Value investors don’t have to be left out of the AI Revolution. These companies have cheap valuations. (0:30) - AI Value Trade: Where Should You Be Looking To Invest? (6:30) - Tracey&#x27;s Top Stock Picks To Keep On Your Radar Right Now (30:00) - Episode Roundup: MU, SNDK, NVDA podcast@Zacks.com

The Cheapest AI Stocks Right Now

Zacks Market Edge

# Full Transcript

**Podcast:** Zacks Market Edge

## Transcript

[SPEAKER_A] This is The Value Investor Podcast with Tracy Reinick. All things value, all the time.

[SPEAKER_B] Welcome back, value investors. So I had a whole show planned for today where I was running a bunch of screens, you know, obviously value screens, trying to find value stocks that are in the red-hot AI area. Because even as value investors, we still want to be in this trade, and I do encourage all value investors to be in it. But is there value, or do we just have to say, oh, we're going to be growth investors right now in this area? Which I have talked about in the past, that sometimes value investors don't have to be 100% in, you know, the classic value-type stocks with the P/E under 15 and all of that, but that you can find value components in some stocks, but we don't want to overpay for our companies either, even in a red-hot type of environment like we're having with AI. So what's a value investor to do? I took it upon myself, I threw out the other show I was going to do, looking around in these various screens for AI stocks. Those were as I said, all value screens and use things like price-to-sales ratio to find the value. It did have a growth component. I looked at PEG screens to try to see if I could find some AI stocks using the PEG, but really I could not. Some that I thought maybe this might be one, and I looked at a lot of companies that I haven't looked at before thinking they might be hidden. AI stocks because we're finding a lot of those now, the old economy stocks that are now involved in building out the data centers in some way, you know, especially on the power generation side. But this just wasn't happening. So I decided to, you know, rewrite what I was covering today and to just look at the well-known AI stocks to see if there's any value there and to come up with the cheapest AI stocks on a fundamental basis that us value investors could still realistically get in. And we're not like, oh, this is okay, it's not that expensive, but it still is hard. So things have been stretched even though earnings are on the rise. And with value investing, it does depend on what kind of fundamentals you're looking at. If we're using PE, it's a little bit easier to find cheaper AI stocks. Again, none of these are dirt cheap or, you know, screaming values, but some have some interesting PE ratios. On the price to sales, that's going to be a lot more difficult because those sales are more expensive now. So we are going to pay up for the sales. PEG, like I said, I've run some of those screens and I wasn't finding what I wanted to find in the PEG either, because remember the PEG has to be 1 or less. And even with the earnings on the rise, the prices on these stocks have risen too. So we're not really getting that dirt cheap PEG, although there are a few exceptions. So we are going to talk about at least one that does have the value PEG. But otherwise it is is more diffic...

The Cheapest AI Stocks Right Now

Transcript

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The Cheapest AI Stocks Right Now

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.