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Investing.com -- InvestingPro members following our monthly updated list of AI-picked stocks are yet again bringing home returns that would normally take months —if not years—to come through.
At the beginning of October, they received an AI-picked list of stocks (available now for less than $10 a month) containing ViaSat Inc (NASDAQ:VSAT) stock, up 23% since—+13.93% yesterday ALONE.
But what’s even more impressive is that those who have been following our AI-powered list of stock picks since August have already notched a fantastic 96%+ gain on that same stock.
VSAT was then dropped from the AI’s list in September, a period in which it actually lost -9.37%, despite the market continuing to rally.
Now, VSAT has made it back to the list of picks for October, returning a massive +137.16% total gain between the two holding periods.
But VSAT is not an exception in our list of AI-picked stocks for October. In fact, amongst its picks for October, the AI has notched SIX other US names that have already gained more than 10% this month ALONE, including Topbuild Corp (NYSE:BLD) (up +10.65% in October), Astera Labs (NASDAQ:ALAB) (up +12.78% in October), and Green Plains Renewable Energy (NASDAQ:GPRE) (up +13.97%).
InvestingPro members can jump straight to the FULL list of picks for the month HERE.
Still not a member? Then here’s your chance to get the list of picks with a special discount now.
If you’re wondering how this is possible, let me tell you that there are no secrets to what the AI does. It simply compiles Wall Street’s most recognized financial models (hundreds of them) and applies them to every stock in the market.
It then reruns them on a recurring basis against other control groups, ensuring the picks have a long-term statistical advantage over the randomly selected stocks and benchmark indexes.
That’s how the list of AI picks has simply crushed the market since the official launch in November 2023. In less than two years, the AI has returned a game-changing +152.69%, outperforming the S&P 500 by a massive 113.90%.
*These are real-world results, recorded since the launch of our AI-powered stock picker (November 2023 for US stocks; January 2025 for global stocks).
What About VSAT? Will It Continue to Rally?
One of the coolest features of our AI model is that it not only selects stocks but also explains to InvestingPro members why it made those choices, helping users with their decision-making process.
Let’s take a look at the history of the decisions around VSAT stock and why it managed to nail it perfectly.
Here’s why the AI picked it in August - when it rallied 96%+:
Explosive Growth Amid Strategic Transformation
- Our ML engine selected ViaSat Inc. as a strong buy based on exceptional market performance, robust growth metrics, and favorable volatility patterns creating a potential inflection point.
- The stock shows remarkable momentum with 79% 3-month, 71% 6-month, and 93% YTD price returns, while trading at just 0.48x book value.
- Revenue exceeded expectations ($1.15B vs $1.13B forecast) with impressive EBITDA growth of 23% and stronger-than-expected earnings (loss of $0.02 vs expected $0.59 loss).
- Activist investor Carronade Capital (2.6% stake) recently proposed spinning off ViaSat’s Defense unit, potentially valuing the company between $50-$100 per share (current price ~$16).
- The incoming $568M settlement from Ligado Networks in FY2026 provides significant financial flexibility to address debt concerns while supporting continued growth initiatives.
Here’s why the AI dropped it in September - when it lost -9.37%:
Market volatility amid uncertain valuation outlook
- Rotated out after extraordinary price run-up created valuation concerns relative to peers
- Stock experienced extreme volatility with ~230% 3-month and ~213% 6-month returns, reaching 89% of 52-week high, while currently trading above analyst fair value targets ($30 vs. $23)
- Fundamentals show mixed signals: negative earnings (P/E -6.56), modest operating margin (1.29%), and -3.6% return on assets, despite positive quarterly revenue growth of ~4%
- Company maintains positive elements including $60M free cash flow, defense segment growth (15% YoY), and upcoming satellite launch that could double capacity
Now here’s why the AI picked it again in October - up 12.59% MTD:
Strong Performance with Breakup Potential
- Recent Q1 FY2026 results exceeded expectations with $1.17 billion revenue and positive free cash flow of $60 million, highlighting operational improvements.
- ViaSat Inc. stands out with remarkable market performance, delivering a 244% year-to-date return and 185% gain over six months.
- Trading at a Price/Book ratio of 0.86, the stock appears undervalued despite its surge, with multiple analysts raising price targets (JPMorgan to $23, Deutsche Bank to $28).
- The Defense & Advanced Technologies segment showed impressive 15% year-over-year growth with a 49% increase in backlog.
- Upcoming catalysts include the October 2025 launch of ViaSat-3 F2 satellite, a potential $568 million cash infusion from Ligado, and possible business restructuring that activist investor Carronade suggests could drive shares to $100.
Similarly, the AI published its rationale for every stock it decides to either add to or remove from the portfolio. Amazing, right?
Still not a member? Then here’s your chance to get the full list of picks with a special discount now.