Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Gemini AI has once again been overtaken by other models, but it remains one of the best choices out there for AI stock predictions. Bard (the company’s model preceding Gemini) was previously ranked by analysts as the best AI tool for stock picking, even outperforming human stock pickers a test run. However, Gemini has become far more conservative over the months. It is a challenge to elicit any kind of stock recommendations now. Thankfully, you can still coax out some picks if you twiddle around for long enough.
There is still value in examining such AI stock predictions. These predictions provide perspective and predictive capability beyond what most human analysts can match. You still should approach Gemini’s recommendations as an additional data point rather than a definitive forecast. That said, here are three stocks that Gemini seems bullish on right now.
Whirlpool (WHR)
Gemini: “As a leading appliance manufacturer, Whirlpool (NYSE:WHR) has a solid market position and a history of profitability. The stock has been trading at a relatively low valuation, potentially offering an opportunity for value investors.”
I agree with Gemini and think that the market may have gone too far with Whirlpool’s selloff. Currently, WHR stock is down nearly 62% from its highs and is going back towards its COVID trough. These levels are very enticing. The stock definitely looks risky if you are looking at the short term, but buying WHR stock now will likely yield significant returns if you hold for many years.
You should keep in mind that Whirlpool is quite a cyclical business. Interest rates have a big impact on the company. That’s mostly why the company’s stock has been plunging even after it beat earnings and revenue estimates in Q1. Whirlpool reported earnings per share of $1.78. This was above the analyst estimates of $1.61. Additionally, the company reported revenue of $4.49 billion, which was 1.58% better than the analyst estimate for revenue of $4.4 billion.
Moving forward, I expect that the stock will likely bottom out soon and climb higher. We are looking at bargain-basement valuations and rate cuts on the horizon. Once rate cuts take effect, we could see this stock soar again.
Shopify (SHOP)
Gemini: “This e-commerce platform empowers businesses of all sizes to create online stores and manage their sales. With the continued growth of e-commerce, Shopify’s (NYSE:SHOP) platform is well-positioned for further expansion.”
Gemini’s explanation about why Shopify is well-positioned for growth is quite oversimplified, but is still true. E-commerce is the future and will continue to grow fast. There are lots of competitors in this space, but Shopify has significant advantages in how it operates.
First, what makes Shopify unique is that it is an e-commerce platform. That means that businesses can have their own standalone store using the platform. It is not to be confused with a marketplace like Amazon (NASDAQ:AMZN).
The stock has recovered 178% from its trough back in 2022, but I still see upside. I wouldn’t say the potential upside here would necessarily make you “rich” in two years as the title of this article says, but it can still beat the broader market’s returns.
Shopify’s earnings per share are expected to grow from $1 in 2024 to $5.60 in 2032, with revenue growing from $8.6 billion to $33.7 billion over that timeframe. Paying 71-times earnings and 11-times sales for that growth is certainly expensive, but it still leaves room for upside in the coming years.
Cloudflare (NET)
Gemini: “This company provides content delivery network services, cybersecurity solutions, and other cloud-based tools. With the increasing reliance on internet infrastructure and rising cybersecurity threats, Cloudflare has strong growth potential.”
Cloudflare (NYSE:NET) is a company I’ve written about many times back in 2022 and it has appreciated substantially since then. Back then, the stock was seen as very expensive, and rightfully so. In fact, it currently trades around 154-times forward earnings and 18.4-times forward sales. This is much more expensive than it was back then, and I believe it can go even higher from here.
I am a strong believer in fundamentals, but sometimes it pays to be flexible. Cloudflare has an unusual monopoly in the cybersecurity sector, especially when it comes to small and medium businesses. You may have likely come across a Cloudflare captcha or seen a few Cloudflare messages while browsing. This company makes it very cheap and easy for websites to protect themselves and improve their SEO metrics at the same time all under one platform. The company even offers a VPN, a DNS, and a captcha system that many websites are opting to use instead of Google’s captcha service.
I believe Cloudflare’s dominance deserves the premium, as 80% of websites use it. We’re also looking at very strong growth over the coming years. The company’s earnings are expected to grow 17x from 2024 to 2033.
On the date of publication, Omor Ibne Ehsan did not hold (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.