Stocks That I Am Watching

THE MADNESS OF RETAILERS

We are going through a period of major volatility in the market.
Everyone is running to the “safety” provided by Walmart and Costco .

On the other hand, Amazon’s stock is declining because “margins are expected to fall.”

The truth, however, is different.

1. Amazon is recording much higher revenue growth, now surpassing Walmart.
2. It has by far the best margins among the three.

Yes, I know I am comparing apples to oranges, since Amazon is now essentially a technology company, but this whole situation does not make much sense to me.

Obviously, Walmart and Costco are extremely high quality companies, but in my opinion, Amazon is being treated unfairly and is undervalued.

SURGE FOR EXXON MOBIL

According to Bank of America, we are entering a bull market for the energy sector.
And it makes sense. On the one hand, demand is surging, and on the other hand, geopolitical tensions are keeping supply constrained.

This has caused oil prices to move gradually higher.
And this is clearly reflected in the share price of my favorite company, Exxon Mobil.

The stock has surged in 2026, gaining +21%, while since I added to my position at the end of December, it has risen by +26%.

I truly did not expect it to increase so quickly and reach my price target ($150) in such a short period of time.

The Architects of the Digital World

These four companies, ASML, Applied Materials ,KLA Corp, and Lam Research , do not manufacture chips.
They build the machines without which Nvidia, Apple, and Intel could not exist.

1. ASML: The absolute monopoly that produces EUV machines.
2. AMAT and LRCX: Equipment for material deposition and the etching of layers onto silicon.
3. KLAC: Its machines inspect chips for defects.

Over the past four years, they have recorded impressive revenue growth, with ASML leading the race.

However, over the past six months, LRCX’s stock has surged because of its exposure to memory chips.

In my opinion, despite the rally, valuations remain at reasonable levels for companies of this quality, with AMAT being the “cheapest” based on forward P/E.