TS2 TECH • DAILY MODEL PORTFOLIO
Stocks to Buy Today
Here are five U.S.-listed stocks to watch on Monday, August 3, with late-session prices recorded at around 3:35 p.m. ET. The model highlights updated guidance, strong cash conversion, and entry prices that remain attractive. Stocks with large price gaps lose points, even after solid results.
Constructive • buy evidence, not momentum
7,601.77 • +1.50%
25,935.24 • +2.21%
53,089.21 • +1.15%
4.69% • -5bp
$79.75 • -5.8%
55.6 • four-year high
Lower oil prices and falling Treasury yields helped boost most sectors. Corporate earnings continue to back the rally, with 85.2% of the 304 S&P 500 companies that have reported so far beating estimates. However, rate risk persists: ISM prices held high at 71.1, and Friday’s payroll report could impact yields again.
24% weight
Xylem
NYSE: XYL
94 / 100
Xylem stands out for the clear disconnect between operational performance and share price. Orders surged 42% and margins improved, prompting management to raise EPS guidance. Despite this, the stock trades below most post-earnings targets. With revenue up just 2%, the pressure is now on backlog conversion to drive growth.
As of 15:35 ET, shares traded at $118.90, up 1.65%. The consensus rating is Outperform, with an average price target of $153.41 and targets ranging from $129 to $183, suggesting an implied upside of 29.0%.
Orders reached $3.1 billion, up 42%. Revenue totaled $2.3 billion, a 2% increase. Adjusted EPS rose 16% to $1.46, while adjusted EBITDA margin improved by 150 basis points to 23.3%.
For 2026, the company forecasts adjusted EPS of $5.55 to $5.70, revenue near $9.2 billion, and an adjusted EBITDA margin between 23.1% and 23.5%. The midpoint of guidance implies a 21.1× multiple.
Initial tranche at $116–$120; add at $111–$114; avoid buying above $123.
Key factors include backlog conversion, timing of Water Solutions projects, wins in data center and power sectors, and free cash flow performance in the second half.
22% weight
AerCap
NYSE: AER
92 / 100
AerCap trades at the lowest projected earnings multiple among its peers. The company continues to generate robust cash flow, grow its book value, and buy back shares. Its updated $16.80 EPS forecast does not factor in any additional gains from asset sales in the second half, leaving room for further upside even if the valuation doesn’t increase.
As of 15:35 ET, shares traded at $154.02, up 2.07%. Analysts rate the stock a Strong Buy, with an average price target of $179.30 and estimates ranging from $165 to $190, suggesting a potential upside of 16.4%.
Adjusted net income came in at $811 million, with adjusted earnings per share of $5.14. Operating cash flow reached $1.5 billion, and adjusted return on equity was 18%. The company repurchased $691 million of shares in the second quarter.
The 2026 adjusted EPS guidance stands at approximately $16.80, reflecting 9.2 times projected earnings. Book value per share is $119.21, with the stock trading at 1.29 times book.
First tranche: $151–$155; add at $146–$149; avoid buying above $159.
Lease yields, airline credit quality, margins on aircraft sales, financing expenses, and share repurchases below estimated intrinsic value.
20% weight
Visa
NYSE: V
89 / 100
Visa delivered a strong quarter, with double-digit growth in payment volume, cross-border activity, and processed transactions. The stock has not kept pace with the market’s top momentum performers. Investors may need patience on valuation and may want to build positions gradually rather than all at once.
As of 15:35 ET, shares traded at $365.98, down 0.04%. Analysts rate the stock a Strong Buy, with an average price target of $413.45 and estimates ranging from $330 to $450, suggesting a potential 13.0% upside.
Net revenue reached $11.63 billion, up 14%. Adjusted earnings per share were $3.32, an 11% increase. Payments volume rose 10%, with cross-border volume climbing 13% and processed transactions also up 10%.
Full-year adjusted revenue is expected to grow at the low end of the low-teens range, while adjusted EPS is projected at the low end of the mid-teens. The FY2026 consensus EPS implies a 27.8× multiple.
Initiate positions at $359–$368, add between $350–$355, and avoid buying above $375.
Key factors for the fourth quarter include transaction volumes, client incentives, growth in value-added services, and the impact of restructuring on productivity and product launch timelines.
18% weight
Lennox
NYSE: LII
87 / 100
Wednesday’s 20% drop reflected more pessimism than the guidance cut itself. Lennox trimmed its EPS outlook by $0.75, but maintained its 8% revenue growth target and cash-flow range. Commercial revenue climbed 24%, though residential demand is still sluggish, making this a gradual entry point.
As of 15:35 ET, shares traded at $432.38, up 3.97%. Analyst consensus is mixed, with an average price target of $511.15, ranging from $450 to $609, indicating an implied upside of 18.2%.
Revenue rose 3% to $1.5 billion; adjusted EPS was steady at $7.72. Segment profit climbed 2% to $355 million. Home Comfort revenue fell 7%, while Building Climate revenue jumped 24%.
The company projects 2026 EPS between $23 and $24, with revenue growth around 8%. Free cash flow is expected to range from $750 million to $850 million. Shares trade at 18.4 times the midpoint of guidance, implying a 5.3% free cash flow yield at the midpoint.
Initial purchase range: $423–$435. Consider adding between $405 and $415. Avoid buying above $442.
Key factors include residential unit sales, demand for repairs versus replacements, channel inventory levels, pricing, and the company’s unchanged cash flow guidance.
16% weight
UPS
NYSE: UPS
84 / 100
UPS has shifted from restructuring plans to delivering tangible improvements in its operations. Revenue increased, guidance was raised, and the dividend yield remains above 6%. The holding stays small, however, as the company faces a challenging margin goal for the second half of the year.
As of 15:35 ET, shares stood at $106.78, up 2.46%. Analysts have a consensus Buy rating, with an average price target of $115.85, ranging from $76 to $135, suggesting an implied upside of 8.5%.
Revenue came in at $22.8 billion, with an adjusted operating margin of 9.2%. Adjusted earnings per share were $1.76. U.S. revenue rose 6.0%, while international revenue climbed 12.5%.
For 2026, the company forecasts revenue of around $91.2 billion, adjusted operating profit of approximately $8.65 billion, and adjusted earnings per share of $7.22. This puts the forward price-to-earnings ratio at 14.8, with an annualized dividend yield of 6.1%.
Initiate at $103–$107, add between $98–$101, avoid buying above $110.
Domestic package volumes, revenue per shipment, progress on the $3 billion cost program, and margins following the Amazon network scale-back.
| Ticker | 15:35 ET | Forecast | Fwd P/E | Avg target | Upside | Entry |
|---|---|---|---|---|---|---|
| XYL | $118.90 | 2026 guide midpoint $5.63 | 21.1× | $153.41 | +29.0% | $116–$120 |
| AER | $154.02 | 2026 guide $16.80 | 9.2× | $179.30 | +16.4% | $151–$155 |
| V | $365.98 | FY2026 consensus $13.20 | 27.8× | $413.45 | +13.0% | $359–$368 |
| LII | $432.38 | 2026 guide midpoint $23.50 | 18.4× | $511.15 | +18.2% | $423–$435 |
| UPS | $106.78 | 2026 guide $7.22 | 14.8× | $115.85 | +8.5% | $103–$107 |
Prices reflect late-session quotes recorded at approximately 15:35 ET. Lennox’s targets are currently under review following the July 29 guidance downgrade. Analyst price targets are projections and not guarantees of future returns.
24%
22%
20%
18%
16%
Earnings and forecast adjustments
Cash flow and balance sheet overview
Valuation based on projections
Entry quality remains steady following the move
Short-term event risk
Use limit orders and build each position in three tranches.
Don’t let a strong late-day price lead to chasing after-hours trades. For orders placed after 3:35 p.m. ET, use the next regular session’s price discovery. Review Tuesday’s factory orders and job openings data before increasing exposure to cyclical stocks.
NASDAQ: AMZN
WAIT FOR CONSOLIDATION
At 15:35 ET, shares stood at $284.59, up 4.79% and gaining 20.8% over two sessions. AWS revenue climbed 37%, though trailing free cash flow was negative $7.6 billion. Technical support appears around $270–$276.
NASDAQ: FSLR
DO NOT CHASE THE 11% GAP
As of 15:35 ET, shares traded at $234.01, up 10.89%. Second-quarter EPS came in at $3.92, with full-year guidance maintained. However, narrowed guidance has limited short-term gains. Consider waiting for a pullback below $222 or for shares to form a flat base.
NYSE: BA
CERTIFICATION CATALYST, POOR ENTRY
15:35 ET Boeing shares rose 7.98% to $233.39 after the FAA certified the 737 MAX 7, easing a key risk. Second-quarter free cash flow returned to positive territory, but much of the recovery appears to be factored into the initial rally.
6.6 / 10
Wider market participation is easing short-term stress, but late-session volatility and the upcoming Friday jobs report are keeping timing risks high. Lennox and UPS face operational challenges, while Xylem and Visa confront valuation concerns.
Oil posted a steep decline, though the ISM prices index held steady at 71.1 and the 10-year Treasury yield hovered near 4.69%. A shift in Iran-related news or a robust payrolls report could renew pressure on yields and cyclical stocks.