Investing.com — U.S. stocks continued climbing to fresh record highs heading into the holiday weekend, with the securing its eighth straight week of gains.
Futures have also moved higher as hopes for a potential U.S.-Iran agreement add further momentum to the broader earnings-fueled rally.
Some of May’s biggest winners, however, are emerging well after earnings season. That includes a satellite communications company that saw only a muted reaction after missing earnings estimates late last month.
Weeks later, the stock is breaking fresh 52-week highs as investors catch on to its long-term aviation, defense and infrastructure prospects. It has now surged 23.83% in May alone, including a sharp 6.9% jump on Friday, with momentum continuing to build following a major strategic acquisition announcement earlier this month.
Subscribers accessing our AI-powered models for less than $9 a month received that high-conviction pick right on time, alongside several other mid-cap names delivering +20% returns for May ALONE. With breakout selections like these our premium AI-powered list of picks is now up +195.65% since launch, outperforming the S&P 500 by a staggering +119.77% over the same period.
*These are real-world numbers, recorded since the official launch of our AI models in November 2023.
InvestingPro members can jump straight to the FULL list of May picks HERE.
Not yet a member? Here’s your opportunity to access the full list now:
So which mid-cap stock is now surging ?
That company is Iridium Communications ().
While the initial earnings reaction remained muted, investors have caught onto the company’s expanding infrastructure footprint, resilient subscriber growth, and long-term aviation and defense opportunities.
On top of that, earlier this month Iridium announced it is acquiring the remaining 61% of Aireon for approximately $367 million plus debt.
Aireon operates the world’s only space-based global aircraft tracking system, monitoring roughly 190,000 flights daily. The deal significantly expands Iridium’s aviation infrastructure capabilities across aircraft surveillance, GPS spoofing detection and live aviation analytics. The deal is expected to add more than $100 million in annual service revenue and over $30 million in annual OEBITDA, with long-term contracts extending through 2035.
Iridium is just one of our early picks that is surging in May, several other names identified by ProPicks AI strategies at the start of the month have continued to build on earlier double-digit gains:
- Republic Airways Holdings (): +28.94% in May
- Fair Isaac (): +19.74% in May
- NGL Energy Partners LP (): +19.70% in May
- Teradata (): +19.60% in May
- Alexandria (): +16.86% in May
- Check Point Software (): +16.70% in May
Alongside many more double-digit rallies just this month.
But how did our AI know to look past the muted post-earnings reaction?
Despite the muted earnings reaction, ProPicks AI flagged Iridium at the start of May, thanks to an ideal setup of exceptional market performance, price momentum, and valuation upside.
Here’s exactly what the data highlighted:
- Resilient Price Action: Despite the post-earnings dip, shares remained highly resilient at roughly 88% of their 52-week high, supported by a strong year-to-date run in the satellite communications space.
- Discounted Valuation: InvestingPro’s Fair Value estimate sits at approximately $44, representing meaningful upside from current trading levels.
- Core Growth Drivers: First-quarter subscriber numbers actually grew 5% year-over-year to exceed 2.5 million users. Major commercial telecom partnerships (including Vodafone and Deutsche Telekom) continue to provide a baseline for enterprise growth.
- Cash Flow & Guidance: Management fully reaffirmed its full-year EBITDA guidance of $480–$490 million, backed by projected free cash flow of roughly $318 million. A steady 7% annual dividend growth rate adds a defensive layer to the momentum story.
The momentum hasn’t just been limited to May breakouts. Several longer-term holdings identified by the models continue extending strong gains:
- Texas Instruments (): +45.78% since selection
- Nucor (): +44.37% since selection
- Molina Healthcare (): +35.58% since selection
- Applied Materials (): +34.08% since selection
Iridium’s breakout shows how quickly sentiment can shift once the market catches onto the longer-term story.
With June approaching, the ProPicks AI models are already identifying the next group of stocks showing similar momentum and underlying strength before they are no longer under the radar.
Investors can already access the full list of May picks ahead of June’s upcoming portfolio refresh.
- Already a member? Jump straight to the FULL list of May picks and prepare for June HERE.
- Not yet a member? Here’s your opportunity to access the full list now:
How Investing.com’s AI 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.
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The objective is to systematically reposition capital toward the strongest opportunities as market conditions evolve.
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