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| Rates repricing across the yield curve, driven by the Fed's shift toward higher-for-longer, sparked a broad-based rebalance in June, with capital-intensive behemoths such as Microsoft, Oracle, and Meta all selling off double digits for the month. |
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| But where did all that money go? |
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| As investors reassessed the cost of capital, no corner of the market ran harder than mid-caps — rewarding companies with disciplined balance sheets and consistently expanding margins. That strength cut across sectors, showing up in AI infrastructure and healthcare alike. |
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| Our AI's June picks reflected exactly that, with two 20%+ MTD winners in semiconductors and healthcare making way for a pair of still-undervalued names in the same sectors. |
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| After booking a massive +47.72% in June, mid-cap semiconductor player Allegro MicroSystems was rotated out on its stretched valuation following an extraordinary rally. Molina Healthcare was likewise dropped after a +24.8% gain, on slowing returns and elevated price swings. |
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| In their place came two names still hitting their stride: Diodes (+122% YTD), a semi-infrastructure play combining momentum, growth, and overlooked value, and Oscar Health (+143% over the last 90 days), riding a mix of explosive growth and momentum. |
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| US Stocks picked by AI - Overview |
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| Tech Titans |
| +247.7% Return since launch |
| +170.9pp vs S&P 500 |
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| Energy Elite |
| +34.5% Return since launch |
| +11.3pp vs S&P 500 Energy |
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| Mid-cap Movers strategy - June performance |
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| Strategy return |
| +10.4% |
| June 2026 |
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| vs. S&P Midcap 400 |
| +6.9pp |
| Outperformance |
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| Spotlight exit |
| +44.7% |
| ALGM — exited |
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| Max drawdown |
| −12.3% |
| KD — held |
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| Mid-Cap Movers vs. S&P Midcap 400 — cumulative, 6 months |
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Monthly alpha — rolling 6 months
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| Exited from Mid-Cap Movers this month |
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| ALGM |
| Allegro MicroSystems · Held 30 days |
| Total return since picked |
| +47.7% |
| Systematic profit-taking near peak valuation. Following a ~164% year-to-date run trading near all-time highs, the model locked in gains as valuation stretched past its ~$57 analyst consensus target. Fundamentals remain solid — expanding margins, quadrupled data center sales — but early cost pressure and elevated expectations narrowed the remaining margin of safety. |
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| AMRX |
| Molina Healthcare · Held 30 days |
| Total return since picked |
| +24.8% |
Systematic rotation. While Q1 2026 beat expectations and a new Illinois Medicaid contract was secured, extreme price swings and lagging performance compromised its risk-adjusted outlook. A guidance cut to ~$5 per share stretched the multiple to a steep 63x P/E, prompting the model to reallocate into higher-conviction alternatives.
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| 2 new picks inside Mid-Cap Movers: |
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| Diodes Inc · Information Technology |
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| PEG ratio: 0.256 consecutive quarters of double-digit growth |
| Six straight quarters of double-digit revenue growth and a Q1 revenue jump of 22% YoY are driving rapid top-line expansion. While a ~122% six-month surge has pushed the stock to all-time highs, a PEG ratio of just 0.25 reveals exceptional overlooked value relative to a projected doubling of earnings by next year. Surging automotive and industrial demand (up 32% and 31% respectively) is generating substantial pricing power and product shortages, providing massive fundamental momentum heading into 2028 targets of $2B in revenue and $4+ EPS. |
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| Oscar Health · Financials |
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| Q1 earnings beat: $2.07 vs. $1.06Membership growth: +56% YoY |
| Secured a stunning Q1 2026 earnings beat ($2.07 vs. $1.06 forecast) fueled by an explosive 53% YoY top-line expansion to $4.6B. Momentum is firing on all cylinders as membership jumped 56% to 3.2M customers and operating margins expanded past 15.2%. Backed by a landmark court ruling removing ACA enrollment restrictions and a fresh Barclays upgrade to a $35 price target, forward full-year revenue targets near $19B indicate this explosive growth story is just getting started. |
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| Mid-Cap Movers full list of stock picks for July: |
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| STOCK |
RETURN JUN |
RETURN YTD |
STATUS |
| DIOD |
| Diodes · Information Technology |
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+4.2% |
+116.25% |
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| OSCR |
| Oscar Health · Financials |
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+34.5% |
+119.07% |
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| VECO |
| Veeco · Information Technology |
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+23.4% |
+147.2% |
Reweighted |
| PENG |
| Penguin Solutions · Information Technology |
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+16.8% |
+256.5% |
Reweighted |
| 🔒 |
| Mid-Cap Movers full list of stock picks for July: |
| Investing.com paid subscribers get the full list, live rebalances, and Fair Value scores — updated monthly. |
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| *Data correct to July 1st 2026 |
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