Can Stocks Picked by AI Beat the Market? Three Stocks to Watch
An AI stock-picking platform identifying high-potential equities has been sharp in the past. Here are three of its top stocks to watch in the next few months.
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 September 11.
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 September 11. AI Scores and rankings are courtesy of Danelfin as of September 11. Analysts' consensus recommendations and other data are courtesy of S&P Global Market Intelligence, unless otherwise noted.

Intercontinental Exchange
- Market value: $100.5 billion
- AI Score: 10.0
- Low Risk Score: 7.0
Intercontinental Exchange (ICE) stock is beating the market by a healthy margin so far in 2025 and Danelfin's algos say it's poised for more outperformance with limited risk.
Shares in the exchange operator best known as the owner of the New York Stock Exchange (NYSE) have a high probability of beating the market in the next three months, thanks to strong marks for fundamentals and technicals, as well as a perfect sentiment score.
Per Danelfin's model, ICE stock could add nearly 16% in the next 60 or so trading sessions.
Analysts, who typically look 12 months ahead, are bullish on the financial stock, too. Of the 16 analysts covering the stock surveyed by S&P Global Market Intelligence, eight call it a Strong Buy, six say Buy, three have it at Hold and one rates it at Sell. That works out to a consensus recommendation of Buy, with high conviction.

Republic Services
- Market value: $72.3 billion
- AI Score: 10.0
- Low Risk Score: 7.0
Republic Services (RSG) stock is up 15% so far this year on a price basis to lead the broader market by more than 3 percentage points — and has more outsized upside ahead, according to Danelfin.
The firm's AI model signal gives shares in the waste management company about a 66% probability of beating the S&P 500 in the next three months — with a comparatively low risk of suffering a nasty drawdown. Perfect readings on technical and sentiment indicators — and solid marks on fundamentals — support the buy signal on RSG.
Wall Street likes RSG too. Of the 22 analysts covering the industrial stock, 11 rate it at Strong Buy, two call it a Buy, eight rate it at Hold, and one says Sell. That works out to a consensus recommendation of Buy, with solid conviction.

CME Group
- Market value: $94.3 billion
- AI Score: 9.0
- Low Risk Score: 7.0
CME Group (CME) stock is beating the broader market by a slight margin so far this year, and Danelfin's AI model expects it to widen its lead in the next few months.
Shares in the exchange operator, which happens to be ICE's main competitor, gets a solid mark for fundamentals, and near-perfect ratings on technical indicators and sentiment.
Taken together, CME stock has nearly a 64% chance of beating the S&P 500 over the next 60 trading days – with potential price upside of 10%.
That said, the Street is split on CME stock's prospects in the next 12 months or so. Of the 18 analysts covering CME polled by S&P Global Market Intelligence, three call it a Strong Buy, three say Buy, and eight rate it Hold.
Another three analysts say it's a Sell and one slaps a Strong Sell rating on the name. That works out to a consensus recommendation of Hold.
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Dan Burrows is Kiplinger's senior investing writer, having joined the publication full time in 2016.
A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among many other outlets. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about markets and macroeconomics.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade individual stocks or securities. He is eternally long the U.S equity market, primarily through tax-advantaged accounts.
-
Does My Car Insurance Cover Rental Cars?Is it safe to decline the extra coverage car rental companies offer you when booking? Here's what you need to know.
-
Outsmarting the AI Job Algorithm: Why Older Women Need a StrategyWhen you're job hunting, AI may undermine your best efforts. Here's how older women can throw a wrench in the algorithm.
-
I'm an Investment Adviser: Here's Why You Should Resist a Zero-Down MortgageWhile it's certainly enticing, a zero-down mortgage comes with significant risks, especially if home values decline or you want to refinance.
-
I'm Embarrassed to Ask: What Is a Life Insurance Trust?Life insurance trusts, particularly irrevocable life insurance trusts (ILITs), can minimize estate taxes and protect your heir's inheritance.
-
Are Your Employees Quietly Cracking? How to Repair the Cracks Before Everything BreaksSome employees who are unable to change jobs due to economic conditions are doing only the bare minimum, leading to decreased work quality and team morale.
-
Headed for the Retirement Red Zone? This Eight-Step Game Plan Helps to Avoid FumblesThese strategies help safeguard your nest egg and ensure long-term financial success during the five years before retirement and the five years after.
-
I'm a Financial Planner: This Is How You Can Get Started With RMDsThe IRS will come knocking for its share of your tax-deferred retirement savings when you hit 73, but planning ahead for RMDs will ensure you're ready.
-
How Will You Replace Your Paycheck in Retirement? A Financial Adviser's Tips on Income PlanningBills don't stop once you retire — and you can't expect your Social Security checks to cover them all. Don't risk running out of money. Instead, make a plan.
-
From Pets to Paintings: The Little Things That Can Cause Big Estate TroubleSentimental items might have little monetary value, but their disposition can cause hurt feelings. Talking about who wants what and labeling items can help.
-
The Clock Is Ticking: Take Advantage of These Retirement Tax Benefits While They LastRecent tax changes, including an extra $6,000 deduction for those 65 and older, present a golden opportunity for retirees to reduce their tax bills.