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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:
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:
RUSSEL METALS, $40.90, is a #1 Power Buy for your 2025 investing. The company (Toronto symbol RUS; TSINetwork Rating: Extra Risk) (www.russelmetals.com; Shares outstanding: 56.0 million; Market cap: $2.3 billion; Dividend yield: 4.2%) is one of North America’s largest metal distributors, with a growing focus on value-added processing.
The long-term outlook for Russel is positive, and the stock trades at just 11.1 times the 2025 forecast earnings of $3.70 a share.
The long-term outlook for Russel is positive, and the stock trades at just 11.1 times the 2025 forecast earnings of $3.70 a share.
Pandemic lockdowns provided Garmin with a big boost, but the stock has since gone on to hit today’s all-time highs. Going forward, we still like its prospects for growth despite its competitive markets. We think this Power Buy is poised to move even higher for you.
Amazon is the largest e-commerce company, but its grocery business hasn’t grown as fast as some rivals’. For example, Walmart’s larger online grocery business now offers same-day deliver to 90% of the U.S.
ALCON, $81.04, remains a #1 Power Buy for 2025. The firm (New York symbol ALC; TSINetwork Rating: Average) (www.alcon.com; Shares outstanding: 499.7 million; Market cap: $40.8 billion; Dividend yield 0.4%) has lowered its outlook for 2025. That’s mostly due to the continuing drag from U.S. tariffs.
The Swiss-American eye-care company generates almost half of its revenue in the U.S.—and U.S. tariffs on goods from Switzerland currently stand at a very high 39%.
The Swiss-American eye-care company generates almost half of its revenue in the U.S.—and U.S. tariffs on goods from Switzerland currently stand at a very high 39%.
There’s no question that the world’s aging population will continue to spend more on medical services for years to come. Medical device makers are well positioned to capture a share of that increased spending. We continue to see attractive investment opportunities among the top industry device firms. That includes Boston Scientific, whose diversification across multiple high-growth product categories offers investors a bright future. By the way, the company holds the leading position in most of those categories. Boston Scientific is a Power Buy.
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:
We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:
FIGMA INC. $74 is a hold. The company (New York symbol FIG; Manufacturing sector; Shares outstanding: 487.5 million; Market cap: $36.1 billion; No dividends paid; Takeover Target Rating: Lowest; www.figma.com) make software that lets users collaborate in real-time on projects like websites and apps.
On July 31, 2025, Figma completed an initial public offering of 36.94 million class A common shares at $33.00 each. Insiders continue to control the company through multiple voting shares.
On July 31, 2025, Figma completed an initial public offering of 36.94 million class A common shares at $33.00 each. Insiders continue to control the company through multiple voting shares.
RUMBLE INC. $7.60 is a hold. The company (Nasdaq symbol RUM; Consumer sector; Shares outstanding: 338.9 million; Market cap: $2.6 billion; No dividend paid; Takeover Target Rating: Medium; www.rumble.com) operates an online video-sharing and hosting platform, similar to YouTube.
In September 2022, Rumble became a publicly traded company after merging with a special-purpose acquisition company.
The stock jumped 20% recently after Rumble offered to merge with Northern Data AG, a German AI cloud infrastructure firm.
In September 2022, Rumble became a publicly traded company after merging with a special-purpose acquisition company.
The stock jumped 20% recently after Rumble offered to merge with Northern Data AG, a German AI cloud infrastructure firm.
In November 2016, Yum Brands spun off its Chinese operations as Yum China. Investors received one share of the new firm for each YUM share they held.
The split has worked out well for both firms—Yum is up over 130%, while Yum China has gained nearly 80%.
We still like the outlook for both, particularly as their digital ordering platforms are speeding up service and encouraging higher customer spending per visit. Their rising earnings also give them more cash for dividends and share buybacks.
The split has worked out well for both firms—Yum is up over 130%, while Yum China has gained nearly 80%.
We still like the outlook for both, particularly as their digital ordering platforms are speeding up service and encouraging higher customer spending per visit. Their rising earnings also give them more cash for dividends and share buybacks.