The 3 Best Stocks I’m Buying Now (Before July 2025 Ends)

Guys, I get it. Buying stocks is one of the most exciting things you can do. And right now, there are three on my radar for the month of July. These aren't hype stocks. They're not momentum plays. They're solid. What I perceive to be mispriced companies that can build real wealth over time. And in this video, I'm going to show you what they are, why I want them, and the exact price points I need to see in order to buy them before the end of July. Now guys, if you're new to the channel, I'm going to go over some foundational things we need to talk about. But first off, all three of these stocks I currently own, Mo owns none of them. And don't ever buy a company just because somebody on the internet has it. Stock number one, a company you might have heard of, it is called Nike. Now Mo, I like Nike. We've done videos on Nike. It's at $60 a share. The ironic part is, the all-time high was $179 per share. It is down 66% from its all-time high. Mo, do you remember what people said when we were doing videos on Nike? We said, eh, we'd be interested in taking a look, sub $100. I said we were crazy. It'll never get there. Never get there. And now it's at $60. What are people saying? It's dead. The company is dead. They're screwed. So one of the foundational things I want you guys to remember is, news follows the stock price. This is something very important that new viewers have to understand and very important for returning videos to repeat over and over. Because there will be a stock someday that you love that will fall for no reason whatsoever besides people just said blah on it. That's it. Guys, this is an $88 billion company. This company owns the apparel world and the sports world. Mo, do you think Nike will be around for decades to come? I do. So do I. So that's the first question I ask. It's an $88 billion company that generated $5.3 billion in free cash flow last year and averaged $4.9 billion in the last five years. That's pretty good. Very good. It's got higher free cash flow than net income. It's currently selling for 18 times free cash flow. It pays a 2.5% dividend that they can easily afford because the dividend only pays out $2.3 billion of their $5.3 billion. Guys, so far I'm liking everything I'm seeing. One metric that I want everybody who's new to understand, return on invested capital. High returns on invested capital, basically over 10%. Show me that the company does a good job of taking their cash, reinvesting it, and getting high rates of return on that. That's how you get a long-term compounder. It's also how you see what company has basically what's called a moat. We always hear this moat status based on what Warren Buffett says. This is how you see your moat. There are companies like Starbucks and Apple that are 40% plus. Huge numbers. That means they have a moat. Now, let's go look at their eight pillars here to see what we like. Oh my gosh, I didn't even realize this, Mo. Oh wow, it's all eight. All eight check marks. For a company like Nike, damn. Yeah, Tim's in the background high-fiving the world. He loves it. We usually don't see that. We usually see it overvalued in this current environment. Correct. We usually see them with like six check marks, but the last two of valuation are the X's. They're growing their revenue, growing their net income, growing their cash flow. What is there not to like? Well, if the future's bad, look at BlackBerry. BlackBerry probably before their downfall had good numbers. Hey, listen, they're growing their sales and all that stuff, and then they suddenly didn't. And that's a possibility. But I ask you the question, what are the chances of that happening to Nike? Yeah, and I think when I look, Nike's been doing it a lot longer than BlackBerry was doing it for. That's true. They're a much more established brand. They've got a guy named Michael Jordan. Yeah. LeBron James. Who? Yeah, exactly. They had Tiger for a while. Not anymore. They're not doing the golf stuff anymore, but they're getting out there with a lot of other female WNBA players. They're really expanding their product line and the number of athletes they have on them. I look at it going, OK, is it possible that they go to zero? I mean, it's possible, but even BlackBerry didn't. BlackBerry still generates revenue and still generates. I don't think they generate profit. But the point is, I look at this going, this is where news follows the stock price. You have to take advantage of that, in my opinion. OK, now let's see what analysts think. Analysts have Nike making $2 per share over the next year and growing 33%, 46%, 15% and 17% to $5.23. That would make it 12 times earnings, less than 12 times earnings in a few years. Not crazy high, not crazy awesome, but pretty solid still with growth levels. And guys, this dying company, they have it growing its revenue from $46 billion to $57 billion. Yes, Nike is currently in a stage of contraction on their revenue. Yeah, and I don't expect them to be at the size that they're at in the industry that they're in to be doing crazy revenue and profit. Oh, yeah, correct. Consistently growing slowly. We would love to see that 4% to 7% revenue growth every single year with good margins. And that's what they have here. Now, guys, something I want to go over. We're going to use our stock analyzer tool in just a couple of minutes to go over the price we want to pay for the stock before we get there. There's something that we do on this channel that a lot of people kind of find to be interesting. We believe in trading. Mo is a seasoned trader, and I'm new to it, but I like the idea of trading. The reason I like trading so much is it allows you to make money no matter which way the market's going. And it doesn't care about fundamentals. Hell, trade Bitcoin. It does not matter. And that's what's so great. So, Mo, talk about the charts for Nike stock. So this I actually traded recently, and this blip right back here, this was COVID. And notice this. We were below COVID. We're significantly below COVID levels on Nike. And I said, that's crazy. I mean, this is when everything was going down with the tariffs. And I said, this is just news. We're below COVID levels. They're still driving revenue and profit. I just think this thing is going to spike right back up. So I bought around 52. I ended up selling around 65. The rebound was way faster than I thought. I was going to get greedy and take it to 70. Why 70? This yellow line right here. That's kind of your resistance point that you're going to run into. Now, do I think it can get back there? Yeah, I think this is where I'm going to start dabbling and trading this again. But this is a beautiful example of showing that, look, we have a really strong base here of COVID. We have a really strong resistance point of $70. You can make money in between that area if you don't want to invest in it for the long term. So that's what's great. You can sit there and keep yourself busy. Because that's what long-term investing is all about, is not making lots of investing decisions. Go to the trading. Wait for stocks to hit the price you want from a long-term perspective. And do the trading to keep yourself busy on a day-to-day basis. That way, you're not making dumb investment mistakes. Now, for our stock analyzer tool. This is where we marry the story with the numbers. We put them together. We put our low, middle, and high assumptions on revenue, profit margin, future analysis, our desired return, and say, what is the right price to pay today? So I did 3%, 5%, and 7% revenue growth over the next 10 years. Fair. I did profit margin of 9%, 10%, and 11%, which, Mo, could actually be a little low. Could be low, yeah. Could be low. I did a PE and price of free cash from the future of 19%, 22%, and 25%. Because this is a premium brand. This is a premium company. This is the kind of company that people are going to buy no matter what. And I did my 9% desired return. That is only the market return of 9% or 10%. If you want to buy a company, individual company, then you've got to put a higher return in there for margin of safety. But we just do this now to see what it's worth. I hit the Analyze button. I have a low price of 51. There you go. A high price of 103. A middle price of 73. Which means if you bought it today, and my middle assumptions occur, you'd make about 11.6% discounted cash flow return. And that includes the dividend. You don't add the dividend on top of that. And guys, I'm not telling you to buy anything because they're in green. It's all about you doing your own research. Stock number two, another company that I own. And again, all three companies I own. Adobe. Adobe has been on a roller coaster. Look at this. A high of $700 back in 2021. Last year, it hit 587. A low of 332. Guys, look at this. In a matter of five months, it went from 580. It went from 332 to 587 and got back down to 379 recently. Do you see the volatility in individual companies? Are you really telling me that from November of 2021 until April of 2025, which is three and a half, four and a half, no, three and a half years, the company lost over 50% of its value. And the interesting thing is this is not like a sexy company. This is Adobe. It's not like it's some big... I mean, they're big on the AI front right now. But a lot of people think the AI is going to replace them. True. That's a big thing for them. But it's not like a Palantir or something cool like that. This is a company that's been around for a long time. $166 billion market cap. Reasonable debt. Look at their enterprise value, only $175 billion. The difference between, for those of you who are new, enterprise value and market cap of $9 billion. That's essentially their net debt. And they generated $9 billion in free cash flow last year. They could pay off that difference in one write of a check. It's hard for companies to go under and go bankrupt when they have little debt. Great returns on capital. 22% over the last five years, 29% last year. So for a company that everybody thinks is dying, generated 29% return on its invested capital. And look at these margins, Mo. 89% gross margin. That's crazy. That means every extra dollar that brought in generates 89 cents of it into the bottom line before taxes and overhead. And the bottom line profit after all that is about 30%. Guys, this company is incredible. Now, in our community, we've had 16 people vote on their rating for Adobe and the average rating is a buy. Four people have it a hold. I assume nine people have it as a buy. And three people have it at a strong buy. So these are our community members, our active people who use this software every single day. So let's go to our eight pillars here. Okay, so this is what we're talking about, Mo, right? This is what we usually see. Now, what's amazing is I own this company and look at this PE. They're above. What I love is that their price to free cash flow is lower. Because you know why? They generate more free cash flow than their net income. That's a very rare thing. People are always going to focus on that income. This is the lifeblood. The free cash flow is the lifeblood. When your cash flow is greater than your net income, it usually means I think people are missing something there. So people are saying, this is a 31 PE. I'm sitting there saying, it's a 23 price to free cash flow. I'd rather have this. This is far more important to me. So remember guys, these X's are our valuation metrics. There are five-year PE and five-year price to free cash flow. That's really important. But remember, just because they're X's doesn't mean they're overpriced. You cannot assume that just because of what's going on there. Analyst estimates. Look at this, Mo. 50% increase from $21 a share to $32 a share in the next four or five years. Double digit earnings per share growth. According to analysts, revenue growth, high single digits. For $188 billion company, they're still able to grow that. And it's high margin. High margin business. They're generating a lot of profit on that extra revenue. So imagine this. You have a company with 10% margin and a company with 30% margin. If they both increase their revenue by $1, who generates more profit? The 30% business, right? So you can sit there as Adobe and grow less, but still generate tons more profit. That's the power of Adobe, in my opinion. Now, again, let's go to the charts here. Mo, what do you think about what's going on in the charts there? So this one is interesting. This is the daily chart. And the reason I pull up the daily chart is because it has these moving averages. So you have your 200-day moving average, 25, 150-day moving average. And those are important right now because those are holding the stock to the price that it's at. So could Adobe drop down here? Yeah, it could. But these moving averages, they're like magnets. They suck the stock price back up. And when they're above, they suck them back down. They want them to be on top of those moving averages. So right now, it's slightly below the 50. I think it's going to probably pull it back towards this 100-day moving average. But this is a great opportunity where you can get a short trade. You can go in there for like one, two, three, four, five days, make a trade, make a swing trade, make some profit, move on. You don't need to sit in it and wait for a long period of time. And the best part is you don't have to care about the fundamentals at all. You don't have to care about the fundamentals at all. That's what's great. When I trade, I actually look at this and I cross out the stock, the ticker symbol, even cross out the price. The only time you need to know the price is it, can you afford to buy the shares or how many shares do you need to buy? Other than that, it's solely pattern. That's all it comes down to. So this is the stock analyzer tool. Again, put the numbers and the story together. Mo, here are my assumptions for the next 10 years. I did 4%, 8%, and 12% revenue growth. I did a profit margin of $26, $29, and $32. Free cash flow of $38, $40, and $42. Now, what's interesting though, Mo, is if they generate this kind of revenue growth, I got to think their free cash flow margin and profit margin would go up. They're going to go up. Because of those high, we're talking about that high gross margin, 89%. So I think I'm being conservative here. I did a P.E. of $18, $21, and $24. And look at this increasing return on capital. It gets better and better as time goes on. So is this conservative? Maybe so. I don't know. That's the art of investing. We don't know what the right numbers are because we don't know the future. And again, my 9% no margin of safety return. Hit the analyze button. This is why I'm interested in the company. A low price of $240 to $350. High price of $670 to $880. Middle price of $400 to $560. And based on cash flow, it is looking at a 14.26% return based on my assumptions above. If they're worse, if they come out worse, it won't be as good. If they come out better, it'll be higher. Now you see why I'm interested in Adobe stock. Guys, stock number three, Southwest Airlines. This is one of the hardest stocks that I own because it's an airline. And Mo, what do we think of airlines? Yeah, they're really, it's just tough industry. It is. Now, the reason I like Southwest is prior to COVID, every single year, they're profitable. They do a great job hedging. They have loyalty. They don't run airlines the way other people run airlines. Their big thing is we pick one airplane. We know that one airplane inside and out. We're highly efficient on it. We pick profitable routes and we stick to it and we properly hedge our fuel. That's still happening. However, here's the thing that's interesting to me about Southwest. Profit margin last year, 2%. Five-year average is negative 0.65. Now, let's go to our income statement and let's go before COVID. Guys, their profit margin in 2019 was about 11%. In 2020, about 12%. In 2017, about 15%. In 2016, it was about 10%. Do you see my point here? I think we're in a point where Southwest has been temporarily hit with a lot of issues and their profit has been absolutely crushed. And this has kept the company, because if you look at it, what's their PE right now? Well, their five-year PE is negative. Their five-year free cash flows is negative. Their current PE is 33 on very, very depressed income. And if I'm not mistaken, didn't they never lost money in a single year? Correct. It's before COVID. Yep. Never lost money. It took a global pandemic for them to lose money. And guys, this is what analysts are saying. Analysts think by 2029, they'll be generating $4 per share, over $4 a share in profit. And their revenue growth, not great, but it's still record revenue. Even today, they have record revenue. So it's just about getting that profit margin in there. And when I show you the stock analyzer tool and my estimates, I think you're going to be blown away by the potential there. But again, I'm not telling you to go buy the company. I'm telling you that you need to do that research, but it's about showing our ideas, showing our principle-driven investing ideas and saying, how do I apply these to companies that are out of favor? Because in order for you to find value, you've got to find companies that are out of favor in some way, shape, or form. Now, Mo, for trading, it doesn't matter if they're out of favor or not. No. What do you see with Southwest here? It's kind of similar to Adobe. It's very range-bound based on those moving averages. But again, that's not a bad thing. Just draw your ranges. So the top range here is probably about $33. The bottom range is about $30. So you can just bounce around in that range. It'll be difficult because the moving averages are so tight. So each moving average is going to kind of be a ceiling or a bottom. It's not my favorite stock to trade right now, but you know the range it's going to be until it eventually breaks out in one direction or the other. And guys, if you're interested in trading, my full course, my entire full course is linked in the description below. Go check it out. Come check out my channel. So going to Stock Analyzer, Mo, again, I think I did reasonable assumptions. 2%, 4%, 6% revenue growth. That's fair. Profit margin, I did 8%, 11%, and 14%. Same with free cash flow, PE, 14%, 17%, and 20%. Because, and here's why, it took negative ROIC for the last five years for them to even get to 8% in the last 10%. Right. So this was a double-digit ROIC business before COVID. It was an excellent business. It was an excellent, and I still think it's an excellent business. It's been temporarily hit. I could be wrong, but guess what? If I have a lot of companies that appear this way, I'm probably going to do pretty well. I did 9% desired return. Now guys, we've looked at three companies so far. I don't care how great a business is. I won't just pay any price for it. I look at Southwest here and I'm like, this used to be a great business. Can they become a great business again? That's the question here. That's how you have to build real wealth. Because unfortunately, being a value investor is about being wrong basically all the time. Because when things are hyped up and crazy and everything is going high, you're avoiding it. When things are down and depressed and news follows a stock price, you're the idiot who's buying it. That's the hard part. It's not built for everybody. Even if you don't become a real value investor, you can still become a better investor though because of this thought process. You need to understand the business, understand the valuation, have a process that works, no matter what the market's doing. Now back in April, when all this hoopla started with Israel and Iran and inflation and tariffs and all these things, fear was everywhere again. The market went nuts. The headlines went nuts. A lot of people froze. We didn't. We sat there and we look at his opportunities. We had a plan. We knew what to look for. 20 years ago version of me was more like the average person out there. I would chase stocks. I would follow tips. I'd get caught up in the hype. In fact, there was a time when I thought that day trading like Mo does was all like just hoopla and stupid stuff. I don't anymore. That's not investing, guys. That whole hype stuff is not investing. It's gambling. And that's why everything money was created. I wanted to give 20 years ago version of me the tools and the strategy and the community that I would have needed back then to be a much better investor today. Joining everything money gets you access to all of our software, private group of serious like-minded investors to try to help minimize how much guessing we're doing. But let's be clear here. I don't want you to join if you're the kind of person who jumps from one shiny thing to the next. If you're looking for a quick fix, we're not for you. If you're not willing to put in the time, follow the process and stick with it, it'll never work out for you. And that's okay. You can still do trading because it's a very fast-paced way of doing things. But we're trying to build a community of committed investors who are in it for the long haul. If that's for you, start your seven-day trial now. Click the link below. Just know we limit spots every single day and we don't know how long the trial will stay open. And we've had conversations lately about making this an application-based only community at some point. So if you're serious, now's the time. Now let's go finish up Southwest. I hit the analyze button on all of these assumptions. And this is why I'm interested. Low price of 52, high price of 152, middle price of 92. Guys, again, if I had 30 stocks that looked like this, I'd probably do pretty well. I don't know if Southwest will do this, but if it does half that, I will be very, very happy. Thank you for your time.