Can Stocks Picked by AI Beat the Market? Three Stocks to Watch

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Artificial intelligence (AI) is hardly new to the world of stock-picking. Until recently, however, it's pretty much been available only to institutional investors with deep pockets.

Danelfin is trying to change all that. The financial technology firm's AI-driven analytics platform aims to level the playing field, giving regular folks access to institutional-level technology.

The platform, which offers both free and premium plans, uses artificial intelligence to analyze more than 900 fundamental, technical and sentiment data points per day for all U.S.-listed shares and 600 stocks listed in Europe.

After churning through 10,000 daily indicators, Danelfin's algos produce a series of scores.

The AI Score, which ranges from one to 10, indicates a stock's probability of beating the market in the next three months, or roughly 60 trading sessions. (Higher scores are better.)

Danelfin also assesses stocks' volatility and their potential for nasty drawdowns. Stocks with superior Low Risk Scores should help tactical investors and traders sleep better at night.

AI picks stocks

The last step is to combine the AI Score with the Low Risk Score to suss out stocks that offer not only the highest probability for short-term outperformance, but also the lowest risk of loss.

Below please find three stocks to watch, based on Danelfin's AI platform awarding them the highest AI Risk/Reward Scores as of December 17.

For good measure, we also took a look at what Wall Street analysts have to say about these names' prospects in the next 12 months or so.

Please remember that we're talking about the probability of a stock beating the market in the next few months or so, not days, not years. That means the platform is pointing to the best stocks to buy for tactical investors and traders, not necessarily long-term investors.

Share prices and other market data are as of December 17. AI Scores and rankings are courtesy of Danelfin as of December 17. Analysts' consensus recommendations and other data are courtesy of S&P Global Market Intelligence, unless otherwise noted.

PPL

Market value: $25.4 billion
AI Score: 8.0
Low Risk Score: 7.0

PPL (PPL) stock is lagging the broader market in 2025, but Danelfin's algos say it's poised to break out over the next few months – with limited downside risk to boot.

The electric and gas utility has solid long-term growth prospects thanks to demand from the buildout of data centers. In the shorter term, the utility stock gets high marks on sentiment metrics and technical indicators, and a solid score on fundamentals.

Danelfin says PPL has a 60% probability of outperforming the market in the next three months, which is 8% higher than the average probability of any stock. Meanwhile, an elevated low risk score should let traders sleep better at night.

Wall Street, which typically looks 12 months ahead, is bullish too. Of the 16 analysts covering PPL surveyed by S&P Global Market Intelligence, nine call it a Strong Buy, two say Buy, four call it a Hold and one has it at Sell. That works out to a consensus recommendation of Buy, with high conviction.

WEC Energy Group

Market value: $34.1 billion
AI Score: 8.0
Low Risk Score: 7.0

Like PPL above, WEC Energy (WEC) is a gas and electric utility whose shares are trailing the S&P 500 this year. And as with PPL, shares are poised to outperform the broader market over the next 60 trading sessions, according to Danelfin's AI platform.

Strong marks for technicals and sentiment – and solid fundamentals – inform the stock's high AI scores. At the same time, WEC's short-term risk profile should lend support if markets get choppy.

"Notable data points include the stock's Max Volatility being in the bottom 10%, suggesting a lower-risk profile that is currently viewed favorably," Danelfin says.

While shares look poised for outperformance over the next few months, the Street says massive demand from data centers should be a tailwind for growth over the long haul. Of the 19 analysts covering WEC, seven call it a Strong Buy, one say Buy, ten call it a Hold and one has it at Sell. That works out to a consensus recommendation of Buy, albeit with more modest conviction.

O'Reilly Automotive

Market value: $78.5 billion
AI Score: 8.0
Low Risk Score: 7.0

O'Reilly Automotive (ORLY) stock is beating the broader market by about 3 percentage points so far this year. According to Danelfin's assessment, shares in the car parts retailer are poised to extend that lead over the next 60 or so sessions.

"The combination of solid fundamentals, favorable technical patterns and positive industry positioning supports the Buy rating despite some minor headwinds from sentiment indicators," Danelfin notes.

In addition to a 60% probability of outperforming the market in the shorter term, risks remain contained, as ORLY shows "relatively stable price movements compared to peers."

Meanwhile, Wall Street is similarly bullish on the consumer discretionary stock's longer term prospects. Of the 28 analysts covering ORLY, 18 call it a Strong Buy, five say Buy, four call it a Hold and one has it at Strong Sell. That equates to a consensus recommendation of Buy, with strong conviction.