AI Strategy Highlights Stocks With Strong EPS Growth

Key Moments

Wall Street Focuses on Tech Giants as AI Models Look Elsewhere

Alphabet and Tesla are opening the latest earnings cycle for the so-called Magnificent Seven, with Alphabet projected to post 17.8% earnings-per-share (EPS) growth and Tesla signaling a -3.8% EPS decline. While major benchmarks and headlines concentrate on these mega-cap names, the InvestingPro platform highlights that institutional-style capital is increasingly seeking out less crowded opportunities with stronger earnings acceleration.

According to InvestingPro, members who joined during the Summer Sale for less than $7 per month have already built positions in dozens of companies where analyst expectations point to robust double-digit EPS growth and substantial upside to InvestingPro’s fair value estimates.

AI-Selected Winners Ahead of Recent Earnings

The ProPicks AI engine has been used to position subscribers ahead of key earnings releases by targeting companies with inflecting fundamentals and valuation dislocations. Among the highlighted performers:

ProPicks AI reviews more than 60,000 global equities each month to locate situations where earnings trajectories are improving but market pricing has yet to reflect that shift. The current screen has surfaced a cluster of names with large double-digit EPS growth forecasts and material upside to InvestingPro’s fair value assessments.

Current AI Standouts With Strong EPS Growth Projections

Among the models’ current focus list, three stocks are highlighted for their combination of forecast EPS expansion and valuation potential:

These names represent only a portion of the current list. InvestingPro members can view the full set of July AI-powered stock ideas via the platform.

Non-members are being offered immediate access to the complete list of ProPicks selections. App users can subscribe via the dedicated in-app link, while web users are directed to a separate subscription link.

July Momentum: Energy and Industrials in Focus

ProPicks AI does not rely solely on lofty EPS estimates. The approach incorporates fundamental quality and valuation signals, which has allowed premium subscribers to capture short-term breakouts across sectors such as energy and industrials. In July alone, several positions have delivered notable gains:

In total, more than 20 positions have produced double-digit percentage gains, according to the strategy data presented.

Why Kyndryl and Salesforce Rank as High-Conviction Ideas

Each ProPicks AI entry is accompanied by a data-based rationale, providing transparency into what the machine learning engine detected at the time of selection. Two of the current high-conviction positions – Kyndryl Holdings and Salesforce – illustrate how strong EPS expectations intersect with discounted valuations in the model’s framework.

Kyndryl Holdings (NYSE:KD)

Kyndryl, described as one of the largest IT infrastructure services companies globally, was separated from IBM in 2021 and has been carrying out a substantial business transformation since that time. The AI models flagged the following characteristics:

• Deep Discount: The shares are trading at approximately 28% of their 52-week high, with a price-to-earnings ratio below 12 and a PEG ratio of 0.14, suggesting the market is ascribing limited value to the company’s growth path.
• Hyperscaler Surge: Revenue derived from hyperscaler partnerships increased 58% year-over-year, and the consulting segment expanded by about 20% year-over-year, labeled as two of the fastest-growing lines within IT services.
• EBITDA Expansion: Operating leverage has been improving, with EBITDA rising roughly 30% year-over-year as cost transformation measures translate into earnings gains.
• Balance Sheet Position: The company holds $1.35 billion in cash, expects $325–375 million in free cash flow for the current year, and has confirmed there are no financial restatements, which the narrative suggests supports confidence in the turnaround case.
• Analyst Conviction: Analyst price targets point to an approximate 54% upside from the current share price, while the stock is portrayed as being relatively overlooked.

Salesforce (NYSE:CRM)

Salesforce is characterized as the leading franchise in enterprise customer relationship management software and is now described as constructing a potentially major AI platform within enterprise technology. The AI engine highlighted the following elements:

• Trading Near Lows: Shares are quoted at just 57% of their 52-week high. InvestingPro’s fair value estimates are around $245 per share, implying approximately 53% upside versus the prevailing price level referenced.
• Earnings Acceleration: For Q1 of fiscal year 2027, revenue increased 13% to $11.1 billion, with earnings exceeding forecasts by nearly 24%, an outcome presented as evidence of both top-line growth and expanding profitability.
• Agentforce as AI Catalyst: The “Agentforce” AI platform has already surpassed $1 billion in annual recurring revenue and is growing quickly, positioning Salesforce as central to enterprise AI adoption in a way that the current valuation is described as not fully recognizing.