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hello everyone and thanks for tuning in
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I'm Ethan Feller stock strategist here
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at Zach and today I want to share with
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you a stock that I'm extremely excited
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about we all know that the AI Revolution
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is changing the world and has offered
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several very fruitful stock market
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opportunities and today I want to share
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with you another one that's very
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interesting this company is called inata
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and it's a small Cap Technology stock
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that plays a crucial role in the
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development of AI technology so inata is
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a technology company that that helps
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businesses transform and digitize to
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help prepare for the future and to
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harness the power of data and artificial
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intelligence they're at the Forefront of
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the trend towards digital transformation
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and they enable companies to modernize
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their operations to make smarter and
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more data informed decisions so what
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exactly does that mean so before you can
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feed any data to AI models that you got
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to manage and and organize that data so
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they transform raw data into usable
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formats for to feed into AI models and
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they'll also label and categorize the
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data the data cleaning data organization
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all important part of the process and
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then they'll also assist in trading the
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AI models to help create accurate
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predictions and useful decisions and
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make sure those large language models
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give us you know decent responses and
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then they'll also help companies build
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custom platforms and tools that that
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helps them manage and analyze the data
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on their own as well so the digi ation
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of business is a massive Trend and they
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work in Industries like healthcare and
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Publishing and finance and not only do
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they work in those Industries but
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they're also partnered with some of the
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largest technology companies in the
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world they're currently working with
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five of these Magnificent Seven stocks
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so those are the hyperscalers and you
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know the AI tools that people are using
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every day and anad data isn't new to the
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industry and they were working on AI
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before it was popular so the company is
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just extremely well positioned to
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benefit from the ongoing boom their
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recent quarterly report
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highlighted significant growth and
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strong performance at the last quarter
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they showed revenue of $ 52.2 million
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which was a 136% year-over-year increase
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and so yeah let's just take a quick look
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at the website you can see a couple of
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the case studies that in data has done
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here we can see that you know they were
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evaluating the AI outputs to improve
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performance this is the project that
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they have going with five of the big
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tech companies so that's like probably
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Microsoft Google
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meta so all of those big companies are
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their are their are their clients you
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can see another one you know they say
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that they fine-tune these large language
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models and of course you know these
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tools are awesome and you want kids
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using them for educational purposes but
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you got to protect them as well so you
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they made sure that these these models
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were you know good for kids to use and
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you can also see they work in the
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academic industry as well they help
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another educational institution to you
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know organize all the data from resch
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search papers which helps improve
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systematic research and a lot of other
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things so yeah they're all over the
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place they're in all different
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Industries most importantly we can see
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that has Zach rank one which means it
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has strongly upper trending earnings
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Provisions which we'll take a look at
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really quickly it's got style scores
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it's got an A in growth and momentum and
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it's in the top 32% of the Zach's
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industry rank here we can see that the
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earnings or visions have snapped
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massively higher we can also see that
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it's a small cap stock it's got a market
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cap of just 1. 3 billion which leaves
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considerable room to the upside uh we
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can also see that it kind of has a
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premium valuation it's trading around 60
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times forward earnings so this isn't a
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lowrisk stock and and then we'll take a
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look at the stock chart in a minute too
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and here we can see the factors that go
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into that Zach rank one we you can see
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there's only one analyst covering the
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stock which is unusual for a small cap
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stock but this analyst has a revised
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earnings estimates considerably higher
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current quarter earnings have nearly
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doubled from 11 cents to 21 cents in the
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last month and then full year 2024
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earnings have really skyrocketed from 21
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cents all the way to 75 cents this year
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for this year and then next year they've
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also jumped about
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20% yes let's take a quick look at the
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sales growth so you can see sales growth
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has grown massively this year 100 it's
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up 100% I'm sorry this quarter it's up
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100% next quarter 105% this year 89% see
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next year it's a little bit lower 22%
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however this company works with big
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contracts and you know between now and
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next year it's probable that you know
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they they take on a new contract which
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would probably boost their sales and
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boost their earnings so so let's take a
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look at the stock chart so in data has
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gone up a lot this year I mean there's
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no no denying that this this stock is up
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massively it's up almost 500% year to
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date and especially with that premium
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valuation I understand why for some
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people it's difficult to buy stock that
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is up so much in such a brief amount of
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time and then you can see following that
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Banner earnings report the stock jumped
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from 25 to nearly $50 so nearly doubled
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in just the last month but what I've
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learned more than anything in these last
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two years is this AI boom has gone on is
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that these AI stocks they'll just go and
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go and go and of course there there's
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risk in buying a stock that's up a lot
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or buying a stock that has a higher
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valuation but you know you just got to
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have prudent risk management you got
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says stop you got to position size it
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properly in your portfolio and and that
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way you can hold on to it for the next
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leg higher don't don't put too many too
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too big a position in this stock but
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don't put so small a position that
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you're not going to benefit so you know
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I'm just keeping my eye on this kind of
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consolidation after earnings this
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earnings Gap up and then it's sort of
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holding this level as a really
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encouraging action to me you know I
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think if you want to be risk averse you
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can set a stop right here at 3650 and
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buy you know anywhere in in this range
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you know maybe this kind of builds out a
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consolidation and maybe you want to wait
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for another breakout above like $46 um
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but you know this is just a stock I
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really want people to keep their radar
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keep on their radar because you know
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this AI thing happens in waves and you
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know these last few weeks stock market
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has picked up again and the AI trend is
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picking up again and you know we've had
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a lot of these infrastructure players do
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really well like Nvidia and Microsoft
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you know these guys are are building the
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structure and the infrastructure for us
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to use these AI products but now we're
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going to have these other players like
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you have palente here and now we have
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something like inad dat where they're
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Consulting with businesses to help them
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utilize these products so yeah that's it
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that's in data I recommend checking it
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out thank you so much for joining me
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today I hope you found this presentation
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informative and entertaining if you want
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more information from Zach I recommend
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signing up for our newest promo uh the
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link is in the bio or you can just go to
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zach.com promo thanks have a good day
