Market volatility picked up in February as a difficult earnings season for large technology companies converged with heightened geopolitical concerns, creating the impression among some retail investors that the broader rally had stalled. Institutional capital flows, however, told a different story.
Rather than a generalized market pullback, the month saw rotation - with money managers shifting allocations away from mega caps and toward value-style and earlier-stage firms. That reorientation helped lift small- and mid-cap equities, producing significant percentage gains for investors who identified the trend early.
Subscribers to InvestingPro, who were able to join during a Flash Sale for under $7 per month, received an AI-selected list at the start of February that included several outsized winners that were not broadly obvious at the time. Among the highlighted performers were:
- InnovAge (NASDAQGS: INNV) - Shares rose more than 63% in February, bucking the broader market caution.
- Ultra Clean (NASDAQGS: UCTT) - The stock advanced 38% in February after a 78% gain in January, effectively doubling in value in 2026. The move was attributed to upbeat guidance and robust growth projections within the semiconductor equipment sector.
- Generac (NYSE: GNRC) - The company posted a 34.6% gain during the month and has climbed 60% since the start of the year.
- Rayonier Advanced Materials (NYSE: RYAM) - Shares increased 22% in February and 31.75% in January after American Industrial Partners disclosed a 5.1% stake in the company, reviving speculation about strategic alternatives or a potential sale.
The AI-driven small-cap strategy returned 7% in February while the S&P 500 fell 0.9% and the Russell 1000 slipped 0.8%. In other words, the model produced positive performance in a month when major indexes declined.
Performance over a longer horizon is even more pronounced. The AI-curated list of technology names has gained 184% since the models were launched in November 2023, representing an outperformance of 122% versus the S&P 500 over the same period. These figures are recorded results since the AI models went live in November 2023.
The March edition of the AI-updated portfolios is live now and has been rebalanced in line with the model’s selection logic. The new list was deployed at the start of the month and several names produced immediate strength on the first trading day, including:
- PBF Energy - +10.62%
- Delek US Energy - +9.21%
- Myriad Genetics - +8.68%
- Pan Ocean (Korea) - +17.42%
- G City (Israel) - +14.80%
- Newmed Energy LP (Israel) - +11.87%
At the start of each month the AI refreshes each strategy with up to 20 stocks. Selections are driven by a combination of more than 150 financial models that run on over 15 years of global data. The process results in additions, retentions, and removals based on a stock’s assessed medium-term growth potential.
Strategies employ equal weighting for each stock, which serves as a clear benchmark for model performance even if investors choose to implement different weightings in practice. The approach emphasizes probabilities - identifying names with favorable risk-reward profiles and recognizing when an investment thesis has become overstretched and a position should be exited.
According to the materials provided with the model, the AI has generated a number of meaningful trades since launch. The coverage highlights prior notable winners that include Super Micro Computer with a 185% gain and AppLovin with a 157% gain as examples of the model identifying high-performing ideas.
For investors considering individual tickers, the offering also notes that the model evaluates a wide universe each month. One ticker specifically called out in the available commentary is NWMDp, which the AI evaluates alongside thousands of other companies using more than 100 financial metrics. The commentary poses the question of whether NWMDp is currently featured in any ProPicks AI strategies or whether there are better opportunities within the same industry cohort.
Membership options for accessing the full lists and model outputs were available during the promotional period referenced, and users were instructed on how to subscribe via app or web interfaces. The materials reiterate that prices reflect the moment of publication and that offers may vary depending on region and promotional testing.
Summary: Institutional rotation out of mega caps into earlier-stage and value-oriented names supported a strong month for small- and mid-cap stocks. Subscribers who received the AI-curated list in early February captured several large winners, and the March list has already produced notable gains on its first trading day. The AI updates strategies monthly, selecting up to 20 names per strategy using extensive model inputs and equal weighting as a benchmark.