Investing.com - On Thursday, the US indices all recorded gains. The Dow Jones Industrial Average rose by 0.84%, while the S&P 500 climbed by 0.50%, and the Nasdaq 100 managed to rise by 0.15%.
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However, the InvestingPro ProPicks AI strategies were able to extract much more from the market. For example, the Tech Stars gained 1.53%, the Dow Detectives 0.80%, and Value Vault 1.45%. Thus, three of the six strategies outperformed all three benchmark indices by a wide margin. The Mid Cap Marvels reached 0.54%, The Best of Buffett 0.67%, and bringing up the rear was S&P 500 Samurai with 0.14%.
Of the 15 stocks included in the Tech Stars strategy, only five recorded losses on Thursday. The biggest losers were Super Micro Computer (NASDAQ:SMCI) (-2.78%), Marathon Digital (NASDAQ:MARA) (-2.19%), and Extreme Networks Inc (NASDAQ:EXTR) (-2.12%).
The top gainer among the Tech Stars was once again Applovin Corp (NASDAQ:APP), with an increase of 14.44%. Since March, the stock has risen by 39.45%. In second and third places are Harmonic Inc (NASDAQ:HLIT) (+3.55%) and Ringcentral Inc (NYSE:RNG) (+3.14%).
Ringcentral is a newcomer in May and has achieved a return of 17.84% within a few days. The stock has already performed splendidly this month, and InvestingPro's fair value of $46.79 suggests further gains. In the past 24 hours, Deutsche Bank confirmed its Buy recommendation and raised the target price from $38 to $42.
Applovin benefited from strong quarterly results released on May 8th. EPS exceeded estimates by $0.11 and revenue was also better than expected. This was reason enough for Oppenheimer to rate the stock as "Outperform" with a target price of $97. In the past 24 hours, both Goldman Sachs and BTIG have joined this assessment, giving a Buy recommendation with a target price of $100. There's still some room for growth, but the majority of the gains have been secured by the AI strategy with its early entry.
Whether Applovin will continue to be part of the Tech Stars in June or the AI will close the deal will be decided on June 1st when the monthly revaluation takes place.
Harmonic is also a stock that was added in May. Rosenblatt reaffirmed its Buy recommendation on April 30th immediately after the quarterly results were released, and raised the target price from $16 to $18, representing an upside potential of nearly 60%.
Unlike the "Best of Buffett" strategy, which is adjusted only quarterly, the other 5 strategies select stocks every month that have the potential to outperform the market in the new month. Thus, the portfolio is always geared towards achieving maximum success.
And it works almost as well as a Swiss watch. The 6 ProPicks AI strategies have achieved outstanding performance since 2013:
- Dow Detectives 606.6%
- S&P 500 Samurai 1021.3%
- Value Vault 922.6%
- The Best of Buffett 357.0%
- Tech Stars 1595.3%
- Mid Cap Marvels 571.2%.
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