AI-Driven Model Flags Energy Stocks That Significantly Outperformed Market

A selection of U.S. energy stocks has delivered substantial returns in recent months, strongly outperforming major indices that have faced downward pressure. According to a report from Investing.com, these equities, including Delek US Energy (NYSE:DK) and SM Energy (NYSE:SM), were previously identified by the platform's AI-driven stock selection models before their significant price increases.

Energy Stocks Defy Market Trend

While major U.S. indices have faltered in September, with the S&P 500, Nasdaq, and Dow Jones Industrial Average all declining approximately 3% month-to-date, a number of energy-sector companies have seen their valuations surge. The S&P 500's year-to-date gain stands at a more modest 10.8%.

Investing.com reported the following performance for several of its AI-selected energy stocks since they were first highlighted by its models:

• Delek US Energy (NYSE:DK): +108.34%
• SM Energy (NYSE:SM): +61.42%
• HF Sinclair (NYSE:DINO): +59.51%
• CVR Energy (NYSE:CVI): +46.93%
• Sunoco LP (NYSE:SUN): +28.43%

Analysis Cites Strong Fundamentals

The AI model's selections were reportedly based on a combination of valuation, growth, and market momentum metrics. The platform provided specific rationales for two of the high-performing stocks.

SM Energy (SM)

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SM Energy, identified by the model in July, has gained over 61% in the two months since. The rally followed a strong second-quarter earnings report where the company's total revenue surged 215% year-over-year to $2.50 billion. Its earnings per share (EPS) of $2.19 surpassed consensus estimates. The company also raised its production guidance for the second half of the year and announced significant debt reduction.

HF Sinclair (DINO)

HF Sinclair has risen nearly 60% since its selection in June. The company also posted a significant Q2 earnings beat, with an EPS of $5.31 against an estimated $4.39, driven by strong refining margins. According to the report, the model flagged the stock for its momentum, attractive valuation, and a Q1 earnings report that beat analyst forecasts by nearly 900%.

Context on AI-Driven Strategies

The use of artificial intelligence and machine learning to identify investment opportunities is a growing trend in financial markets. Investing.com claims its "Energy Elite" strategy has returned +82.27% year-to-date, outperforming its benchmark by over 34 percentage points.

The firm's system reportedly evaluates thousands of stocks monthly, using over 15 years of financial data to identify companies with strong upside potential. The strategies are rebalanced each month to add new opportunities and remove stocks that no longer meet the model's criteria.