Investing.com AI Model Sells Haemonetics, Molina Healthcare After Major Gains

Investing.com's proprietary AI-driven stock selection model has rebalanced its portfolio for September, booking substantial profits from two healthcare holdings after significant rallies. The service, known as ProPicks, sold positions in Haemonetics and Molina Healthcare to redeploy capital into new opportunities, including energy producer APA Corporation and aerospace firm TransDigm Group.

Locking in Healthcare Profits

The model exited its position in Haemonetics Corporation (NYSE:HAE) to realize an 89% gain over a one-year period. According to the platform's analysis, the decision was driven by valuation concerns, with the stock's price reaching approximately 50 times reported earnings against trailing revenue growth of just 0.4%.

Similarly, the model sold Molina Healthcare (NYSE:MOH) after the stock delivered a 46.4% gain in five months. The rationale cited mounting fundamental headwinds, including a sharp cut in full-year earnings per share guidance to $5.25 from a prior expectation of over $14. The analysis also noted that Molina's EBITDA was down approximately 78% year-over-year, with operating margins compressed to 0.7%.

Capital Redeployed to New Picks

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Following the sales, the AI model allocated capital to new positions, highlighting two in its September update.

• APA Corporation (NASDAQ:APA): The energy company was selected for what the model described as a combination of strong performance and an attractive valuation. Despite being up about 92% over the past year, the stock trades at roughly 9 times earnings with a price/earnings-to-growth (PEG) ratio of 0.15. The model also noted APA's Q2 earnings, which beat expectations by nearly 59% and prompted the company to raise its full-year free cash flow guidance to approximately $2.3 billion.
• TransDigm Group (NYSE:TDG): The aerospace and defense supplier was added after a recent pullback in its share price. The rationale pointed to the company's Q3 earnings beat of about 6% and raised full-year guidance, which now targets $10.5 billion in revenue. Investing.com's analysis also highlighted TransDigm's high profitability, with EBITDA margins exceeding 52%.

About the AI Model

The ProPicks strategies are based on a proprietary AI system that evaluates equities at the beginning of each month, according to Investing.com. The model uses over 15 years of financial data to identify stocks based on their projected upside potential. The portfolios are rebalanced monthly, with underperforming assets removed and new opportunities added.