Investing.com AI Stock Tool Claims 184% Return Since Late 2023

Investing.com reported that one of its artificial intelligence-driven stock-picking strategies has achieved a cumulative return of +184.67% since its inception in November 2023. The company stated that this performance represents a +107.52% outperformance compared to the S&P 500 over the same period.

Performance Details

The announcement comes as major market indexes showed mixed results in July, with the Dow Jones Industrial Average gaining 0.32%, the S&P 500 declining 0.13%, and the Nasdaq Composite falling 3.20%, according to the source. Investing.com highlighted several individual stocks from its AI selections that it said produced significant gains in July alone.

Key single-month performers cited for July include:

• Everforth (NYSE:EFOR): +62.07%
• PBF Energy (NYSE:PBF): +50.46%
• Bausch Health (NYSE:BHC): +44.44%
• Dorian LPG Ltd (NYSE:LPG): +37.97%
• Tenet Healthcare (NYSE:THC): +33.25%

The report also noted longer-term holdings with substantial returns since their selection, such as Delek US Energy (NYSE:DK) with a claimed gain of +80.28%.

AI Selection Methodology

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According to Investing.com, its AI models refresh their stock lists at the beginning of each month. The system analyzes companies using what it describes as a blend of over 150 financial models applied to more than 15 years of global financial data. Each strategy typically includes up to 20 equally-weighted stock picks.

The company provided a case study for PBF Energy, which it said was initially selected based on a combination of factors including strong price momentum, value metrics such as a low price-to-earnings ratio, and a significant earnings beat. The AI model reportedly flagged the stock before its subsequent price appreciation.

Strategy and Rebalancing

The service's methodology involves re-evaluating and rebalancing its portfolios monthly. Stocks may be added, removed, or retained based on the AI's assessment of their medium-term growth potential and risk profile.

As an example of its risk management process, the report detailed its handling of Fortrea Holdings (NASDAQ:FTRE). The AI reportedly identified it as a turnaround opportunity, resulting in a 76.6% gain. The position was later closed after the model detected weakening momentum, negative fundamental metrics, and a significant earnings miss. Investors are reminded that past performance is not indicative of future results.