Stock Markets August 18, 2026 01:46 AM

+41%, +37%, +35%: AI-selected stocks post big earnings and extend rally

Machine-driven picks surged after earnings beats and operational updates, with smaller names showing outsized monthly gains

By Priya Menon
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NVEC THC BHC NSIT

As major U.S. indices printed fresh records last week, a subset of AI-curated stock picks delivered outsized short-term returns after recent earnings and corporate actions. Model-driven selections including NVE Corporation, Tenet Healthcare and Bausch Health posted monthly advances exceeding 30%, while longer-term winners chosen since initial selection show gains exceeding 65% in several cases. The picks reflect a combination of rapid revenue acceleration, margin expansion and aggressive capital returns that the proprietary engine flagged ahead of public results.

+41%, +37%, +35%: AI-selected stocks post big earnings and extend rally
NVEC THC BHC NSIT
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Key Points

  • AI-curated picks produced outsized one-month gains, led by NVE (+41.47%), Tenet (+37.4%) and Bausch Health (+34.8%).
  • Longer-term winners chosen since initial selection show substantial gains, including Delek US Energy (+78.52%) and Everforth (+75.68%).
  • The model evaluates thousands of stocks monthly using 15+ years of financial data and over 150 quantitative models, applying equal-weighted strategies and monthly rebalancing.

With the S&P 500, the Dow and the small-cap Russell 2000 all touching new all-time highs last week, the hunt for incremental upside across a broadly elevated market has pushed some investors to seek opportunities outside the most crowded names. Capital has been rotating into under-the-radar equities that exhibit visible, near-term momentum rather than chasing the largest index components at record prices.

Members of InvestingPro - who accessed the platform's monthly-updated stock selections for under $8 a month during the Summer Sale - have been positioned in a number of these momentum-driven names. Several high-conviction picks showed sharp re-ratings over the past month as earnings and corporate announcements triggered renewed buying interest.

Notable one-month moves among that set include:

  • NVE Corporation (NASDAQCM: NVEC): +41.47%
  • Tenet Healthcare (NYSE: THC): +37.4%
  • Bausch Health (NYSE: BHC): +34.8%
  • Insight Enterprises (NASDAQGS: NSIT): +33.8%
  • Gartner (NYSE: IT): +29.2%

Members are also still holding several names that have produced substantial returns since the date they were first selected by the engine, including Delek US Energy (NYSE: DK), Everforth (NYSE: EFOR), Consensus Cloud Solutions (NASDAQGS: CCSI), Nucor (NYSE: NUE) and Haemonetics (NYSE: HAE).


Peak monthly performance and the rationale behind some of the top movers

NVE Corporation was flagged by the model shortly before a Q1 report that prompted a substantial re-rating. The company reported total revenue that rose 81% to $11 million on demand across medical devices, robotics and industrial automation. Reported EPS increased to $1.32 from $0.74 the prior year. Management also declared a $1.00 per-share dividend, introduced next-generation ultraminiature magnetic sensors, and announced the appointment of long-tenured technology chief Peter Eames as CEO, a leadership change framed as continuity for execution.

The model noted a set of characteristics that made NVE stand out among small-cap names: pronounced price momentum, high margin efficiency and a meaningful cash return to shareholders. The data cited in the model's selection included year-to-date and one-year price appreciation, gross and operating margin ratios, quarterly net income growth, a dividend yield figure and capacity expansion that management said doubles manufacturing footprint. The proprietary spintronics technology was called out as an infrastructure solution for AI data-center energy constraints, and the selection was accompanied by a third-party Zacks upgrade to "Outperform," as reflected in the public materials used by the engine.

Tenet Healthcare also appeared on the list of high-conviction picks. Prior to its strong Q2 showing, the company had been highlighted by the model for a perceived valuation disconnect relative to fundamentals. Tenet reported adjusted EPS of $6.12 on quarterly revenue of $5.63 billion, beating consensus and prompting management to raise full-year EPS guidance to about $21.00 while upgrading EBITDA and free cash flow targets. The quarter was supported by high-margin growth in the USPI ambulatory care segment, enabling the company to repurchase more than $1 billion in stock during Q2 and prompting credit-rating upgrades from S&P and Moody's.

The model's inputs for Tenet emphasized a discounted entry price, strong operational execution, and aggressive capital return programs. The signal set referenced a roughly 21% prior pullback attributable to broader market sentiment rather than fundamentals, a valuation gap versus analyst fair-value estimates, multi-percent EBITDA growth, a specified annual free cash flow figure, and net leverage of 2.25x EBITDA after repurchases.


How the selection engine operates and the performance track record cited

The selection engine operates on a monthly cadence. At the start of each month it evaluates thousands of global equities with a blend of historical metrics, valuation signals and forward-looking growth indicators. The system processes more than 15 years of financial data across over 150 quantitative models to identify up to 20 high-conviction stocks per strategy based on projected medium-term upside potential.

Strategies undergo a strict rebalancing every month: new candidates are added, top performers are retained and names that no longer meet the rules-based criteria are removed. Each strategy tracks performance using equal weighting across selected stocks to provide a transparent benchmark for model returns, while investors are free to adjust allocations as they see fit.

Since the model's public launch in November 2023, the engine's investor-facing implementation has registered a compound return of +210.89%, outperforming the S&P 500 by +128.05% over the same period, according to the performance figures published alongside the strategies. Those returns are presented as recorded since the official November 2023 start date for the AI-driven selection program.


Subscription and access notes

Members who subscribe to InvestingPro gained immediate access to the August portfolio of AI-powered stock picks and the model rationales. The platform highlighted a promotional Summer Sale offering members a discounted subscription price of less than $8 per month during the promotion window, and also referenced availability of up to 55% off membership fees as part of the same sale.

Subscription pages for app and web users were cited as the access points for members and prospective subscribers to view the complete list and supporting rationale for each selected stock.


Model rationale transparency and risk-management tools

Each stock selection or removal is accompanied by model-driven rationale so members can see the specific signals that triggered a pick. For risk management, platform tools were described that provide trade-specific guidance; for example, a Vision AI feature was promoted as delivering an entry, stop-loss and profit-target plan for individual trades within roughly 60 seconds, using chart inputs to recommend position-level risk controls. Promotional materials referenced a use case tied to Nucor (NUE) as an example for applying the risk-management output.

Members are able to review the full rationale for every selection and can track the month-to-month evolution of strategy constituents as part of the platform's equal-weighted approach to performance measurement.


What the short-term winners and longer-term gainers indicate

The recent one-month winners reflect a mix of companies that reported accelerating revenue and profits, declared shareholder returns or announced leadership and capacity moves that changed investor expectations in the near term. Longer-term winners that remain held since initial selection suggest the model has been able to identify stocks that have subsequently delivered on growth, margin and capital-return profiles that supported multi-quarter outperformance.

These outcomes illustrate the model's emphasis on three intersecting characteristics: momentum in price action, operational efficiency as reflected in margins and profitability, and shareholder-oriented cash returns that can re-rate valuation in the near term.


Closing notes

Investors considering exposure to model-selected strategies should account for their own risk tolerance and allocation preferences. The platform's published materials present historical performance since the program's November 2023 launch and describe the quantitative framework and monthly rebalancing process that underpin stock selection. Subscription offers and promotional pricing were presented alongside the strategy materials for those seeking to review the full list of selected names and supporting rationales.

Risks

  • Promotional subscription pricing and availability noted in the materials may vary by region and over time - investors should verify current terms.
  • Model performance figures are reported since the program's November 2023 launch and represent historical returns that may not continue.
  • Selected stocks can be volatile; short-term momentum that drove recent gains may reverse, affecting sectors tied to healthcare, industrial automation and materials.

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