Markets pushed to fresh highs in May, led by a pronounced rally in semiconductors and a rebound in software shares. That environment rewarded stocks backed by demonstrable fundamentals rather than headline-driven speculation. Investors positioned in businesses with credible growth narratives captured outsized returns during the month.
Each month the ProPicks AI engine re-evaluates a broad investable universe and refreshes its recommended holdings. The system identifies names to add, retains top performers and removes stocks no longer meeting its selection criteria. The models rely on a structured mix of fundamentals, momentum, and valuation signals - the same attributes that helped many of May's winners outperform.
InvestingPro members who received the AI-generated selections ahead of May's rebalance have seen several names rise sharply. A number of the stocks chosen before the rebalance appreciated as much as roughly 30% during May, while other selections have extended gains to nearly 50% since their initial inclusion. These outcomes were achieved for a subscription cost below $9 per month, according to the membership offering.
Representative winners from the May period include the following moves during the month or since selection:
- Iridium Communications (NASDAQGS: IRDM) - roughly +29.97% in May alone.
- HEICO Corporation (NYSE: HEI) - roughly +28.59% in May alone and about +34.50% since chosen.
- Republic Airways Holdings (NASDAQGS: RJET) - roughly +28.17% in May alone and about +34.04% since chosen.
- Fair Isaac (NYSE: FICO) - roughly +25.19% in May alone.
- Alexandria Real Estate Equities (NYSE: ARE) - roughly +20.95% in May alone.
- Consensus Cloud Solutions (NASDAQGS: CCSI) - roughly +16.61% in May alone and about +49.91% since chosen.
- Dave & Buster's Entertainment (NASDAQGS: PLAY) - roughly +16.08% in May alone.
- Applied Materials (NASDAQGS: AMAT) - roughly +15.72% in May alone and about +39.51% since chosen.
The disciplined, rules-based approach of the ProPicks AI strategies has produced cumulative returns of approximately +195.78% since the suite launched in November 2023. Over the same interval, the strategies have outperformed the S&P 500 by roughly +117.77% - figures presented as real-world results recorded since the AI models began operating.
Certain holdings have remained consistent contributors to the strategies' performance. Among those retained and highlighted for strong performance after being picked by the models are:
- Nucor (NYSE: NUE) - about +55.11% after selection by the AI.
- Texas Instruments (NASDAQGS: TXN) - about +48.96% after selection by the AI.
- Molina Healthcare (NYSE: MOH) - about +31.07% after selection by the AI.
- Navigator Holdings (NYSE: NVGS) - about +29.58% after selection by the AI.
- Cardinal Health (NYSE: CAH) - about +28.64% after selection by the AI.
For investors who missed earlier rounds, the next monthly rebalance will publish a fresh set of recommendations in two days. Members who already have access will be able to view the updated list at the time of release. Prospective members are offered opportunities to subscribe and obtain the current portfolio, the rationale supporting each pick, and early access to the upcoming rebalance.
How the AI explains its choices
A principal feature of the ProPicks AI framework is that each recommended stock is accompanied by a detailed rationale that outlines the signals driving selection. Those rationales aim to give members clarity on the combination of momentum, valuation and business metrics that led the model to favor a particular equity.
Consider Iridium Communications, one of the higher-performing selections during May. Although the satellite communications firm missed analyst estimates at the end of April, the ML engine identified three prominent selection signals: strong market performance relative to peers, pronounced price momentum, and a valuation profile that left room for upside. Following selection, the share price moved to fresh 52-week highs as investors increasingly focused on strengths in aviation, defense, and infrastructure end-markets.
The AI highlighted these data points for Iridium:
- Shares had already advanced more than 125% year-to-date yet still traded below InvestingPro's Fair Value estimate of roughly $44.
- Management guidance pointed to EBITDA in the $480-490 million range while free cash flow was projected at roughly $318 million.
- Subscriber growth showed further acceleration, aided by new Internet-of-Things products and partnerships with telecom operators including Vodafone and Deutsche Telekom.
Republic Airways was another high-conviction selection. The AI flagged Republic for three primary reasons: an attractive, discounted valuation, improving operational performance and a transformational consolidation catalyst within its industry.
Key data points emphasized by the models for Republic Airways included the following:
- Shares were trading below book value and at roughly 80% of their 52-week high despite improving fundamental metrics.
- Revenue increased by about 14% to $1.68 billion while EBITDA grew by roughly 31%, indicating improved operational leverage.
- The debt-free merger with Mesa Air Group created the world's largest Embraer fleet at approximately 310 aircraft and produced a projected revenue run rate of roughly $2 billion; long-term contracts with United, American and Delta provided more visible cash flows.
The AI provides a comparable level of granularity for every selection or removal, making the monthly rebalances transparent to subscribers who want to understand portfolio positioning ahead of each update.
Example of the rebalance in practice
Emergent BioSolutions (NYSE: EBS) illustrates how the process locks in gains and reallocates capital. The stock was initially added to ProPicks AI at $6.32 and subsequently rallied to about $12.48, delivering an approximate 97.5% return as investor sentiment responded to signs of operational improvement, wins in government contracting and results that beat expectations.
When the models reassessed EBS during a routine rebalance, they identified higher-ranked opportunities elsewhere in the portfolio and chose to rotate the holding out. The decision reflected a methodical reallocation rather than a categorical negative view on the company.
The factors that changed the position's standing included:
- Revenue continued to decline - down roughly 30% over the last twelve months and about 21% on a quarterly basis.
- While valuation metrics remained low - approximately 4.6x earnings and below book value - those measures continued to reflect concerns about sustainable long-term growth.
- Positive developments included a quarterly earnings beat, $56 million in new government contracts and roughly $38 million in cost reductions.
- Ongoing litigation risk, facility closures and workforce reductions added uncertainty around the company's longer-term outlook.
The rotation of EBS out of the portfolio was framed as an example of the rebalance securing a substantial gain and redeploying capital toward higher-ranked combinations of momentum, valuation and business performance.
Access and process details
With the June rebalance imminent, the ProPicks AI models are reassessing every position in the live portfolio to identify the next group of high-conviction names. Current InvestingPro members can navigate directly to the list of May picks and review the comprehensive rationales ahead of the refresh. New subscribers can obtain access to the full current list and receive the upcoming rebalance at the time of publication.
How the ProPicks AI selects stocks
On a monthly cadence the proprietary engine examines thousands of equities using a composite of historical performance, valuation indicators and forward-looking growth metrics. The process ingests more than 15 years of financial data across over 150 quantitative models and identifies up to 20 high-conviction stocks per strategy based on projected medium-term upside potential.
Each strategy is rebalanced monthly: new opportunities are added, leading performers are retained, and positions that no longer meet the selection criteria are removed. To consistently evaluate performance, strategies use equal weighting across selected stocks. Investors remain free to tailor allocations themselves, but the equal-weight framework supplies a transparent benchmark for model-level results.
The objective of this systematic approach is to keep capital allocated to companies exhibiting the strongest mix of momentum, valuation and business performance.
Subscription note
Subscription pricing referenced around the model is presented as accurate at the time of publication. The product offering periodically tests different offers that may vary by region.
What to expect next
The imminent June rebalance will make public the newest set of AI-selected names in two days. Investors interested in the methodology, the current holdings and the rationale behind each pick can review the full list of May selections now or subscribe to gain early access to the June update when it is released.
Note: All performance figures, model descriptions and company data referenced in this article reflect the data and claims provided by the underlying selection engine and are presented as reported since the models' launch.