These 8 Stocks Are about to Explode (I'm Buying NOW)

The market has delivered one of the best earning seasons ever with 86% earnings per share beat and 75% revenue beat. The Nasdaq went from correction territory to being down just 3 1/2% from all-time highs. And the S&P 500 broke its 3-month consolidation on its path to 7,800. The general theme to profit from the second half of the year has definitely been to position ourselves in asymmetric bets. And because of that, our portfolios were up 8%, beating the market by almost double. So, in this video, we're going to talk about the ongoing plan to profit from what the market is giving us so far. I'm going to go over the top stocks as I currently see it for asymmetric opportunities. There are three sectors that I'm specifically looking at that look primed in my opinion and eight stocks to go over for investing. We'll also go over a few of the key bullish catalysts that we've seen so far in the last week. Berkshire Hathaway is finally a net buyer of stocks. Nobody saw this one coming, especially as the market is near all-time highs or the S&P 500 made all-time highs. One of the greatest earnings periods ever. As I said, some of these stock sectors are still lagging and these are the ones that are in my opinion some of them due for asymmetric opportunities. Will S&P get to 8,000? What do we need to see the S&P 500 get to that uh to that mark? Jobless claims and GDP seem to be tracking really well, showcasing a healthy economy. However, if you do look at inflation, and we do have CPI coming up next week, inflation is still a problem in my opinion. And then there are reports that the Trump administration is looking for Iran war offramps, but as you and I know, this can be a week-toeek day-to-day situation. And because there are an equal number of traders and investors watching this channel, we will go over the trading plan as I currently see it. And as I said, I will give you an investing plan based on where we currently are in the market. If you don't know who I am, my name is Z. I have a professional background in finance and in tech. And I break down the market for you on a weekly basis. And because I am a trader as well as an investor, I try to fulfill both of those perspectives. Let's get right into it. First, we'll quickly break down what happened in the last week, what you should know, what's upcoming, and then we'll get into the stocks. So, as I said, Bergkshire Hathway finally started buying stocks. They are a net buyer of stocks at the moment. What did they buy? So, you can see here that Berkshire Hathway under the new leader, Greg Ael, who took over for Warren Buffett, deployed cash for the first time, becoming a net buyer in stocks since 2022. Remember, 2022 was a bare market. So Bergkshire spent about $23 billion on stock, some of it in buybacks, so about 4.5 billion buying back their own stock, but almost half of the deployed cash was towards Alphabet. And they purchased about $10 billion of shares in Alphabet. And based on their filing, the price that they got the class A shares was for about 351.81 and the class C shares for 348.20. Currently, the class A shares are trading for about 35430. So right around where they bought. Now it's not surprising that they bought a company like Alphabet. This is a very Berkshire type of buy. If we look on Alphascope, 17.5 for their PE valuation while recording their greatest revenue quarter ever, their greatest EBIT ever, net income ever, their greatest earnings per share ever, their greatest gross profit ever, and trading at a discount because their free cash flows came in negative due to their more than expected capex. Now, in our core portfolio, Google sits at about 13% of the allocation. This is a portfolio that was started since 2021. And so, our cost basis currently is $100.61. So, currently up about 254% on the Google position. And if you watch my video from March 29th, Google was down 20% from highs. And I was making the case for all of these except for Tesla being no-brainer buys at these levels. And for the long term, down 13%, I still think Google is a no-brainer here. As I said at the outset, this was one of the greatest earnings periods ever. And we're not going to get into each earnings. We did cover a lot, but the EPS beat rate for earnings per share was 86% of stocks that reported in the S&P 500 beat their earnings per share. 75% beat revenue. And you can see the forward PE for the S&P 500 right now plummeting to 20.57. The lower this number is, the cheaper the S&P is. And just to keep things in perspective, before the 2008 crash, we were at 32.47. Before the 2020 crash, we were at 26.83. So, can the S&P get to 8,000. And what would it need? What would need to happen in order to get there? If we take a look at the S&P 500, 8,000 is only about 3 and a4% from where we are currently. And the tech sector, which was down 16% just a couple weeks ago, is now down 5% from all-time highs. And the top of the S&P 500 is obviously tech because they are the biggest companies in the world. And the S&P 500 is a market cap weighted stock index. So not only have meggaap tech stocks like Microsoft had a monster earning season, bouncing from major areas of demand. Crazy that just a couple weeks ago Microsoft was in the 300s. But it now looks like software is finally starting to participate as we look at the IGV ETF which tracks tech software. Now, this one has yet to break out. But if we look individually at stocks that we said would be AI beneficiaries like like Palunteer, we also highlighted the cyber security stocks like Cloudflare, Palo Alto Networks, Crowdstrike that these would also be AI beneficiaries and these made all-time highs last week. But if we see a resurgence in Meta and Google as well, as Meta is still in a bare market, more on that later, then it's not a crazy idea for the S&P to gain another 3% off of the backs of these big companies. And although I would have welcomed more of a retracement down before this rally, don't forget that the NASDAQ was in a correction. It was down over 10% even though the S&P 500 was stable. So in this lopsided market, we did get a correction in one corner of the market and a even a bare market in some sectors such as chips as well as some of the MAG7 tech. But the S&P 500 remains stable. And if we're tracking economic factors such as jobless claims, unemployment rate, and GDP, these are tracking the same way that they would in a healthy market, even though a large sector of the American population isn't really feeling like it's a healthy market, obviously. But the unemployment rate came in last week at 4.1% for whatever that's worth if you believe that number. Jobless claims for the second time in a row came in at lower than expected. But obviously the economy is not all good. We do have CPI coming out next week and inflation is still a huge problem in my opinion. If you take a look at just food inflation in the US alone, I mean I'm sure you guys that do your grocery shopping know the absolute pain that it is causing to your wallet. So CPI is expected to come in at 3.4% year-over-year, 0.1% month overmonth. We'll see if that's the case. And we don't have a Fed meeting this month, but we will have one in September. All right, so let's go over the trading plan and the investing plan. We'll go over the three sectors that I talked about look ready for a potential breakout. And it's basically in data centers, chips, and photonics. and then we'll go over the investing plan and talk about some of the asymmetrical stocks, eight stocks in total, even though I'll probably give you more that I see opportunities in right now. So, last week in the Discord, I wrote about a potential run coming for data centers and and some specific data centers at that. So, if you take a look at iron here, iron broke this trend line after sweeping a major demand level. And I was very surprised to see this, but the iron short float is 31% with 3 days to cover. So, it's a heavily shorted stock at the moment. And Nebius has a similar setup, although Michael Bur did disclose a short in Nebus, but Goldman Sachs last week increase its stake to 10 12% of Nebius. Now, it does report earnings this week on Wednesday, and there are rumors that there could be a potential Google deal. But not only did Goldman acquire 10 a.5% of Nebius, but they raised their revenue in EBIT guidance as well. And when I looked up Nebius's short interest, it's even more than iron at 31%. Now, if we take a look at chips as the next sector here, as I said, chips were in a bare market. SMH was down 25% from highs. So, even from an investing perspective, you can make the case that investing in chips in a in a bare market is a no-brainer. And that's the case that I did make. And if you look at some chips individually like Intel, you could see here that it has also broken out. If you look at chips like Marll, it looks like this has also broken out as well. And Nvidia already broke out and jumped significantly from the end of July. It's up 17.5% already. And the last sector that we'll look at for imminent breakouts is photonix. So after the violent unwind and deleveraging in AI high beta stocks, you can see that we finally have breakouts in photonix again, especially as AOI absolutely merckked earnings, record revenue, record profitability, and they reaffirm their tracking of $1.1 billion in total revenue for full year 2026. And although these stocks can be violent, I do think there is a tradable opportunity in Photonix here. Now, the one stock related to optical networking that I'm currently still down on is Nokia. And I would love to see a breakout in this, but that hasn't happened yet. And before we get into the investing plan, keep an eye out on Memory here. Now, one of the ways that I hedged last week was by shorting SanDisk, and we closed that short for 43%. But to me, memory still looks pretty weak here. And there are a few reasons for this. one obviously because of the deleveraging that happened in Korea as well as some of the deleveraging that happened here like with Leopold's fund but also there is news that Apple is now testing Chinese memory chips they're testing from this company called CXMT because they cannot find supply for all of their devices. Now, this is a bit of a hairy situation because there are restrictions. There are government restrictions against uh getting anything from CXMT that is custom because in order to do that, Apple would have to share technology with CXMT and currently that is illegal. So, all they can do is really use CXMT offtheshelf products. But not only that, but with Micron and SanDisk, there are current structural price ceilings. If you don't understand the way that memory cycles work to insulate themselves from extreme market volatility, the hyperscalers are locking up companies like Micron and SanDisk into long-term agreements. And these contracts uniquely integrate hard price floors and fixed price ceilings. So, a lot of the demand for companies like SanDisk and Micron are very wellnown and we can project what the sales are going to be through 2028, but we can also project what the price is going to be. So because of that the enthusiasm is already priced in. Now there is a point at which memory in my opinion will be too cheap. But these multi,000 point rallies in memory in my opinion are long gone. And it's just a matter of how much price breakdown we are going to see from this projected demand and from these price ceilings as well as whether Apple and other companies are using CXMT off-the-shelf memory which would further hurt their bullish case. And I do think memory will become a play again. But right now, I think it's time to be careful. All right. Now, in terms of of investing, the way that we've been successfully in navigating this market is focusing on asymmetry. I think that is the smartest approach. That's how we positioned ourselves in Nvidia. That's how we positioned ourselves in Microsoft. I didn't know that Microsoft would go from 350 to 500 in a couple of weeks. But I did know at 350 Microsoft was was too ridiculous not to buy. And I'm sure a lot of you guys agree with me, but the higher that these prices go on these once asymmetrical bets, the fewer opportunities there are to take advantage of this asymmetry. But there are a few stocks that still stand out to me. So let's go through them. Service Now, this is one that I've talked about. We've been in Service Now since the '9s, the low 90s. And if you look at Service Now's rule of 40, which is basically revenue growth plus profit margin. If it's over 40%, we're talking about elite territory. Service Now's rule of 40 is a 52 score. Their 4 PE sits at 24. Their 10-year keer is 29%. If you take a look at their revenue, Ibita, gross profit, cash from operations, free cash flow, this is a beast of a company. And like I said, we're up significantly on this position, but it is coming up against this trend line from a technical perspective. So although I consider it a solid investment for the long term, if you don't care about technicals, watch for this breakout here because this is the type of stock where if it does break down, can easily go back to demand levels. If it does finally see a breakout and a momentum shift, then we start talking about the 160 to 190 range in the midterm. Now, Hood is another rule of 40 beast. Rule of 40 score sitting at 89. If you look at its 5-year keer, 36%, 3year keer, 49% and it was their best quarter since IPO while trading 40% down from highs. Now, side note, but if we do eventually see a breakout in Bitcoin, which is just consolidating here, that can also be a short-term catalyst for Hood's price action. If we take a look at Uber, record revenue, record gross profit margin, record cash from operations, record free cash flows, sitting at 5.08 billion. Bookings grew 24% as I said in my stock write up and free cash flows crossed 10 billion for the first time in company history. It did drop 5% after earnings but has since broke out of the downtrend that was established in October of 2025. Would love to see a sustained rally as uh from a breakout here but once again best quarter since IPO just like Robin Hood and I like the price here longterm. Now if we take a look at apploven aside from Palunteer it it has the highest rule of 40 score in the stock market. 84% adjusted EBIT margin 66% revenue growth but it did slightly miss on revenue and dropped 20% currently trading at around $346. And although this is going to be a volatile hold if you take a look at its forward earnings at 16 if you look at its 5-year keer 30.45% 45% return on invested capital absolute bananas at 63% record revenue record gross profit record net income record IBATA the revenue jumped 53% year-over-year but they had a slight guidance miss now although I think this is a great price after earnings for the long term I personally don't make a habit of buying gap downs or falling knives so this one for me is a definite watch here now I already talked about Nebius from a trading perspective, but if you can stomach the high beta and you do have room in your portfolio for an AI name with the increased estimates by by Goldman as well as the 10 and a half% share ownership by Goldman, remember that Nvidia also owns 9% of Nebius as well. So although it's going to be a more volatile hold than one is used to if they have a core portfolio, I still like Nebius here. Another asymmetrical bet is SMH. I talked about this already when it was down 25% from highs, but on an individual basis here, I already talked about Marll and Broadcom being a duopoly in my last video. I talked about TSM when it was down 22% being an obvious monopoly. ASML was down 23% obvious monopoly. And with ARM 52% down from highs, ARM is also an obvious monopoly. Now, Intel's looking to become the TSMC of the US. And although it's far from that, it was down 42% from highs. Still down 29% from highs. So there is a lot to love in my opinion from the chip sector. Meta, as I said, is still in a bare market, down 25% from highs. And lastly, I'm looking at CEG here, Constellation Energy. It's the largest private sector power producer in the world and the nation's largest clean energy producer as well. It has capacity for 55 gawatt from hydro, wind, solar facilities, nuclear, natural gas, oil, and geothermal. It's also cash flow positive, has achieved the highest cash from operations as well as the highest gross profit margin ever with the Ford PE of 20 currently sitting at a $96 billion market cap. It's forecasting a 17% per year earnings growth as well as a 5.7% per year revenue growth. Now, obviously, we're still in a midterm year, and there still could be jitters between now and the election season, but a couple things to consider for why this was a weird year and could continue to be. So, the S&P 500 has already dropped 9.5% into March. So, could that have been the peakto trough decline that we saw before an election, a midterm election year? Sure. But then the Nasdaq had a second correction of 11% recently, bottoming at the end of July, while the S&P 500 remained flat and then finally broke out to new highs. While chips and tech stocks were in a bare market, as well as having a historic unwind in momentum and AI high beta stocks. So although I would love a bigger pullback in the S&P 500, you have to work with what you're given. And that's why I'm always a big believer in attacking the plays that give us a high risk-to-reward from an investment perspective, regardless if you think this is the bottom or not. Cuz one, it may not be the bottom, and you should still take the discount regardless if it's the bottom or not. And two, as a matter of fact, the market could play in a way that you just did not foresee. So although getting paid immediately on stocks like Amazon and Microsoft, I did not expect that to happen in a short amount of time. But regardless of how it happens, I personally think the bull market continues until at least next year. Now, if you want to trade live with me every single day at market open and you want access to the swing trades when I take them, as well as the hedges, and you want access to all of my writeups, all of my buys, my portfolios, both the core portfolio as well as the AI portfolio. There's a reason that we have 25,000 members in the Discord. So, make sure you join, sign up below, and I'll see you at market open. Let me know in the comments section below what stocks look good to you here that you want to buy for the long term and what stocks look good to you for trades that I may not have covered. If you have a question beyond just thoughts, leave it in the comment section below as well. Subscribe to the channel, hit that notification bell, stay safe out there, traders. Peace.