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 1 to 10, indicates a stock's probability of beating the market over 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 AI Score with 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 May 28.
For good measure, we also took a look at what Wall Street analysts have to say about these names' prospects over the next 12 months or so.
Please remember that we're talking about the probability of a stock beating the market over the next few months or so, not days, and 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 May 28. AI Scores and rankings are courtesy of Danelfin as of May 28. Analysts' consensus recommendations and other data are courtesy of S&P Global Market Intelligence, unless otherwise noted.
Fifth Third Bancorp
- Market value: $25.5 billion
- AI Score: 10.0
- Low Risk Score: 6.0
Shares in regional lender Fifth Third Bancorp (FITB) were trailing the broader market by about 10 percentage points for the year to date through late May, but that just makes them ripe for the picking, according to Danelfin's AI.
With near-perfect scores for fundamental and technical indicators, as well as solid sentiment, shares are poised for short-term outperformance. Indeed, according to Danelfin's comprehensive analysis, the probability of FITB beating the S&P 500 over the next three months stands at nearly 52%.
Wall Street analysts, who tend to look 12 to 18 months ahead, mostly like FITB on that time frame too. Of the 24 analysts covering the financial stock surveyed by S&P Global Market Intelligence, nine rate it at Strong Buy, five say it's a Buy and 10 have it at Hold. That works out to a consensus recommendation of Buy, with solid conviction.
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M&T Bank
- Market value: $29.6 billion
- AI Score: 10.0
- Low Risk Score: 6.0
Strong marks for fundamental, sentiment and technical indicators help lift shares in M&T Bank (MTB) to the top of Danelfin's AI rankings. And unlike fellow regional bank stock FITB, MTB doesn't have as much ground to recover as we approach the halfway mark of 2025.
M&T Bank stock lagged the broader market by only about 2 percentage points for the year to date through late May. With a 52% probability of beating the S&P 500 over the next three months or so, MTB should be a shorter term winner.
Wall Street is likewise constructive on the name. Of the 21 analysts covering MTB, nine rate it at Strong Buy, three say Buy, eight call it a Hold one one says Strong Sell. That works out to a consensus recommendation of Buy, with solid conviction.
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JPMorgan Chase
- Market value: $737.3 billion
- AI Score: 10.0
- Low Risk Score: 6.0
Shares in the nation's biggest bank by assets were beating the broader market by about 10 percentage points for the year to date through late May. Happily, Danelfin's AI says they have more room to run.
JPMorgan Chase (JPM) gets near-perfect scores for fundamentals and sentiment, as well as strong marks for technical indicators. At the same time, the stock's lower risk profile should help tacticians and traders sleep better at night.
The Street is also bullish on this Dow Jones stock. Of the 25 analysts covering JPM, eight call it a Strong Buy, seven have it at Buy, nine rate it a Hold and one says Sell. That works out to a consensus recommendation of Buy, with solid conviction.
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