After jumping +10% yesterday, this AI-picked healthcare play is up +10% premarket

Investing.com — The cracks in Big Tech are starting to show. As Wall Street digests wavering mega-cap earnings this week, tech giants are struggling to justify their sky-high valuations. Institutional capital is quickly rotating into under-the-radar, deep-value plays and operational turnarounds delivering blowout numbers investors now expect.

InvestingPro members who received an AI-powered list of global stock picks at the start of the month are doing exactly that! From resilient mid-cap winners to high-conviction small-cap breakouts, premium members have had early calls on top performers across multiple sectors all month long.

Best of all, the timing lines up perfectly: This Sunday, ProPicks AI releases its brand-new list of stock picks for November.

Yesterday alone, Oracle Corporation (NYSE:ORCL) jumped +10.73%, and Wingstop Inc (NASDAQGS:WING) added yet another +12.18%, taking its monthly gain to +32.78%. But it was a beaten-down mid-cap healthcare play that just surged another +9.67% following a blowout quarter yesterday and is pointing to a further +9.97% gain in premarket trading today (at the time of writing), pushing its rally for the month to +32.81%.

Premium members have been positioned early across dozens of these under-the-radar stocks. Here are just a few of October’s standout performers:

• Cracker Barrel Old (NASDAQGS:CBRL): +37.53% in Oct alone
• Wingstop Inc (NASDAQGS:WING): +32.78% in Oct alone
• Lockheed Martin (NYSE:LMT): +24.58% in Oct alone
• Kohl’s Corp (NYSE:KSS): +23.36% in Oct alone
• Abercrombie&Fitch (NYSE:ANF): +18.25% in Oct alone

Alongside more than 35+ other double-digit winners this month!

But the gains don’t stop with this month. Here are some of the longer-term rallies members are still riding since their stocks were first selected:

• Everforth (NYSE:EFOR): +120.62% since picked
• Delek US Holdings (NYSE:DK): +87.43% since picked
• Consensus Cloud Solutions (NASDAQGS:CCSI): +74.49% since picked
• Nucor (NYSE:NUE): +71.11% since picked
• Amneal Pharmaceuticals (NASDAQGS:AMRX): +63.88% since picked

Still not a member? Then here’s your chance to get the full list NOW:

• App users can subscribe here
• Web users can subscribe here

So which healthcare mid-cap is now surging following strong quarterly results?

That stock is Bausch Health (NYSE:BHC). ProPicks AI first selected the healthcare mid-cap in May inside our Mid-Cap Movers strategy, catching the stock at a steep valuation discount right before a Q2 blowout delivered $2.85 billion in revenue and non-GAAP EPS of $1.26 (crushing $1.01 estimates).

After delivering 13 consecutive quarters of top- and bottom-line expansion, while still trading at just ~12x adjusted earnings and a ~34% discount to fair value is precisely why our September rebalance added Bausch into our Healthcare Heroes strategy.

Now shares are up more than +32% this month alone after the company smashed Q3 expectations. Bausch posted adjusted EPS of $1.77 (crushing $1.27 consensus by $0.50) on $2.94 billion in revenue (+10% YoY, beating $2.75B estimates), marking its 14th consecutive quarter of revenue and adjusted EBITDA growth. Growth was anchored by the Salix segment rising 16% to $831 million, while quarterly cash from operations more than doubled year-over-year to $813 million. Backed by record execution, management raised full-year 2026 guidance across the board to up to $11.175 billion in revenue and $4.415 billion in adjusted EBITDA.

What our models saw first

Bausch Health was selected by our machine-learning engine for its rare combination of accelerating growth, improving market momentum, and an attractive price relative to its underlying value.

Here is what the data showed:

• Sustained Consecutive Growth: Posted 12 straight quarters of top-line expansion prior to its Q2 beat, capped by Q1 2026 revenue rising ~12% to $2.52 billion and adjusted EBITDA surging 27% year-over-year to easily beat Wall Street estimates.
• Key Segments Firing: Core growth drivers expanded rapidly, anchored by a 21% surge in Xifaxan sales and a 51% jump in Solta Medical.
• Compelling Bargain Price: Trades at just ~12x adjusted earnings while sitting ~34% below analyst fair value targets (~$7.57 average, $8.51 per InvestingPro), offering significant upside potential.
• Improving Risk-Reward Profile: Steadily declining debt levels and key litigation settlements dramatically de-risked the balance sheet while improving underlying financial flexibility.
• Guidance Reaffirmed & Upgraded: Early-year guidance reconfirmations gave our models high conviction in management’s execution long before full-year targets were officially upgraded to $10.7B–$11.04B.

Our AI models provide the same detailed rationale for every stock they select or remove, so members know exactly what the data showed at the time.

Since launch in November 2023, that investor-grade edge has compounded into a remarkable +199.88% return, outpacing the S&P 500 by an impressive +117.05%.

These are real-world numbers, recorded since the official launch of our AI models in November 2023.

As part of our Flash Sale, you can secure an InvestingPro subscription for up to 55% off!

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How Investing.com’s AI-Powered Stock Picker Works

At the beginning of each month, our proprietary AI system evaluates thousands of global equities using a complex blend of historical data, valuation signals, and forward-looking growth metrics.

By processing more than 15 years of financial data across more than 150 quantitative models, the engine identifies up to 20 high-conviction stocks per strategy based on their projected medium-term upside potential.

Every month, these strategies undergo a strict rebalancing process. New opportunities are added, strong performers are retained, and stocks that no longer meet the criteria are removed.

To consistently track performance, each strategy utilises equal weighting across all selected stocks. While investors are free to adjust their own allocations, this structure provides a transparent benchmark for evaluating overall model performance.

The goal is to keep capital positioned in the companies showing the strongest combination of momentum, valuation, and business performance.

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