AeroVironment-The Intelligent Investor's Trifecta: 3 AI Stocks to Outsmart the Market

Group 1: AI Market Overview - Artificial intelligence (AI) is a significant trend in the stock market, with companies leveraging this technology expected to deliver long-term returns for investors [1] - Some AI stocks are projected to continue rising, with notable performance observed in 2023 and the first half of 2024 [1] Group 2: Microsoft (MSFT) - Microsoft is the world's most valuable publicly traded corporation, with a market cap of $3.1 trillion, a P/E ratio of 36, and a yield of 0.725% [2] - The company reported a 35.5% net profit margin for Q3 of fiscal 2024, with revenue increasing by 17% year-over-year (YOY) and net income up by 20% YOY [2] - Microsoft Cloud, benefiting from AI, grew by 23% YOY and accounted for over half of the total revenue [2] - Analysts have given Microsoft buy ratings, with an average price target suggesting an 18% upside from current levels [3] Group 3: Meta Platforms (META) - Meta Platforms utilizes AI for targeted advertising, achieving a 27% YOY revenue increase and a 117% YOY net income growth in the first quarter [4] - The company has reduced its headcount by 10% YOY while maintaining strong financial performance [4] - Meta's stock has risen by 35% YTD and 170% over the past five years, trading at a P/E ratio of 27 and offering a yield of 0.43% [5] - The stock is rated as a strong buy with a projected 12% upside [5] Group 4: AeroVironment (AVAV) - AeroVironment is a defense contractor producing unmanned aerial vehicles that utilize AI, with Q3 2024 revenue increasing by 39% YOY and net income turning profitable at$ 13.9 million [6] - The company has a strong backlog and raised its fiscal 2024 revenue guidance to between $700 million and$ 710 million, anticipating double-digit growth in fiscal 2025 [6] - AeroVironment's stock has more than tripled over the past five years and has gained 64% YTD, indicating a strong performance and improving margins [7]