Stocks to buy

While artificial intelligence isn’t a crystal ball for predicting high-return stocks, it can still be a great tool to screen certain stocks and better understand the underlying business models. There are many artificial intelligence models, such as Bard, Bing AI and the massively popular ChatGPT, each with its own advantages and disadvantages. However, one model has consistently outperformed its peers regarding stock picking: Google’s Bard AI. It even beat a human reporter and outperformed the S&P 500 during its test period. 

Me: Hi Bard, I’m writing an article for InvestorPlace about high-return stocks that can deliver triple-digit returns in 2023. Can you name three stocks that can deliver those returns from their current price range?

Bark (BARK)

Source: Jonathan Weiss / Shutterstock.com

Bard:Bark (NYSE:BARK) is a pet-focused technology company that provides a variety of services, including pet insurance, pet sitting and dog walking. The company has a large and growing customer base, and it is well-positioned to benefit from the growing trend of pet ownership.”

Although risky, Bark is an excellent pick as a candidate for high-return stocks due to its valuation. The stock is down more than 92% from its peak in December 2020 and changes hands at a price-to-sales ratio of 0.5, which is very compelling if you consider the potential ahead.

Taking the risk here is not bad if you target high ROI. The price action has been flat for the past year, but BARK has built up some momentum recently. The stock is up 32%-plus in the past month but has much upside potential to exploit.

The average Wall Street analyst also reflects Bard’s view of BARK stock. According to Wall Street analyst price targets, the average one-year upside potential here is 116%. I agree with the sentiment since Bark’s sales are expected to accelerate through FY 2026 and reach 13.4% growth, while losses are expected to be negligible by that period. According to analysts, EPS growth will also average 43% -plus year-over-year from FY 2024-26.

Sea (SE)

Source: Postmodern Studio / Shutterstock.com

Bard:Sea Limited (NYSE:SE) is a Southeast Asian e-commerce company that operates the Shopee online marketplace, the Garena online gaming platform, and the SeaMoney payments platform. The company is well-positioned to benefit from the continued growth of e-commerce and digital payments in Southeast Asia. Sea Limited is also expanding into new markets, such as India. With the Southeast Asian economy growing rapidly and the demand for digital goods and services increasing, Sea Limited is poised to grow significantly in the years to come.”

Sea is another exciting growth pick I’m very optimistic about. Bard has already covered most of its strong suits, and there’s not much else to say. This is a solid investment for the long term. The entry point is very compelling, down 82.6% from its peak, and presents a 61.5% upside potential in one year, according to the average Wall Street analyst.

However, according to Gurufocus’ model, SE stock could potentially reach $500 a pop by 2026. That’s an eye-watering 706% return if that does happen. Sales growth will remain above double digits for the foreseeable future, and profits are also on the horizon here. It’s a solid buy, all things considered.

Lovesac (LOVE)

Source: JHVEPhoto / Shutterstock.com

Bard:Lovesac (NASDAQ:LOVE) is a furniture company that sells modular sofas, chairs and other home furnishings. The company has a unique business model that allows customers to customize their furniture, and it has a strong brand presence. Lovesac is also benefiting from the trend of people spending more time at home. With the housing market strong and the economy recovering, Lovesac is well-positioned to grow in the years to come.”

Lovesac is another lovely bet if you’re into high-return stocks. Bard’s projections here are in line with Wall Street analysts as well, who believe LOVE stock can deliver a 122% gain in one year if their price targets are reached. 

The stock is down almost 74% from its peak but has been trading sideways since September. I believe a spike in its price is overdue due to solid sales growth and profitability metrics. Revenue growth is projected to accelerate to 16% by 2026 from its FY 2024 growth of 9.5%. EPS is expected to build on its momentum, with YOY growth climbing from 18.4% in FY24 to almost 60% in 2026.

Despite the strong anticipated growth, we are looking at a forward price-to-earnings ratio of just 11.5 times and a short interest of 32.4%. Indeed, this is one of the strongest buys, in my opinion, even with the most pessimistic projections.

On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

Articles You May Like

Activist Jana is back in the kitchen at Lamb Weston – Here’s what could happen next
Investing Under Trump: How To Maximize Your Market Gains
Global ETFs slide as investors see Trump tariff policies hurting trade
Election Day 2024: Sure Fire Stock Gains No Matter the Victor
Amazon Earnings Illustrate the Power of AI