I’ve been seeking to reap the benefits of in the present day’s inventory market volatility to purchase some cut-price FTSE progress shares for my Shares and Shares ISA.

Whereas looking out, I did one thing I haven’t executed for some time, and referred to as in ChatGPT. I discovered way back that the chatbot can’t be relied upon to tip shares, and to be honest, it admits that itself. Nevertheless it did spotlight three fascinating FTSE 250 alternatives, whereas serving up its normal share of errors.

It tipped Pets at Dwelling

ChatGPT’s first progress decide was Pets at Dwelling Group (LSE: PETS). Its shares dipped 20% within the final 12 months however are low-cost in consequence, with a price-to-earnings (P/E) ratio of simply over 11.

It mentioned the UK pet market has proven held up regardless of the cost-of-living disaster, and the corporate’s Pets Membership loyalty programme boasts 7.8m members (truly, its 8.1m), driving recurring revenues.

ChatGPT caught to generalities after that, warning that financial pressures could hit revenues, whereas failing to warn that underlying pre-tax revenue is anticipated to say no from £133m in 2024 to between £115m and £125m.

It did point out that the pet care market faces competitors from supermarkets and on-line retailers, which does fear me. Whereas the inventory yields greater than 5%, I’m not going to chunk.

Kainos Group has taken a success

My robotic buddy’s subsequent decide was Belfast-headquartered software program firm Kainos Group (LSE: KNOS).

Its shares have fallen 25% over 12 months, and are buying and selling near a five-year low. They’re not tremendous low-cost although, with a P/E of 15. That’s roughly according to the index common.

ChatGPT mentioned Kainos has “a strong position in Workday software implementation and a significant footprint in government digital services”, which provides it steady income streams.

It added that “the board recently warned it could undershoot revenue expectations”, however after I checked, this was based mostly on a report from final September. Which exhibits the hazard of counting on a ‘bot to evaluation shares.

Kainos final reported on 14 April, only a fortnight in the past, and mentioned its Constructed on Workday partnership places it on monitor to fulfill its preliminary goal of £100m annual recurring income by 2026, with a longer-term goal of £200m by 2030. The board highlighted its “strong balance sheet, robust cash flow and a healthy pipeline”.

I’m glad ChatGPT highlighted this inventory, however I’m solely treating its tip as a springboard to additional investigations.

Switching on to ITV?

Its ultimate decide was broadcaster ITV (LSE: ITV). Which didn’t even meet my standards, because it shares are literally up 10% in a 12 months.

Nonetheless, the ITV share price appears to be like good worth with a P/E of 8.1 whereas yielding 6.2%. These are my figures, ChatGPT’s numbers had been behind the occasions.

Actually, I’ve needed to ditch all of its figures, as they had been based mostly on final 12 months’s numbers, though ITV printed full-year outcomes on 6 March.

These confirmed file earnings pushed by the success of titles comparable to Mr Bates vs the Put up Workplace, Idiot Me As soon as, Rivals and Love Island USA, helped by £60m of “efficiencies”. 

ITV appears to be like tempting, however I’m nervous by information that rival Channel 4 is scuffling with promoting revenues. The broadcasting sector is just too dangerous for me. Though not as dangerous as counting on AI to tip shares.