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Big tech might be selling off, but these value plays are poised for a major rally

Published 2024-08-02, 05:18 a/m
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Investing.com — Investors who remained wholly focused on big tech in July may have just missed out on one of the year's best opportunities: the great rotation toward value propelled by fantastic earnings reporting among small and mid-cap high-quality plays.

Fortunately, that was not the case for our premium users, who, for under $8 a month, received a list of AI-picked top high-value plays BEFORE they went on to post their financial results and consequently rally.

Just to give you a taste of you may have missed out on in July:

  • Charter Communications (NASDAQ:CHTR): +16.6% after reporting.
  • Pool Corporation (NASDAQ:POOL): +13.64% after reporting.
  • Manhattan Associates (NASDAQ:MANH): +10.96% after reporting.
  • Molina Healthcare (NYSE:MOH): +12.6% after reporting.
  • F5 Networks (NASDAQ:FFIV): +14% after reporting.
  • PayPal Holdings (NASDAQ:PYPL): +11.61% after reporting.
  • Qualcomm Incorporated (NASDAQ:QCOM): +8.40% after reporting.

Among several others...

In fact, users who mimicked our flagship Top Value strategy in July managed to garnish a solid 3.6% on the composed, low-risk stock selection. That compares to a 0.6% drop for the benchmark S&P 500.

Similarly, our Best of Buffett strategy, which features only the cream-of-the-crop of the Oracle of Omaha's already incredible picks, gained an even better 4.8% during the month.

But worry not; while July is already behind us, the same can't be said for big profit opportunities in the market.

As a matter of fact, you may be surprised to learn that, from a broad market perspective, Q2 has been one of the best earnings seasons of the current bull run so far.

Despite the big tech route, 78% of S&P 500 companies reported positive EPS surprises, with the blended earnings growth rate for the quarter jumping to +9.8% year-over-year, the largest since Q4 2021.

Now, as the Fed gears up to begin its rate-cut cycle in September and as big tech earnings keep on posting mixed results, this is the time to find lesser-known, better-priced stocks to position your portfolio for huge gains in August.

And how to do that?

Simple, by following our list of best-in-breed AI picks for August - just updated today!

Already a Pro user? Then see all our picks for August here.

By compiling the history of the stock market in data, ProPicks' state-of-the-art AI models update you with the best stock selection in the market at the start of every month.

Differently from everything else out there, our AI-powered model picks stocks before they become too expensive, thus not just following a "momentum" indicator.

That's how our composed Tech Titans strategy managed to simply obliterate the market since our official launch in November last year (numbers as of premarket today):

  • Tech Titans: +73.73%
  • S&P 500: 28.52%

This is not a backtest; this is real-world performance, unfolded in real time to our users.

In fact, our backtest suggests that going for the long run will give you even heftier gains. See chart below for reference. Tech Titans Vs. Benchmark
Source: ProPicks

This means a $100K invested in our strategy ten years ago would have turned into an eye-popping $1,957,800K by now.

So, will you keep on guessing or have an insight into the winners?

Take advantage of our exclusive summer sale and start beating the market for less than $8 a month! Subscribe Now for Up to 50% Off!

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