From Nasdaq, Inc.:

In December 2023, the AI system MarketMasterAI published its list of the top 500 stocks to buy for 2024, with higher-growth blue chips like Mastercard (NYSE:MA) and Automatic Data Processing (NASDAQ:ADP) being favored picks. The system also identified stocks to avoid, with the top 10 worst F-rated stocks having dropped an average of 13% since the predictions were made. The AI system has been exceptional at making stock picks, with nine out of 10 top MarketMasterAI picks having gone up this year, compared to just 52% of the top 500 stocks.

The latest group of top stocks identified by MarketMasterAI are faster-growing than before, with an expected revenue growth of 8.3% this year and earnings growth of 14.6%, an acceleration from December’s picks. There are three major changes to the top stocks, including the replacement of energy stocks with insurance firms, the departure of many healthcare stocks from the top 25, and the inclusion of large industrial and consumer-facing firms. The average beta of the top 25 portfolio has actually dropped from 0.81 to 0.77, showing a reduction in volatility given a pivot into growth stocks.

The top 25 stocks to buy immediately according to AI include companies like Marsh & McLennan Companies Inc (NYSE:MMC) and Arthur J. Gallagher & Co. (NYSE:AJG), among other notable firms. However, no Magnificent Seven stock makes the list this month, as their high-growth tech stocks have moved very high very quickly. MarketMaster AI believes further growth is unlikely for these stocks.

On the other hand, MarketMasterAI also updates its lowest-ranked companies, warning investors to take profits on surging stocks like AppLovin (NASDAQ:APP) and Super Micro Computer Inc (NASDAQ:SMCI), while grading healthcare firms Illumina (NASDAQ:ILMN) and Sarepta Therapeutics (NASDAQ:SRPT) as sells. The opinions expressed in the article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines and do not necessarily reflect those of Nasdaq, Inc.



Read more: The Top 25 Stocks to Buy Immediately According to AI: February 2024 Edition