2 Small Cap AI Stocks for Your Watch List
(0:30) - Are Small Cap Stocks The Smart AI Investment?
(5:15) - Top Picks To Keep On Your Watchlist Right Now
(41:35) - Episode Roundup: AATC, DUOT
Podcast@Zacks.com
Welcome to Episode #445 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Small Cap Analyst, Mark Zinski, to talk about 2 small cap companies that are involved in the AI Revolution.
Unlike the last time Mark was on the podcast, this week's stocks are not in the health care sector but are in technology services.
The large cap companies aren't the only way to play AI. There will be opportunities for many small companies as well. But investors will have to do their research to find them.
Tracey and Mark are here to share 2 stocks this week.
2 Small Cap AI Stocks for Your Watch List
1. Autoscope Technologies Corp. (AATC)
Autoscope Technologies is a global company that has AI-enabled platforms like IntelliSight which provides data analytics on traffic. It's 'smart traffic.' Autoscope Technologies has a market cap of $41 million.
Autoscope Technologies has royalty income and has a gross margin of 95% and low capex.
Autoscope Technologies is a rare small cap company that pays a dividend. In 2024 it paid a special dividend in addition to the regular dividend. Autoscope's regular dividend is currently yielding 8%.
Be aware, Autoscope is thinly traded on the over-the-counter market.
Should Autoscope Technologies be on your watch list?
2. Duos Technologies Group, Inc. (DUOT)
Duos Technologies Group has several business segments. One uses AI to analyze fast moving vehicles, including railcars. Another segment, Duos Energy, owns gas turbines. A third segment is its Edge Data Center segment.
Duos Technologies Group has a market cap of $87 million. It is more heavily traded than Autoscope, with about 100,000 shares traded daily.
Duos Technologies does not pay a dividend. But total revenue in 2025 is expected to be up and will fall between $28 and $30 million.
Get More Information on YouTube
Be sure to check the description box on this video on YouTube for links to the Zacks Research Report and Zacks Detailed Estimates.
What Else Should You Know About Small Cap AI Stocks?
Tune into this week's podcast to find out.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Autoscope Technologies Corporation (AATC) : Free Stock Analysis Report
Duos Technologies Group, Inc. (DUOT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
HSBC's Sir Mark Tucker to leave in September for return to insurer AIA
Banking giant HSBC's outgoing chairman Sir Mark Tucker will step down at the end of September to take up the same post at Hong Kong-based insurer AIA, the bank has announced. It was announced last month that Sir Mark would retire by the end of 2025, ending an eight-year tenure at the helm of the bank's board. His departure date comes after AIA confirmed his appointment as non-executive chairman on October 1 – a move that sees him return to the group he led as chief executive for seven years until 2017. HSBC is still searching for his permanent replacement, but Brendan Nelson, head of the group's audit committee, will take on the role on an interim basis. Sir Mark will remain as a strategic adviser to the group's chief executive Georges Elhedery and the board as the hunt for his successor continues. Ann Godbehere, senior independent director who is leading the search, said the bank was 'making progress' on the succession process. On his appointment at AIA, Sir Mark said: 'I am deeply honoured and excited to be taking on the role of independent chairman of one of the world's largest insurance companies. 'AIA plays a critical role in protecting the financial wellbeing of millions of families across Asia.' At the insurer, he replaces Edmund Sze-Wing Tse, who retires after a career spanning more than six decades with the business. Sir Mark Tucker took on the role of chairman at HSBC in October 2017 and has been at the helm of one of the world's biggest banks during crises including the Covid pandemic, the rising cost of living, and growing tensions between the US and China. Under the leadership of Mr Elhedery, the bank is undergoing a major overhaul as it seeks to slash costs by 1.5 billion US dollars (£1.1 billion) by the end of 2026. HSBC has also faced mounting pressure from one of its biggest shareholders, Chinese insurer Ping An, in recent years to split the bank in two and create a separate Asia-headquartered business. A plan to break up the bank was rejected by shareholders last year, but the restructuring announcement initially prompted some speculation that it could eventually fracture. Sir Mark said on announcing plans to leave last month that it had been a 'great honour and privilege to lead HSBC as chair'. Sign in to access your portfolio
Yahoo
11 hours ago
- Yahoo
Palantir has soared 74% this year alone. 3 reasons why it's been one of the world's best megacaps.
Palantir is the second-best-performing stock in the S&P 500 in 2025. Shares are up 74% year-to-date, trouncing the broader index as well as other tech stalwarts. Government deals, AI hype, and retail bullishness are factors that have lifted shares this year. Palantir stock is crushing the broader market and it's not even close. Shares of the AI-powered software company are up 74% year-to-date, trading around $132 on Thursday. That performance handily trounces the S&P 500's gain of about 1.6%, but it's also vastly better than other tech titans like Nvidia (+5.6% YTD), Microsoft (+11% YTD), and Apple (-19% YTD). This embedded content is not available in your region. Here's what's behind the stellar performance of the stock in 2025. Palantir has inked a number of contracts with the Federal government this year, signing on to initiatives supporting the Trump administration's policy priorities. In April, the software company secured a $30 million deal with the US Immigration and Customs Enforcement for software to monitor visas and track deportations. In May, the firm teamed up with Fannie Mae, and said it would provide AI tools to support the government-sponsored mortgage financier's Crime Detection Unit. It also secured a $795 million contract with the Department of Defense's AI arm, adding to a prior $480 million contract it secured with the agency last year. The contract lasts through 2029. "We continue to believe that PLTR will continue to gain more deals across the federal government with its software value proposition playing perfectly into the broader efficiency theme," analysts at Wedbush Securities wrote in a note last month, calling the stock one of the "top names to own." The ties to the Trump administration and its flurry of government dealmaking recently have put it among the winners of the Trump trade. Palantir, with its artificial intelligence-powered data software, is viewed as a key part of Wall Street's booming AI trade. During the first quarter, Palantir reported a total of $883.9 million in revenue, up 39% year-over-year. That was largely attributable to hot demand for the company's Artificial Intelligence Platform, analysts at Wedbush wrote in a note last month. "We view Palantir as a generational tech name that we see as a trillion market cap over the next three years with PLTR being a core name in the AI Revolution theme over the coming years," Wedbush said. CEO Alex Karp has touted the "rule of 40" as a key metric of the firm's success. The rule says software makers should be considered at the top of their game when revenue growth plus profit margins are equal to at least 40%. Karp bragged that Palantir's score was 83% in the company's first quarter earnings report. "We are in the middle of a tectonic shift in the adoption of our software, particularly in the US where our revenue soared 55% year-over-year, while our US commercial revenue expanded 71% year-over-year in the first quarter to surpass a one-billion-dollar annual run rate," Karp said. Retail traders love Alex Karp, praising the Palantir chief for his outspoken nature and meme-able public appearances. Karp has also shown interest in developing a connection with his retail followers. On earnings calls, the top Palantir exec regularly answers questions from retail investors before addressing big bank analysts. Palantir landed among the top 9 most trending stocks on r/WallStreetBets over the last month, according to Vanda Research, a firm that tracks retail investor activity and sentiment. Retail traders also poured in a net $170.3 million into the stock in the last five days, the firm said on Thursday, making it the second-most purchased stock among individual investors after Tesla. "Palantir is a recurring meme stock," Vanda Research said. "Retail traders are bullish on government contracts and AI potential, with high conviction among holders." Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 hours ago
- Yahoo
Palantir has soared 74% this year alone. 3 reasons why it's been one of the world's best megacaps.
Palantir is the second-best-performing stock in the S&P 500 in 2025. Shares are up 74% year-to-date, trouncing the broader index as well as other tech stalwarts. Government deals, AI hype, and retail bullishness are factors that have lifted shares this year. Palantir stock is crushing the broader market and it's not even close. Shares of the AI-powered software company are up 74% year-to-date, trading around $132 on Thursday. That performance handily trounces the S&P 500's gain of about 1.6%, but it's also vastly better than other tech titans like Nvidia (+5.6% YTD), Microsoft (+11% YTD), and Apple (-19% YTD). This embedded content is not available in your region. Here's what's behind the stellar performance of the stock in 2025. Palantir has inked a number of contracts with the Federal government this year, signing on to initiatives supporting the Trump administration's policy priorities. In April, the software company secured a $30 million deal with the US Immigration and Customs Enforcement for software to monitor visas and track deportations. In May, the firm teamed up with Fannie Mae, and said it would provide AI tools to support the government-sponsored mortgage financier's Crime Detection Unit. It also secured a $795 million contract with the Department of Defense's AI arm, adding to a prior $480 million contract it secured with the agency last year. The contract lasts through 2029. "We continue to believe that PLTR will continue to gain more deals across the federal government with its software value proposition playing perfectly into the broader efficiency theme," analysts at Wedbush Securities wrote in a note last month, calling the stock one of the "top names to own." The ties to the Trump administration and its flurry of government dealmaking recently have put it among the winners of the Trump trade. Palantir, with its artificial intelligence-powered data software, is viewed as a key part of Wall Street's booming AI trade. During the first quarter, Palantir reported a total of $883.9 million in revenue, up 39% year-over-year. That was largely attributable to hot demand for the company's Artificial Intelligence Platform, analysts at Wedbush wrote in a note last month. "We view Palantir as a generational tech name that we see as a trillion market cap over the next three years with PLTR being a core name in the AI Revolution theme over the coming years," Wedbush said. CEO Alex Karp has touted the "rule of 40" as a key metric of the firm's success. The rule says software makers should be considered at the top of their game when revenue growth plus profit margins are equal to at least 40%. Karp bragged that Palantir's score was 83% in the company's first quarter earnings report. "We are in the middle of a tectonic shift in the adoption of our software, particularly in the US where our revenue soared 55% year-over-year, while our US commercial revenue expanded 71% year-over-year in the first quarter to surpass a one-billion-dollar annual run rate," Karp said. Retail traders love Alex Karp, praising the Palantir chief for his outspoken nature and meme-able public appearances. Karp has also shown interest in developing a connection with his retail followers. On earnings calls, the top Palantir exec regularly answers questions from retail investors before addressing big bank analysts. Palantir landed among the top 9 most trending stocks on r/WallStreetBets over the last month, according to Vanda Research, a firm that tracks retail investor activity and sentiment. Retail traders also poured in a net $170.3 million into the stock in the last five days, the firm said on Thursday, making it the second-most purchased stock among individual investors after Tesla. "Palantir is a recurring meme stock," Vanda Research said. "Retail traders are bullish on government contracts and AI potential, with high conviction among holders." Read the original article on Business Insider
