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Citi Research analysts highlighted names that have improving EPS revisions but limited multiple expansion.
According to a Thematic Equity Strategy report, companies with high exposure to AI have driven about half of the MSCI ACWI (NASDAQ:ACWI) year-to-date return. Those companies are up about 36% in average.
However, some AI companies have “stable to improving” EPS revisions but limited multiple expansion.
Analysts highlighted the buy-rated 19 companies that saw higher 2024 earnings estimates but dragging multiples.
These are AI laggards year-to-date.
“Some names in this quantitative screen have faced some fundamental challenges this year, which may not be reflected in their EPS revisions,” wrote Analyst Drew Pettit. “However, there are names, notably those with positive returns and improving momentum of late, that could be interesting AI laggards to consider.”
These are the stocks:
- Digital Realty Trust Inc. (DLR) – EPS change 2024 YTD: 43.8%
- Airbnb Inc. (ABNB) – EPS change 2024 YTD: 4.5%
- Apple Inc. (AAPL) – EPS change 2024 YTD: 0%
- Toyota Motor Corp. (TM) – EPS change 2024 YTD: 15.3%
- Visa Inc. (V) – EPS change 2024 YTD: 0.4%
- ServiceNow Inc. (NOW) – EPS change 2024 YTD: 6.2%
- SS&C Technologies Holdings Inc. (SSNC) – EPS change 2024 YTD: 0.4%
- Honeywell International Inc. (HON) – EPS change 2024 YTD: 1.6%
- Telenor ASA (OTCQX:TELNF) – EPS change 2024 YTD: 73.2%
- HubSpot Inc. (HUBS) – EPS change 2024 YTD: 11%
- Autodesk Inc. (ADSK) – EPS change 2024 YTD: 0.4%
- JD.com Inc. (JD) – EPS change 2024 YTD: 4.1%
- Samsung Electronics Co. Ltd. (OTCPK:SSNLF) – EPS change 2024 YTD: 23.5%
- Hoya Corp. (OTCPK:HOCPY) – EPS change 2024 YTD: 2%
- Cognizant Technology Solutions Corp. (CTSH) – EPS change 2024 YTD: 0.4%
- DocuSign Inc. (DOCU) – EPS change 2024 YTD: 11.5%
- Aptiv PLC (APTV) – EPS change 2024 YTD: 2.8%
- Dynatrace Inc. (DT) – EPS change 2024 YTD: 4.4%
- NAVER Corp. (OTCPK:NHNCF) – EPS change 2024 YTD: 5.8%