Healthcare stocks identified by an AI-driven stock-picking system have posted gains ranging from 40% to nearly 100% in recent months, outperforming broader market trends.
The AI model, launched in November 2023, has delivered a cumulative return of 193.62%, surpassing the S&P 500 by 111.65 percentage points. The system evaluates global equities using over 15 years of financial data across more than 150 quantitative models. Institutional investors have shifted capital toward small-cap value and defensive healthcare names trading at discounts, following a three-day market losing streak.
Bausch Health (NYSE:BHC) has climbed 43.5% in the last month after being selected by the AI in May. The company reported second-quarter revenue of $2.85 billion, its 13th consecutive quarter of growth, while non-GAAP earnings per share rose to $1.26, beating estimates of $1.01. Management raised full-year guidance to a revenue range of up to $11.04 billion and EBITDA of up to $4.175 billion, from a prior range of $10.7 billion to $11.04 billion. Xifaxan sales increased 21%, and Solta Medical revenue jumped 51%. The stock trades at roughly 12 times adjusted earnings and remains about 34% below analyst fair value targets, which average $7.57 and peak at $8.51 per InvestingPro.
Tenet Healthcare (NYSE:THC) has gained 38.6% over the past month and 41.13% since the AI's selection. Haemonetics (NYSE:HAE) has risen 34.4% in the last month and 98.75% since being picked. Mativ Holdings (NYSE:MATV) surged 50.5% following post-earnings momentum this month, while Everfort (NYSE:EFOR) climbed 64.4% this month and 81.95% since July. Everfort is cited as having 57.8% upside to fair value.
Other AI-identified long-term winners include Consensus Cloud Solutions (NASDAQGS:CCSI) at 78.46% since selection, Delek US Energy (NYSE:DK) at 76.19%, Nucor (NYSE:NUE) at 56.23%, Siemens Energy at 231.5%, and Sandisk at 189%. Exclusive portfolio picks for InvestingPro members show fair value upside of 33.6% in materials and 27.5% in healthcare leaders.
