2 Healthcare AI Stocks That Could Go Parabolic
The cost and high failure rate related to bringing drugs and medical devices to market opens healthcare to more artificial intelligence (AI)-connected disruption than perhaps any other industry. A lot of healthcare companies are seeking to brandish their AI bonafides, but Recursion Pharmaceuticals (NASDAQ: RXRX), and GE Healthcare Technologies (NASDAQ: GEHC) are already using AI to boost their bottom lines. Both companies have been using AI tools for years.
I wouldn't consider either stock inexpensive, especially since both have already seen big climbs this year. Recursion trades at a price-to-book (P/B) ratio of nearly 6 while GE Healthcare is at nearly 5. However, their growth potential makes both great long-term choices, the type of investments that could deliver parabolic returns over time.
Recursion's shares are up nearly 90% so far this year. The clinical-stage biotech uses a huge biological and chemical dataset to create new drugs. It's an early adopter of AI technology for drug discovery. The company's backbone is the Recursion OS, which uses a supercomputer and machine-learning algorithms that attempt to take human bias out of the equation of drug discovery. The company said it is capable of performing up to millions of wet lab experiments weekly.
Source Fool.com
