Multibagger Selection: Muse Spark 1.1's picks
Muse Spark 1.1 picked EXTR, TLS, EVLV, SOUN, BBAI with a twelve-month thesis, measured against SPY at each checkpoint.
| Experiment | Multibagger Selection |
|---|---|
| Model | Muse Spark 1.1 |
| Prompt version | multibagger-selection-v1 |
| Asked | |
| Horizon | 12-month |
| Benchmark | SPY |
| Status | Being measured |
The picks
| Rank | Symbol | Return | Confidence | vs benchmark | Called right |
|---|---|---|---|---|---|
| 1 | EXTR | — | 68% | — | — |
| 2 | TLS | — | 65% | — | — |
| 3 | EVLV | — | 62% | — | — |
| 4 | SOUN | — | 60% | — | — |
| 5 | BBAI | — | 55% | — | — |
Checkpoints
| Checkpoint | Portfolio return | Return vs SPY | Best peak multiple | Picks reaching 2x |
|---|---|---|---|---|
| 1 week | +1.57% | +0.92% | 1.11x | 0 |
The model's market view
Small-cap environment in Sep 2026 shows rate-cut expectations, AI infrastructure spend and defense modernization driving earnings revisions. Russell 2000 projected 19-34% EPS growth for 2026, outpacing S&P 500. Discount to fair value ~15% plus inventory normalization in networking and security tech creates setup for operating leverage. Selected names have specific verifiable catalysts within 12 months and market caps $0.3B-$2.9B with daily volume above $5M.
Why each pick
EXTR
Extreme Networks is a networking equipment provider in Wi-Fi 7 and cloud networking cycle. Market cap $2.84B Sep 2026 per Finnhub, price $20.97 intraday Sep 28. Reported Q2 FY26 revenue $317.9M up 14% YoY and EPS $0.32 beating $0.29. ROE 88.88% and margin 3.28% with inflection toward profitability after inventory digestion. Trades at P/S ~2.3x below historical median.
TLS
Telos Corp cybersecurity and TSA PreCheck enrollment provider. Market cap $332.2M Sep 2026, price $4.04 intraday. Revenue TTM $193.71M up 65.93% YoY, Q2 2026 $47.74M up 32.74% YoY beating estimates, EPS $0.04 up 233%. Free cash flow $33.7M, 17.4% margin, gross margin 36.6%. Federal security programs now >90% revenue.
EVLV
Evolv Technologies AI-based contactless security screening for stadiums, schools, hospitals. Market cap $1.02B per AInvest Sep 2026, price $4.705 intraday Sep 28. Q revenue $46M last quarter, annual revenue ~$100M+ with backlog. Partnership renewal with Philadelphia Phillies and major sports venues indicates commercial traction. Down -34% YTD creates asymmetry.
SOUN
SoundHound AI conversational AI platform for automotive and restaurant voice. Market cap $2.72B Sep 28 per Finnhub, price $5.88 intraday, 52-week low $5.65. Revenue TTM $203.2M up 99.45% YoY, Q2 2026 $61.9M up 45% beating $52.41M estimate by 18.1%, loss narrowing to -$0.02 vs -$0.05. 3Y CAGR 77.72% per FinanceCharts.
BBAI
BigBear.ai defense AI and federal analytics. Market cap $1.34B Sep 28 per Finnhub, price $2.715 intraday Sep 28, down -49.72% YTD and -57.97% 1-year creating deep value. Acquisition of Ask Sage generative AI platform for federal markets closed as largest in history per Zacks Nov 2025. Government contracts provide backlog.
Other models on the same run
| Model | Picks |
|---|---|
| Gemini 1.5 Pro | MGNI, IONQ, RXRX, LUNR, ACHR |
| Perplexity | LWLG, SATL, ARTV, KOD, TYGO |
| Claude Opus 5.5 | CAPR, EOSE, QMCO, KOD, ETON |
| DeepSeek | ECX, NTWK, AKAM, SRRK, ELVA |
| Grok 4 | CAPR, INOD, SOUN, ACHR, RCAT |
| GPT-6 | BKSY, AMPX, ENVX, RCAT, LUNR |
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