Stocks to Watch: AI, REITs, and Restaurant Turnarounds

A look at key stock movements including C3.ai's AI potential, REITs for passive income, and Brinker's successful Chili's turnaround strategy.

Stocks to Watch: AI, REITs, and Restaurant Turnarounds

The stock market is a dynamic landscape, with opportunities constantly emerging for savvy investors. Today, we're taking a look at several companies making headlines, from AI innovators to restaurant chains and REITs.

AI Potential in C3.ai

Despite a rocky start to 2025, C3.ai (NYSE: AI), an enterprise artificial intelligence (AI) software provider, presents a compelling long-term investment opportunity. The company's stock has dropped 35% year-to-date, but its underlying business is showing signs of robust growth. A futuristic cityscape with glowing AI interfaces overlaid. C3.ai's enterprise AI software solutions are gaining traction with customers, as evidenced by recent quarterly results. Investors may want to consider adding this AI stock to their portfolios before the market fully appreciates its potential.

“More importantly, a closer look at C3.ai's latest results suggests that the software specialist is setting itself up for solid, long-term growth,” reports one analyst. This indicates that the recent dip may be a buying opportunity.

Passive Income with REITs

For investors seeking a reliable passive income stream, Real Estate Investment Trusts (REITs) offer an attractive option. These trusts own and manage income-generating real estate, providing investors with a share of the profits through dividends. A diverse portfolio of commercial real estate properties, including retail spaces and office buildings.One standout in this sector is Essential Properties Realty Trust (NYSE: EPRT), known for its stable 3.6% dividend yield. EPRT leases properties to operating tenants, allowing them to expand their businesses while providing a steady income for investors. Real estate investors can play an essential role supporting commerce.

"An easy way to participate in that passive income is to invest in a real estate investment trust (REIT) that owns income-generating real estate."

Brinker's Restaurant Revival

Brinker International (NYSE: EAT), the parent company of Chili's and Maggiano's, is experiencing a significant turnaround, particularly at Chili's. The company's second-quarter fiscal 2025 conference call revealed a remarkable 31% increase in same-restaurant sales at Chili's. A bustling Chili's restaurant with happy customers enjoying their meals. This success is attributed to operational improvements, strategic marketing, and an upgraded guest experience. Management is confident that Chili's turnaround is sustainable despite increased competitive pressure.

Brinker is now looking to apply the successful strategies from Chili's to its Maggiano's chain, potentially benefiting long-term investors across both brands.

Other Notable Movements

In other news, IFP Advisors Inc increased its stake in RadNet, Inc. (NASDAQ:RDNT) by 39.1% during the fourth quarter, while the New York State Common Retirement Fund boosted its stake in Camping World Holdings, Inc. (NYSE:CWH) by 53.7% during the same period. These moves indicate confidence in the future prospects of these companies.

A stylized stock market ticker tape displaying various company symbols and fluctuating numbers.

It's important for investors to do their own research and consider their individual risk tolerance before making any investment decisions.

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