| In one week, the term “AI” was used in the quarterly earnings calls of Meta, Alphabet, Microsoft and Amazon 168 times.
By the next week, there were 1,072 mentions of AI across all earnings calls for first-quarter 2023.
This appears to show the growing mania for artificial intelligence in corporate America. But I think it shows much more than that.
While AI is the latest investment buzzword, the growing mentions of the term show an increased thirst for technology to change how business gets done.
Today, I want to focus on a particular industry in dire need of more efficiency. You’d probably never guess AI would be coming to this centuries-old business, but there’s plenty to suggest it will.
And I’ll use our Green Zone Power Ratings system to find one stock leading the charge… Innovating Insurance Dealing with insurance companies can be challenging. Everything from filing a claim … to getting a resolution, good or bad … and either accepting or appealing the result can involve a lot of time and correspondence.
But right now, insurance companies are working to use technology to improve the efficiency of the entire industry.
This effort is called “insurance distribution.” It focuses on improving the overall insurance model … from communications with claimants to automating processes.
And the insurance distribution market in the U.S. is growing every year:  (Click here to view larger image.) The value of the insurance distribution market was $195.2 billion last year. By 2026, that value will jump to $261.6 billion — a 34% increase in just four years!
These projections though, strong as they are, likely don’t consider the swift disruption that AI brings to the table.
That’s why today, I want to highlight and recommend Sapiens International Corp. N.V. (Nasdaq: SPNS).
 | From our Partners at Stansberry Research. Friday's bank collapse sent shock waves throughout the financial industry... Silicon Valley Bank was the second-largest bank in American history to fail, and investors have started piling into the safety and security of gold. But if you're not taking advantage of a little-known way to invest for around $5 today, you're missing out. Click here for full details. |
Green Zone Power Rating: SPNS Sapiens is an Israeli-based company specializing in providing software solutions for the insurance industry.
Its software is used by companies that work in property and casualty, life, pension, annuities and retirement markets.
And, yes, it recently announced a partnership with Microsoft Corp. to integrate AI into its software.
SPNS stock had been on the rise before that announcement, up nearly 19% from a month ago. This piece of AI news only accelerated its climb.
But does the Green Zone Power Ratings system clear it? Let’s see…  (Click here to view larger image.) SPNS Green Zone Power Rating in June 2023.
SPNS rates 89 out of 100 on our proprietary Green Zone Power Ratings system. That means we are “Strong Bullish” on the stock and expect it to outperform the broader market by 3X in the next 12 months.
The stock scores high on our growth metric (96) … and its recent quarterly report shows why: - Quarterly revenue of $124.7 million — a 6% increase from the prior year.
- Gross profit of $53 million — up 7.3% from the same quarter a year ago.
- A 100 basis-point increase in operating margin and 14.2% jump in operating income.
Investors responded favorably to the quarterly numbers:  (Click here to view larger image.) Created in June 2023.
As you can see from the chart above, SPNS is up 9.8% over the last 12 months. Its peers are averaging a 6% loss over the same time.
Focusing on its 52-week low in November 2022, the stock has climbed 50.3% to where it is as I write.
That shows solid strength in momentum, but I believe the stock has more room to run.
Bottom line: The insurance industry continues to adopt new technology to become more efficient.
SPNS is leading the charge by implementing a partnership with Microsoft to integrate AI into its software platform.
That’s a great reason to add SPNS to your portfolio today. Stay Tuned: How to Find Great $5 Stocks You might remember that earlier this year, we at Money & Markets were diving deep into the world of $5 stocks and why they make an incredible investment opportunity today.
Tomorrow, Adam will share his process for identifying the best of the best, and show you how you can do the same with our free-to-use Green Zone Power Ratings system.
Until next time…
Safe trading,
Matt Clark, CMSA®
Chief Research Analyst, Money & Markets
Check Out More From Stock Power Daily: |
Privacy Policy
The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482.
To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance.
The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: https://moneyandmarkets.com/contact-us/
Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication.
(c) 2023 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471)
Remove your email from this list: Click here to Unsubscribe | | | 
No comments:
Post a Comment