Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.


Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use.

RESMED INC., $228.80, is a buy. The company (New York symbol RMD; TSINetwork Rating: Average) (www.resmed.com; Shares o/s: 145.7 million; Market cap: $33.4 billion; Yield: 1.1%) plans to open a new distribution centre in Greenwood, Indiana. Beginning in 2027, the centre will expand the company’s U.S. presence and strengthen ResMed’s distribution capacity to better serve patients and providers across North America.

Corteva took its current form when the old DowDuPont spun it off in 2019 as part of the three-way breakup of its operations. Since the split, Corteva’s shares have jumped 147%!
Corteva now plans to split its seeds and chemical operations into two separate, publicly traded companies. We expect the plan will work out well for investors, as spinoffs help unlock value. It’s also possible that the two new firms may become attractive takeover targets. Corteva is a Power Buy.

Wyndham is now adding a prestigious new hotel in Bali to its upscale and luxury hotels portfolio.


WYNDHAM HOTELS & RESORTS, $87.54, is a buy. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares o/s: 75.1 million; Market cap: $6.6 billion; Dividend yield: 1.9%) says that Almal Real Estate Development’s “The One by Almal Bali Nusa Dua” will become one of Wyndham’s Registry Collection Hotels.

ELI LILLY & CO., $905.03, is still a buy. The company (New York symbol LLY; TSINetwork Rating: Above Average) (lilly.com; Shares o/s: 893.4 million; Market cap: $810.0 billion; Yield: 0.7%) now has a once-daily U.S. FDA approved weight-loss pill. This gives consumers a second option in the growing non-injectable GLP-1 weight-loss drug market.


Lilly will sell its weight-loss pill under the brand name Foundayo. Novo Nordisk’s Wegovy had been the only FDA-approved GLP-1 pill available since December 2025.

We’re adding retailer Urban Outfitters to the Power Growth Investor portfolio. The clothing company’s outlook is strong—its core brands continue to connect with consumers looking for high quality goods at slightly higher prices. Notably, its Nuuly clothing subscription service is rapidly growing and pushing up earnings. This stock is a Power Buy.


URBAN OUTFITTERS INC., $68.20, is a buy. The company (Nasdaq symbol URBN; TSINetwork Rating: Extra Risk) (www.urbn.com; Shares o/s: 85.6 million; Market cap: $6.1 billion; No dividends paid), offers lifestyle-oriented clothing, merchandise and services through a portfolio of consumer brands.

You Can See Our Spinoff Stock Portfolio For May 2026 Here.

Why we like spinoffs so much

We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:

ARXIS INC. has filed paperwork with U.S. regulators for an initial public offering (IPO) of 37.7 million class A common shares between $25 and $28 a share. That should make for a market cap of about $11 billion, and the shares will trade on Nasdaq under the symbol “ARXS.”

The company, owned by Arcline Investment Management, makes a variety of electronic and mechanical components, such as connectors, cable assemblies, microwave components, sensors, bearings and seals, for customers in the aerospace, defence and medical technology industries. Its annual revenue is $1.6 billion

ROOTS CORP. $3.95 is a hold, but only for highly aggressive investors. The company (Toronto symbol ROOT; Consumer sector; Shares outstanding: 39.2 million; Market cap: $154.8 million; Takeover Target Rating: Medium; No dividend paid; www.roots.com) is a Canadian clothing retailer focused on fashion sweats and other casual clothing. It also makes leather goods, including handbags, jackets and shoes. The chain has 97 stores in Canada, two in the U.S., plus more than 100 partner-operated stores in Asia.

Roots first sold sales to the public on October 25, 2017—16.7 million shares at $12.00 each. The shares are now down 67% since the IPO.

Rather than a straightforward spinoff, many companies prefer to set up a subsidiary as an independent company and offer shares to the public first before handing out most of the remaining shares to their existing shareholders. This process—called a carveout—gives the new company a chance to build up a following with analysts and investors. That familiarity makes it easier for the parent firm to eventually transfer its stake to investors.

A recent example is Medtronic, which recently sold shares in its diabetes products business (called MiniMed).

The plan should help unlock value at Medtronic, which can now focus on its larger businesses. MiniMed should also benefit, but we see better opportunities elsewhere.