AI Boom Predicted to Propel Universal Technical Institute Inc.’s Stocks in 2023
The artificial intelligence (AI) industry is experiencing a boom that is set to revolutionize the world as we know it. According to a recent report by Grand View Research, the global AI market is expected to grow from $137 billion in 2022 to a staggering $1.81 trillion by 2030. As investors are always on the lookout for the hottest stocks, here are the top five AI stocks to consider for 2023.
Universal Technical Institute Inc. (UTI) is one such stock that is poised for significant growth. The company, which operates in the Consumer Defensive sector, has shown consistent sales growth of 15.35% over the past decade. Moreover, its earnings per share (EPS) for this year is an impressive 317.31%.
UTI currently has a market capitalization of $383.29 million, with shares outstanding amounting to $34.08 million. The company’s 50-day moving average stands at $8.70, while the 200-day moving average is $7.51.
In terms of efficiency, UTI employs 1,950 workers and has generated $214,751 per employee in the last fiscal year. The stock boasts a receivables turnover of 18.70 and a total asset turnover of 0.72. Its profitability is also notable, with a gross margin of +50.23, operating margin of +6.75, and pretax margin of +4.88.
When it comes to ownership, UTI has 4.15% insider ownership and 77.52% institutional ownership. Recent insider trades have had a significant impact on the company’s ownership, with a director selling 7,599 shares and a director buying 262,658 shares. Currently, the same insider holds a total of 928,961 shares.
UTI recently released its quarterly report, exceeding the consensus estimate by reporting an earnings per share of $0.1 compared to an expected $0.06. The company achieved a net margin of +4.30 and a return on equity of 8.91. Market experts predict earnings of $0.13 per share for the next fiscal year.
The company’s EPS for the current 12-month period has increased by 317.31% and is expected to reach $0.70 in the upcoming year.
In terms of performance indicators, UTI has a quick ratio of 1.09 and an average true range of 0.41. The stock’s PE ratio stands at $101.44, with a beta score of 0.90. The price to sales ratio for the trailing twelve months is currently 0.63, while the price to free cash flow is 29.62.
Looking at recent performance, UTI has seen an increase in average volume over the past five days, reaching 0.25 million compared to its year-to-date volume of 0.11 million. Additionally, the stock’s Stochastic %D was recorded at 86.84% over the previous nine days, while the average true range was 0.48.
Overall, Universal Technical Institute Inc. shows promising potential for growth in the AI industry. With its strong financial performance, insider and institutional ownership, and impressive quarterly report, UTI is one of the top AI stocks to consider for 2023. As the AI boom propels the industry forward, Universal Technical Institute Inc. is well-positioned to benefit from this transformative technology.