ADVERTISEMENT
LIVE DESK·Global markets desk·Last updated 14s ago
ADVERTISEMENT
Markets/EquitiesArticle

AI-selected small-cap stocks surge up to 41% in August

ProPicks AI strategy’s small-cap picks outpace benchmarks, led by Mativ Holdings’ 41% monthly gain and strong earnings beats. Five stocks detailed with fundamentals and catalysts.

PA
Priya Anand · Equities & Earnings Desk · 30 Aug 2026 · 23:50 · 1 min read
Share
AI-selected small-cap stocks surge up to 41% in August

An artificial-intelligence-driven stock-picking strategy from Investing.com’s ProPicks platform delivered a near 6% return month-to-date, more than doubling the Russell 1000’s 2.39% gain. 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 produced a cumulative return of 189.85%, outperforming the S&P 500 by 108.66 percentage points.

Five small-cap stocks highlighted by the strategy posted August gains ranging from 21% to 41%, with earnings beats and operational improvements cited as key drivers. Mativ Holdings led with a 41.47% monthly advance, driven by a 47.1% earnings-per-share surprise and $531.8 million in revenue, alongside a 24% rise in free cash flow. Ramaco Resources followed with a 40.89% gain, supported by an 8.3% revenue beat and a 19% sequential increase in EBITDA.

Peabody Energy rose 29.22% in August, reporting $1 billion in second-quarter revenue, a 12.7% year-over-year increase. The coal producer trades near $23 per share, 56% below its 52-week high, with a price-to-book ratio of 0.81. Analyst targets place the stock around $34, supported by a flagship metallurgical mine expected to return to full production in the second half of 2026. Federal backing under the Defense Production Act totals approximately $700 million, while coal power generation has climbed roughly 13% amid rising demand from data centers.

Haemonetics gained 26.63% in August, beating first-quarter forecasts with $1.14 in EPS on $339.4 million in revenue. The company reported an 8% organic increase in core Plasma operations, a long-term supply agreement with CSL Plasma, and tripled operating cash flows. Inspire Medical Systems advanced 21.63%, posting a $0.24 EPS surprise against a $0.09 loss forecast and $211.1 million in revenue, a 30% year-over-year rise. Full-year revenue guidance was raised to $783 million–$795 million, with 2025 revenue projected at $912 million and EBITDA growth exceeding 50%.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
ADVERTISEMENT
Share this story
PA
Written by
Priya Anand
Equities & Earnings Desk

Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.

More from Priya Anand →
ADVERTISEMENT
Novara — A Smarter Way to Access Global Markets
ADVERTISEMENT