Unsinkable Business Models
ARM Holdings (SELL, UK) share price has skyrocketed in the last two months after moving sideways for the last two years. We have long said that ARM’s stock valuation is completely uncorrelated to its fundamentals, both current and future. Hype stocks need to have a story every now and then to sustain their share price. Consider Tesla, when its growth started flattening and it realised that it’s not possible to have a 50% market share in a competitive automotive market, the raison d’être of the company has changed from electric cars to robotaxis and humanoids. The trick of these stocks is to convince people into thinking that their TAM is too big and ‘one day’, they will dominate it.
Over the last 15 years AlphaValue has deployed a simple algo that tracks the resilience of a given business model. We call it, for lack of imagination, fundamental strength indicator (FSI).
Looking at the result of the last 10 years will bring to the fore unsinkable business models. It pays to keep an eye on those mostly well-known names at a moment when AI momentum is a substitute for earnings. Gravity will inevitably return.
We started by looking at stocks with the best FSI today (2026) and looked backward to select stocks with the most consistent ratings over 2012-2026.
Below are the names of those exceptional business models including those supposed to be trashed by AI. Demant and Next are presumably a surprise to most observers who would know about Sonova and Inditex. Whoever thought of IMI or Polish CD Projekt?
The same universe is too quality bent to have been at the centre of the ‘buy anything’ mood as long as AI is tagged on the asset. In aggregate terms, the 24 stocks above open a 23% upside potential with no risk of being wrong. One can even afford to do without ASML…
A synthetic view of those exceptional business models:
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