Markets are in the middle of one of the largest rotations seen since the wave of investor interest tied to artificial intelligence began, and the shifts are lifting pockets of the economy outside of big-cap tech. While the Nasdaq 100 has fallen about -8.3% so far in July - potentially its weakest July in 24 years - a broader reading of equities shows resilience: the S&P 500 equal-weight index reached a fresh high, and nine of 11 sectors were up on the month.
That divergence helps explain why some stocks identified by an AI stock-picking strategy have moved sharply higher in recent days. Members of the InvestingPro service who subscribed during a limited-time Summer Sale at under $7 a month are now sitting on gains that, for traditional investors, might normally take much longer to achieve.
Tenet Healthcare: a standout earnings reaction
One of the most visible examples is Tenet Healthcare Corporation (NYSE:THC), which climbed roughly 32% after reporting earnings and guidance that outperformed expectations. The AI models had added Tenet to the July picks at the start of the month, and that prior signal meant members were positioned for the stock before the print that catalyzed the rapid repricing.
InvestingPro previously recorded a separate one-day earnings move exceeding 55% on NVEC last Thursday, also identified by the models for July, underscoring the strategy's recent emphasis on earnings-driven catalysts.
Broader July winners from AI-driven lists
The ProPicks list for July has already produced multiple double-digit winners. Selected July moves include:
- Venture Global (NYSE:VG): +37.44% in July alone
- Kosmos Energy (NYSE:KOS): +34.98% in July alone
- SM Energy (NYSE:SM): +30.24% in July alone
- Dorian LPG Ltd (NYSE:LPG): +29.76% in July alone
- PBF Energy (NYSE:PBF): +28.96% in July alone (and +48.10% since it was first picked)
Those July moves represent a slice of the month's performance and highlight how the AI selection process has favored names across energy, shipping and select industrials, not only technology.
What the AI models flagged before the Tenet move
According to the materials provided alongside the ProPicks list, the AI engine added Tenet to the July roster on the first day of the month after isolating a combination of improving fundamentals and valuation characteristics. The strategy’s process emphasized profitable growth available at an attractive entry price ahead of the earnings release that ultimately confirmed the stock’s momentum for market participants.
In a separate written profile referenced by the service, HCA Healthcare was described as an example of the type of setup the models seek: strong growth and profitability paired with a market price that the models judged to offer upside. That profile noted HCA generates more than $76 billion of annual revenue - expanding roughly 7% - and delivers about $15.6 billion in EBITDA, up nearly 10% year over year. Operating cash flow was reported to have increased 20% to $12.6 billion in 2025, enabling a record $10 billion buyback program. The profile highlighted a PEG ratio of 0.42 and noted the stock was trading approximately 32% below its 52-week high after temporary Q1 headwinds such as flu season and winter storms, with analyst fair value targets implying roughly 35% upside. The materials also stated that the market only materially repriced the stock following the official earnings print, when the move became public.
Compounding gains since launch
The track record cited by the service shows multiple sizeable gains since the AI models started publishing picks in November 2023. Examples of total returns since selection include:
- Delek US Energy (NYSE:DK): +72.07% since picked
- Consensus Cloud Solutions (NASDAQGS:CCSI): +61.75% since picked
- Nucor (NYSE:NUE): +51.46% since picked
- PBF Energy (NYSE:PBF): +48.10% since picked
- Molina Healthcare (NYSE:MOH): +47.47% since picked
According to the service, that performance has compounded into a cumulative return of +182.18% since the models began in November 2023, which the materials state outpaced the S&P 500 by +106.84% over the same period.
Access and offers for members
Members of the InvestingPro service can access the full roster of July AI-powered stock picks through the service’s channels. The provider is promoting a Summer Sale that it describes as the lowest price of 2026 for new subscribers, and it highlights mobile app and web subscription links for interested users. The promotional materials note that subscription prices mentioned in coverage are accurate at the time of publication and that different offers may be tested and could vary by region.
How the AI selection process is described
The firm explains that at the start of every month its AI engine evaluates thousands of global equities, combining historical records, valuation metrics and forward-looking growth signals. The engine reportedly processes more than 15 years of financial data across over 150 quantitative models to identify up to 20 high-conviction stocks for each strategy, selecting names based on projected medium-term upside potential.
Each strategy undergoes a monthly rebalancing process - adding new opportunities, retaining strong performers and removing names that no longer meet criteria. To maintain a transparent benchmark, the strategies are described as using equal-weight allocations across selected stocks, although investors are free to set their own weights.
What to watch going forward
The recent performance of AI-identified names highlights a broader market environment where sector rotation and earnings outcomes are driving rapid repricing. The models' emphasis on momentum, valuation and operating performance has produced notable short-term moves this month, and members who held positions ahead of earnings were positioned to benefit when results surprised to the upside.
For investors tracking or considering AI-driven strategies, the material provided by the service underscores the need to monitor earnings calendars and broader market liquidity conditions, as those elements were central to the described moves in July.
Disclaimer: Subscription prices mentioned in coverage are accurate at the time of publication. The provider regularly tests different offers for members, which may vary by region.