Key insights
- Iridium Communications (IRDM) is surging due to its strategic acquisition of Aireon, expanding its aviation infrastructure capabilities. The market is reacting positively to Iridium's long-term prospects in aviation, defense, and infrastructure, with the stock up over 34% in May. While the initial earnings reaction was muted, investors are now recognizing the company's growth potential.
Investing.com — Some of May’s biggest winners are emerging well after earnings season. That includes a satellite communications company that saw only a muted reaction after missing analyst 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.
After two huge market session, including a 9%+ pre-market gain today and another +6.9% gain on Friday, the stock is now up a massive 34.07%+ in May alone (as of this writing in pre-market), 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 FIRST, 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.
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So which mid-cap stock is now surging ?
That company is Iridium Communications (NASDAQGS:IRDM).
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 not the only AI-picked stock continuing to climb in May. Republic Airways Holdings (NASDAQGS:RJET) also surged another 7.38% on Friday, extending its May gains to +28.94%. Since first being identified by the models, shares are now up +34.84%.
While several other names identified by ProPicks AI strategies at the start of the month have continued to build on earlier double-digit gains. Here are just a few:
Alongside many more double-digit rallies just this month.
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:
The momentum hasn’t just been limited to May breakouts. Several longer-term holdings identified by the models continue extending strong gains:
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.
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 utilizes 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 objective is to systematically reposition capital toward the strongest opportunities as market conditions evolve.
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