Up 44%+ in June, these healthcare stocks are rallying once again

Investing.com — Wall Street is flashing red again as the immediate AI trade cools off. A fresh geopolitical flare-up between the U.S. and Iran, paired with renewed inflation jitters ahead of the upcoming CPI data, has triggered a defensive rotation.

While InvestingPro members were right in front of the hardware wave with early calls on this month’s standout infrastructure plays such as Marvell Technology (MRVL), up 21.62%, and Veeco (NASDAQGS:VECO), up 17.36%, institutional money has swiftly moved into the healthcare sector.

But even before these headlines triggered a rush into defensive growth, premium members that received our ProPicks selections at the start of the month were already positioned to capture these impressive cross-sector gains, for less than $9 a month.

From cutting-edge hospital technologies and vital managed healthcare services to global biopharmaceuticals, several high-conviction allocations are driving massive returns this month, while some are extending incredible long-term gains since they were first identified by ProPick AI strategies:

Want to see the full list? InvestingPro members can access June’s complete set of AI-powered stock picks HERE.

What did our ProPicks models see in these healthcare leaders before the broader market started rotating into them?

Before the sector’s rotation, our data-driven strategies identified Haemonetics (HAE) as a glaring valuation disconnect paired with standout profitability. While the stock had pulled back to just 56% of its 52-week high, its underlying business was firing on all cylinders—boasting a strong 23.6% year-over-year EBITDA growth and an earnings beat of $1.10 EPS against the $1.01 forecast. Operating with a massive 58.8% gross margin and a remarkably low PEG ratio of 0.34, the model flagged it as an incredibly undervalued cash generator. A subsequent Citi upgrade to a "Buy" with a $90 price target quickly reinforced that high-conviction thesis.

Amneal Pharmaceuticals (AMRX) offered an equally compelling growth story. The model selected Amneal for its accelerating profitability, following a staggering 65% earnings surprise last quarter and a powerful 19% jump in Q1 adjusted EBITDA. Gross margins have expanded by 500 basis points year-over-year, while its game-changing acquisition of Kashiv BioSciences unlocks a massive $100+ billion biosimilar market. Trading at an ultra-low PEG ratio of 0.04 despite a powerhouse 80% run over the past year, the models recognized that Amneal’s trajectory toward a $4.5 billion revenue target by 2030 left it deeply mispriced relative to its long-term upside.

But the true edge provided by our investor-grade models goes beyond a single hot sector. InvestingPro members continue to be positioned early within stocks pointing to huge upside value across the market.

Here are just a few of the standout, multi-sector selections that continue to deliver massive total returns since they were first identified by our strategies:

Continuing to outperform the market requires identifying high-conviction assets while they remain undervalued, ensuring you are already positioned when sentiment shifts.

Consistently selecting and holding high-conviction assets throughout their entire growth cycle is how our data-backed strategy continues to outperform the benchmarks. Since its official launch in November 2023, the ProPicks AI strategy has logged a remarkable +207.04% return, outpacing the S&P 500 by an impressive +132.90%.

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

InvestingPro members can access the list of stock picks for June HERE.

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

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

Disclaimer: 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.

ProPicks AI evaluates MRVL alongside thousands of other companies every month using 100+ financial metrics. Using powerful AI to generate exciting stock ideas, it looks beyond popularity to assess fundamentals, momentum, and valuation. The AI has no bias—it simply identifies which stocks offer the best risk-reward based on current data with notable past winners that include Super Micro Computer (+185%) and AppLovin (+157%). Want to know if MRVL is currently featured in any ProPicks AI strategies, or if there are better opportunities in the same space?