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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 |
| +4.2% | +116.25% | |
| OSCR | | Oscar Health · Financials |
| +34.5% | +119.07% | |
| VECO | | Veeco · Information Technology |
| +23.4% | +147.2% | Reweighted |
| PENG | | Penguin Solutions · Information Technology |
| +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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