Q2 earnings season kicked off to a positive start yesterday as major banks painted a picture of continued economic resilience in the United States. Supportive CPI data and upbeat remarks from new Fed Chair Kevin Warsh regarding productivity tied to artificial intelligence added to the constructive tone, prompting a broad advance across equity markets.
Certain technology and infrastructure names participated in the rise. Penguin Solutions (NASDAQGS:PENG) extended its July gains to +13.06%, Hewlett Packard (NYSE:HPE) increased by +12.76%, and NetApp (NASDAQGS:NTAP) added to an +11.96% July run as optimism spread through the market.
Members of InvestingPro who joined under the Summer Sale pricing - less than $7 a month for a limited time - had positions that were already participating in these moves.
Energy stocks, however, were the clearest standouts for July. One example is Delek US Energy (NYSE:DK), which surged following an upgrade from TD Cowen. The stock jumped +14.97% in July alone, and it has risen +61.90% since it was first highlighted by ProPicks AI.
The same TD Cowen upgrade from analyst Jason Gabelman also named a second petroleum refiner that InvestingPro premium members had already been advised on earlier in June. That refiner subsequently gained more than 26% in July and has climbed to more than +45% since our models initially selected it.
Several other July standouts include:
- PBF Energy (NYSE:PBF): +26.75% in July alone
- Kosmos Energy (NYSE:KOS): +23.15% in July alone
- Venture Global (NYSE:VG): +19.95% in July alone
- Dorian LPG (NYSE:LPG): +18.44% in July alone
- SM Energy (NYSE:SM): +15.51% in July alone
Beyond July performance, several AI-picked names have compounded into substantially larger gains since the model first selected them. Notable examples of compounded returns include:
- Consensus Cloud Solutions (NASDAQGS:CCSI): +78.37% since picked by the AI
- Molina Healthcare (NYSE:MOH): +77.85% since picked by the AI
- Delek US Energy (NYSE:DK): +61.90% since picked by the AI
- PBF Energy (NYSE:PBF): +45.57% since picked by the AI
- Texas Instruments (NASDAQGS:TXN): +44.78% since picked by the AI
InvestingPro members can view the complete set of AI-powered stock picks for July in the members-only list. For those who have not yet subscribed, the article repeats the membership opportunity with direct prompts for app and web users to subscribe.
Of the energy names discussed, PBF Energy stands out as the refiner that has joined Delek US Energy on a steep rally. PBF recorded a +26.75% increase in July and has reached +45.57% since first being identified by the model.
Both Delek US Energy and PBF were upgraded simultaneously by TD Cowen analyst Jason Gabelman on June 29. That upgrade echoed elements the models had already highlighted as high-conviction picks. In Gabelman’s case for PBF, the analyst noted that the company appears to be emerging from a difficult operational period at a moment of strong refining margins, and that PBF carries substantial earnings leverage to refining cracks compared with peers. He also projected roughly $2 billion in free cash flow through the remainder of 2026, a level that points to meaningful deleveraging and enhanced cash generation potential.
What the ProPicks AI flagged in PBF prior to the upgrade aligns with several measurable signals:
- Exceptional momentum - The stock had risen approximately 121% over the prior 12 months and about 52% year-to-date, with analyst targets near $44 that indicated upside from entry levels.
- Deep value - Trading below book value and carrying a price-to-earnings ratio near 10, PBF appeared underpriced relative to its reported earnings power.
- Earnings turnaround - The shares followed a sizable Q1 earnings beat of $1.65 per share versus a forecasted loss. Operational improvements included the restart of the Martinez refinery and $230 million of savings already achieved through a cost program that targets $350 million by year-end.
- Shareholder returns - A dividend yield around 2.7% and analyst expectations of roughly $5 in full-year earnings added to the entry case at the time the model identified the stock.
ProPicks AI members were positioned in PBF prior to the market pricing these developments in. Since the official launch of the AI models in November 2023, the reported compounded return for that same investor-grade strategy is +208.68%, outperforming the S&P 500 by +130.63% over the same period, according to the performance figures cited since launch.
Readers interested in the full list of July selections and performance can access the members-only compilation through InvestingPro. The article reiterates subscription enrollment options for app and web users.
How the AI-powered stock picker is described to work:
- At the start of each month, the proprietary system evaluates thousands of global equities using a mix of historical performance data, valuation metrics, and forward-looking growth indicators.
- The engine processes more than 15 years of financial data through over 150 quantitative models to identify up to 20 high-conviction stocks per strategy, prioritizing medium-term upside potential.
- Strategies are rebalanced monthly: new opportunities are added, high performers are kept, and names that no longer satisfy the criteria are removed.
- To track performance consistently, each strategy uses equal weighting across selected stocks; investors retain the flexibility to change allocations on their own.
- The stated objective is to keep capital allocated to companies exhibiting the strongest combination of momentum, valuation, and operating performance.
Subscription pricing referenced in the article is noted to be accurate at the time of publication, and the service indicates that offers may vary by region. Members were able to subscribe at promotional Summer Sale pricing for InvestingPro during the period cited.
Summary of the current market picture: Q2 earnings momentum among large banks, favorable CPI data, and supportive commentary on AI-related productivity combined to lift markets broadly. Technology names participated in the advance, but energy companies drove many of the most notable single-stock gains in July, with a number of AI-identified picks delivering both strong monthly returns and larger cumulative gains since being selected by the model.