Hello everyone, and thanks for tuning in. I'm Ethan Feller, stock strategist here at Zach, and today I want to share with you a stock that I'm extremely excited about. We all know that the AI revolution is changing the world and has offered several very fruitful stock market

opportunities, and today I want to share with you another one that's very interesting. This company is called Inata, and it's a small-cap technology stock that plays a crucial role in the development of AI technology. So Inata is a technology company that helps

businesses transform and digitize to help prepare for the future and to harness the power of data and artificial intelligence. They're at the forefront of the trend towards digital transformation, and they enable companies to modernize their operations to make smarter and more data-informed decisions. So what

exactly does that mean? So before you can feed any data to AI models, you got to manage and organize that data. So they transform raw data into usable formats for to feed into AI models, and they'll also label and categorize the data. The data cleaning, data organization,

all important parts of the process, and then they'll also assist in training the AI models to help create accurate predictions and useful decisions and make sure those large language models give us, you know, decent responses. And then they'll also help companies build custom platforms and tools that

help them manage and analyze the data on their own as well. So the digitization of business is a massive trend, and they work in industries like healthcare and publishing and finance. And not only do they work in those industries, but they're also partnered with some of the

largest technology companies in the world they're currently working with five of these Magnificent Seven stocks so those are the hyperscalers and you know the AI tools that people are using every day and an ad data isn't new to the industry and they were working on AI

before it was popular so the company is just extremely well positioned to benefit from the ongoing boom their recent quarterly report highlighted significant growth and strong performance at the last quarter they showed revenue of $52.2 million which was a 136% year-over-year increase

and so yeah let's just take a quick look at the website you can see a couple of the case studies that in data has done here we can see that you know they were evaluating the AI outputs to improve performance this is the project that they have going with five of the big

tech companies so that's like probably Microsoft Google Meta so all of those big companies are their clients you can see another one you know they say that they fine-tune these large language models and of course you know these tools are awesome and you want kids

using them for educational purposes but you got to protect them as well so you they made sure that these these models were you know good for kids to use and you can also see they work in the academic industry as well they help another educational institution to

you know organize all the data from research papers which helps improve systematic research and a lot of other things so yeah they're all over the place they're in all different industries most importantly we can see that has a Zacks Rank of one which means it

has strongly upward trending earnings provisions which we'll take a look at really quickly It's got style scores It's got an A in growth and momentum and it's in the top 32% of the Zacks industry rank Here we can see that the

earnings provisions have snapped massively higher We can also see that it's a small cap stock It's got a market cap of just 1.3 billion which leaves considerable room to the upside Uh we can also see that it kind of has a

premium valuation It's trading around 60 times forward earnings So this isn't a low-risk stock and and then we'll take a look at the stock chart in a minute too and here we can see the factors that go into that Zacks rank one we you can see

there's only one analyst covering the stock which is unusual for a small cap stock but this analyst has revised earnings estimates considerably higher Current quarter earnings have nearly doubled from 11 cents to 21 cents in the last month and then full year 2024

earnings have really skyrocketed from 21 cents all the way to 75 cents this year for this year and then next year they've also jumped about 20% Yes let's take a quick look at the sales growth so you can see sales growth

has grown massively this year 100% It's up 100% I'm sorry this quarter it's up 100% next quarter 105% this year 89% See next year it's a little bit lower 22% However this company works with big

contracts and you know between now and next year it's probable that you know they they take on a new contract which would probably boost their sales and boost their earnings so so let's take a look at the stock chart so in data has gone up a lot this year I mean there's

no no denying that this this stock is up massively it's up almost 500% year to date and especially with that premium valuation I understand why for some people it's difficult to buy stock that is up so much in such a brief amount of

time and then you can see following that Banner earnings report the stock jumped from 25 to nearly $50 so nearly doubled in just the last month but what I've learned more than anything in these last two years is this AI boom has gone on is

that these AI stocks they'll just go and go and go and of course there there's risk in buying a stock that's up a lot or buying a stock that has a higher valuation but you know you just got to have prudent risk management you got

to say stop you got to position size it properly in your portfolio and and that way you can hold on to it for the next leg higher don't don't put too many too too big a position in this stock but don't put so small a position that

you're not going to benefit so you know I'm just keeping my eye on this kind of consolidation after earnings this earnings Gap up and then it's sort of holding this level as a really encouraging action to me you know I

think if you want to be risk averse you can set a stop right here at 3650 and buy you know anywhere in this range you know maybe this kind of builds out a consolidation and maybe you want to wait for another breakout above like $46 um

but you know this is just a stock I really want people to keep on their radar because you know this AI thing happens in waves and you know these last few weeks the stock market has picked up again and the AI trend is picking up again and you know we've had

a lot of these infrastructure players do really well like Nvidia and Microsoft you know these guys are are building the structure and the infrastructure for us to use these AI products but now we're going to have these other players like you have Palantir here and now we have

something like InData where they're consulting with businesses to help them utilize these products so yeah that's it that's InData I recommend checking it out thank you so much for joining me today I hope you found this presentation informative and entertaining if you want

more information from Zach I recommend signing up for our newest promo uh the link is in the bio or you can just go to zach.com/promo thanks have a good day

Innodata: The Next Big AI Stock

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