Investing

2 AI Stocks Wall Street Expects to Return Up to 1,438% in 2024

Trey Thoelcke

Published: March 22, 2024 9:55 am

Strong interest in the prospects for artificial intelligence (AI) continues to be a key driver for many stocks, including several of the so-called Magnificent Seven. The question for investors who have been wary about what might have been a fad, or those who are simply late to the party, is whether it is too late now to enter the fray. Have all the profits in AI stocks been made?

There may still be opportunities to be found. Take for example iRobot Corp. (NASDAQ: IRBT) and Ontrak Inc. (NASDAQ: OTRK). Both stocks retreated more than 60% this year, and yet analysts anticipate strong rebounds for both of them in the next 12 months. So what’s up here? Let’s have a look.

iRobot

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This company designs, builds, and sells robots and home innovation products. It has been a global pioneer in the robotics and consumer products industries for more than 30 years. Its best-known offerings are the Roomba and Braava floor care devices.

After Amazon’s acquisition of iRobot fell apart earlier this year, there were concerns about the robot-maker’s prospects. Shares began to tumble even before the cancellation of the deal was announced, and they are now down over 78% year to date. That was a continuation of a retreat that began in early 2021, when the stock changed hands for more than $120 apiece. Overall, analysts remain cautious, with a consensus rating of Hold. But those with price targets have higher expectations. They see the stock rebounding by as much as 66%.

Ontrak

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Ontrak operates as an AI-powered, telehealth-enabled, and virtualized health care company that provides services in the United States. Its OnTrak program provides health care solutions to members with behavioral conditions that cause or exacerbate chronic medical conditions, such as diabetes, hypertension, coronary artery disease, chronic obstructive pulmonary disease, and congestive heart failure. It recommends effective care pathways that people are willing to follow and engages and guides them to and through the care they need.

The company recently expanded its partnership with Sentara Health Plans and participated at the 36th annual Roth Conference. The news had the share price up about 10% this year, after it had retreated to a multiyear low of $0.14 earlier this month. Note that shares traded for more than $510 apiece back in 2021. (Check out some other artificial intelligence stocks under $10.)

The two analysts who follow the stock recommend buying shares. Just one analyst has a price target, but that analyst sees plenty of upside potential for the coming year.