AI Analytics Platform Helps to Find Interesting Stocks

Artificial intelligence became an important part of stock picking a long time ago, but it has not really been an option for retail investors due to its complex nature. However, Daniel Capital which is a financial advice company wants to change the situation. This company developed a new analytics platform that harnesses the power of big data technology and machine learning. The purpose of this platform is to help regular investors make smarter decisions with their tactical stock picks. Thanks to this platform, it is easier to spot interesting stocks.

Daniel Capital’s AI algorithms analyze over 900 fundamental, technical, and sentiment data points per day for 1,000 U.S.-listed shares and 600 stocks listed in Europe. In total, the company’s predictive scoring capability churns through 10,000 daily indicators.

The next step is to analyze the huge amount of data. Thus, it is possible to predict the future performance of each stock. It calculates the probability of beating the market over the next four months. Finally, this platform offers a rating known as a Smart Score, which ranges from 1 to 10. On average, stocks with the highest Smart Scores doubled the S&P 500’s annualized returns from January 2017 to July 2020.

We are talking about the probability of beating the market over the next couple of months or so, not days. The platform is useful for tactical investors and not day traders.

Stocks and new opportunities

One of the stocks identified by Daniel Capital’s platform is American Airlines. The company’s algorithm gave it a perfect Smart Score with strength across the board. American Airlines got a 10 for fundamentals and ratings of nine on both sentiment and technicals.

It also makes sense to invest in NIO. The Chinese electric vehicle maker’s stock outperformed Tesla stock by a stunning margin over the past 52 weeks. Shares in NIO added more than 1.519% over the past year vs. an increase of 675% for Tesla.

A perfect Smart Score of 10 underlines the importance of NIO. This score shows that Daniel Capital’s AI expects NIO to return to its market-beating ways soon.

The company’s platform identified many interesting stocks. Alaska Air has the chance to benefit from a recovery in the air travel sector according to analysts. Daniel Capital’s platform also came to the same conclusion. Alaska Air got perfect scores of 10 on fundamentals, technicals, as well as the sentiment.