and make informed stock picks.
But, these non-traditional data sources, like social media comments, job postings, credit card transactions, and employee satisfaction, can also help them spot stocks most likely to outperform the market.
According to data from AltIndex.com MongoDB, Berkshire Hathaway, and Stryker are the top three stocks by AI score and have the highest potential to outperform the market in the next six months.
According to the alternative data platform Altindex, which analyzes millions of data signals from thousands of publicly traded companies to forecast future price movements and overall company performance, MongoDB is the top stock by AI score.
Last week, MongoDB hit an AI score of 77, more than any publicly listed company the platform tracks, and is most likely to outperform the market in the next six months. This figure is even more impressive when compared to the Big Five stocks. The AltIndex data show MongoDB has almost 50% higher AI score than Apple, Alphabet, Amazon, Microsoft, and Meta, the tech stocks that move the market.
Statistics show MongoDB stock has seen impressive growth in the past year, with its price surging from $160.1 to $432.8 as of last week. Its AI score has skyrocketed in this period, rising from 43 to 76. The stock’s sentiment or the general opinion for investing in it across top trading forums is also high. AltIndex data show the US software company has a sentiment score of 89 out of 100 and has more positive discussions in stock forums than most other companies in this industry.
Berkshire Hathaway stands in a high second place with an AI score of 76, only one point more than the third-ranked Stryker, one of the world’s leading medical technology companies. Statistics show Berkshire Hathaway’s AI score increased by ten points in the past year, while its stock price grew by 17% and now stands at close to $545,000.
As the stock with the third-highest AI score, Stryker has climbed high on the list of AltIndex stock picks. In December last year, the AI score of the US medical corporation was only 39, which is why it was assigned a sell signal. Over the past twelve months, the stock’s AI score jumped to 75, while its price grew by 25% and hit $297 last week.
The AltIndex data also gave an interesting insight into which industries bring the most top-performing stocks. Statistics show that four of the ten stocks with the highest AI scores work in the software industry. The remaining six come from the gas and oil sector, insurance, real estate, electrical infrastructure, and medical technology markets.
So far, AltIndex stock picks, or the list of the stocks to invest in based on their AI score, have shown high accuracy. In the first quarter of 2023, the platform’s algorithm generated 65 buy and sell recommendations.
Nearly 85% of these selections brought gains, leading to an overall return of 23.2%. Moreover, this shows that AI stock picks outperformed the S&P 500, which recorded a 12.5% return in the same timeframe.