In This Article:
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(0:30) - Are Small Cap Stocks The Smart AI Investment?
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(5:15) - Top Picks To Keep On Your Watchlist Right Now
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(41:35) - Episode Roundup: AATC, DUOT
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Podcast@Zacks.com
Welcome to Episode #445 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Small Cap Analyst, Mark Zinski, to talk about 2 small cap companies that are involved in the AI Revolution.
Unlike the last time Mark was on the podcast, this week’s stocks are not in the health care sector but are in technology services.
The large cap companies aren’t the only way to play AI. There will be opportunities for many small companies as well. But investors will have to do their research to find them.
Tracey and Mark are here to share 2 stocks this week.
2 Small Cap AI Stocks for Your Watch List
1. Autoscope Technologies Corp. (AATC)
Autoscope Technologies is a global company that has AI-enabled platforms like IntelliSight which provides data analytics on traffic. It’s “smart traffic.” Autoscope Technologies has a market cap of $41 million.
Autoscope Technologies has royalty income and has a gross margin of 95% and low capex.
Autoscope Technologies is a rare small cap company that pays a dividend. In 2024 it paid a special dividend in addition to the regular dividend. Autoscope’s regular dividend is currently yielding 8%.
Be aware, Autoscope is thinly traded on the over-the-counter market.
Should Autoscope Technologies be on your watch list?
2. Duos Technologies Group, Inc. (DUOT)
Duos Technologies Group has several business segments. One uses AI to analyze fast moving vehicles, including railcars. Another segment, Duos Energy, owns gas turbines. A third segment is its Edge Data Center segment.
Duos Technologies Group has a market cap of $87 million. It is more heavily traded than Autoscope, with about 100,000 shares traded daily.
Duos Technologies does not pay a dividend. But total revenue in 2025 is expected to be up and will fall between $28 and $30 million.
Get More Information on YouTube
Be sure to check the description box on this video on YouTube for links to the Zacks Research Report and Zacks Detailed Estimates.
What Else Should You Know About Small Cap AI Stocks?
Tune into this week’s podcast to find out.
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Autoscope Technologies Corporation (AATC) : Free Stock Analysis Report