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Eric Fry’s “A.I. Code Red” Stocks – Once in a Lifetime Explosive Growth?

Eric Fry’s “A.I. Code Red” Stocks

February 19, 2024 by Theodor

The man who once predicted the dot-com crash, Eric Fry, is issuing an all-out “AI Code Red” alert about Artificial Intelligence.

On its path of disruption, artificial intelligence will upend nearly all industries, but the biggest profits will come from a virtually ignored sector that's set to explode.

 

The Teaser

Contrary to what the mainstream media wants us to believe, we’re not in some dot-com-like A.I. melt-up. Instead, what Eric is warning about is way bigger.

Source: investorplace.com

Eric Fry was previously a portfolio manager for more than 10 years, specializing in international investment strategies and short-selling before getting his start in publishing under James Grant. We have reviewed several of Eric's previous calls here at Greenbull, including his Project Omega” Picks and “Trade of the Decade.”

According to Eric, AI is “a worldwide economic force of destruction so powerful that it promises to obliterate entire industries.” I like warm and fuzzy beginnings, don't you?

Eric continues by saying that what’s coming next isn’t just a stock market thing; it's a personal survival thing.

What is he talking about?

Just as our lives today are vastly different in the internet’s wake, being able to video chat with anyone from anywhere in the world, shop, pay bills, and even buy a house from the comfort of our own homes. So too will artificial intelligence change the way we work and live.

According to one Goldman Sachs report, AI could soon replace the equivalent of 300 million full-time jobs.

To put this in perspective, there are roughly 207 million working-age adults in America.

To be fair, the report in question says AI advances could expose the equivalent of 300 million full-time jobs to automation. So, it could mean AI assisting us to do those jobs just as quickly.

Eric says no one and nothing is safe, with self-driving cars, AI-driven customer service, and smart factories that eliminate human labor.

One professor of AI from Carnegie Mellon sums it up well, saying “Yes, AI will create new jobs. But those new jobs won't be on the same scale as the jobs lost.”

Productivity Up, Wages Not

When we look at worker productivity over the past 40 years, the professor's words make more sense.

Worker productivity has increased nearly four times more than wages have increased.

Since AI has the potential to increase productivity much faster, at a fraction of the cost you’d pay a human to perform the same functions. Eric argues the A.I. Revolution could be a disaster for anyone who isn’t already wealthy.

Amid all this destruction, new opportunities will arise and Eric has found one industry and three winners within it, that are about to explode.

 

The Pitch

Eric's full analysis of these three category-leading companies can be found in a special report called The 3 “A.I. Code Red” Stocks You Must Own Today.

Source: investorplace.com

The report is “free” if we agree to take a trial subscription to Eric's monthly investment newsletter, Fry’s Investment Report for $49.

This is 75% off the regular price of $199 and comes with 12 monthly issues of the newsletter, three bonus reports, and a members-only website containing all of Eric's past research reports along with an AI-focused model portfolio.

 

Where AI is Making the Biggest Difference

We all already know how disruptive AI is and how it’s going to destroy jobs and create new investing opportunities.

But where are the biggest and best AI opportunities going to be?

If possible, it would be nice to avoid a repeat of the late 90s, when companies with limited prospects were slapping ‘dot-com’ at the end of their names and people were tripping over themselves to buy into them.

We want industries where AI is making a difference right now.

Eric believes this is the $12 trillion Healthcare industry.

From AI-designed drug molecules entering human clinical trials to AI already proving particularly effective in robotic procedures, and 90% of hospitals already having artificial intelligence strategies in place. AI is revolutionizing healthcare.

But this is just the start.

As one anonymous healthcare CEO put it: “AI solutions are essential places of infrastructure at hospitals and health systems, and we have just begun to scratch the surface.”

This means the healthcare AI market is entering an explosive growth phase and it could grow 10x by 2030.

The Greatest Force of “Creative Destruction” in Human History

AI offers us a shot at the kind of explosive gains early investors captured at the beginning of other eras of “creative destruction”…

Like Apple before the iPhone

Or Amazon before it expanded beyond books and became the second-largest retailer in the world

AI offers a shot at similar one-of-a-kind gains and Eric has three can't-miss picks for us.

 

Revealing Eric Fry's “AI Code Red” Stocks

Eric drops a few carefully selected clues about each of his “Code Red” stocks. Here they are:

Code Red Stock #1

  • This company has created a first-of-its-kind AI-assisted intelligent operating room.
  • It uses dynamic AI modeling so surgeons can identify and act on potential issues with patients’ recovery from surgery.

It sounds like Eric is teasing Zimmer Biomet Holdings, Inc. (NYSE: ZBH) here.

  • In a 2022 press release, Zimmer touts the debut of a “first-of-its-kind AI-assisted intelligent operating room.”
  • As part of the same press release, Zimmer boasts about its software suite's AI model that can predict post-operative recovery progress after surgery.

Code Red Stock #2

  • The next company uses AI to assist with the early detection and diagnosis of cancer.
  • It is also developing AI solutions that will help doctors deliver personalized care, even potentially down to our genetic codes.

The stock in question here could be Hologic, Inc. (Nasdaq: HOLX).

  • Hologic has developed Genius AI Detection 2.0, a deep-learning-based software that detects potential cancers in breast tomosynthesis images.
  • One of the company's operating subsidiaries has developed a proprietary gene expression assay for cancer classification. 

Code Red Stock #3

  • The last company already owns the most AI-enabled devices authorized by the FDA in the entire U.S.
  • It provides revolutionary MR imaging to help doctors see more anatomical details with greater certainty.

This is most definitely GE Healthcare Technologies Inc. (Nasdaq: GEHC).

  • The FDA's list of AI-enabled device authorizations includes almost 700 devices; 58 are from GE HealthCare, more than any other medical technology company.
  • GE Healthcare offers a suite of MR imaging solutions with advanced technology for clinical needs.

 

The Three Biggest Winners of the AI Healthcare Revolution?

This is a tough call on multiple fronts.

For starters, healthcare and biotech businesses require highly specialized expertise to properly analyze. What may sound like the greatest invention in humankind to you and me, may be a complete dud to a trained medical professional.

Second, it requires a prediction of the future, which shockingly, is inherently unknowable. The AI-enabled devices and services mentioned here need time to be adopted and who knows what other solutions will pop up in the meantime, given the break-neck pace of AI development.

However, I do agree with Eric's assessment of the healthcare industry adopting AI at an above-average rate. 

The AI-associated healthcare market is expected to grow by nearly 40% annually between now and 2030.

Thus, one solution that doesn't require us to be medical experts or predict the future is to buy an AI Healthcare ETF – yes they do exist.

Something like the Robo Global Healthcare Technology and Innovation ETF (NYSE: HTEC) or SPDR S&P Health Care Equipment ETF (NYSE: XHE) would suffice.

 

Quick Recap & Conclusion

  • Eric Fry issued an all-out “AI Code Red” alert about Artificial Intelligence. Saying it will disrupt all industries, including one virtually ignored sector that's set to explode.
  • The industry Eric is talking about is the $12 trillion Healthcare industry and he has three stock picks that he says will revolutionize it.
  • The names and ticker symbols of all three companies are only revealed in a special report called The 3 “A.I. Code Red” Stocks You Must Own Today. We can get our hands on it if we subscribe to Eric's monthly investment newsletter, Fry’s Investment Report for $49.
  • Loyal readers are spared this inconvenience, as we were able to reveal all of Eric's picks for free! They are Zimmer Biomet Holdings, Inc. (NYSE: ZBH), Hologic, Inc. (Nasdaq: HOLX), and GE Healthcare Technologies Inc. (Nasdaq: GEHC).
  • Eric's picks are all cash-flowing businesses with reasonable valuations, but if you lack healthcare expertise and aren't a fortune-teller either, then the easy thing to do is simply buy into an AI Healthcare ETF to get exposure to the rapidly growing sector.

Is healthcare the industry that AI will transform the fastest? Tell us if you agree or not in the comments below.

Theodor


Theodor is an old school value guy, when he's not looking for great companies and great prices you can find him on the basketball court hooping.

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