9 Best Stocks To Buy In July

Joseph Carlson After Hours•Jul 8, 2026

Summary

Joseph Carlson After Hours analyzes the current market dynamic where semiconductor stocks now make up nearly 20% of the S&P 500, a level Joseph Carlson After Hours compares to the 2000 dot-com bubble. Joseph Carlson After Hours believes that this extreme concentration is driven by momentum, leading investors to sell high-quality companies in other sectors to fund semiconductor purchases. Consequently, Joseph Carlson After Hours identifies several stocks that are currently 'left behind' but possess strong fundamentals, high operating leverage, and attractive entry points for July.

Regarding market outlook, Joseph Carlson After Hours highlights that the S&P 500's 'everything else' category has dropped in weighting from 98% to 80%. Joseph Carlson After Hours agrees with Tom Lee that July could be a strong month due to positive Q2 earnings surprises and potential PE expansion. Furthermore, Joseph Carlson After Hours dismisses the narrative that AI will eliminate jobs, arguing instead that AI increases employee productivity and operating leverage, as evidenced by rising EBIT-per-employee metrics at major tech firms.

META: Joseph Carlson After Hours views Meta as a top pick due to its 18x forward PE ratio and massive operating leverage. Joseph Carlson After Hours believes the company's heavy CAPEX spend will result in a 'superpower' through enhanced ad recommendations, flagship AI models, and potential compute-renting revenue. Joseph Carlson After Hours emphasizes that Meta is growing its EBIT per employee faster than its peers.

AMZN: Joseph Carlson After Hours highlights Amazon's logistics dominance and the accelerating growth of AWS. Joseph Carlson After Hours notes that Amazon is spending more on CAPEX than any other firm, but unlike skeptical investors, Joseph Carlson After Hours is excited about this investment being immediately monetized. Joseph Carlson After Hours considers Amazon a unique deal this month as it continues its high-teens growth path.

MSFT: Joseph Carlson After Hours points out that Microsoft is trading at a five-year valuation low, similar to levels seen during the 2022 sell-off. Joseph Carlson After Hours states that the stock is currently a steal below $400 per share, trading at approximately 24 times forward earnings. Joseph Carlson After Hours believes Microsoft is being unfairly thrown out with the rest of the market to fund semiconductor trades.

NFLX: Joseph Carlson After Hours argues that Netflix is undervalued at a 22x forward PE despite a recent lack of 'mega-hits.' Joseph Carlson After Hours believes the market's concerns over audience retention are fixable through better content continuity and faster release cycles. Joseph Carlson After Hours notes that Netflix is being sold indiscriminately alongside peers like Spotify despite strong expected earnings growth.

UBER: Joseph Carlson After Hours recently added Uber to the portfolio, noting that its network scale is 570 times larger than competitors like Waymo. Joseph Carlson After Hours identifies the recent drop from $100 to $70 per share as a significant buying opportunity. Joseph Carlson After Hours believes Uber's aggregator model remains insurmountable despite autonomous vehicle competition.

DASH: Joseph Carlson After Hours explicitly mentions buying DoorDash recently as the stock traded down to $150. Joseph Carlson After Hours views the company as being in the early stages of its growth path and suffering from temporary market dynamics. Joseph Carlson After Hours is excited about the position as the company scales its delivery network.

CPRT: Joseph Carlson After Hours recommends Copart, noting that the stock has been 'crushed' and is down significantly from its highs. Joseph Carlson After Hours is fascinated by their business model involving insurance companies and salvage real estate. Joseph Carlson After Hours believes the company has an incredibly strong balance sheet for long-term holders.

MA: Joseph Carlson After Hours identifies Mastercard as another obvious high-quality company left behind by the current market. Joseph Carlson After Hours notes that it is down from $600 to $530, offering an attractive entry point. Joseph Carlson After Hours views this as a rare opportunity to buy a premier financial compounder at a 25x forward PE.

CSU: Joseph Carlson After Hours defends Constellation Software, stating that AI will not replace the vertically integrated software the company owns. Joseph Carlson After Hours believes the recent sell-off in the stock is overdone due to a general market distaste for software. Joseph Carlson After Hours views this as a high-quality serial acquirer that remains a solid long-term hold.

Mentioned Stocks

AMZN

Sentiment: BUYAction: RECOMMENDED

Reasoning: Joseph Carlson After Hours recommends Amazon because its CAPEX spending is being immediately monetized through AWS and its logistics network. Joseph Carlson After Hours states that the market's skepticism regarding its spending creates a buying opportunity for a business with accelerating growth.

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