AI‑Powered Stock‑Picker Adjusts Portfolio for September

The proprietary ProPicks AI system rebalanced its September roster by exiting two high‑performing healthcare names and adding two fresh high‑conviction opportunities.

Exits

  • Haemonetics Corporation (NYSE:HAE) – The model locked in an approximately 89% one‑year gain as the stock’s valuation stretched to roughly 50 times reported earnings while trailing revenue grew only about 0.4%. Margins were slipping and net leverage rose to about 2.7 times EBITDA, prompting management to pause M&A and focus on debt reduction; the AI therefore sold the position to redeploy capital.
  • Molina Healthcare (NYSE:MOH) – After a 46.4% appreciation over five months, the AI sold Molina as operating margins compressed to roughly 0.7% and EBITDA fell about 78% year‑over‑year. Despite a Q2 earnings beat, the shares fell 5‑9% and were about 19% below the 52‑week high. The adjusted forward P/E surged to roughly 157× and full‑year EPS guidance was cut to $5.25 (down from over $14 the prior year), while Marketplace medical costs jumped to 90%.

New Additions

  • APA Corporation (NASDAQ:APA) – Added for its rare blend of strong market performance and attractive valuation. The stock is up about 92% over the past year, trades near 9 times earnings, and has a PEG ratio of 0.15, well below InvestingPro’s fair‑value estimate of $53 and Argus’s new buy target of $48. Q2 earnings beat expectations by roughly 59%, generating $738 million of free cash flow and prompting an upward revision of full‑year free‑cash‑flow guidance to approximately $2.3 billion. Net debt is being reduced toward $3 billion. Management raised Permian oil production guidance, kept cap‑ex flat at $1.3 billion, and accelerated a $500 million cost‑savings program.
  • TransDigm Group (NYSE:TDG) – Selected for its high‑margin proprietary product portfolio and deep discount to analyst targets. The stock is down about 12% year‑to‑date, creating an estimated 30% upside to a $1,520 price target. Approximately 90% of sales are from proprietary products, and the company retains over $10 billion of acquisition capacity. Q3 earnings beat estimates by about 6% and full‑year revenue guidance was lifted to roughly $10.5 billion, with free‑cash‑flow guidance near $2.6 billion and organic revenue growth of about 13% across its three segments. Gross margins hover near 60% and EBITDA margins exceed 52%.

Performance Context

Since its launch in November 2023, the AI‑driven stock‑picker has delivered a cumulative return of 187.39%, outperforming the S&P 500 benchmark by 105.94%. The model evaluates thousands of global equities each month using over 150 quantitative models and historical data spanning more than 15 years, selecting up to 20 high‑conviction stocks per strategy and rebalancing with equal weighting.

Subscription Details

Premium access to the AI‑generated picks costs less than $9 per month, granting members the full rationale behind each addition and removal, as well as the ability to view the complete September list.