TS2 TECH • DAILY MODEL PORTFOLIO
Stocks to Buy Today
Here are five U.S.-listed stocks for Thursday, August 6, selected based on Wednesday’s close and the latest after-hours earnings. The model favors companies with proven profitability, strong cash conversion, positive forecasts, reasonable valuations, and accessible entry points. Stocks opening with price gaps are penalized.
Selective • buy pullbacks, not headlines
7,723.55 • -0.17%
26,363.44 • -0.83%
54,349.12 • +0.49%
3,019.19 • -0.59%
4.62%
Claims • productivity 08:30 ET
The Dow reached a new record high, while the S&P 500 slipped and the Nasdaq fell 0.8%. ADP reported job growth of 44,000, ISM services held steady at 54.1, and the ISM prices index climbed to 70.3. Investors are watching Thursday’s jobless claims and productivity reports, which could influence yields before the market opens.
24% weight
Walt Disney
NYSE: DIS
94 / 100
Disney shares climbed 3.6% as profits from its Entertainment and Experiences division improved and free cash flow grew, while the company maintained a substantial buyback program. Although the Sports segment posted weaker results, the stock continues to trade at about 15 times this year’s consensus earnings.
Shares closed at $101.76, up 3.64%. Analysts maintain a consensus Buy rating, with an average price target of $126.86 and estimates ranging from $88 to $163, suggesting a potential upside of 24.7%.
Revenue rose 7% to $25.25 billion, with adjusted EPS up 28% to $2.06. Segment operating income increased 21% to $5.56 billion, while free cash flow jumped 63% to $3.07 billion.
Analysts expect FY2026 EPS of $6.80, valuing shares at 15 times forward earnings. The company forecasts Q4 segment operating income of approximately $4.9 billion and plans at least $9 billion in FY2026 share buybacks.
Buy the first tranche between $99 and $103, add more if it drops to $94–$97, but avoid buying above $106.
Streaming operating income, sports margins, domestic park demand, and the company’s commitment to its fiscal-year share repurchase target.
slightly below consensus. Rights costs and weaker consumer demand could slow the rerating.
22% weight
AerCap
NYSE: AER
92 / 100
AerCap trades at the lowest multiples among its peers. The company has increased its guidance, sold aircraft at a 20% unlevered gain above book value, and reported $1.5 billion in operating cash flow. The main risks remain aircraft values and airline credit quality.
Shares closed at $155.13, up 0.04%. The consensus rating is Overweight, with an average price target of $179.30. Targets range from $165 to $190, implying a potential upside of 15.6%.
Adjusted net income came in at $811 million, with adjusted earnings per share at $5.14. Operating cash flow totaled $1.5 billion. The company reported $1.4 billion in asset sales, generating $223 million in gains.
The 2026 adjusted EPS forecast stands at approximately $16.80, reflecting 9.2 times guided earnings and an adjusted return on equity of 18%. The outlook does not factor in potential future gains from asset sales.
Initial purchase recommended at $151–$156; consider adding at $144–$148; avoid pursuing above $159.
Lease yields, airline credit quality, margins from aircraft sales, leverage, and ongoing share buybacks below estimated intrinsic value.
weaken returns. The business is capital intensive, and sale gains vary by quarter.
20% weight
Advanced Micro Devices
NASDAQ: AMD
90 / 100
AMD shares fell 7.2% after results, creating a new entry point while leaving the investment case intact. Data center revenue more than doubled, and the midpoint of Q3 sales guidance points to approximately 41% growth. At 32.2 times projected 2027 earnings, strong execution remains essential.
Shares closed at $482.05, down 7.16%. The consensus rating is Overweight, with an average price target of $592.72. Targets range from $320 to $1,250, indicating a potential upside of 23.0%.
Revenue rose 50% to $11.54bn, with adjusted EPS at $1.66. Data-centre revenue surged 107% to $6.72bn, while adjusted operating income reached $3.1bn.
Third-quarter revenue is projected between $12.7 billion and $13.3 billion, with an adjusted gross margin near 56%. Consensus estimates put 2027 EPS at $14.96, valuing the company at 32.2 times expected 2027 earnings.
Initial tranche: $470–$485. Add at $438–$452. Avoid buying above $500.
Key topics include Helios shipments, Instinct deployments, the data-centre mix, the 56% margin target, and the rate of 2027 estimate revisions.
competition, customer concentration, supply limits and warrant dilution can widen the reset.
18% weight
Arista Networks
NYSE: ANET
88 / 100
Arista ended the day up 3.6%, after surging nearly 17% above Tuesday’s close at its intraday high. Investors pushed back on the initial opening price, not the company’s operating results. Strong revenue growth, an operating margin approaching 50%, and a solid Q3 outlook keep the stock in the portfolio, though with a reduced weighting.
Shares closed at $197.31, up 3.58%. The stock holds a consensus Buy rating, with an average price target of $232.50. Analysts’ targets range from $173 to $289, implying a potential upside of 17.8%.
Revenue came in at $3.04 billion, up 37.7%. Adjusted EPS was $1.02, with a non-GAAP operating margin of 49.9%. The stock closed 11.4% below its session high.
Third-quarter revenue came in at roughly $3.3 billion, with adjusted earnings per share between $1.06 and $1.08. Wall Street expects 2027 EPS at $4.81, valuing the company at 41 times 2027 earnings.
Initial buy range: $190–$199. Consider adding between $178 and $186. Avoid buying above $207.
Third-quarter revenue performance, cloud and AI infrastructure contracts, supply agreements, client concentration, and sustained operating margin.
customers, supply commitments and unstable post-result pricing add concentration risk.
16% weight
Albemarle
NYSE: ALB
85 / 100
Albemarle’s latest quarter demonstrates a rebound in cash flow, though the company’s outlook remains closely tied to lithium prices. Adjusted EBITDA increased by 155%, and free cash flow totaled $638 million. The 9.7× multiple before results and strong analyst upside support maintaining the position, but exposure to commodity price swings limits it to 16%.
Shares closed at $118.84 and rose to $120.94 after hours, up 1.77% as of 16:48 ET. The consensus rating is Overweight, with an average price target of $192.22 and estimates ranging from $155 to $250, suggesting a potential upside of 58.9% from the after-hours price.
Net sales rose 31% to $1.74 billion. Adjusted EBITDA climbed 155% to $858 million. Operating cash flow reached $710 million, with free cash flow at $638 million.
With lithium priced around $20/kg, 2026 scenario projects sales of $5.7 billion to $6.0 billion and adjusted EBITDA between $2.4 billion and $2.6 billion. Pre-results, 2026 consensus EPS stands at $12.53, reflecting a 9.7× multiple at the after-hours reference.
Start with an initial purchase between $116 and $123, consider adding shares if the price falls to $104–$111, and avoid buying above $128.
Thursday’s 8:00 a.m. ET call will cover realized lithium prices, Talison cash distributions, capital expenditures, and normalization of working capital.
scenario falls to $0.9bn–$1.0bn. Commodity prices can overwhelm operating progress.
| Ticker | Price | Forecast | Fwd P/E | Avg target | Upside | Entry |
|---|---|---|---|---|---|---|
| DIS | $101.76 | FY2026 consensus $6.80 | 15.0× | $126.86 | +24.7% | $99–$103 |
| AER | $155.13 | 2026 guide $16.80 | 9.2× | $179.30 | +15.6% | $151–$156 |
| AMD | $482.05 | 2027 consensus $14.96 | 32.2× | $592.72 | +23.0% | $470–$485 |
| ANET | $197.31 | 2027 consensus $4.81 | 41.0× | $232.50 | +17.8% | $190–$199 |
| ALB | $120.94 AH | 2026 consensus $12.53 | 9.7× | $192.22 | +58.9% | $116–$123 |
Albemarle’s after-hours quote reflects the 16:48 ET price. Estimates and targets for Disney, AMD, Arista, and Albemarle may not fully incorporate the latest post-earnings updates. Albemarle’s multiple is based on pre-earnings consensus EPS. Price targets represent analyst forecasts, not guaranteed returns.
24%
22%
20%
18%
16%
Earnings results prompt analysts to revise their estimates
Cash flow and balance sheet
Valuation relative to projections
Entry quality following the move
Short-term event risk
Use limit orders and build each position in three tranches.
Avoid placing market orders if the gap exceeds 5%. Reevaluate following Albemarle’s 08:00 ET call and the release of claims and productivity data at 08:30 ET. AMD, Arista, and Albemarle should remain under their designated weights until initial price discovery stabilizes.
NASDAQ: SHOP
DO NOT CHASE
Revenue climbed 34%, with free cash flow margin hitting 18%, while shares advanced 17%. The company delivered results above estimates, though this was not due to a market order following the gap.
NYSE: LLY
QUALITY, LIMITED DISCOUNT
Revenue jumped 48% to $23.0 billion, with guidance lifted to a range of $85 billion to $87 billion. Shares climbed 4.8% and remain priced at about 42 times trailing earnings.
NASDAQ: WDC
WAIT FOR PRICE DISCOVERY
Revenue jumped 44% and adjusted EPS topped expectations, but shares dropped around 10% in after-hours trading. The stock’s 201% gain so far this year had set high expectations beyond a strong single quarter.
7.0 / 10
AMD and Arista continue to trade at elevated AI-related multiples. Albemarle’s valuation reflects after-hours pricing and a commodity-based outlook. Meanwhile, Disney and AerCap weigh down the overall portfolio value.
The Dow set a new record high, though market breadth narrowed and the Nasdaq slipped 0.8%. The 10-year Treasury yield stayed close to 4.6%, while ISM prices climbed to 70.3. Investors are watching Friday’s payroll report, which could reshape interest rate expectations. Even a strong quarter may not translate to gains if investor expectations are already high.