3 Stocks Set to Benefit From the $150 Billion Shift Nobody's Talking About

Recently, while nobody was looking, $150 billion quietly changed hands in a single afternoon. Most retail investors have no idea it even happened or that it's still creating opportunities right now, including one twist near the end of this video that you won't see coming. So, be sure to stick around for that. By the way, I'm Steve Reitmeister, but all my friends call me Righty. I spent nearly 20 years at Energy Factor.com, and now I'm a partner at Wall Street Zen, where our quant model analyzes stocks across 115 unique factors to find the ones with the best shots at beating the market. Now, if you like uh timely market analysis, then do me a favor and hit that like button right now. Takes only a second, and it tells YouTube to send you more data-driven stock research like this in the future. Now, let's talk about what just happened and why it matters. You're probably familiar with the Russell Indexes, uh like the Russell 1000, which tracks the 1000 uh largest US companies, and the more famous Russell 2000, which tracks the small-cap stocks. Together with the Russell 3000, they cover almost the entire US stock market with about $12.2 trillion in index funds and ETFs built to precisely track their movements. Now, the company behind these indices originally built these indices to be rebalanced only once per year, but starting in 2026, it will happen now twice a year. And here's why that matters. Every index fund and ETF tracking these indices has to buy or sell the shares the moment the list changes. That's not investors making a decision and, you know, pondering and taking their time and it's automatic buying and selling on a massive scale. This can lead to huge short-lived volume and price swings for the stocks involved. Now, this time around, an estimated $150 billion stocks changed hands because of this biannual rebalance. While it's a short-lived market event, it can have massive ripple effects to some of the affected stocks. This creates some stellar value opportunities if you know where to look. I'll get to that part in a minute, but let me first finish up this important backstory. This time around, 62 companies were added to the Russell 1000, 43 of them graduated up from the smaller Russell 2000 index and this happened all at once. SpaceX joined too, they got fast-tracked under a brand new rule just days after going public. That's a lot of forced buying hitting a select group of stocks on the same day. Okay, so now let's look at some of the stocks that experienced noteworthy moves and whether they're worth buying now. And by the way, if you want to discover more under the radar stories like this, then the best thing you can do for yourself is to sign up for my next live training session this coming Monday. The focus is on timely market insights plus my top stock picks. It's totally free, but you do need to sign up. Do that now to join me this coming Monday at 7:06 p.m. Eastern Time. Just go to wallstreetzen.com/live. All right, the most covered and the most obvious place to look for opportunities is in the Russell 1000. So let's look at a prime example of a company that lived through the reconstitution, what happened to their stock and whether they're actually worth buying now. But be sure to keep watching because there's a twist in the end, right? And let me remind you that while I'm talking you through real stocks, I'm not giving you personalized investment advice. Always do your own due diligence before buying or selling any stock or security. One of the most covered cases was Bloom Energy with a symbol of BE, a company that makes fuel cells that power AI data centers. Now, the company is experiencing extreme momentum, right? We're talking about a company that was roughly at 5 billion market cap just a year ago and has risen to 80 billion, right? We're talking about amazing 16 bagger in a very short period of time. This is fueled by real growth like the 130% revenue increase year over year plus a recently expanded $25 billion infrastructure partnership with Brookfield. However, on the day of the Russell 1000 reconstitution, BE dropped roughly 18%. That has extended to a 25% sell-off from their peak at the time of this recording. Now, the question of course is whether it's still an appealing buy the dip opportunity. So let's dig in deeper. Wall Street's consensus lands as a buy, but it's not unanimous. More than half of the 19 analysts covering the stock actually rated as a hold. And the average price target is sitting slightly below where the stock trades today. Both these Wall Street signals are a negative in my book. Now, we will look at Bloom Energy through the lens of the quantum model that analyzes every stock by 115 fundamental factors. In this case, they score a solid B rating, which amounts to a buy recommendation. Note that the overall Zen rating is even further broken down into seven component grades that help us understand the unique strength and weaknesses of any stock. Here we have a case of extremes, right? And then the plus column for Bloom, we have top 7% showing for sentiment, top 5% for momentum, and best of all, the top 1% for growth, which is a great predictor of more earnings beats ahead. However, there are some serious red marks that we need to consider. Financials is middle of the pack at best. Safety is the bottom 39% all stocks, and worst of all is the bottom 33% showing for value. That low value score is the most unsettling. Remember, the stock has already made a big move. It's already pulled back 25% from the recent highs. So, to score that lowly on the value front is still a little upsetting. Add it all up, and Bloom is an interesting pick because of the still impressive growth prospects and the B overall grade from the Zen ratings. Yet, with some of the detractors, at best, I would call this a fair to good stock. But why settle for fair to good when we can get great? And herein lies the twist and something much more beneficial to consider. While big players like Bloom Energy are getting the attention, there are actually better opportunities nestled a level below in the Russell 2000 and Russell 3000. Before I get to them, if you're getting value out of this video so far, then take a second to subscribe and hit the notification bell. I put out fresh stock breakdowns like this every week, and subscribing makes sure the next batch of top stocks actually shows up in your feed instead of getting lost in the shuffle. Now, I've got my eyes on three stocks that just joined these uh smaller indices. What we're talking about Alto Ingredients with the symbol of ALTO, Amtech Systems with the symbol of ASYS, and Taboola with the symbol of TBLA. Every single one of these little-known stocks carries an elite Zen rating of A, which amounts to a strong buy recommendation from our quant model. Now, let's be real. While B is good, A's are a lot better. And historically, they have beaten the market by nearly three to one. So, A's are actually a lot, lot better. Okay, two more things these stocks have going for them. None of them have already had the monster run that Bloom Energy has. And here's a stat I don't get to say very often. All these stocks are currently the number one ranked in their respective industries, truly the best of the best. I want to keep this video short and sweet, so I'm not going to go into great detail on all three tickers. Let's just show them on screen once more. Luckily, you can dig deeper on each of them on our quote pages on wallstreetzen.com. Again, those three stocks are Alto Ingredients uh with the symbol of ALTO, Amtech Systems with the symbol of ASYS, and Taboola TBLA. But, I do want to dig deeper with that last one uh Taboola. That's because I like it so much that I recently added to my Zen Investor Stock Picking Newsletter where I share my top 20 stocks for the long haul. The newsletter's only for first subscribers, but if you want to get a glimpse of my investing style, then I'll would be a good time to invite you to my next live training session this coming Monday at 7:00 p.m. Eastern time. That's when I detail my updated market outlook and investment plan to outperform. This is also when I share my trade of the week based upon uh the proven Zen ratings quant model and my greater than four years of investing experience. It's a free event, but you do need to register. So, just go to wallstreetzen.com/live or click the link in the description or scan the QR code on your screen. Whatever it takes, I look forward to see you on Monday. Let's get back to Taboola. This is a leading digital advertising discovery platform that's been on my radar for quite a while. Now, a few months back, there was this crazy narrative that AI was going to destroy most software companies and the whole sector suffered painful losses, not just Taboola, but we're talking about the larger software names, Microsoft, Salesforce and the like. That narrative is finally unwinding and has me running back to Taboola given the upside I think is still sitting in these shares, which are trading in the $5 range as of the week I'm recording. Now, here's the thing about AI and a company like this. It's not putting them out of business, they're actually using AI to make their platform better and yes, more profitable. Taboola's AI-powered advertising platform is called Realize and the company says it's accelerating advertiser growth and retention. That points to real upside ahead. Part of that upside is the business momentum that has taken place and the other part is that the undervalued nature of the shares finally playing catch-up with reality. Taboola is trading at a low single-digit multiple of forward earnings, woefully shy of what it should be for a company growing earnings at this pace. This is why I say the shares could be trading for a multiple two to three times higher than it is today, which means the stock has real potential to double or even triple from its current price. The Zen Ring's analysis most certainly agrees as I already shared Taboola has earned an elite A grade from our model. The A rating is given to all the stocks in the top 5% based upon their fundamental profile. In this case, Taboola is actually in the top 1% pointing to a truly exceptional company, so maybe we should call it A+. The standout component grades for Taboola are they are in the top 16% of all stocks for growth, top 15% of all stocks for sentiment, which says the smart money is moving into these shares, top 8% for financial strength and top 6% for value, which is not a surprise given what I shared about the ultra-low PE. This is a well-rounded and very attractive fundamental profile, which greatly increases the odds of future share price outperformance. Yeah, sure, it's a small cap. So, there's more risk than your average stock, but the outsize reward more than makes up for that risk. So, here's the actual takeaway from all this. The single-day trading moves from the index reconstitution are done, but the investment story isn't. There are plenty of stocks that have emerged as strong ones to watch because of this event. The next reconstitution of the Russell index takes place in December. That means this whole setup repeats in a few months, and now you know exactly what to look for. But don't just chase whatever gets promoted to the Russell 1000. As we saw with Bloom Energy, that is not always as good as advertised. Instead, look for the under-the-radar upgrades in those smaller indices. Your best friend will be analyzing them with the Zen Ratings to appreciate the full fundamental outlook. The beauty of the Zen Ratings is the ability to scan even the smallest stock with the same 115 factors that you can for a large company like Nvidia or Apple. This complete fundamental analysis helps you find some of the best opportunities often sitting a level below the big names, true hidden gems that nobody's talking about, but maybe they should be. Now, I want to hear from you. Do you appreciate how the index reconstitutions can create opportunities for investors? And which of the three stocks I highlighted today do you like the most? Please share your thoughts in the comments section below. And if you want to see another timely video including a must-watch warning about the earning season ahead, then check out the video on your screen now.