4 Stocks I'm Buying in July. Here's Why
Summary
Couch Investor reviews the market's recent performance, noting that while the S&P 500 rose, semiconductor names like Micron, Intel, and Qualcomm saw double-digit percentage drops. Couch Investor views this as sentiment-driven fear regarding the peak of the AI and CAPEX cycles rather than a fundamental decline. Couch Investor believes that July and August will bring increased volatility, which should be viewed as an accumulation phase for high-conviction stocks.
The thesis for the upcoming months focuses on Fintech and Latin American stocks, which Couch Investor believes have been unfairly discounted compared to their peers. Couch Investor also provides technical analysis for several major holdings, identifying key support levels and moving averages that suggest the short-term correction for many tech leaders may be nearing its end.
Mentioned Stocks
Reasoning: Couch Investor considers the stock a 'no-brainer' trading at a low forward P/E of 17x. Couch Investor is bullish on the upcoming 'Watermelon' AI model and potential cloud business. Couch Investor notes that holding the $600 level is important for technical momentum.
Reasoning: Couch Investor views the current price around $18 as a joke and a gift for long-term investors. Couch Investor expects a very good earnings report and identifies $22.90 as a potential price target following the report.
Reasoning: Couch Investor states that Alphabet has reclaimed its 50-day simple moving average and that the short-term correction appears to be over.
Reasoning: Couch Investor previously bought at $394 and in the low $400s. Although it has rallied to nearly $600, Couch Investor remains bullish but would prefer a pullback to add more shares.
Reasoning: Couch Investor believes Latin American fintech names like Nu Holdings are trading at a discount compared to non-Latin American peers and expects them to receive more market attention.
Reasoning: Couch Investor believes the stock is extremely undervalued at its current $5 billion market cap. Couch Investor suggests the stock could reach $30 and still be fairly valued.
Reasoning: Couch Investor believes the company is a $100B-$200B company in the making. Despite a recent drawdown, it is up 140% YTD. Couch Investor mentions an 18MW lease in Spain as a sign of successful European expansion and plans to add more to this position in July.
Reasoning: Couch Investor notes the stock is reclaiming moving averages above $1,700 and expects it to continue back toward the $1,900 to $2,000 range.