Financial markets are pushing into rarefied territory. The Dow reclaimed the historic 50,000 mark and the S&P 500 closed above 7,500 for the first time, creating a mood of broad investor optimism. To put the pace of gains in context, the S&P 500 has averaged roughly 18 new all-time highs per year over recent decades. In 2026 the index has already reached that typical annual tally before the year is half over.
But the environment remains fast-moving. On Friday morning, a combination of rising bond yields, heightened geopolitical concerns, and a sharp selloff across global technology names sent U.S. futures lower, a reminder of how quickly sentiment can shift at elevated market levels. That tension highlights a dilemma facing market participants: buying at highs risks being caught in reversals, while sitting on the sidelines risks missing continued appreciation.
While retail flows have gravitated to headline mega-cap names and can be vulnerable to whipsaws, institutional capital often seeks opportunity where the crowd is not concentrated. Capturing exposure to the structural tech and infrastructure themes behind the rally does not necessarily require buying the most expensive headline stocks. Instead, opportunities can be found by isolating high-conviction, under-the-radar names that still benefit from secular tailwinds.
Members accessing our AI-powered models for less than $9 a month have been using data-driven screening to identify precisely those kinds of names. Using those models, investors received a group of high-conviction calls at the start of May that emphasized critical infrastructure and data management companies. Several of those selections have produced near-term gains approaching 20% in May alone, delivering exposure to the technology transformation without paying top-of-market premiums.
Among the specific names highlighted by the models that have shown material upside this month are:
- Republic Airways Holdings (NASDAQGS: RJET) - +19.75% in May alone and +25.23% since selection
- Teradata (NYSE: TDC) - +19.67% in May alone
- NGL Energy Partners LP (NYSE: NGL) - +15.47% in May alone
- Qnity Electronics (NYSE: Q) - +14.50% in May alone
- Applied Materials (NASDAQGS: AMAT) - +13.23% in May alone and +36.68% since selection
The list above reflects the models' focus on durable cash flows, data-centric infrastructure roles, and isolated pockets of value. Subscribers who leverage those signals received the recommendations at the start of the month and have been able to capture the upside as these stocks climbed.
Why these setups were selected
Finding value at new index highs requires looking beyond headline narratives and filtering for overlapping, data-backed catalysts. The models used a blend of historical signal processing, valuation metrics, and forward-looking growth indicators to surface names showing multiple reinforcing advantages before the broader market priced them in.
Applied Materials serves as a clear example of how those signals can align. The chip-equipment supplier posted a substantial Q2 earnings beat with record revenue of $7.91 billion and adjusted earnings per share of $2.86, both comfortably above consensus. The company also guided to roughly $8.95 billion in third-quarter revenue, a forecast that meaningfully exceeded Wall Street expectations and reflected continued demand tied to the global build-out of AI infrastructure.
For investors who caught the setup early, Applied Materials rewarded them with a +13.23% gain in May and a +36.68% return since the model first flagged the name. Several discrete data points made the company stand out in the analysis:
- Strong recent momentum - the stock has advanced roughly 137% over the past year and was added to the S&P 100, signaling growing market recognition.
- Elevated growth expectations - revenue is projected to rise roughly 13% to about $32 billion this year and about 19% next year, with earnings per share potentially jumping roughly 29%, figures that outpace many industry peers.
- Strategic positioning in AI memory - partnerships with SK Hynix and Micron at its $5 billion EPIC Center place the company centrally in the AI memory ecosystem.
- Reasonable valuation measures - despite the substantial rally, a PEG ratio near 1.2 and analyst price targets averaging about $414, roughly 20% above current levels, suggested further upside remained.
The combination of momentum, high-topline growth, and disciplined price metrics made AMAT a textbook example of the type of infrastructure leader the proprietary models aim to detect.
Value outside of pure tech
The opportunity set identified by the models was not confined to semiconductor equipment. Republic Airways Holdings is an example of a small-cap, non-tech selection that the system flagged early and that rallied close to 20% in May. By isolating durable fundamental improvements in the regional airline segment, the models highlighted RJET as an attractive risk-reward situation.
Key data points that supported the Republic Airways thesis included:
- Discounted valuation - trading below book value at about 0.79x price-to-book and trading near 80% of its 52-week high even as fundamentals improved.
- Accelerating operational performance - revenue rose roughly 14% to $1.68 billion while EBITDA expanded approximately 31%, indicating improving operating leverage.
- Industry-altering consolidation - a recently completed debt-free merger with Mesa Air Group created the worldâs largest Embraer jet fleet, totaling about 310 aircraft and an estimated $2 billion revenue run rate.
- Stable contract base - longstanding capacity agreements with United, American, and Delta helped provide predictable revenue and cash flow visibility.
Those overlapping characteristics - valuation, improving margin dynamics, a transformational merger, and predictable contract revenue - underpinned the stock's May performance, which registered +19.75% for the month and +25.23% since it was first chosen.
Broader recent performance and strategy results
The May momentum follows an already productive April, when more than sixty names advanced by double-digits for the month. Several large winners in April included Centene at +58.11%, Molina Healthcare at +43.17%, Texas Instruments at +43.16%, and Qualcomm at +41.06%.
Across its AI-powered ProPicks strategies, the system has recorded a cumulative return of +179.65% since launch, outperforming the S&P 500 by +103.11% over the same period. These are real-world numbers, recorded since the official launch of the AI models in November 2023.
The stock selection process is systematic. At the start of each month, the proprietary engine analyzes thousands of global equities using a blend of historical datasets, valuation indicators, and growth forecasts. The system processes more than 15 years of financial history across over 150 quantitative models, then selects up to 20 high-conviction names per strategy based on projected medium-term upside potential.
Each month the strategies are rebalanced: new opportunities are added, strong performers are retained, and names that no longer meet the criteria are removed. To produce a consistent benchmarking measure, each strategy applies equal weighting across the selected stocks, although individual investors are free to adjust allocations to fit their risk profiles. The objective is to systematically reposition capital toward the strongest opportunities as market conditions evolve.
Tools highlighted
The research also points to valuation tools such as a Fair Value calculator that aggregates multiple industry valuation models. The Fair Value approach described uses a mix of 17 established valuation models to arrive at an assessment for a given stock, enabling subscribers to compare current market pricing to model-derived estimates.
Readers with active subscriptions can access the full roster of May picks and the underlying analysis, while non-subscribers are presented with subscription options to review the complete list of selections.
Bottom line
Markets are at record highs and volatility remains a material factor. Within that environment, a data-driven process has surfaced a range of winners spanning chip equipment, regional aviation, energy, and related infrastructure that delivered sizable gains in May. The combination of momentum, structural growth exposure, and attractive valuation signals formed the basis for those selections, and the models continue to rebalance monthly to reflect changing conditions.