Market Shift

The July 2026 ProPicks AI investor letter explains that the Federal Reserve’s higher‑for‑longer stance has repriced rates across the yield curve, prompting a broad rotation in June away from capital‑intensive large‑cap technology names such as Microsoft, Oracle and Meta, which each fell double‑digit percentages.

Mid‑Cap Movers Strategy Performance

Since its inception the Mid‑Cap Movers strategy has generated a 92.9 % total return, outpacing the S&P Midcap 400 by 30.9 percentage points. The strategy’s year‑to‑date win rate stands at 73 %. In June 2026 the strategy posted a 10.4 % monthly gain versus the benchmark’s 3.5 % (6.9 pp outperformance). The maximum drawdown recorded for the held position KD was –12.3 %.

Recent Exits

Allegro MicroSystems (ALGM) was sold after a 30‑day holding period, delivering a 47.7 % return since pick and a 44.7 % exit gain. The model cited a stretched valuation near the $57 analyst consensus target after a ~164 % YTD rally and early cost pressures despite solid fundamentals such as expanding margins and quadrupled data‑center sales.

Molina Healthcare (AMRX) was also exited after 30 days, providing a 24.8 % return. Although Q1 2026 earnings beat expectations and a new Illinois Medicaid contract was secured, the stock experienced extreme price swings and a guidance cut to roughly $5 per share, inflating its P/E to about 63× and prompting reallocation.

New July Picks

The model added Diodes Inc (DIOD), an information‑technology semiconductor‑infrastructure play, which is up 116.25 % YTD and posted a 4.2 % gain in June. Diodes reports six consecutive quarters of double‑digit revenue growth, a 22 % YoY Q1 revenue increase, and a PEG ratio of 0.256, driven by automotive demand up 32 % and industrial demand up 31 %. The company targets $2 billion revenue and over $4 EPS by 2028.

Oscar Health (OSCR), classified under financials, entered the portfolio with a 34.5 % June gain and a 119.07 % YTD increase. The insurer posted Q1 2026 earnings of $2.07 versus $1.06 consensus, a 53 % YoY revenue rise to $4.6 billion, and membership growth of 56 % YoY to 3.2 million. Operating margins expanded above 15.2 %. A recent court ruling removed ACA enrollment restrictions and Barclays upgraded the price target to $35, supporting a full‑year revenue outlook near $19 billion.

Other AI Strategy Highlights

Across the 88 AI‑driven strategies, notable cumulative returns since launch include Tech Titans (+247.7 % vs S&P 500 +170.9 pp), Dominate the Dow (+50.0 % vs DJIA –7.6 pp), Top Value Stocks (+80.9 % vs S&P 500 +18.2 pp), Best of Buffett (+55.9 % vs S&P 500 –6.9 pp), Healthcare Heroes (+30.3 % vs S&P 500 +7.1 pp), Energy Elite (+34.5 % vs S&P 500 +11.3 pp), Financial Fortresses (‑15.2 % vs S&P 500 –20.3 pp), Small‑Cap Sprinters (+52.7 % vs Russell 1000 +33.4 pp), Quality Compounders (+19.4 % vs S&P 500 –0.7 pp), Italian Market Elite (+65.4 % vs FTSE Italia +16.3 pp) and HK Tech Titans (+26.1 % vs Hang Seng +32.8 pp). The Mid‑Cap Movers remains the featured strategy for July, with 20 active picks, four of which are visible in the public view.

Subscription Note

ProPicks AI offers access to full positions, live rebalances and rationales for all picks across its 88 strategies for a single subscription.