An AI-powered stock-picking strategy from InvestingPro’s ProPicks platform has generated double-digit gains for small-cap equities this month, with two picks rising more than 40% in August alone. The Small-Cap Sprinters strategy returned nearly 6% month-to-date, outperforming the Russell 1000’s 2.39% gain, while the Mid-Cap Movers strategy nearly quadrupled the S&P Midcap 400’s 1.14% advance.
Since its November 2023 launch, the AI model has compounded a 189.85% return, exceeding the S&P 500 by 108.66 percentage points. The platform is currently offering InvestingPro subscriptions at a 55% discount during its August Summer Sale.
Five AI-selected stocks contributed to the gains, led by Mativ Holdings, which surged 41.47% in August. The specialty materials company reported adjusted earnings per share of $0.50, beating estimates by 47.1%, and posted $531.8 million in revenue. Free cash flow rose 24% sequentially.
Ramaco Resources followed closely with a 40.89% August gain, driven by an 8.3% revenue beat to $144.8 million and a 19% sequential increase in EBITDA. The coal miner also reported mine operating costs below $100 per ton and stable low-volatility coal shipments.
Peabody Energy rose 29.22% in August, extending a 9.1% weekly gain, despite a 1.58% decline on the day cited. The metallurgical coal producer posted $1.0 billion in second-quarter revenue, up 12.7% year-over-year, and maintained $575 million in cash while reducing debt to $335 million. Its Centurion mine is expected to return to full production in the second half of 2026, supported by federal funding of approximately $700 million under the Defense Production Act. Coal power generation has increased about 13% due to demand from AI and data center operations.
Haemonetics advanced 26.63% in August, building on a 98.61% gain since selection. The blood and plasma products company reported first-quarter earnings of $1.14 per share on $339.4 million in revenue, with an 8% organic increase in core plasma operations. A long-term supply agreement with CSL Plasma and a tripling of operating cash flows prompted management to raise full-year revenue guidance.
Inspire Medical Systems gained 21.63% in August, supported by a $0.24 adjusted EPS beat against a $0.09 loss forecast. Revenue rose 30% year-over-year to $211.1 million, and full-year guidance was raised to a range of $783 million to $795 million. The company’s Inspire V device targets a total addressable market exceeding $10 billion following a CMS reimbursement code update, with gross margins near 85% and a PEG ratio of 0.07.
