Ticker Reports for September 22nd
Why Datavault May be the Penny AI Stock Investors Have Waited For
Datavault AI Inc. (NASDAQ: DVLT) is a data sciences management firm offering AI agents such as DataScore and DataValue. The firm's small size—it has a market capitalization of just $53 million and trades for well below a dollar per share—means that it has yet to gain widespread attention from investors, including those focused on the AI space in particular.
However, there are reasons that this tiny player in the fast-growing AI space may be propelled into a new echelon of well-known tech firms.
Compelling new partnerships with IBM (NYSE: IBM) and Burke Products may introduce the company and its products to new sectors and customers, a series of strategic acquisitions may deliver a rapid expansion of the firm's footprint and revenue, and a new development with Datavault's wireless audio software may have benefits outside of the traditional AI space.
Of course, as a largely unproven company that saw short interest increase by more than two-thirds in the last month and which has yet to achieve sustained profitability, Datavault's risk profile may be prohibitive for all but the most adventurous investors.
Those with room to take a chance on an upstart in the AI industry might look to this company over the large field of other AI penny stocks.
Partnerships and Acquisitions Signal Major Growth Efforts
It has been a breakout year for Datavault in terms of two major growth catalysts: partnerships and acquisitions. In March, the company announced its inclusion in IBM's Partner Plus program, enabling Datavault to utilize IBM's Watsonx AI platform to enhance its AI agents and offerings.
The move could open Datavault's products to industries requiring high levels of security surrounding customer data and privacy. The impacts of this partnership are yet to be fully realized—Datavault only revealed expanded commercialization of its AI agents, DataScore and DataValue, in late July 2025.
They will likely appeal to customers seeking enterprise financial modeling, risk assessment, and pricing assistance.
Also in July, Datavault revealed its partnership with aerospace and defense component manufacturer Burke Products. This strategic alignment, which will see Datavault act as subcontractor for various Burke projects, will take advantage of two key aspects of the AI firm's business: its data management capabilities and acoustic science technologies.
Already, the companies have announced the expansion of the VerifyU platform to engage in secure, real-time identity verification related to military service claims.
Besides these partnerships, Datavault has recently been on a buying spree, with several high-profile acquisitions. These include audiovisual and IT services firm API Media Innovations, the technology behind inaudible tone mobile quick response codes from Turner Global Media, and event registration and analytics firm CompuSystems.
Each of these purchases either extends Datavault's preexisting products to meet additional demand or helps the firm to expand outward to new customer bases.
Datavault's Wireless Audio Offerings Take Off
Before its current iteration and name, Datavault's business focus included wireless audio technology, and the company still retains portions of these operations. Its acoustic division recently achieved a significant breakthrough in price, availability, and scale for specialized products that can enhance performance for speaker and subwoofer designers.
A key expansion on Datavault's current focus in the data management and AI landscapes, the WiSA E Endeavour Receiver has ample applications across various sectors.
Looking at Datavault's Financials
In its latest quarter, Datavault noted a 467% year-over-year (YoY) increase in revenue to $1.7 million, thanks to annual recurring revenue achievements with its agentic AI products and via some of its acquisitions. As of mid-year, the firm expects a $25 million run rate by the end of 2025 and annual revenue between $40 million and $50 million in 2026.
These achievements lend credence to the company's two analyst ratings—both Buys, but both initiated prior to the latest earnings report—and the lofty consensus price target of $7 per share, more than 1,450% above current levels.
Certainly, there are many potential roadblocks between here and there, but Datavault's recent moves and growing revenue suggest it is worth monitoring.
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Advance Auto Parts is A Great Risk/Reward Play If EPS Delivers
One of the main drivers of stock price performance is the underlying earnings per share (EPS) growth for any business's future. With this in mind, one of the simplest ways investors can land on a good upside opportunity is to find companies that trade well below their relative highs but can still fill those price gaps based on where future EPS growth may be headed.
In the automotive sector, one stock completes this profile in terms of upside and a discounted price. This is a great risk-to-reward setup favoring buyers as long as the company can deliver on this EPS promise.
The benefit of this setup is that, even if these growth targets fall short, the stock is already trading at a low price, making it unlikely to rally significantly for its shareholders.
That stock is Advance Auto Parts Inc. (NYSE: AAP), a key player in the supply chain of parts used both in bulk and retail. This position places the company in an advantageous position considering where the industry is today. With trade tariffs affecting the supply and demand side for new and used vehicles in the United States, there's one primary reason why Advance Auto Parts could very well deliver on this EPS promise.
Breaking Down the Advance Auto Parts Setup
Even though the stock now trades at 85% of its 52-week high, after a year-to-date rally of 28.2%, the relative price action is still a shadow of what it could be when investors zoom out far enough. In 2022, Advance Auto Parts traded as high as $244 per share due to similar industry dynamics that are currently unfolding.
In 2022, there was a real supply chain disruption caused by the aftermath of COVID-19 lockdowns, which interrupted the importation of semiconductors and chips from other countries. As these are essential materials in automotive manufacturing, people turned to used vehicles because new vehicles were not readily available.
While the situation isn't as harsh today, tariffs have created a similar setup when it comes to new vehicles.
Increased costs and uncertainty have slowed the manufacturing and import of new vehicles, leaving consumers only one choice: to explore the used vehicle market.
Logically, used vehicles require more upkeep, and that's where aftermarket parts come into play for consumers and dealers. When preparing a used car for sale, these dealers represent a sales source for Advance Auto Parts and the consumer side.
Those who choose not to buy into this tight new vehicle market will have to maintain their current vehicle, so whichever way the industry is analyzed, demand for parts is sure to rise. This is precisely where the MarketBeat EPS consensus forecast for $1.05 by the third quarter of 2025 comes into play.
Momentum is Here Before Schedule
Even though Wall Street is expecting an EPS growth rate of 52% from today's reported 69 cents, the most recent quarterly earnings figure matters even more. The 69 cents in EPS exceeded the consensus of 59 cents, indicating that this industry dynamic may already be in play sooner than most would have thought.
This is where a widely followed valuation metric can be helpful for retail investors. The price-to-earnings-growth (PEG) ratio attempts to gauge whether tomorrow's EPS growth is priced at today's valuation. Advance Auto Parts' 0.3x multiple suggests roughly 70% of this future growth is yet to be priced.
Attached to this EPS performance is another optimism gauge. As of August 2025, institutional buyers from State Street increased their Advance Auto Parts stock holdings by 13.5%, bringing their entire position to a high of $111.9 million, or 4% ownership of the whole company.
Whether it's momentum, fundamentals, or a combination of both, these professional investors see opportunities ahead for Advance Auto Parts stock in the coming quarters. All in all, there is one final factor investors should consider when evaluating this potential unfair advantage in terms of risk-to-reward for Advance Auto Parts.
Because this company has a market capitalization of $3.6 billion, it is much easier for it to double in size than for a much bigger company.
At the same time, there needs to be a big disappointment or disruption for it to contract from where it is today; this is why investors have minimal downside risk compared to the explosive upside potential they can encounter in this stock.
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These 3 Stocks Boosting Buybacks Have Rallying Potential
Several key names are making notable moves when it comes to buyback authorizations. A detailed analysis indicates that the management teams of these large-cap stocks see value in their shares. Below, we’ll break down the bullish signals that these companies are sending. All data is as of the Sept. 18 close unless otherwise indicated.
WDAY Announces Huge $4 Billion Buyback Increase
First up is the $62 billion enterprise software company Workday (NASDAQ: WDAY). At its Financial Analyst Day on September 16, Workday announced that it had increased its buyback authorization by $4 billion. Now, the company’s total buyback capacity sits at $5 billion, equal to a very substantial 8% of its market capitalization.
Workday didn’t just approve this buyback without a clear intention to use it. The firm is specifically planning to buy back $5 billion worth of shares through fiscal 2027. With the company having reported its Q2 fiscal 2026 results in August, Workday looks set to engage in massive buyback spending over the next 16 months or so.
That’s a significant part of the reason shares popped by over 7% on September 17.
This announcement follows the recent trend in Workday’s repurchase activity, spending around $961 million on buybacks in the last two quarters combined. That’s an 86% increase compared to its buyback spending in the prior two quarters of $516 million.
This comes as shares have fallen by as much as 18% in 2025. Overall, Workday’s big buyback program suggests that the firm continues to see significant value in its shares. Workday’s forward price-to-earnings (P/E) ratio is around 24.5x, only about 5% higher than its lowest forward P/E over the last three years.
Chipotle’s Past Buyback Activity Suggests Shares May Be Attractively Valued
Next up is “fast-casual” dining giant Chipotle Mexican Grill (NYSE: CMG), which recently announced an additional $500 million share repurchase authorization. As of Sept. 15, the company has around $750 million in buyback capacity.
That equals a relatively small 1.4% of the stock’s market capitalization. However, Chipotle has significantly increased its pace of repurchases over the past four quarters. During that period, the company spent an average of approximately $465 million on quarterly buybacks.
Meanwhile, in the preceding eight quarters, Chipotle spent an average of only $190 million on buybacks.
This makes a lot of sense considering Chipotle’s stock price trajectory. From June 30, 2024, to June 30, 2025, shares were down more than 20% in late July 2024 and mid-March 2025.
Chipotle’s biggest buyback sprees came in Q3 2024 and Q1 2025, with these significant drawdowns. This indicates that the company sees particular value in shares around the $50 mark.
With the stock now at nearly $39, it wouldn’t be surprising to see the company conduct big-time buybacks in Q3. The stock trades at a forward P/E ratio 30x, near its lowest level over the past three years. Thus, Chipotle’s share price looks like a somewhat attractive entry point.
TKO’s Management Portrays Confidence with Shares Near Highs
Finally, World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) owner TKO Group (NYSE: TKO) is getting in on the buyback game. Overall, the entertainment company is planning $1 billion in buybacks, and it has already executed $26 million of this.
This $1 billion buyback program equals 4% of TKO’s market capitalization. Notably, $800 million of this program is being executed through an accelerated repurchase program (ASR). Essentially, TKO is employing Morgan Stanley to buy back shares quickly and expects to complete the ASR in December.
This marks a substantial shift in TKO’s willingness to repurchase stock. Since 2023, its total buyback spending has been around $270 million. In contrast to the other firms on this list, TKO trades very close to its all-time high closing price of around $204.50.
However, on a forward P/E basis, the stock’s valuation doesn’t look overly frothy compared to its history. The 36x figure is solidly below its average 41.5x over its publicly traded life.
Analysts expect the company’s earnings to balloon in the first half of 2026. The huge media deals TKO signed for WWE and the UFC are big contributors to this. This positions TKO as a growth play, and its buyback plan suggests management sees the stock as attractively priced versus its longer-term potential.
Overall, considering their buyback program announcements and forward P/E ratios, WDAY, CMG, and TKO could see solid upside going forward.
AI calendar predicts next stock market surge
AI calendar predicts next stock market surge
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