• This Substack is reader-supported. To receive new posts and support my work, consider becoming a free or paid subscriber. A seven day free trial is offered to new paid subscribers.

  Selection for this week

• Some Pros about the stock

• Some Cons about the stock

• Criteria for choosing

• The previous selections

The momentum stocks continue to be pounded in the market and the stocks in this portfolio have not been spared from this downdraft. All the stocks in the portfolio are fast growing high momentum stocks, so I expect that when high quality momentum stocks are back in favor, these stocks will lead the way up. Meantime, I will keep adding highly ranked quality stocks with momentum to the portfolio.

Add: VSXY (Victoria’s Secret) – Apparel Retail

What does the company do?

Victoria’s Secret & Co. is a global specialty retailer of women’s lingerie, sleepwear, apparel, activewear, swimwear, beauty products, and accessories. Its brands include Victoria’s Secret, PINK, and Adore Me, with products sold through company-owned stores, e-commerce websites, and franchise and wholesale partners. Founded in 2021 as a standalone public company, Victoria’s Secret is headquartered in Reynoldsburg, Ohio.

Why Some Investors Are Bullish

• The turnaround is producing strong financial results.

Victoria’s Secret recently beat revenue and earnings expectations while raising full-year guidance. Improving sales, margins, and profitability suggest the turnaround is being driven by execution—not just marketing.

• New leadership is successfully repositioning the brand.

CEO Hillary Super has refocused the company on its core strengths while modernizing the brand. Better product execution and renewed customer engagement are helping rebuild long-term growth.

• Multiple brands provide diversified growth opportunities.

The company operates Victoria’s Secret, PINK, and Adore Me, serving different customer segments across lingerie, apparel, beauty, and digital retail. This reduces reliance on any single brand.

• Strong omnichannel business model.

Products are sold through company stores, e-commerce, and digital platforms, giving the company a balanced physical and online presence. Adore Me also strengthens its direct-to-consumer capabilities.

• Core product categories are gaining momentum.

Management’s renewed focus on bras, beauty, and other core categories has improved merchandise performance and profitability. Better execution at the product level is supporting the broader turnaround.

What Bears Are Worried About

• Valuation now reflects much of the turnaround.

After its powerful rally, investors expect continued sales growth and margin expansion. Any earnings disappointment could lead to increased share price volatility.

• Consumer spending remains the biggest external risk.

Victoria’s Secret sells discretionary products, making demand sensitive to consumer confidence, employment, and economic conditions. A weaker consumer environment could pressure sales.

• Brand repositioning still carries execution risk.

The company must continue attracting both loyal customers and new shoppers while maintaining its renewed brand identity. Sustaining recent momentum will require consistent product innovation and marketing execution.

Bottom Line

Victoria’s Secret has transformed into a profitable retail turnaround driven by stronger execution, improved products, and disciplined leadership. While the long-term outlook has improved significantly, continued execution will be essential after the stock’s substantial recovery.

Top Quant Stock of the Week Criteria

I am using a Quantitative research platform that provides a daily list of top-ranked stocks to buy or sell, based on a Comprehensive Quant Score. This Quant system uses computer algorithms to come up with its rankings. This score incorporates multiple factors, including valuation, growth, profitability, momentum, and EPS revisions.

I will be giving heavy weight to strong momentum and strong EPS revisions to make the weekly selection. Then, I will use my tested proprietary criteria to sort and then break any tie.

One stock will be selected each week. That would make 52 selections a year if I don’t miss any weeks because of internet problems.

The hold times for the stocks added will be 1 week to years. Although a 1 week hold would be rare, it could happen if the stocks Quant metrics took a big nose dive right after being selected. If an added stock maintains its good metrics, it will be kept in the portfolio until it doesn’t. No time limit. The Quant system will tell me when it is time to let it go. So the hold time is short, medium and long depending on the Quant system metrics.

All countries are included. ADR’s are ok but Pink Sheet stocks will not be allowed.

Certain Industries are excluded. My testing shows they do not perform well using Quantitative rankings. Two of the main ones are BioTechnology and Pharmacueticals.

The Remove Criteria: Once the stock no longer qualifies to be retained in the Portfolio, it will be removed. This could be because the companies metrics have deteriorated since selection, it is involved in a buyout or financial reporting problems.

Once a stock has been added to the Active list, it will not be added to. No doubling down.

The stocks considered are larger small cap, mid cap, large cap and Mega cap. They will be fairly easy to trade with opening or closing market orders as one of the ways to enter and exit positions.

It should be expected that about 50 stocks will be Active in the Portfolio in any given week, once it gets to the two year mark.

All stocks are added as equal weight. No rebalancing is to occur.

To be considered for addition, the stock has to be in the top group of Quant rankings for just several weeks. This is to allow newly upgraded stocks to qualify quickly. Hopefully, this will catch a couple of strong momentum stocks early in their move.

Once a stock is removed for cause, it can be added back in once it meets the add criteria. No waiting period is required.

There will be no limits on percentages of stocks in the Portfolio by Sector or Industry.

Previous Selections:

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

• Quant Weekly – Up over 77% since June 2025

• Quant 30 – Up over 80% since June 2025

• Legacy – Up over 360% since April 2023

• No changes to the main Quant Portfolios

• Top Quant Stocks – Materials

• Education – Top Ten Good Habits for Investors

• Quant Top Stock Model Portfolio coverage begins

USA Stock market week ending 07/10/26

• SPY (S&P 500 ETF):+1.4% – Large-cap U.S. stocks posted a solid weekly gain.

• NASDAQ Composite (^IXIC):+1.7% – Technology and growth stocks led the major indexes higher.

• DIA (Dow Jones Industrial Average ETF):-0.4% – Blue-chip stocks finished the week slightly lower.

• IWM (Russell 2000 ETF):-0.5% – Small-cap stocks modestly underperformed during the week.

• SPMO (Invesco S&P 500 Momentum ETF):+1.9% – Momentum stocks outperformed the broader market.

Market Drivers this Week (07/13/26 – 07/17/26)

Monday, 7/13

• Treasury Budget (June) releases at 2:00 PM ET.

• Fastenal (FAST) reports earnings, offering an early read on industrial activity.

Tuesday, 7/14

• June CPI releases at 8:30 AM ET — the week’s most important economic report.

• Major banks report earnings, including JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, and Wells Fargo.

Wednesday, 7/15

• Producer Price Index (PPI) and the Empire State Manufacturing Survey are released.

• Fed Chair Kevin Warsh testifies before Congress.

• Earnings highlights include Johnson & Johnson, Morgan Stanley, BlackRock, United Airlines, and J.B. Hunt.

Thursday, 7/16

• Retail Sales, Initial Jobless Claims, and the Philadelphia Fed Index headline the economic calendar.

• Netflix (NFLX) reports after the close, alongside earnings from UnitedHealth, Abbott Laboratories, GE Aerospace, and several financial firms.

Friday, 7/17

• Housing Starts, Import & Export Prices, Industrial Production, and Capacity Utilization are released.

• University of Michigan Consumer Sentiment provides an updated view of consumer confidence.

The CNN Fear and Greed Index ends the week at 49 in the Neutral area. This follows five straight weeks in the Fear area. It is encouraging to see the Index finally climb out of the Fear area.

The Quant Model Portfolios made slight gains this past week as the market environment turned slightly favorable. With earning season just now starting, expect the Model Portfolios to benefit from the new updates released by the companies.

The new Quant Top Stock Portfolio will now be tracked here. There is one addition a week in this new one. It will be very volatile.

Read more

• Quant Weekly – Up over 77% since June 2025

• Quant 30 – Up over 80% since June 2025

• Legacy – Up over 360% since April 2023

• Education – Is It a Good Idea to Buy Stocks Near Their 52-Week High?

• Quant Top Stock Model Portfolio coverage begins

USA Stock market week ending 07/10/26

• SPY (S&P 500 ETF):+1.4% – Large-cap U.S. stocks posted a solid weekly gain.

• NASDAQ Composite (^IXIC):+1.7% – Technology and growth stocks led the major indexes higher.

• DIA (Dow Jones Industrial Average ETF):-0.4% – Blue-chip stocks finished the week slightly lower.

• IWM (Russell 2000 ETF):-0.5% – Small-cap stocks modestly underperformed during the week.

• SPMO (Invesco S&P 500 Momentum ETF):+1.9% – Momentum stocks outperformed the broader market.

Market Drivers this Week (07/13/26 – 07/17/26)

Monday, 7/13

• Treasury Budget (June) releases at 2:00 PM ET.

• Fastenal (FAST) reports earnings, offering an early read on industrial activity.

Tuesday, 7/14

• June CPI releases at 8:30 AM ET — the week’s most important economic report.

• Major banks report earnings, including JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, and Wells Fargo.

Wednesday, 7/15

• Producer Price Index (PPI) and the Empire State Manufacturing Survey are released.

• Fed Chair Kevin Warsh testifies before Congress.

• Earnings highlights include Johnson & Johnson, Morgan Stanley, BlackRock, United Airlines, and J.B. Hunt.

Thursday, 7/16

• Retail Sales, Initial Jobless Claims, and the Philadelphia Fed Index headline the economic calendar.

• Netflix (NFLX) reports after the close, alongside earnings from UnitedHealth, Abbott Laboratories, GE Aerospace, and several financial firms.

Friday, 7/17

• Housing Starts, Import & Export Prices, Industrial Production, and Capacity Utilization are released.

• University of Michigan Consumer Sentiment provides an updated view of consumer confidence.

The CNN Fear and Greed Index ends the week at 49 in the Neutral area. This follows five straight weeks in the Fear area. It is encouraging to see the Index finally climb out of the Fear area.

The Quant Model Portfolios made slight gains this past week as the market environment turned slightly favorable. With earning season just now starting, expect the Model Portfolios to benefit from the new updates released by the companies.

Note: You are reading the free subscriber newsletter. Paid subscribers enjoy instant access to weekly Model Portfolio updates upon release. Free subscribers get access to Portfolio updates after a three-week delay. Want timely access to the new Adds/Removes?

Subscribe now

Model Portfolio Quant Alpha Weekly

Any newly added stock is being released to Paid Subscribers today. Below are the updates from three weeks ago. This Portfolio continues to significantly outperform its benchmark, 77% versus 21%. It has 27 members.

Top five Quant stocks in the Portfolio (Paid subscribers only).

HRTG (Heritage Insurance) no longer qualifies for a longer term hold and is being removed. It was added on 7/17/25 and goes out with a +8% return.

Add (06/19/26) : None

Remove (HRTG) : HRTG (Heritage Insurance)

Outperformers: SEZL (Sezzle) up over +100%, MU (Micron Technology) up over +520%, TTMI (TTM Technologies) up over +130%, CLS (Celestica) up over +80%

Model Portfolio Quant 30

This week’s new update, if any, is being released to the paid subscribers. Shown below is the update made three weeks ago. This Portfolio continues to beat its benchmark by a wide margin, 80% to 21%. It has 30 members in it.

Top five Quant stocks in the Portfolio (Paid subscribers only).

AU (AngloGold Ashanti plc) leaves the Portfolio on 6/19/26 with a +102% return since it was added on 7/3/25.

Add (06/19/26): UCTT (Ultra Clean Holdings) – Semiconductor Equipment and Materials

Remove (06/19/26): AU (AngloGold Ashanti plc)

Outperformers: MU (Micron Technology) up over +700%, LITE (Lumentum Holdings) up over +230%, TTMI (TTM Technologies) up over +100%, BTSG (BrightSpring Health) up over +220% and SNDK (Sandisk) up over +210%

Model Portfolio Quant Alpha’s – Legacy

The portfolio is up over +360% since it began in 2023. It has 17 stocks in it. Powell industries is now a 12 bagger. Celestica is now a 14 bagger. Sterling Infrastructure has become a 10 bagger.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Remove (06/19/26): None

Outperformers: AGX (Argan) up over +800%, STRL (Sterling Infrastructure) up over +1000%, POWL (Powell Industries) up over +1200% and CLS (Celestica) is up over +1400%

Model Portfolio Quant Top Stock

This new Portfolio adds one new stock a week. A separate email is sent on Thursday morning detailing the selection, a shallow dive on the pros and cons of the stock and the criteria used for the Portfolio.

Add: CRDO (Credo Technology) – Semiconductors

Performance to 07-10-2026

Top Quant Stocks for this week – (Paid subscribers only feature)

Paid subscribers got a list of Top Quant stocks in the Materials sector today.

Is It a Good Idea to Buy Stocks Near Their 52-Week High?

Pros

Momentum has a strong long-term track record.

• Stocks near 52-week highs have historically outperformed over the following 3–12 months.

• Momentum is one of the most well-documented factors in investing.

New highs often reflect improving fundamentals.

• Strong earnings, new products, or competitive advantages frequently drive new highs.

• Rising prices often signal improving business quality—not just market enthusiasm.

Breakouts can signal the start of bigger gains.

• Stocks breaking above long consolidations often continue higher.

• Strong volume confirms institutional buying and positive momentum.

Many great companies spend years near their highs.

• Leaders like Amazon, Apple, Microsoft, Nvidia, and Visa often traded near all-time highs.

• Waiting for large pullbacks frequently meant missing years of compounding.

Buying strength promotes discipline.

• Favors companies with both strong fundamentals and market confirmation.

• Helps avoid value traps and weak businesses with declining trends.

Cons

Valuation risk increases as prices rise.

• Strong price gains can outpace business fundamentals.

• Rich valuations leave less room for disappointment.

Momentum can reverse quickly.

• New highs sometimes mark short-term peaks.

• Late buyers may face sharp pullbacks after strong rallies.

A 52-week high doesn’t guarantee quality.

• Great companies and speculative stocks can both reach new highs.

• Always verify the underlying business before investing.

Large positions increase downside risk.

• Buying aggressively near highs magnifies losses if momentum fades.

• Concentrated positions can force emotional decisions during corrections.

FOMO can lead to poor decisions.

• Chasing recent winners often reflects emotion rather than analysis.

• Independent research should always outweigh market excitement.

Summary

Buying near a 52-week high isn’t automatically bullish or bearish. The best opportunities occur when strong fundamentals support the breakout and valuations remain reasonable. Avoid buying simply because a stock is making new highs—buy because the business continues to improve and your investment thesis remains intact.

Quick Links

See comment below.

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

• Selection for this week

• Some Pros about the stock

• Some Cons about the stock

• Criteria for choosing

• The previous selections

Subscribe now

So far the stocks added to this portfolio are being hit hard by the recent sell off in technology stocks with high momentum. The portfolio adds high quality, high Quant ranked stocks, no matter what industry they are in. This will over concentrate the portfolio at some times, like now, since the Quant system will tend to favor the stocks up the most in recent history. The portfolio will be volatile.

When Risk Off is the current environment, they should suffer more than the general market. When Risk On is in control, the portfolio should lead the way up. The CNN Fear and Greed Index has been in the Fear area (Risk Off) now for five straight weeks. Nearly the entire life of this portfolio.

Add: CRDO (Credo Technology) – Semiconductors

What does the company do?

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for AI, cloud, and data center networking. Its products include active electrical cables, optical transceivers, retimers, DSPs, SerDes chiplets, integrated circuits, and SerDes IP licensing for Ethernet and PCIe applications. Founded in 2008, the company is headquartered in Grand Cayman, Cayman Islands, and serves customers worldwide.

Why Some Investors Are Bullish

Explosive revenue growth driven by AI data center demand.

• Fiscal 2026 revenue reached $1.34 billion, up 205.7% from the prior year, while earnings increased more than 800%.

• Q4 revenue climbed to $437 million, exceeding the company’s entire fiscal 2025 revenue. Management believes continued AI infrastructure spending should support strong demand.

Guidance remains exceptionally strong.

• Fiscal 2027 guidance implies 80%+ revenue growth, with optical products expected to contribute more than $600 million.

• Q1 guidance of $465–475 million suggests continued growth from an already much larger revenue base, providing investors with encouraging demand visibility.

Margins continue expanding as the business scales.

• Non-GAAP gross margin reached 68.3%, while operating leverage continues to improve.

• Management is targeting non-GAAP net margins approaching 50%, although future margins may fluctuate as product mix evolves.

Strong balance sheet provides financial flexibility.

• Credo carries virtually no debt, maintains a current ratio above 10, and finished the year with approximately $1.4 billion in cash.

• Strong cash generation allows continued investment in R&D, acquisitions, and future growth without relying heavily on debt or shareholder dilution.

Wall Street remains bullish while acquisitions strengthen the product portfolio.

• Most analysts maintain Buy or Strong Buy ratings, reflecting optimism about Credo’s long-term AI networking opportunity.

• The DustPhotonics acquisition strengthens Credo’s optical connectivity portfolio and expands its roadmap for future 800G, 1.6T, and next-generation networking solutions.

What Bears Are Worried About

Valuation remains expensive.

• CRDO trades at approximately 95x trailing earnings and roughly 45x forward earnings, leaving little room for disappointment.

• Strong execution is already reflected in the stock price, making earnings reactions highly sensitive to guidance and investor expectations.

Customer concentration creates meaningful risk.

• Several hyperscale cloud customers each account for more than 10% of total revenue, making results dependent on a relatively small number of customers.

• Any slowdown in AI infrastructure spending, customer delays, or vendor changes could materially impact future revenue growth.

Competition, insider selling, and volatility remain important risks.

• Credo operates in a highly competitive market alongside companies such as Broadcom, Marvell, Astera Labs, Cisco, and Nvidia, while also exhibiting a beta above 3, making the stock significantly more volatile than the broader market.

• Recent insider selling appears consistent with profit-taking after a substantial rally rather than wholesale exits, but elevated expectations, increasing competition, and sharp price swings remain factors investors should monitor.

Bottom Line

Credo Technology is one of the fastest-growing beneficiaries of the AI infrastructure boom, with exceptional revenue growth, expanding margins, and a strong balance sheet. However, its premium valuation, customer concentration, and high volatility leave little room for execution mistakes.

Top Quant Stock of the Week Criteria

I am using a Quantitative research platform that provides a daily list of top-ranked stocks to buy or sell, based on a Comprehensive Quant Score. This Quant system uses computer algorithms to come up with its rankings. This score incorporates multiple factors, including valuation, growth, profitability, momentum, and EPS revisions.

I will be giving heavy weight to strong momentum and strong EPS revisions to make the weekly selection. Then, I will use my tested proprietary criteria to sort and then break any tie.

One stock will be selected each week. That would make 52 selections a year if I don’t miss any weeks because of internet problems.

The hold times for the stocks added will be 1 week to years. Although a 1 week hold would be rare, it could happen if the stocks Quant metrics took a big nose dive right after being selected. If an added stock maintains its good metrics, it will be kept in the portfolio until it doesn’t. No time limit. The Quant system will tell me when it is time to let it go. So the hold time is short, medium and long depending on the Quant system metrics.

All countries are included. ADR’s are ok but Pink Sheet stocks will not be allowed.

Certain Industries are excluded. My testing shows they do not perform well using Quantitative rankings. Two of the main ones are BioTechnology and Pharmacueticals.

The Remove Criteria: Once the stock no longer qualifies to be retained in the Portfolio, it will be removed. This could be because the companies metrics have deteriorated since selection, it is involved in a buyout or financial reporting problems.

Once a stock has been added to the Active list, it will not be added to. No doubling down.

The stocks considered are larger small cap, mid cap, large cap and Mega cap. They will be fairly easy to trade with opening or closing market orders as one of the ways to enter and exit positions.

It should be expected that about 50 stocks will be Active in the Portfolio in any given week, once it gets to the two year mark.

All stocks are added as equal weight. No rebalancing is to occur.

To be considered for addition, the stock has to be in the top group of Quant rankings for just several weeks. This is to allow newly upgraded stocks to qualify quickly. Hopefully, this will catch a couple of strong momentum stocks early in their move.

Once a stock is removed for cause, it can be added back in once it meets the add criteria. No waiting period is required.

There will be no limits on percentages of stocks in the Portfolio by Sector or Industry.

Previous Selections:

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

• Subscribe now

  Selection for this week

• Some Pros about the stock

• Some Cons about the stock

• Criteria for choosing

• The previous selections

Micron Technology has been a favorite on the Quantitative research platform that I follow for some time now. The recent earnings report has caused the EPS rating to move into the top range and now Micron qualifies to be selected Top Stock of the Week. Micron is the top rated stock in the Quant system currently.

Add: MU (Micron Technology) – Semiconductors

What does the company do?

Micron Technology, Inc. (NASDAQ: MU) develops and manufactures memory and storage solutions, including DRAM, NAND flash, high-bandwidth memory (HBM), and SSDs. Its products serve AI data centers, PCs, smartphones, networking, automotive, industrial, and consumer markets worldwide under the Micron and Crucial brands. Founded in 1978, Micron is headquartered in Boise, Idaho.

Why Some Investors Are Bullish

Micron is the only U.S.-headquartered manufacturer of HBM chips — an irreplaceable bottleneck in the world’s largest infrastructure build.

• Only three companies globally manufacture HBM at scale, and Micron is the only U.S.-based supplier.

• Massive AI spending by hyperscalers is creating unprecedented demand and giving Micron pricing power unlike anything in its history.

• HBM capacity is fully sold out through year-end with multi-year contracts locking in revenue visibility.

• HBM supply is fully booked and HBM4 shipments are ramping rapidly.

• Long-term agreements provide revenue visibility that is uncommon for a historically cyclical memory company.

• Gross margins have reached levels the memory industry has never seen before.

• Revenue and margins have surged as AI memory has become a scarce, mission-critical component.

• Tight supply and advanced packaging constraints continue to support exceptional profitability.

• The forward valuation is shockingly cheap relative to near-term earnings growth.

• Despite explosive growth and repeated earnings beats, Micron trades at a relatively low forward earnings multiple.

• The valuation reflects investor skepticism about how long the AI-driven upcycle can last.

• Analyst consensus is overwhelmingly bullish with price targets implying significant additional upside.

• The vast majority of analysts rate the stock a Buy or Strong Buy.

• Wall Street broadly believes the AI memory supercycle still has significant runway.

What Bears Are Worried About

The memory industry is brutally cyclical and Samsung and SK Hynix are expanding aggressively.

• Every prior memory boom eventually ended with oversupply and collapsing margins.

• The key question is whether AI demand remains strong enough to absorb the coming capacity additions.

• $100 billion in fab commitments creates massive financial risk if the cycle turns before the investment pays off.

• Memory manufacturing is extremely capital intensive and difficult to scale back quickly.

• If AI spending slows, Micron could face falling revenue while still carrying enormous fixed investment obligations.

• The options market and put/call positioning signal meaningful near-term downside risk at current price levels.

• Options pricing suggests investors are preparing for significant volatility around earnings and guidance.

• Institutional traders continue to actively hedge against a potential downside surprise.

Bottom Line

Micron’s investment thesis has fundamentally improved thanks to AI-driven HBM demand and stronger pricing power, but investors must balance the enormous growth opportunity against the industry’s long history of boom-and-bust cycles and the risks that come with large-scale capacity expansion.

Top Quant Stock of the Week Criteria

I am using a Quantitative research platform that provides a daily list of top-ranked stocks to buy or sell, based on a Comprehensive Quant Score. This Quant system uses computer algorithms to come up with its rankings. This score incorporates multiple factors, including valuation, growth, profitability, momentum, and EPS revisions.

I will be giving heavy weight to strong momentum and strong EPS revisions to make the weekly selection. Then, I will use my tested proprietary criteria to sort and then break any tie.

One stock will be selected each week. That would make 52 selections a year if I don’t miss any weeks because of internet problems.

The hold times for the stocks added will be 1 week to years. Although a 1 week hold would be rare, it could happen if the stocks Quant metrics took a big nose dive right after being selected. If an added stock maintains its good metrics, it will be kept in the portfolio until it doesn’t. No time limit. The Quant system will tell me when it is time to let it go. So the hold time is short, medium and long depending on the Quant system metrics.

All countries are included. ADR’s are ok but Pink Sheet stocks will not be allowed.

Certain Industries are excluded. My testing shows they do not perform well using Quantitative rankings. Two of the main ones are BioTechnology and Pharmacueticals.

The Remove Criteria: Once the stock no longer qualifies to be retained in the Portfolio, it will be removed. This could be because the companies metrics have deteriorated since selection, it is involved in a buyout or financial reporting problems.

Once a stock has been added to the Active list, it will not be added to. No doubling down.

The stocks considered are larger small cap, mid cap, large cap and Mega cap. They will be fairly easy to trade with opening or closing market orders as one of the ways to enter and exit positions.

It should be expected that about 50 stocks will be Active in the Portfolio in any given week, once it gets to the two year mark.

All stocks are added as equal weight. No rebalancing is to occur.

To be considered for addition, the stock has to be in the top group of Quant rankings for just several weeks. This is to allow newly upgraded stocks to qualify quickly. Hopefully, this will catch a couple of strong momentum stocks early in their move.

Once a stock is removed for cause, it can be added back in once it meets the add criteria. No waiting period is required.

There will be no limits on percentages of stocks in the Portfolio by Sector or Industry.

Previous Selections:

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

• Subscribe now

  Quant Weekly – Up over 86% since June 2025

• Quant 30 – Up over 86% since June 2025

• Legacy – Up over 390% since April 2023

• Changes to the Quant Portfolios

• Top Quant Stocks – Top Dividend Stocks + Performance Review

• Education – Do Dow Jones Industrial Average Additions do better then the Deletions?

• Argan (AGX) becomes the newest 10X MultiBagger in Legacy

USA Stock market week ending 06/26/26

• S&P 500 (SPY): -2.7% – The broader market posted a notable weekly decline, giving back a portion of its recent gains.

• Nasdaq Composite (^IXIC): -3.3% – Technology and growth stocks led the market lower, resulting in the weakest performance among the major indexes.

• Dow Jones Industrial Average (DIA): +0.1% – The Dow finished essentially flat, showing relative resilience compared with the broader market.

• Russell 2000 (IWM): +0.5% – Small-cap stocks outperformed the large-cap indexes and managed to post a modest weekly gain.

Market Drivers this Week (06/29/26 – 07/03/26)

Tuesday, 6/30 — Nike Earnings in Focus

Wednesday, 7/01 — Manufacturing, Jobs Preview, and Fed Speak

• ISM Manufacturing PMI and ADP Employment Report are released in the morning.

• Fed Chair Kevin Warsh is scheduled to speak at an ECB symposium in Portugal.

Thursday, 7/02 — Jobs Report Takes Center Stage

• June Nonfarm Payrolls and Weekly Jobless Claims are released at 8:30 AM ET.

• ISM Services PMI is also scheduled for release.

• Markets close early at 1:00 PM ET ahead of the Independence Day holiday.

Friday, 7/03 — Markets Closed

The CNN Fear and Greed Index ends the week at 25 in the Extreme Fear area. This is the first week in the Extreme Fear area after spending three weeks in a row in the Fear area. Caution is advised in adding new positions for short term gain in this Risk Off environment.

The Quant Model Portfolios all faired well considering the S&P 500 and Nasdaq both saw sizable drops last week. All three Model Portfolios had small loses. Argan (AGX) became a 10X MultiBagger this week for the first time.

Read more

Subscribe now

• Quant Weekly – Up over 86% since June 2025

• Quant 30 – Up over 86% since June 2025

• Legacy – Up over 390% since April 2023

• Top Quant Stocks – Top Dividend stocks – performance review

• Education – Is It a Good Idea to Buy Stocks Near Their 52-Week Lows?

• Argan (AGX) became the latest 10X MultiBagger this week in the Legacy Portfolio.

USA Stock market week ending 06/26/26

• S&P 500 (SPY): -2.7% – The broader market posted a notable weekly decline, giving back a portion of its recent gains.

• Nasdaq Composite (^IXIC): -3.3% – Technology and growth stocks led the market lower, resulting in the weakest performance among the major indexes.

• Dow Jones Industrial Average (DIA): +0.1% – The Dow finished essentially flat, showing relative resilience compared with the broader market.

• Russell 2000 (IWM): +0.5% – Small-cap stocks outperformed the large-cap indexes and managed to post a modest weekly gain.

Market Drivers this Week (06/29/26 – 07/03/26)

Tuesday, 6/30 — Nike Earnings in Focus

Wednesday, 7/01 — Manufacturing, Jobs Preview, and Fed Speak

• ISM Manufacturing PMI and ADP Employment Report are released in the morning.

• Fed Chair Kevin Warsh is scheduled to speak at an ECB symposium in Portugal.

Thursday, 7/02 — Jobs Report Takes Center Stage

• June Nonfarm Payrolls and Weekly Jobless Claims are released at 8:30 AM ET.

• ISM Services PMI is also scheduled for release.

• Markets close early at 1:00 PM ET ahead of the Independence Day holiday.

Friday, 7/03 — Markets Closed

The CNN Fear and Greed Index ends the week at 25 in the Extreme Fear area. This is the first week in the Extreme Fear area after spending three weeks in a row in the Fear area. Caution is advised in adding new positions for short term gain in this Risk Off environment.

The Quant Model Portfolios all faired well considering the S&P 500 and Nasdaq both saw sizable drops last week. All three had small loses. Argan (AGX) became a 10X MultiBagger this week for the first time.

Note: You are reading the free subscriber newsletter. Paid subscribers enjoy instant access to weekly Model Portfolio updates upon release and a Top Quant Stocks list. Free subscribers get access to Portfolio updates after a three-week delay but no Top Quant Stocks list. Want timely access to the new Adds/Removes and Top Quant Stocks list?

Subscribe now

Model Portfolio Quant Alpha Weekly

Any newly added stock is being released to Paid Subscribers today. Below are the updates from three weeks ago. This Portfolio continues to significantly outperform its benchmark, 86% versus 20%. It has 26 members.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Add (06/05/26) : None

Outperformers: SSRM (SSR Mining) up over +80%, MU (Micron Technology) up over +620%, TTMI (TTM Technologies) up over +200%, CLS (Celestica) up over +60%

Model Portfolio Quant 30

This week’s new update, if any, is being released to the paid subscribers. Shown below is the update made three weeks ago. This Portfolio continues to beat its benchmark by a wide margin, 86% to 20%. It has 30 members in it.

KGC (Kinross Gold) is being removed from the Portfolio this week. It was added on 7/5/25 and leaves the Portfolio at +65%.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Add (06/05/26): AMD (Advanced Micro Devices) – Semiconductors

Remove (06/05/26): KGC (Kinross Gold)

Outperformers: MU (Micron Technology) up over +820%, LITE (Lumentum Holdings) up over +240%, TTMI (TTM Technologies) up over +170%, BTSG (BrightSpring Health) up over +210% and SNDK (Sandisk) up over +230%

Model Portfolio Quant Alpha’s – Legacy

The portfolio is up over +390% since it began in 2023. It has 17 stocks in it. Powell industries is now a 14 bagger. Celestica is now a 13 bagger. Sterling Infrastructure has become a 12 bagger and now Argan has become a 10 bagger.

Argan (AGX) made it to 10 bagger status for the first time this week.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Remove (06/05/26): None

Outperformers: AGX (Argan) up over +1000%, STRL (Sterling Infrastructure) up over +1200%, POWL (Powell Industries) up over +1400% and CLS (Celestica) is up over +1300%

Performance to 06-26-2026

Top Quant Stocks for this week – (Paid subscribers only feature)

Top Dividend Stocks were last listed on April 10, 2026. Here are the results since then. Paid subscribers saw the list in a timely manner. Free subscribers did not see it at all.

• 4/10/26 thru 6/26/26

• Top Divided Stocks = Average +10.45% each 10 selections

• VYM (Vanguard High Dividend Yield Index Fund) = +4.7%

Is It a Good Idea to Buy Stocks Near Their 52-Week Lows?

Pros

Large Price Declines Can Create Opportunity

• A stock near its 52-week low has often already absorbed significant bad news and investor pessimism.

• Opportunities arise when the stock price falls much more than the company’s intrinsic value.

  • Examples include Meta Platforms (2022), American Express (1960s), and Apple during temporary product-cycle concerns.

  • In these cases, the businesses remained strong while investor sentiment became excessively negative.

Institutional and Tax-Related Selling Can Create Mispricings

• Fund redemptions, index rebalancing, tax-loss harvesting, and margin calls can force investors to sell regardless of fundamentals.

• These selling pressures can temporarily push stocks below fair value.

  • Tax-loss selling often creates opportunities in November and December.

  • The January rebound effect has historically benefited some heavily sold stocks.

Contrarian Investing Often Requires Buying Unpopular Stocks

• The 52-week low list is usually filled with stocks facing negative headlines and weak sentiment.

• Superior returns often require buying when others are fearful.

  • Howard Marks frequently emphasizes the importance of being a thoughtful contrarian.

  • The best opportunities rarely feel comfortable at the time of purchase.

Temporary Problems Can Create Attractive Entry Points

• Great businesses occasionally face cyclical downturns, earnings misses, product delays, or industry-wide fears.

• Temporary problems can create attractive long-term entry points.

  • Examples include Meta Platforms (2022), Microsoft (2000–2013), and many high-quality banks during financial panics.

  • The key is determining whether the problem is temporary rather than permanent.

The 52-Week Low List Is an Excellent Research Tool

• Many successful investors use new-low lists as idea generators.

• The list naturally highlights companies experiencing stress and investor pessimism.

  • A stock’s appearance on the list should trigger research, not an automatic purchase.

  • Asking “Why is this stock at a 52-week low?” often leads to valuable insights.

Cons

Many Stocks Are at 52-Week Lows for Good Reasons

• Some businesses face permanent deterioration rather than temporary setbacks.

• A low stock price does not automatically mean a stock is undervalued.

  • Examples include Kodak, Blockbuster, Sears, and RadioShack.

  • These stocks appeared cheap repeatedly before ultimately collapsing.

Value Traps Can Continue Falling for Years

• A value trap looks inexpensive but becomes cheaper because the business continues deteriorating.

• Investors often mistake a declining stock for a bargain.

  • Many energy companies during the 2014–2016 commodity collapse became value traps.

  • Numerous speculative growth stocks after 2021 continued falling despite appearing inexpensive.

Momentum and Earnings Revisions Often Work Against You

• Stocks frequently continue falling after reaching new lows.

• Earnings estimates often continue declining after the initial selloff.

  • Analysts may cut forecasts for several quarters before conditions stabilize.

  • Buying too early can result in significant drawdowns before any recovery begins.

A 52-Week Low Tells You Nothing About Valuation

• A stock at a 52-week low is simply trading below where it traded a year ago.

• The price alone reveals nothing about intrinsic value.

  • A stock can fall from 100x earnings to 80x earnings and still be expensive.

  • Valuation must be assessed using earnings, cash flow, assets, and future prospects.

Sector Concentration Can Increase Risk

• The 52-week low list is often dominated by one or two struggling sectors.

• Investors can unintentionally become concentrated in the market’s weakest areas.

  • In 2022, many technology and growth stocks dominated the list.

  • During commodity downturns, energy and mining stocks frequently dominate new-low screens.

Bottom Line

The 52-week low list is a tool, not a strategy.

• Used as a research screen, it can uncover quality businesses experiencing temporary setbacks.

• Used as a buy signal by itself, it can lead investors directly into value traps.

Before buying a stock near its 52-week low, ask:

• Is the business fundamentally sound?

• Is the problem temporary and fixable?

• Is management capable and trustworthy?

• Is the balance sheet strong?

• Is the stock genuinely undervalued?

If the answers are yes, a 52-week low may represent opportunity.

If the answers are no—or unknown—the stock may simply be warning investors that deeper problems exist beneath the surface.

Quick Links

See comment below.

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

Subscribe now

• Selection for this week

• Some Pros about the stock

• Some Cons about the stock

• Criteria for choosing

• The previous selections

Add: VICR (Vicor Corporation) – Electronic Components

What does the company do?

Vicor Corporation designs and manufactures modular power components and power systems that convert and manage electrical power. Its products serve industries including aerospace, defense, telecommunications, industrial automation, transportation, and electric vehicles. Founded in 1981, Vicor is headquartered in Andover, Massachusetts and sells its products worldwide.

Why Some Investors Are Bullish

AI power demand is driving record revenue and strong momentum.

• Q1 2026 revenue reached a record $113 million, up 20.2% year over year, with an order backlog of approximately $300.6 million.

• The company raised Q2 guidance from approximately $126 million to $142 million, signaling exceptionally strong demand visibility.

The IP licensing business could become a highly profitable growth engine.

• Licensing revenue appears to carry exceptionally high incremental margins, enhancing profitability as the business scales.

• Each new licensee can add meaningful revenue with relatively little incremental cost, creating an attractive economics profile.

The balance sheet is a genuine fortress with virtually no leverage.

• Vicor holds approximately $404 million in cash, minimal long-term debt, and a current ratio near 9.

• The strong balance sheet allows the company to fund fab expansion and R&D internally without meaningful financing risk.

Strong margins provide significant earnings leverage.

• Q1 2026 gross margin was approximately 55%, among the stronger profitability profiles in power electronics.

• As higher-margin licensing revenue becomes a larger contributor, there is potential for additional margin expansion.

Capacity expansion and IP enforcement are creating a multi-year competitive moat.

• Vicor is expanding manufacturing capacity through investments in its first CHiP fab and planning a second facility.

• Active protection and monetization of its intellectual property could create additional long-term revenue opportunities.

What Bears Are Worried About

Valuation is extremely demanding.

• The stock trades at premium valuation levels, including a P/E above 100 and Price-to-Sales around 27.

• These valuation multiples require continued strong execution and leave little room for disappointment.

Founder control limits shareholder influence.

• CEO Patrizio Vinciarelli controls approximately 79.1% of total voting power through the dual-class share structure.

• Minority shareholders have limited influence over board composition, strategic decisions, and capital allocation.

Customer concentration and manufacturing concentration create execution risk.

• A meaningful portion of revenue has historically been derived from a limited number of large customers.

• Until the second fab is operational and the customer base broadens, order delays or production disruptions could materially impact results.

Bottom Line

Vicor combines strong AI-driven demand, exceptional financial strength, and a potentially lucrative licensing business with premium valuation and execution risks. The investment case largely depends on the company’s ability to continue executing at a level that justifies the market’s high expectations.

Top Quant Stock of the Week Criteria

I am using a Quantitative research platform that provides a daily list of top-ranked stocks to buy or sell, based on a Comprehensive Quant Score. This Quant system uses computer algorithms to come up with its rankings. This score incorporates multiple factors, including valuation, growth, profitability, momentum, and EPS revisions.

I will be giving heavy weight to strong momentum and strong EPS revisions to make the weekly selection. Then, I will use my tested proprietary criteria to sort and then break any tie.

One stock will be selected each week. That would make 52 selections a year if I don’t miss any weeks because of internet problems.

The hold times for the stocks added will be 1 week to years. Although a 1 week hold would be rare, it could happen if the stocks Quant metrics took a big nose dive right after being selected. If an added stock maintains its good metrics, it will be kept in the portfolio until it doesn’t. No time limit. The Quant system will tell me when it is time to let it go. So the hold time is short, medium and long depending on the Quant system metrics.

All countries are included. ADR’s are ok but Pink Sheet stocks will not be allowed.

Certain Industries are excluded. My testing shows they do not perform well using Quantitative rankings. Two of the main ones are BioTechnology and Pharmacueticals.

The Remove Criteria: Once the stock no longer qualifies to be retained in the Portfolio, it will be removed. This could be because the companies metrics have deteriorated since selection, it is involved in a buyout or financial reporting problems.

Once a stock has been added to the Active list, it will not be added to. No doubling down.

The stocks considered are larger small cap, mid cap, large cap and Mega cap. They will be fairly easy to trade with opening or closing market orders as one of the ways to enter and exit positions.

It should be expected that about 50 stocks will be Active in the Portfolio in any given week, once it gets to the two year mark.

All stocks are added as equal weight. No rebalancing is to occur.

To be considered for addition, the stock has to be in the top group of Quant rankings for just several weeks. This is to allow newly upgraded stocks to qualify quickly. Hopefully, this will catch a couple of strong momentum stocks early in their move.

Once a stock is removed for cause, it can be added back in once it meets the add criteria. No waiting period is required.

There will be no limits on percentages of stocks in the Portfolio by Sector or Industry.

Previous Selections:

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

• Subscribe now

  Quant Weekly – Up over 87% since June 2025

• Quant 30 – Up over 89% since June 2025

• Legacy – Up over 400% since April 2023

• Changes to the Quant Portfolios

• Top Quant Stocks – Financials Ex. Banks

• Education – Is It a Good Idea to Buy Stocks Near Their 52-Week Lows?

USA Stock market week ending 06/19/26

• S&P 500 (SPY):+1.2% — Large-cap stocks posted solid gains, reflecting continued strength across the broader market.

• Dow Jones Industrial Average (DIA):+1.0% — Blue-chip stocks advanced steadily, contributing to a positive week for major indexes.

• Nasdaq Composite (^IXIC):+2.4% — Technology and growth stocks led the market higher, making the Nasdaq the strongest-performing major index during the period.

• Russell 2000 (IWM):+1.4% — Small-cap stocks outperformed the S&P 500 and Dow, signaling healthy participation beyond the largest companies.

Market Drivers this Week (06/22/26 – 06/26/26)

Monday, 6/22 — Markets Reopen After Juneteenth

• Dallas Fed Manufacturing Survey releases at 10:30 AM ET.

Tuesday, 6/23 — Consumer Confidence and Housing

• June Consumer Confidence Index releases at 10:00 AM ET.

• May New Home Sales report also arrives at 10:00 AM ET.

• Richmond Fed Manufacturing Index and Dallas Fed Texas Retail Outlook Survey are also scheduled.

Wednesday, 6/24 — GDP Update and FedEx Earnings

• Final estimate of Q1 2026 GDP releases at 8:30 AM ET.

• University of Michigan Consumer Sentiment final reading is due.

• FedEx (FDX) reports earnings after the close.

Thursday, 6/25 — Durable Goods and Micron

• May Durable Goods Orders release at 8:30 AM ET.

• Weekly Initial Jobless Claims are reported before the open.

• Micron Technology (MU) reports earnings after the close.

• Micron’s outlook on AI memory demand could influence the broader semiconductor sector.

Friday, 6/26 — PCE Inflation Report

• May PCE Price Index releases at 8:30 AM ET.

• Personal Income and Personal Spending data are released simultaneously.

The CNN Fear and Greed Index ends the week at 37, in the Fear area. This is the third week in a row in the Fear area after seven weeks in a row in the Greed area. Risk Off is still the dominant trend, this despite the stock market making modest gains. The unpredictable trouble in the middle east may be one factor keeping the indicator stuck in the Fear area.

The Quant Model Portfolios all made all time highs yet again. Quant Weekly at +87%, Quant 30 at +89% and Quant Legacy at +408%. This is despite the CNN Fear and Greed Index being pegged to the Fear area for three weeks running. A Risk Off environment usually hurts stocks with strong momentum but our stocks are managing to power higher in spite of this.

Read more

Subscribe now

• Quant Weekly – Up over 87% since June 2025

• Quant 30 – Up over 89% since June 2025

• Legacy – Up over 400% since April 2023

• Education – Pre-Market and After-Hours Trading — Broker Comparison

USA Stock market week ending 06/19/26

• S&P 500 (SPY):+1.2% — Large-cap stocks posted solid gains, reflecting continued strength across the broader market.

• Dow Jones Industrial Average (DIA):+1.0% — Blue-chip stocks advanced steadily, contributing to a positive week for major indexes.

• Nasdaq Composite (^IXIC):+2.4% — Technology and growth stocks led the market higher, making the Nasdaq the strongest-performing major index during the period.

• Russell 2000 (IWM):+1.4% — Small-cap stocks outperformed the S&P 500 and Dow, signaling healthy participation beyond the largest companies.

Market Drivers this Week (06/22/26 – 06/26/26)

Monday, 6/22 — Markets Reopen After Juneteenth

• Dallas Fed Manufacturing Survey releases at 10:30 AM ET.

Tuesday, 6/23 — Consumer Confidence and Housing

• June Consumer Confidence Index releases at 10:00 AM ET.

• May New Home Sales report also arrives at 10:00 AM ET.

• Richmond Fed Manufacturing Index and Dallas Fed Texas Retail Outlook Survey are also scheduled.

Wednesday, 6/24 — GDP Update and FedEx Earnings

• Final estimate of Q1 2026 GDP releases at 8:30 AM ET.

• University of Michigan Consumer Sentiment final reading is due.

• FedEx (FDX) reports earnings after the close.

Thursday, 6/25 — Durable Goods and Micron

• May Durable Goods Orders release at 8:30 AM ET.

• Weekly Initial Jobless Claims are reported before the open.

• Micron Technology (MU) reports earnings after the close.

• Micron’s outlook on AI memory demand could influence the broader semiconductor sector.

Friday, 6/26 — PCE Inflation Report

• May PCE Price Index releases at 8:30 AM ET.

• Personal Income and Personal Spending data are released simultaneously.

The CNN Fear and Greed Index ends the week at 37, in the Fear area. This is the third week in a row in the Fear area after seven weeks in a row in the Greed area. Risk Off is still the dominant trend, this despite the stock market making modest gains. The unpredictable trouble in the middle east may be one factor keeping the indicator stuck in the Fear area.

The Quant Model Portfolios all made all time highs yet again. Quant Weekly at +87%, Quant 30 at +89% and Quant Legacy at +408%. This is despite the CNN Fear and Greed Index being pegged to the Fear area for three weeks running. A Risk Off environment usually hurts stocks with strong momentum but our stocks are managing to power higher in spite of this.

Note: You are enjoying the free subscriber newsletter. Paid subscribers enjoy instant access to weekly Model Portfolio updates upon release and a Top Quant Stocks list. Free subscribers get access to Portfolio updates after a three-week delay but no Top Quant Stocks list. Want timely access to the new Adds/Removes and Top Quant Stocks list?

Subscribe now

Model Portfolio Quant Alpha Weekly

Any newly added stock is being released to Paid Subscribers today. Below are the updates from three weeks ago. This Portfolio continues to significantly outperform its benchmark, 87% versus 19%. It has 26 members.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Add (05/29/26) : BTSG (BrightSpring Health Services) Health Information Services

Outperformers: SSRM (SSR Mining) up over +90%, MU (Micron Technology) up over +620%, TTMI (TTM Technologies) up over +240%, CLS (Celestica) up over +80%

Model Portfolio Quant 30

This week’s new update, if any, is being released to the paid subscribers. Shown below is the update made three weeks ago. This Portfolio continues to beat its benchmark by a wide margin, 89% to 19%. It has 30 members in it.

Two stocks are being Removed today. VSAT (Viasat) was added to the Portfolio on 10/30/25 and is up +106% since. GFI (Gold Fields) was added 7/3/25 and is up +70%.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Add (05/29/26): ARW (Arrow Electronics) and DAR (Darling Ingredients)

Remove (05/29/26): GFI (Gold Fields) and VSAT (Viasat)

Outperformers: MU (Micron Technology) up over +820%, LITE (Lumentum Holdings) up over +250%, TTMI (TTM Technologies) up over +200%, BTSG (BrightSpring Health) up over +190% and SNDK (Sandisk) up over +250%

Model Portfolio Quant Alpha’s – Legacy

The portfolio is up over +400% since it began in 2023. It has 17 stocks in it. Powell industries is now a 15 bagger. Celestica is now a 14 bagger and now Sterling Infrastructure has become a 13 bagger.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Remove (05/29/26): None

Outperformers: AGX (Argan) up over +900%, STRL (Sterling Infrastructure) up over +1300%, POWL (Powell Industries) up over +1500% and CLS (Celestica) is up over +1400%

Performance to 06-19-2026

Top Quant Stocks for this week – (Paid subscribers only feature)

Pre-Market and After-Hours Trading — Broker Comparison

Rules That Apply Across Most Major Brokerages

• Limit orders are generally required for execution during extended-hours trading. Market orders are typically not accepted for immediate execution outside regular market hours.

• Liquidity is lower during extended hours, resulting in wider bid-ask spreads, greater volatility, and potentially less favorable execution prices.

• Most OTC stocks, pink-sheet securities, bulletin board stocks, and mutual funds are not eligible for extended-hours trading.

• Standard equity options generally cannot be traded during stock extended-hours sessions, although some index and futures options trade on separate overnight schedules.

• Settlement rules remain unchanged. Extended-hours trades settle on the normal T+1 cycle.

• No premium account tier is generally required to access basic pre-market and after-hours trading at Robinhood, Schwab, Fidelity, E*TRADE, or Interactive Brokers.

• Fractional-share availability varies by broker, security, and trading session. Investors should verify eligibility directly with their brokerage.

• Order duration and session eligibility vary by broker. Some firms allow orders that span multiple sessions, while others require specific session designations.

Where the Brokerages Differ

Pre-Market Trading Hours

Interactive Brokers (IBKR)

• Pre-market begins at 4:00 AM ET

• Earliest access among the major retail brokerages

• Particularly useful for reacting to overnight earnings, global events, and foreign market activity

Robinhood, Schwab, Fidelity, and E*TRADE

• Standard pre-market trading generally begins at 7:00 AM ET

Fidelity

• Certain order-entry cutoffs occur shortly before the regular market open

• Short-sale availability may be more restricted during early pre-market hours

Charles Schwab

• Certain order-entry windows and cutoff times may vary depending on platform and order type

After-Hours Trading

Robinhood, Fidelity, E*TRADE, and Interactive Brokers

• Standard after-hours trading generally runs from 4:00 PM ET to 8:00 PM ET

Charles Schwab

• After-hours trading generally begins shortly after the market close and continues until 8:00 PM ET

• Exact availability may vary slightly depending on platform and routing method

Overnight and 24-Hour Trading

Interactive Brokers

• Overnight trading available on thousands of U.S. stocks and ETFs

• Access extends beyond traditional extended-hours sessions

• Offers the broadest overnight stock universe and the most routing flexibility

Charles Schwab (thinkorswim)

• Offers 24/5 trading on thousands of eligible stocks and ETFs

• Overnight orders utilize the EXTO designation

• Best functionality is available through the thinkorswim platform

Robinhood

• Offers a 24-Hour Market from Sunday evening through Friday evening

• Uses the Blue Ocean ATS

• Overnight eligibility is limited to a curated list of securities

• Investors should verify symbol eligibility before trading

E*TRADE

• Offers limited overnight access for select ETFs

• Most securities remain restricted to standard pre-market and after-hours sessions

Fidelity

• Does not currently offer broad overnight or 24-hour stock trading

• Trading access generally remains within standard pre-market and after-hours windows

Eligible Security Universe

Interactive Brokers

• Broadest selection of overnight-tradable stocks and ETFs

• Extensive access to global equities, futures, forex, and other asset classes

Charles Schwab

• Thousands of eligible stocks and ETFs available for overnight trading through thinkorswim

Robinhood

• Most listed stocks and ETFs available during standard extended hours

• Overnight trading is limited to approved securities

Fidelity

• Broad access to listed NYSE and Nasdaq securities during standard extended-hours sessions

• Does not currently provide broad overnight stock trading

E*TRADE

• Most NYSE- and Nasdaq-listed stocks and ETFs available during standard extended-hours trading

Order Routing and Trading Sophistication

Interactive Brokers

• Most advanced routing controls and execution flexibility

• Multiple venue and routing options available

• Additional customization available for IBKR Pro clients

Charles Schwab

• Automated overnight routing through thinkorswim

• Strong balance of flexibility and ease of use

Robinhood

• Simplified routing through Blue Ocean ATS

• Designed for simplicity rather than extensive customization

Fidelity and E*TRADE

• Traditional ECN-based routing during standard extended-hours sessions

• Less complexity but fewer advanced routing controls

Broker-by-Broker Summary

Interactive Brokers (IBKR)

• Earliest pre-market access (4:00 AM ET)

• Broadest overnight trading universe

• Most sophisticated execution and routing tools

• Best suited for active and advanced traders

Charles Schwab

• Strong all-around platform with broad 24/5 trading access through thinkorswim

• Excellent balance of features and usability

Robinhood

• Simple and accessible 24-hour trading experience

• Good choice for investors who prioritize convenience and ease of use

E*TRADE

• Solid standard extended-hours offering

• Limited overnight trading capabilities

Fidelity

• Traditional extended-hours trading model

• Strong for long-term investors but does not currently offer broad overnight stock trading

Bottom Line

• Interactive Brokers offers the broadest access, earliest trading hours, largest eligible universe, and most advanced execution tools.

• Charles Schwab provides one of the strongest retail-friendly 24/5 trading experiences through thinkorswim.

• Robinhood delivers the simplest overnight trading experience, while Fidelity and E*TRADE focus primarily on traditional pre-market and after-hours trading rather than broad overnight access.

• For most active traders, the biggest differentiators are overnight trading availability, pre-market start times, eligible security coverage, and routing flexibility.

Quick Links

See comments below.

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

• Subscribe now

  Selection for this week

• Some Pros about the stock

• Some Cons about the stock

• Criteria for choosing

• The previous selections

Add: INTC (Intel) – Semiconductors

What does the company do?

Intel Corporation is a global semiconductor company that designs and manufactures processors, AI chips, graphics products, networking solutions, and foundry services. Its businesses include Client Computing, Data Center & AI, and Intel Foundry, serving PC makers, cloud providers, and enterprise customers worldwide. Intel is also involved in autonomous driving technology and advanced semiconductor manufacturing. Founded in 1968, the company is headquartered in Santa Clara, California.

Why Some Investors Are Bullish

Operational Turnaround Is Gaining Momentum

• Intel has delivered multiple consecutive earnings beats and improving financial results.

• Data Center and AI revenue growth suggests the business is moving in the right direction.

Manufacturing Execution Is Improving

• Progress on Intel’s 18A process technology has improved investor confidence.

• Delivering manufacturing milestones on time remains one of the most important drivers of the turnaround story.

Foundry Business Creates Significant Long-Term Upside

• Intel Foundry has begun attracting external customer interest while building advanced packaging capabilities.

• Success could transform Intel into a major global semiconductor manufacturer beyond its traditional CPU business.

Strong Leadership and Cost Discipline

• CEO Lip-Bu Tan has focused on simplifying operations, reducing costs, and improving accountability.

• Investors view management execution as significantly improved versus prior years.

Strategic Importance to U.S. Semiconductor Supply Chains

• Intel remains a critical domestic semiconductor manufacturer.

• Government incentives and industry support may help offset some investment costs and strengthen long-term competitiveness.

What Bears Are Worried About

Much of the Turnaround May Already Be Reflected in the Stock Price

• Investor enthusiasm has increased substantially as execution has improved.

• Future gains may require continued operational success rather than simply improving sentiment.

Foundry Business Remains Unprofitable

• Intel Foundry continues to generate significant operating losses.

• The business must eventually convert customer interest into meaningful revenue and profits.

Execution Risk Remains High

• Intel still faces strong competition from Nvidia, AMD, TSMC, and other industry leaders.

• Delays in manufacturing, product launches, or customer adoption could pressure the turnaround thesis.

Bottom Line

Intel is one of the most closely watched turnaround stories in the semiconductor industry. The company is showing meaningful progress in manufacturing, leadership, and financial performance, but the turnaround is not yet complete. Investors are betting that improved execution, foundry growth, and AI-related opportunities will ultimately outweigh the risks associated with intense competition and ongoing investment spending.

Top Quant Stock of the Week Criteria

The criteria is complete after this latest update.

So far:

• I am using a Quantitative research platform that provides a daily list of top-ranked stocks to buy or sell, based on a Comprehensive Quant Score. This Quant system uses computer algorithms to come up with its rankings. This score incorporates multiple factors, including valuation, growth, profitability, momentum, and EPS revisions.

• I will be giving heavy weight to strong momentum and strong EPS revisions to make the weekly selection. Then, I will use my tested proprietary criteria to sort and then break any tie.

• One stock will be selected each week. That would make 52 selections a year if I don’t miss any weeks because of internet problems.

• The hold times for the stocks added will be 1 week to years. Although a 1 week hold would be rare, it could happen if the stocks Quant metrics took a big nose dive right after being selected. If an added stock maintains its good metrics, it will be kept in the portfolio until it doesn’t. No time limit. The Quant system will tell me when it is time to let it go. So the hold time is short, medium and long depending on the Quant system metrics.

• All countries are included. ADR’s are ok but Pink Sheet stocks will not be allowed.

• Certain Industries are excluded. My testing shows they do not perform well using Quantitative rankings. Two of the main ones are BioTechnology and Pharmacueticals.

• The Remove Criteria: Once the stock no longer qualifies to be retained in the Portfolio, it will be removed. This could be because the companies metrics have deteriorated since selection, it is involved in a buyout or financial reporting problems.

• Once a stock has been put on the Active list, it will not be added to. No doubling down.

• When a stock is removed from the Active list, 100% is removed. No scaling out.

• The stocks considered are larger small cap, mid cap, large cap and Mega cap. They will be fairly easy to trade with opening or closing market orders as one of the ways to enter and exit positions.

• It should be expected that about 50 stocks will be Active in the Portfolio in any given week, once it gets to the two year mark.

• All stocks are added as equal weight. No rebalancing is to occur.

• To be considered for a Buy, the stock has to be in the top group of Quant rankings for just several weeks. This is to allow newly upgraded stocks to qualify quickly. Hopefully, this will catch a couple of strong momentum stocks early in their move.

Additional Criteria

• Once a stock is removed for cause, it can be added back in once it meets the add criteria. No waiting period is required.

• There will be no limits on percentages of stocks in the Portfolio by Sector or Industry.

Previous Selections:

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

• Subscribe now

  Understanding What Makes a Great Business

• The Fifteen Points — Fisher’s Definitive Business Checklist

• When to Buy and When to Sell

• Concentration, Diversification, and Portfolio Construction

• The Role of Management in Long-Term Value Creation

• Philosophical Principles for Lifelong Investing

• Summary

• Related Video

Below are some highlights from the best selling book Common Stocks and Uncommon Profits by Philip Fisher. It is an invaluable reading and has been since it was first published in 1958. The book retains the investment wisdom of the original edition and includes the perspectives of the author’s son Ken Fisher, an investment guru in his own right in an expanded preface and introduction

Understanding What Makes a Great Business

• Buy outstanding businesses, not cheap stocks.

  • The goal is finding exceptional companies, not merely undervalued ones.

  • A great business compounding at high rates for decades creates far more wealth than a mediocre business bought at a discount.

  • The distinction between a cheap stock and a great business is the most important separator between ordinary and extraordinary investors.

• The scuttlebutt method is the most powerful research tool available.

  • The best investment insights come from talking directly to competitors, suppliers, customers, and former employees — not from financial statements alone.

  • This real-world intelligence reveals what numbers never show: culture, competitive position, and management quality.

  • An investor willing to do this legwork consistently operates with an information advantage that spreadsheet analysis alone cannot replicate.

• A company’s growth potential must be evaluated on two dimensions simultaneously.

  • Fisher separated companies into those with potential to grow current products and those with capability to develop entirely new ones.

  • Neither dimension alone is sufficient — great current products without an innovation pipeline eventually hits a ceiling.

  • The most exceptional businesses demonstrate strength on both dimensions, sustaining growth across multiple product generations.

• Sales organization quality is as important as product quality.

  • The best product in the world fails without a world-class sales and distribution organization behind it.

  • Fisher looked at how well companies understood customer needs, translated features into value, and delivered strong after-sale support.

  • Companies excelling on all three build switching costs and customer loyalty that compound into durable pricing power.

• Profit margins are the true test of operational excellence.

  • Fisher was not satisfied knowing a company had high margins — he wanted to understand what management was doing to sustain and improve them.

  • He viewed management’s attitude toward margins as a revealing window into operational discipline and long-term thinking.

  • Companies that constantly work to improve margins even during strong revenue growth demonstrate exactly the managerial excellence Fisher sought.

• Research and development effectiveness separates lasting growth from temporary success.

  • Fisher paid close attention to how productively companies converted R&D dollars into commercial products — not just how much was spent.

  • A company spending generously on R&D with little commercial output is destroying capital; one spending modestly but generating breakthroughs is creating enormous value.

  • The R&D productivity ratio — commercial output per dollar invested — was one of his most revealing and underappreciated metrics.

The Fifteen Points — Fisher’s Definitive Business Checklist

• Does the company have products with sufficient market potential to make possible a sizable increase in sales for several years?

  • Fisher wanted not just current sales strength but a credible multi-year runway without requiring fundamental business model changes.

  • He was skeptical of companies dependent on a single product or single customer, preferring multiple growth avenues providing resilience.

  • This forward revenue visibility question is the first filter — if the answer is no, nothing else in the checklist matters.

• Does management have determination to develop new products when current growth potential is largely exploited?

  • This question goes directly to whether a company is building an enduring institution or simply riding a single wave.

  • Fisher looked for management actively investing in the next product generation before the current one peaked — anticipating transitions proactively.

  • Companies answering this well sustain above-average growth across multiple decades rather than flaming out after one successful cycle.

• How effective are the company’s research and development efforts relative to its size?

  • Fisher evaluated R&D not by raw dollar amounts but by the track record of converting investment into commercially successful products.

  • Small companies with focused R&D programs often generated far more commercial output per dollar than large bureaucratic research departments.

  • The key question was always: how much of what these researchers are working on actually reaches the market and makes money?

• Does the company have an above-average sales organization?

  • Fisher viewed sales capability as a genuine competitive moat — as difficult to replicate as a patented technology or proprietary process.

  • He looked for sales forces that deeply understood customer problems and were supported by strong after-sale service.

  • The best sales organizations build relationships that create repeat purchases and customer advocacy, compounding the value of every initial sale.

• Does the company have a worthwhile profit margin?

  • Fisher would not consider investing in any competitive-industry company unless its margins were among the highest in that industry.

  • Low-margin companies are inherently fragile — a small cost increase or economic slowdown can eliminate earnings entirely.

  • High-margin businesses have a buffer allowing them to invest in growth and weather downturns without needing perfect execution every quarter.

• What is the company doing to maintain or improve profit margins?

  • Having high margins today is not enough — Fisher wanted evidence of deliberate ongoing management effort to sustain and expand them.

  • He looked for cost reduction programs, manufacturing efficiency initiatives, and pricing discipline as concrete evidence of margin stewardship.

  • Management teams that actively manage margins through all business cycle phases were the ones Fisher trusted to preserve shareholder value.

• Does the company have outstanding labor and personnel relations?

  • The quality of a company’s relationship with its workforce was one of the most reliable indicators of overall management quality.

  • Fisher looked for low voluntary turnover, employee pride, and management practices giving workers genuine respect and fair compensation.

  • Poor labor relations almost always surface in productivity problems and quality issues before they appear in the financial statements.

• Does the company have outstanding executive relations?

  • Fisher distinguished between how companies treated hourly workers and how they treated executive talent — arguing both mattered enormously.

  • He looked for organizations giving promising executives genuine early responsibility with promotion based on performance rather than tenure.

  • Companies failing here consistently lost their best people to competitors, creating a talent drain compounding into strategic disadvantage over time.

• Does the company have depth to its management?

  • Fisher was wary of companies whose success depended entirely on one or two exceptional individuals at the top.

  • He wanted an organization deep enough in management talent that sound decisions were being made well at multiple levels throughout.

  • This depth question becomes most critical during transitions — founder stepping back, acquisitions being integrated, or simultaneous expansion into new markets.

• How good are the company’s cost analysis and accounting controls?

  • A company unable to cost-effectively analyze its own operations across products and geographies was flying blind on capital allocation.

  • Fisher wanted granular understanding of which product lines and customer segments were actually profitable, not just aggregate margin data.

  • Companies with the best cost analysis systems consistently made better investment decisions and detected problems earlier than competitors.

• Are there industry-specific factors that give important clues to how outstanding the company may be versus competition?

  • Every industry has unique competitive dynamics that don’t fit neatly into a universal checklist, and the sophisticated investor must understand those deeply.

  • In retail it might be inventory turn; in pharmaceuticals, patent duration and pipeline; in banking, credit culture and loan loss history.

  • The investor who understands industry-specific competitive drivers better than consensus will identify outstanding companies earlier and with more conviction.

• Does the company have a short-range or long-range outlook in regard to profits?

  • Fisher explicitly favored management teams that made short-term profit sacrifices to build long-term competitive position.

  • He looked for concrete evidence: willingness to invest in unprofitable new products, deliberate margin undercutting to build share, or R&D spending paying off years later.

  • The willingness to accept near-term pain for long-term gain was the single clearest indicator of whether management was truly building a great company.

• Will future growth require equity financing that will largely cancel existing stockholders’ benefit from anticipated growth?

  • Excessive equity dilution is a silent destroyer of shareholder value — growth that constantly requires new share issuance forces existing shareholders to run in place.

  • Fisher preferred businesses funding growth primarily through retained earnings and debt, reserving equity for truly exceptional opportunities.

  • Tracking shares outstanding across a full business cycle — not just one period — was one of his most concrete research disciplines.

• Does management talk freely to investors when things go well but become evasive when troubles occur?

  • Management candor during difficult periods was one of the most revealing indicators of overall integrity and quality.

  • Any executive can speak eloquently when results are excellent — the real test is how transparently and honestly they explain setbacks and strategic mistakes.

  • Companies whose management communicated openly and specifically about problems — with concrete plans to address them — were consistently the most trustworthy.

• Does the company have a management of unquestionable integrity?

  • This was non-negotiable for Fisher — no business quality or market opportunity could compensate for management lacking integrity.

  • He looked at how management treated minority shareholders, whether executive compensation was reasonable, and whether insiders’ interests were genuinely aligned with outside investors.

  • A single clear incident of management acting against shareholder interests was disqualifying — not a yellow flag but an outright reason never to invest.

When to Buy and When to Sell

• The best time to buy is when a great company has a temporary problem.

  • The most attractive entry points in truly great companies came from company-specific issues that were temporary and solvable by management.

  • A production problem, one-time earnings shortfall, or product launch delay in an excellent business creates a price dip unrelated to long-term franchise value.

  • The investor who correctly distinguishes a temporary problem from a permanent structural one — and buys aggressively — is practicing Fisher’s method at its most powerful.

• Timing the purchase matters less than the quality of what you buy.

  • Fisher was relatively relaxed about paying a fair price for an outstanding business, arguing investors obsess too much over perfect timing.

  • A business compounding intrinsic value at 15–20% annually makes a 10–15% overpayment on purchase essentially irrelevant within a few years.

  • The investor who waits for a perfect price on a great business often waits forever, while one paying a fair price and holding for a decade almost always does extraordinarily well.

• There are only three valid reasons to sell a stock.

  • Fisher was profoundly skeptical of frequent selling, believing most investors sold far too often and for entirely the wrong reasons.

  • His three legitimate sell criteria: you made a mistake in the original analysis; the company has genuinely deteriorated; or you found a demonstrably superior opportunity requiring capital reallocation.

  • Everything else — the stock has risen, the market looks expensive, you want to take a profit — was not a valid reason to sell an outstanding business.

• Selling a great company simply because it looks temporarily overvalued is almost always a mistake.

  • Fisher watched investors repeatedly sell outstanding businesses because the P/E appeared high, only to watch the stock continue rising for years as earnings growth made the original price look cheap.

  • The tax cost of selling, combined with the challenge of reinvesting into something of equal quality, means the bar for selling a great business should be extremely high.

  • Fisher’s own experience taught him that holding outstanding businesses through apparent overvaluation was one of the most consistently profitable decisions an investor could make.

Concentration, Diversification, and Portfolio Construction

• Owning too many stocks is a sign of investor ignorance, not prudence.

  • Fisher was one of investing’s most forceful critics of excessive diversification, arguing it guarantees mediocre results by spreading attention too thin.

  • He believed thoroughly understanding five to ten outstanding businesses was far more valuable than superficially knowing thirty or forty average ones.

  • Diversification reduces catastrophic single-position risk but simultaneously dilutes the outsized returns that come from strong conviction in a genuinely great business.

• The greatest investment profits come from concentration in your best ideas.

  • Fisher’s own record — holding companies like Motorola for decades — was built on concentrated conviction in a small number of extraordinary businesses.

  • He believed that by the time deep research was done to truly understand a great business, the work justified a meaningful position rather than a token allocation.

  • Fear of being wrong should be managed through thorough pre-purchase research, not through position sizing so small that being right produces no meaningful benefit.

• Investors should accept significant short-term volatility in exchange for long-term superiority.

  • Outstanding businesses regularly experience sharp price declines that have nothing to do with underlying business quality or long-term prospects.

  • The investor who sells during these periods is trading away years of compounding for the illusion of short-term safety.

  • Accepting volatility as the price of admission for superior long-term returns is a deliberate philosophical choice the best long-term investors make explicitly and hold to consistently.

The Role of Management in Long-Term Value Creation

• Management’s attitude toward shareholders is revealed in how it allocates capital.

  • Capital allocation is the ultimate test of management quality — how a company chooses between reinvesting, making acquisitions, paying dividends, or repurchasing shares reveals more than any public statement.

  • Fisher looked for management treating reinvestment as the highest priority when genuinely superior opportunities existed, and returning capital honestly when they did not.

  • Managers who built empires through value-destroying acquisitions or hoarded cash without purpose were failing the capital allocation test in ways that inevitably showed up in long-term shareholder returns.

• The best managements are honest about their mistakes and learn from them.

  • Fisher distinguished between management teams that openly acknowledged strategic errors and course-corrected decisively versus those that rationalized mistakes until they became crises.

  • He viewed the willingness to say “we were wrong, here is what we are doing differently” as one of the most powerful positive signals an investor could observe.

  • Organizations whose leaders modeled intellectual honesty about failure tended to correct problems faster and build cultures where employees felt safe surfacing issues early.

• Conservative accounting is a sign of management integrity and long-term orientation.

  • Fisher was deeply suspicious of management teams that stretched accounting rules to maximize reported earnings, viewing aggressive accounting as an early warning signal of broader integrity problems.

  • He preferred companies using conservative accounting choices — reserving generously, recognizing revenue cautiously, depreciating assets realistically — even when more aggressive choices were technically permissible.

  • Conservative accounting produces earnings that are more reliable and trustworthy as a basis for long-term valuation because management has not borrowed from the future to flatter today’s results.

• Great management creates an environment where talented people want to work and stay.

  • A company’s ability to attract and retain exceptional people at every organizational level was a leading indicator of competitive strength that appeared in financial results years before the market recognized it.

  • Fisher looked for low executive turnover, a history of promoting from within, and a reputation in the industry as a place where talented people could build exceptional careers.

  • Companies that consistently won the talent competition compounded their competitive advantage in ways extremely difficult for rivals to replicate and nearly invisible to investors focused purely on current financial metrics.

Philosophical Principles for Lifelong Investing

• The stock market is filled with individuals who know the price of everything and the value of nothing.

  • Most market participants spend their time tracking prices and reacting to short-term news rather than understanding the underlying value of businesses they own.

  • The investor who focuses on long-term earnings power, competitive position, and management quality operates in a fundamentally superior framework.

  • This distinction between price-tracking and value-understanding is the philosophical foundation of everything in Fisher’s investment approach.

• Patience is the investor’s most valuable and most underutilized asset.

  • Most investors destroyed value not by making terrible buy decisions but by failing to hold outstanding companies long enough to capture their full compounding potential.

  • The typical investor who sold after a 50% gain missed the subsequent 500% or 1,000% that came from holding through the full business cycle and beyond.

  • True investment patience — holding through volatility, valuation concerns, and short-term disappointments — is rarer and more valuable than almost any other investment skill.

• The investor’s own emotions are their greatest long-term enemy.

  • Buying after prices have already risen, selling after they have already fallen, and reacting to market noise with decisions that override sound analysis are the behaviors that cause investors to systematically underperform.

  • The discipline to ignore short-term price movements and maintain conviction in well-researched positions is not a natural human trait but a deliberately cultivated one.

  • Investors who mastered their own emotional reactions did not merely do slightly better — they did dramatically better, because avoiding emotionally-driven mistakes accumulates exponentially over decades.

• Invest in what you deeply understand and resist the temptation to invest in what you don’t.

  • Superior investment results come from operating in domains of genuine understanding rather than spreading attention across industries outside your expertise.

  • An investor with deep knowledge of one industry — its economics, competitive dynamics, technology cycles, and management talent — will consistently outperform a shallow generalist.

  • The temptation to invest in fashionable sectors you don’t understand is always present and always dangerous; staying within what you genuinely know compounds quietly but powerfully over a full investing lifetime.

Summary

• Business quality is the only durable foundation for investment returns. Fisher’s entire framework rests on one conviction: buying and holding truly exceptional businesses with durable competitive advantages, exceptional management, strong margins, and sustained growth capability will produce superior results over any sufficiently long time horizon.

• Management quality is the single most important variable in determining long-term business outcomes. Fisher devoted more attention to evaluating management than any other aspect of investment analysis, arguing that outstanding management can navigate almost any competitive challenge while mediocre management squanders almost any competitive advantage.

• Patience and concentration in your best ideas are the two behavioral disciplines that determine whether you actually capture the returns that great businesses generate. Identifying outstanding businesses is only half the challenge — the other half is the psychological discipline to hold them through volatility, apparent overvaluation, and constant temptation to sell.

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

• Quant Weekly – Up over 74% since June 2025

• Quant 30 – Up over 82% since June 2025

• Legacy – Up over 400% since April 2023

• Changes to the Quant Portfolios

• Top Quant Stocks – Banks

• Education – Pre-Market and After-Hours Trading — Broker Comparison

• Quick Links – at the bottom of the Post

USA Stock market week ending 06/12/26

• The S&P 500 (SPY) gained +0.6% from the close of 06/08/26 through the close of 06/12/26, posting a modest advance and extending its upward trend.

• The Dow Jones Industrial Average (DIA) rose +0.7%, delivering a solid week of gains among large-cap blue-chip stocks.

• The Nasdaq Composite (^IXIC) advanced +0.7%, matching the Dow’s performance and continuing to show strength in technology-oriented stocks.

• The Russell 2000 (IWM) surged +4.0%, significantly outperforming the major indexes and leading the market higher for the week.

Market Drivers this Week (06/15/26 – 06/19/26)

Monday, June 15

• Industrial Production is scheduled for 9:15 AM ET on June 15.

Tuesday, June 16

• The FOMC meeting begins June 16 and concludes June 17.

• Housing Starts and Building Permits are legitimate reports to watch.

• A Bank of Japan policy decision around this timeframe is plausible.

Wednesday, June 17

• FOMC statement, dot plot, SEP, and press conference are scheduled for June 17.

Thursday, June 18

• Accenture (ACN) and Kroger (KR) are expected earnings releases for June 18.

• Weekly Jobless Claims are scheduled as usual.

Friday, June 19

• U.S. equity markets are closed for Juneteenth.

The CNN Fear and Greed Index ends the week at 34. In the Fear area. This is the second week in a row in the Fear area after seven weeks in a row in the Greed area. Risk off is still the dominant trend.

The Quant Model Portfolios all closed higher. The Quant Weekly and Quant 30 both made new all time highs again. The Quant Legacy went back over +400% after dipping slightly below it last month. This is despite lackluster performance last week in the S&P 500.

Read more

• Subscribe now

  Quant Weekly – Up over 74% since June 2025

• Quant 30 – Up over 82% since June 2025

• Legacy – Up over 400% since April 2023

• Education – How likely is the SpaceX stock price to close higher than the IPO price in 1 month?

• Quick Links – At the bottom of the Post

USA Stock market week ending 06/12/26

• The S&P 500 (SPY) gained +0.6% from the close of 06/08/26 through the close of 06/12/26, posting a modest advance and extending its upward trend.

• The Dow Jones Industrial Average (DIA) rose +0.7%, delivering a solid week of gains among large-cap blue-chip stocks.

• The Nasdaq Composite (^IXIC) advanced +0.7%, matching the Dow’s performance and continuing to show strength in technology-oriented stocks.

• The Russell 2000 (IWM) surged +4.0%, significantly outperforming the major indexes and leading the market higher for the week.

Market Drivers this Week (06/15/26 – 06/19/26)

Monday, June 15

• Industrial Production is scheduled for 9:15 AM ET on June 15.

Tuesday, June 16

• The FOMC meeting begins June 16 and concludes June 17.

• Housing Starts and Building Permits are legitimate reports to watch.

• A Bank of Japan policy decision around this timeframe is plausible.

Wednesday, June 17

• FOMC statement, dot plot, SEP, and press conference are scheduled for June 17.

Thursday, June 18

• Accenture (ACN) and Kroger (KR) are expected earnings releases for June 18.

• Weekly Jobless Claims are scheduled as usual.

Friday, June 19

• U.S. equity markets are closed for Juneteenth.

The CNN Fear and Greed Index ends the week at 34. In the Fear area. This is the second week in a row in the Fear area after seven weeks in a row in the Greed area. Risk off is still the dominant trend.

The Quant Model Portfolios all closed higher. The Quant Weekly and Quant 30 both made new all time highs again. The Quant Legacy went back over +400% after dipping slightly below it last month. This is despite lackluster performance last week in the S&P 500.

Note: You are enjoying the free subscriber newsletter. Paid subscribers enjoy instant access to weekly Model Portfolio updates upon release and a Top Quant Stocks list. Free subscribers get access to Portfolio updates after a three-week delay but no Top Quant Stocks list. Want timely access to the new Adds/Removes and Top Quant Stocks list?

Subscribe now

Model Portfolio Quant Alpha Weekly

Any newly added stock is being released to Paid Subscribers today. Below are the updates from three weeks ago. This Portfolio continues to significantly outperform its benchmark, 74% versus 21%. It has 26 members.

VISN (Vistance Networks) has met the criteria for removal from the Portfolio. It was added on 7/10/25 and leaves the Portfolio with a +183% increase.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Add (05/22/26) : None

Remove (05/22/26) : VISN (Vistance Networks)

Outperformers: SSRM (SSR Mining) up over +60%, MU (Micron Technology) up over +520%, TTMI (TTM Technologies) up over +210%, CLS (Celestica) up over +90%

Model Portfolio Quant 30

This week’s new update, if any, is being released to the paid subscribers. Shown below is the update made three weeks ago. This Portfolio continues to beat its benchmark by a wide margin, 82% to 21%. It has 30 members in it.

TSM (Taiwan Semiconductor) is leaving the Portfolio. It was added on 11/13/25 and exits at +43%. CDE (Coeur Mining) is leaving the Portfolio. It was added on 8/14/25 and exits at +52%.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Add (05/22/26): CNC (Centene Corp) Healthcare Plans, E (Eni S.p.A.) Oil & Gas Integrated , MYRG (MYR Group) Engineering & Construction

Remove (05/22/26): INNV (InnovAge Holding), TSM (Taiwan Semiconductor) and CDE (Coeur Mining)

Outperformers: MU (Micron Technology) up over +700%, LITE (Lumentum Holdings) up over +280%, TTMI (TTM Technologies) up over +170%, BTSG (BrightSpring Health) up over +180% and SNDK (Sandisk) up over +220%

Model Portfolio Quant Alpha’s – Legacy

The portfolio is up over +400% since it began in 2023. It has 17 stocks in it. Powell industries is now a 15 bagger. Celestica is now a 15 bagger and now Sterling Infrastructure has become a 13 bagger.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Remove (05/22/26): None

Outperformers: AGX (Argan) up over +800%, STRL (Sterling Infrastructure) up over +1300%, POWL (Powell Industries) up over +1500% and CLS (Celestica) is up over +1500%

Performance to 06-12-2026

Top Quant Stocks for this week – (Paid subscribers only feature)

How likely is the SpaceX stock price to close higher than the IPO price in 1 month?

If SpaceX IPOs at the currently discussed $135/share, many professional investors estimate the probability that it closes above the IPO price one month later at roughly 55%–65%.

That’s not because the business isn’t attractive. It’s because two powerful forces are pulling in opposite directions:

Factors Increasing the Odds

• Extraordinary investor demand. Reports indicate the offering is already oversubscribed, suggesting strong initial buying interest.

• Massive retail enthusiasm. SpaceX may allocate an unusually large percentage of shares to retail investors, which could create strong momentum during the first few weeks of trading.

• Elon Musk premium. SpaceX is arguably the most anticipated IPO in years, and investor enthusiasm alone can support prices in the short term.

• Potential index inclusion narrative. Investors may buy ahead of future inclusion in major indexes.

Factors Reducing the Odds

• Extremely rich valuation. Multiple analysts argue the proposed valuation leaves little room for error and may already reflect years of future success.

• IPO history is not favorable. Historical data shows IPOs often surge initially, but many fail to maintain those gains. Between 2011 and 2024, the average IPO gained 23% on day one but produced a slightly negative average return over the following year from the first-day close.

• High volatility expected. Analysts have specifically warned that the unusually large retail allocation could create significant price swings.

• Profitability concerns. Several analysts have questioned whether the valuation is justified relative to current earnings and cash flow.

Probability Estimate

What History Suggests

For a typical IPO, one might estimate only a 50–55% chance of being above the offering price after one month. SpaceX is different because:

• It has one of the strongest brands in the world.

• Demand appears exceptionally high.

• Retail participation is unusually large.

However, because the valuation is also unusually aggressive, it would be risky to assign probabilities much higher than 65%.

Bottom Line

If SpaceX prices near $135, the most likely outcome is that the stock is still above its IPO price one month later, but not by a huge margin. A base case would be something like $145–$175 after one month, with a meaningful risk of a pullback if investors begin focusing on valuation rather than excitement. The stock could certainly surge much higher, but the valuation already appears to embed a great deal of future success.

Disclaimer: This is not financial advice. High-momentum stocks can experience rapid volatility and changing market conditions.

Quick Links

See comments below.

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

• Subscribe now

  Selection for this week

• Some Pros about the stock

• Some Cons about the stock

• Criteria for choosing

• The previous selections

Add: CNC (Centene) HealthCare Plans

What does the company do?

Centene Corporation (NYSE: CNC) is one of the largest managed healthcare providers in the United States, focusing on government-sponsored healthcare programs. The company operates through Medicaid, Medicare, Commercial, and Other Healthcare Services segments, offering health plans, pharmacy services, behavioral health, vision, and dental care. Centene serves millions of members through a nationwide network of physicians, hospitals, and healthcare providers. Founded in 1984, the company is headquartered in St. Louis, Missouri.

Why Some Investors Are Bullish

Blowout Q1 2026 earnings and strong cash generation

Centene reported Q1 2026 adjusted diluted EPS of approximately $3.37, significantly above analyst expectations, while revenue grew about 7% year-over-year. The company also generated roughly $4.4 billion in operating cash flow and reduced debt by approximately $1 billion, demonstrating that improved profitability is translating into real cash generation. The stock responded with a strong post-earnings rally.

Compelling valuation despite recent gains

Despite a sharp move higher following earnings, several analysts continue to see upside potential. Barclays raised its price target to $75 from $63, while Bank of America increased its target to $72, citing improving Medicaid margins and earnings potential. Shares still trade at valuation levels that many investors consider attractive relative to long-term earnings power.

Medical cost management is improving

The Medicaid Health Benefit Ratio (HBR) improved to approximately 93.1%, while Medicare HBR remained strong at approximately 84.9%. Management attributed the improvement to better utilization management, medical cost controls, and operational execution, suggesting the gains are supported by underlying business performance rather than one-time factors.

Dominant position in government-sponsored healthcare

Centene remains one of the largest Medicaid managed care organizations in the United States, serving millions of members across numerous states. Its scale provides advantages in contracting, provider networks, data analytics, and administrative efficiency that smaller competitors may struggle to match.

Raised full-year guidance signals confidence

Management raised full-year 2026 expectations following the strong quarter, signaling confidence that operational improvements and margin gains can continue. For a company of Centene’s size, increasing guidance after a single quarter is generally viewed as a positive indicator of business momentum.

What Bears Are Worried About

Medicaid policy and reimbursement risk

Changes to federal or state Medicaid funding remain the company’s largest long-term risk. Any reduction in reimbursement rates, funding levels, or program eligibility could negatively impact membership growth, revenue, and profitability.

ACA Marketplace uncertainty

Future changes to Affordable Care Act subsidies and Marketplace regulations could affect enrollment trends and profitability within Centene’s commercial business. While the segment continues to perform reasonably well, policy uncertainty remains an overhang.

Recent rally raises expectations

Following the strong earnings-driven advance, investor expectations have increased considerably. Future quarters will need to demonstrate continued margin improvement and earnings growth, leaving less room for execution missteps than before the earnings report.

Bottom Line

Centene’s investment case has improved significantly following its strong Q1 2026 results. Earnings, cash flow, debt reduction, and improving medical cost trends all support the bullish thesis, while the company’s scale in government-sponsored healthcare provides a durable competitive advantage. The primary risks remain policy-related uncertainty surrounding Medicaid and ACA programs, along with the challenge of sustaining recent operational momentum after a substantial post-earnings rally.

Top Quant Stock of the Week Criteria

Over the next few weeks, I will be detailing all the criteria I will use.

So far:

• I am using a Quantitative research platform that provides a daily list of top-ranked stocks to buy or sell, based on a Comprehensive Quant Score. This Quant system uses computer algorithms to come up with its rankings. This score incorporates multiple factors, including valuation, growth, profitability, momentum, and EPS revisions.

• I will be giving heavy weight to strong momentum and strong EPS revisions to make the weekly selection. Then, I will use my tested proprietary criteria to sort and then break any tie.

• One stock will be selected each week. That would make 52 selections a year if I don’t miss any weeks because of internet problems.

• The hold times for the stocks added will be 1 week to years. Although a 1 week hold would be rare, it could happen if the stocks Quant metrics took a big nose di.ve right after being selected. If an added stock maintains its good metrics, it will be kept in the portfolio until it doesn’t. No time limit. The Quant system will tell me when it is time to let it go. So the hold time is short, medium and long depending on the Quant system metrics.

• All countries are included. ADR’s are ok but Pink Sheet stocks will not be allowed.

• Certain Industries are excluded. My testing shows they do not perform well using Quantitative rankings. Two of the main ones are BioTechnology and Pharmacueticals.

• The Sell Criteria: Once the stock no longer qualifies to be retained in the Portfolio, it will be removed. This could be because the companies metrics have deteriorated since selection, it is involved in a buyout or financial reporting problems.

Additional Criteria

• Once a stock has been put on the Active list, it will not be added to. No doubling down.

• When a stock is removed from the list, 100% is removed. No scaling out.

• The stocks considered are larger small cap, mid cap, large cap and Mega cap. They will be fairly easy to trade with opening or closing market orders as one of the ways to enter and exit positions.

• It should be expected that about 50 stocks will be Active in the Portfolio in any given week, once it gets to the two year mark.

• All stocks are added as equal weight. No rebalancing is to occur.

• To be considered for a Buy, the stock has to be in the top group of Quant rankings for just several weeks. This is to allow newly upgraded stocks to qualify quickly. Hopefully, this will catch a couple strong momentum stocks early in their move.

Previous Selections:

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

• Subscribe now

  Quant Weekly – Up over 58% since June 2025

• Quant 30 – Up over 67% since June 2025

• Legacy – Up over 400% since April 2023

• Changes to the Quant Portfolios

• Top Quant Stocks – Consumer Discretionary

• Education – How likely is the SpaceX stock price to close higher than the IPO price in 1 month?

• Quick Links – at the bottom of the Post

USA Stock market week ending 06/05/26

Major Index Performance (Weekly)

• The S&P 500 (SPY) declined -2.5% from the close of 06/01/26 through the close of 06/05/26, ending the week lower after a broad-market pullback.

• The Dow Jones Industrial Average (DIA) slipped -0.2%, making it the most resilient of the four major indexes during the week.

• The Nasdaq Composite (^IXIC) fell -4.7%, posting the largest decline among the major U.S. indexes.

• The Russell 2000 (IWM) dropped -3.0%, reflecting weakness across the small-cap segment of the market.

Market Drivers this Week (06/08/26 – 06/12/26)

• Monday 6/08 — China trade data could influence industrial, materials, and export-related stocks as investors assess global demand trends.

• Tuesday 6/09 — NFIB Small Business Optimism and Wholesale Inventories are released. After the close, Oracle (ORCL) reports earnings, with investors focused on cloud and AI growth.

• Wednesday 6/10 — CPI is the week’s biggest economic report and could significantly impact interest-rate expectations and market sentiment. The Bank of Canada also announces its rate decision.

• Thursday 6/11 — PPI, Weekly Jobless Claims, and the ECB rate decision headline a busy day of economic data and central-bank news. SpaceX prices its IPO.

• Friday 6/12 — University of Michigan Consumer Sentiment provides an updated look at consumer confidence and inflation expectations. SpaceX stock starts trading.

The CNN Fear and Greed Index ends the week at 42 back in the Fear area after seven weeks in the Greed area. It looks like risk off has returned, at least for a time.

The Quant Model Portfolios all lost ground last week along with nearly all momentum stocks as risk off regains control in the stock market. Momentum stocks lead the markets up and lead the markets down. Nothing new here. Stay patient!

Read more

• Subscribe now

  Quant Weekly – Up over 58% since June 2025

• Quant 30 – Up over 67% since June 2025

• Legacy – Up over 400% since April 2023

• Education – When oil prices Drop 20% suddenly – Which industries benefit and which suffer?

• Quick Links – At the bottom of the Post

USA Stock market week ending 06/05/26

Major Index Performance (Weekly)

• The S&P 500 (SPY) declined -2.5% from the close of 06/01/26 through the close of 06/05/26, ending the week lower after a broad-market pullback.

• The Dow Jones Industrial Average (DIA) slipped -0.2%, making it the most resilient of the four major indexes during the week.

• The Nasdaq Composite (^IXIC) fell -4.7%, posting the largest decline among the major U.S. indexes.

• The Russell 2000 (IWM) dropped -3.0%, reflecting weakness across the small-cap segment of the market.

Market Drivers this Week (06/08/26 – 06/12/26)

• Monday 6/08 — China trade data could influence industrial, materials, and export-related stocks as investors assess global demand trends.

• Tuesday 6/09 — NFIB Small Business Optimism and Wholesale Inventories are released. After the close, Oracle (ORCL) reports earnings, with investors focused on cloud and AI growth.

• Wednesday 6/10 — CPI is the week’s biggest economic report and could significantly impact interest-rate expectations and market sentiment. The Bank of Canada also announces its rate decision.

• Thursday 6/11 — PPI, Weekly Jobless Claims, and the ECB rate decision headline a busy day of economic data and central-bank news. SpaceX prices its IPO.

• Friday 6/12 — University of Michigan Consumer Sentiment provides an updated look at consumer confidence and inflation expectations. SpaceX stock starts trading.

The CNN Fear and Greed Index ends the week at 42 back in the Fear area after seven weeks in the Greed area. It looks like risk off has returned, at least for a time.

The Quant Model Portfolios all lost ground last week along with nearly all momentum stocks as risk off regains control in the stock market. Momentum stocks lead the markets up and lead the markets down. Nothing new here. Stay patient!

Note: You are enjoying the free subscriber newsletter. Paid subscribers enjoy instant access to weekly Model Portfolio updates upon release and a Top Quant Stocks list. Free subscribers get access to Portfolio updates after a three-week delay but no Top Quant Stocks list. Want timely access to the new Adds/Removes and Top Quant Stocks list?

Subscribe now

Model Portfolio Quant Alpha Weekly

Any newly added stock is being released to Paid Subscribers today. Below are the updates from three weeks ago. This Portfolio continues to significantly outperform its benchmark, 58% versus 18%. It has 26 members.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Add (05/15/26) : SNDK (Sandisk) Computer Hardware

Outperformers: SSRM (SSR Mining) up over +60%, MU (Micron Technology) up over +450%, TTMI (TTM Technologies) up over +170%

Model Portfolio Quant 30

This week’s new update, if any, is being released to the paid subscribers. Shown below is the update made three weeks ago. This Portfolio continues to beat its benchmark by a wide margin, 67% to 18%. It has ?? members in it.

CYD (China Yuchai International) was removed from the portfolio three weeks ago. It was added on 9/11/25 and was up 32% since being added.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Add (05/15/26): ASX (ASE Technology) Semiconductors

Remove (05/15/26): CYD (China Yuchai International)

Outperformers: MU (Micron Technology) up over +600%, LITE (Lumentum Holdings) up over +260%, TTMI (TTM Technologies) up over +130%, BTSG (BrightSpring Health) up over +150% and SNDK (Sandisk) up over +150%

Model Portfolio Quant Alpha’s – Legacy

The portfolio is up over +400% since it began in 2023. It has 17 stocks in it. Powell industries is now a 15 bagger. Celestica is now a 14 bagger and now Sterling Infrastructure has become a 14 bagger.

WGS (GeneDx Holdings) received a hard sell from the Quant system three weeks ago. It has been removed. It was added 8/7/24 and leaves the Portfolio with a +40% profit.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Remove (05/15/26): WGS (GeneDx Holdings)

Outperformers: AGX (Argan) up over +800%, STRL (Sterling Infrastructure) up over +1400%, POWL (Powell Industries) up over +1500% and CLS (Celestica) is up over +1400%

Performance to 06-05-2026

Top Quant Stocks for this week – (Paid subscribers only feature)

When oil prices Drop 20% suddenly – Which industries benefit and which suffer?

Industries That Benefit Most

Airlines benefit the fastest

Jet fuel is one of the largest airline expenses, so lower oil prices quickly improve margins for carriers like Delta Air Lines, United Airlines, and Southwest Airlines. Airline stocks often rally quickly when oil falls sharply.

Trucking and logistics see lower fuel costs

Diesel prices drop alongside oil, helping transportation companies like FedEx, UPS, and J.B. Hunt improve profitability and operating efficiency.

Consumers usually spend more elsewhere

Lower gas prices act like a tax cut for households, often boosting spending on restaurants, travel, retail, and entertainment within a few quarters.

Chemical companies benefit from cheaper inputs

Lower oil and natural-gas prices reduce feedstock costs for chemical manufacturers like Dow and LyondellBasell, helping expand margins.

Some utilities benefit modestly

Utilities with unregulated or fuel-sensitive operations may see some cost relief, although most regulated utilities eventually pass fuel savings through to customers.

Industries Most Negatively Impacted

Exploration and production companies get hit hardest

Oil producers face immediate revenue pressure when crude prices fall, while drilling costs, debt payments, and lease obligations remain largely fixed.

Oilfield services companies suffer quickly

Companies like Halliburton and SLB depend on drilling activity, so lower oil prices often lead to rapid cuts in energy spending and rig activity.

Oil-dependent economies and energy stocks weaken

Countries and markets heavily dependent on oil exports can face fiscal pressure, weaker currencies, and slower economic growth during sustained oil declines.

Integrated oil majors feel pressure but remain more resilient

Large companies like Exxon Mobil, Chevron, and Shell are affected by lower crude prices, although refining and downstream operations can partially offset upstream weakness.

Renewable energy sentiment can soften

Lower gasoline prices may temporarily reduce urgency around EV adoption and energy-transition themes, though long-term renewable demand is still driven heavily by policy, technology, and infrastructure trends.

Summary

A sharp oil-price decline generally shifts economic benefit away from oil producers and toward consumers, transportation companies, and fuel-intensive industries. The overall impact depends heavily on:

• hedging strategies,

• debt levels,

• operating leverage,

• and whether the oil decline is viewed as temporary or long lasting.

Companies Most Likely to Benefit — Ranked by Impact

Airlines — Biggest Direct Winners

Southwest Airlines

Southwest currently has limited fuel hedging exposure, making it highly sensitive to lower jet fuel prices. A major oil decline could significantly improve margins and earnings expectations.

United Airlines

United carries substantial fuel-cost exposure, so lower oil prices can quickly improve profitability and cash flow.

American Airlines

American’s thinner balance sheet makes fuel relief especially important, with lower jet fuel costs helping liquidity and earnings.

Delta Air Lines

Delta benefits from lower fuel costs as well, although its refinery operations provide some partial insulation compared to peers.

Alaska Airlines

Alaska remains highly fuel-sensitive, meaning lower oil prices can materially improve operating margins.

Trucking and Logistics — Fast Margin Improvement

Old Dominion Freight Line

Lower diesel prices can directly improve margins for one of the most efficient freight operators in the industry.

J.B. Hunt

J.B. Hunt benefits across both trucking and intermodal operations from lower transportation fuel costs.

UPS & FedEx

Both companies operate massive delivery fleets, making lower diesel prices a meaningful earnings tailwind.

Consumer and Travel Beneficiaries

McDonald’s & Yum! Brands

Lower gas prices often increase discretionary spending on dining and travel.

Target & Walmart

Consumers typically spend more on discretionary purchases when fuel expenses decline.

Royal Caribbean & Carnival Corporation

Cruise operators benefit from both lower fuel costs and stronger consumer travel demand.

Chemical Companies

Dow & LyondellBasell

Lower oil and natural-gas prices reduce feedstock costs and can support margin expansion.

Companies Most Likely to Suffer

Exploration and Production Companies

Devon Energy & ConocoPhillips

Lower oil prices directly reduce cash flow, earnings, dividends, and buyback capacity for oil producers.

Smaller Independent Producers

Higher-cost and more leveraged E&P companies face the greatest pressure during sustained oil-price declines.

Oilfield Services

SLB & Halliburton

Lower oil prices often trigger drilling and capital-spending cuts, reducing demand for oilfield services.

Integrated Oil Majors

Exxon Mobil & Chevron

Integrated majors remain profitable during moderate oil declines, but lower crude prices can pressure earnings, buybacks, and future cash-return expectations.

Renewable Energy

Tesla, Enphase Energy & Sunrun

Lower gasoline prices can temporarily weaken EV and clean-energy sentiment, although long-term renewable adoption still depends heavily on regulation, technology, and infrastructure trends.

Bottom Line

A sharp oil-price decline generally shifts economic benefit away from oil producers and toward consumers, transportation companies, airlines, and fuel-intensive industries. The biggest winners are usually airlines, trucking, logistics, and consumer-facing businesses, while the biggest pressure typically falls on oil producers, oilfield services firms, and energy-dependent economies.

Quick Links

See comment after the post.

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.

• Subscribe now

  Selection for this week

• Some Pros about the stock

• Some Cons about the stock

• Criteria for choosing

• The previous selections

The selection last week, LITE (Lumentum Holdings) is up 4% since it was added.

Add: MXL (MaxLinear) – Semiconductors

What does the company do?

MaxLinear develops semiconductor and communications chips used in AI networking, optical interconnects, broadband, 5G infrastructure, Wi-Fi routers, data-center connectivity, and networking equipment. The company sells its products worldwide and is expanding its presence in AI infrastructure through partnerships with Edgecore Networks and GCT Semiconductor. Headquartered in Carlsbad, California, MaxLinear was founded in 2003.

Why Some Investors Are Bullish

Growing AI and Data-Center Connectivity Opportunity

MaxLinear is expanding its presence in AI infrastructure through products targeting optical interconnects, high-speed networking, and data-center connectivity. The company has exposure to several emerging AI-related markets, including 400G, 800G, and future 1.6T networking solutions.

Infrastructure Revenue Becoming More Important

Recent results and management commentary suggest infrastructure-related revenue is becoming a larger contributor to the business. This supports the company’s effort to diversify beyond traditional broadband markets and participate in long-term AI and cloud spending trends.

Expanding Exposure to AI Networking and Optical Connectivity

MaxLinear is gradually increasing its presence in AI networking and optical connectivity while reducing its dependence on broadband-related revenue. Success in products such as Keystone, Rushmore, and Washington could support future growth if customer adoption continues.

Partnership Activity May Support Future Growth

Partnerships with companies such as Edgecore Networks and GCT Semiconductor may help expand future customer adoption and ecosystem reach. While the financial impact remains dependent on product commercialization, these relationships support MaxLinear’s strategic positioning.

Strong Growth and Momentum Characteristics

Recent factor grades have highlighted strong growth and momentum trends. Investor interest has increased as the company becomes more closely associated with AI infrastructure and connectivity markets.

What Bears Are Worried About

Execution and Customer Concentration Risk

A meaningful portion of future growth may depend on a relatively small number of large customers and product ramps. Delays, design-losses, or weaker-than-expected customer adoption could create significant revenue volatility.

Profitability Still Lags the Growth Narrative

While growth expectations have improved, profitability remains relatively modest. Investors are still waiting for stronger earnings, margin expansion, and cash-flow generation to fully support the higher valuation.

Valuation and Competitive Risk

The stock has rerated significantly as investors have embraced the AI infrastructure story. At the same time, MaxLinear competes against much larger and well-capitalized players such as Broadcom, Marvell Technology, NVIDIA, and Credo Technology Group. Any execution misstep could pressure valuation multiples.

Bottom Line

MaxLinear offers an intriguing AI infrastructure and networking growth story, with increasing exposure to optical interconnects, high-speed connectivity, and data-center markets. The bull case centers on successful execution of new AI-related product ramps and continued diversification away from legacy broadband revenue. However, investors should recognize that much of the optimism is based on future growth rather than current profitability. The opportunity is substantial, but successful commercialization, margin expansion, and sustained customer adoption will ultimately determine whether the company’s AI transformation delivers the results investors are expecting.

Top Quant Stock of the Week Criteria

Over the next few weeks, I will be detailing all the criteria I will use.

So far:

• I am using a Quantitative research platform that provides a daily list of top-ranked stocks to buy or sell, based on a Comprehensive Quant Score. This Quant system uses computer algorithms to come up with its rankings. This score incorporates multiple factors, including valuation, growth, profitability, momentum, and EPS revisions.

• I will be giving heavy weight to strong momentum and strong EPS revisions to make the weekly selection. Then, I will use my tested proprietary criteria to sort and then break any tie.

• One stock will be selected each week. That would make 52 selections a year if I don’t miss any weeks because of internet problems.

• The hold times for the stocks added will be 1 week to years. Although a 1 week hold would be rare, it could happen if the stocks Quant metrics took a big nose di.ve right after being selected. If an added stock maintains its good metrics, it will be kept in the portfolio until it doesn’t. No time limit. The Quant system will tell me when it is time to let it go. So the hold time is short, medium and long depending on the Quant system metrics.

Additional Criteria:

• All countries are included. ADR’s are ok but Pink Sheet stocks will not be allowed.

• Certain Industries are excluded. My testing shows they do not perform well using Quantitative rankings. Two of the main ones are BioTechnology and Pharmacueticals.

• The Sell Criteria: Once the stock no longer qualifies to be retained in the Portfolio, it will be removed. This could be because the companies metrics have deteriorated since selection, it is involved in a buy out and financial reporting problems.

More color on the criteria next week.

Previous Selections:

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated.