While tech stocks slide, an AI-picked retailer surges 31% in October

Investing.com - Intel and Western Digital fell this week as chip-sector names drew selling pressure. Consumer discretionary told a different story: one name on our AI models’ list moved in the opposite direction, gaining +30.97% month-to-date in October - picked by our AI models on October 1, before the run began.

InvestingPro members, who receive the full monthly list of high-conviction stock picks for less than $9 a month, were already positioned in that pick before the rally. They were not alone - several other names on October’s roster have posted double-digit moves in the same direction:

October’s list is still available - become a member to see it.

The pick: Kohl’s (NYSE:KSS)

When our AI models added Kohl’s Corporation (NYSE:KSS) to the October list on October 1, shares were trading at just 74.6% of their 52-week high - a valuation gap the models measured at entry. Since that pick date, shares have gained +30.97% month-to-date.

That momentum has carried into the final days of October. On October 21, Kohl’s announced its holiday season strategy, positioning itself as a family gift destination through curated collections, deeper inventory in high-demand products, and enhanced in-store and digital experiences. Gordon Haskett followed on October 22 with an upgrade to Buy. Both developments came after the stock was already climbing - the entry case rested on the earnings picture that had emerged weeks before either event.

What our models flag

Each of those signals was visible on October 1. Since then, the holiday strategy announcement and the analyst upgrade have extended the re-rating - the kind of sequential validation the models anticipate when value, momentum, and earnings quality converge at entry.

Want to see the full list? This winner, and others like it, are on October’s list - InvestingPro members can access the complete set of AI-powered stock picks HERE.

A track record built on getting there first

Kohl’s is one high-conviction pick within a strategy that has delivered strong returns since launch. Since November 2023, the Mid-Cap Movers strategy has returned +110.6% in total equal-weighted returns, compared with +52.7% for the S&P MidCap 400, outperforming the benchmark by 57.9 percentage points. Picks like Kohl’s illustrate how the models identify earnings gaps and valuation discounts before the broader market reacts.

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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.

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

Subscription prices mentioned in articles are accurate at the time of publication. We regularly test different offers for our members, which may vary by region.

Past performance does not guarantee future results. Prices are accurate at the time of publication and may vary by region.