The Quiet AI Challenger That Could Surprise Wall Street
A fast-moving AI upstart in creative software is beating adoption targets and raising revenue guidance.
With competitors still chasing similar tools, this name could be setting up for a reversal that rewards early entries.
Here’s that and four more on the ETC Sunday Watchlist:
Next Move Ready (Sponsored)
The stock market is buzzing with opportunities, and I’ve got the insider scoop just for you.
I’ve handpicked the Top Seven Stocks for this quarter, offering you a clear roadmap for growth as the year progresses.
Here’s what makes this guide indispensable:
High-Growth Sectors: Key industries poised to boom this summer.
In-Depth Analysis: Simplified insights to make wise investment decisions.
Expert Picks: Data-driven, not just guesses, for reliable potential.
This isn’t merely a list; it’s your chance to seize the market’s hottest opportunities before they pass you by.
Want to make sure you never miss a stock recommendation?
Elite Trade Club now offers text alerts — so you get trending stocks and market-moving news sent straight to your phone before the bell. Email’s great. Texts are faster.
Adobe Inc.
Ticker: ADBE | Market Cap: $147.9B | Catalyst: AI Product Adoption and Raised Full-Year Guidance
Adobe shares are down 25 percent year to date, but its AI-first tools including Firefly, Acrobat AI Assistant, and GenStudio are seeing faster-than-expected adoption. Management has increased fiscal 2025 revenue guidance to as high as $23.6 billion, with EPS expected between $20.50 and $20.70, both higher than earlier projections.
Firefly’s integration across Creative Cloud and its planned mobile launch later this year could bring in a much larger user base. The company is also adding support for third-party AI models, which expands creative capabilities and provides flexibility against large competitors.
Competition from Microsoft and Google is intense, but Adobe’s portfolio is focused on creative professionals and marketing teams, which allows for higher monetization per customer. Shares are trading below both the 50-day and 200-day moving averages, which signals near-term caution but also sets up the potential for a bounce if the company delivers another earnings beat. Investors who want a contrarian entry may find this an important moment to act, particularly if AI annual recurring revenue continues to move ahead of the $250 million target.
Precision Pick (Sponsored)
Looking to reset your strategy for the next 30 days?
Our analysts just released a short list of the 7 best-positioned stocks with the highest potential for near-term movement — and we’re giving you the full report completely free.
This list is the result of a rigorous selection process.
From over 4,000 companies, only a few passed through the filters of performance, earnings strength, and expert review.
These aren’t just good stocks — they’re the top-tier, data-backed selections identified for immediate breakout potential.
If you want to stay a step ahead of the market, this report is a fast, simple way to do it.
First Solar Inc.
Ticker: FSLR | Market Cap: $19.3B | Catalyst: Earnings Beat and Upgraded Price Target
First Solar posted second quarter EPS of $3.18, well above the $2.66 consensus, with revenue reaching $1.1 billion. UBS responded by increasing its price target to $275, citing supportive policy conditions and the company’s unique U.S.-approved design for near-term deployment.
The company holds nearly $500 million in cash and has no debt, giving it the flexibility to scale production as demand for domestic solar capacity rises. Extended tax credits through 2036 and new projects in the pipeline strengthen its position in the renewable energy sector.
Shares have pulled back slightly after the CEO sold $5.1 million in shares, which could create an opening for buyers ahead of the next contract or policy announcement.
Shopify Inc.
Ticker: SHOP | Total Assets: $187.5B | Catalyst: Q2 Earnings Beat and Growth in AI and International Markets
Shopify rose almost 20 percent in a single day after reporting 31 percent year-over-year revenue growth and strong gross merchandise volume. Management guided third quarter revenue growth to the mid-to-high 20 percent range, easing earlier concerns about potential tariff impacts.
AI-powered merchant tools and an expansion into European markets are now leading its growth. Analysts remain overwhelmingly bullish, with multiple price target increases in recent weeks, including Citigroup at $195 and Evercore ISI at $170.
While the stock trades at more than 80 times earnings, the combination of accelerating top-line growth and expanding market reach makes it a core e-commerce momentum story going into year-end.
AI Surge (Sponsored)
AI’s capabilities are growing rapidly—handling layered conversations, correcting itself, and adapting in real time.
This shift is opening up new frontiers for early investors.
A free report just revealed 5 high-potential stocks—including one under-the-radar name with breakout potential.
These tickers are positioned to ride the AI boom in its most advanced form yet.
[See the Top 5 AI Stocks – Free Access]
(By submitting your email address, you will receive a free subscription to the Profit From The Pros e-letter, and offers from us and our affiliates that we think might interest you. You can unsubscribe at any time.)
Clorox Co.
Ticker: CLX | Market Cap: $16.9B | Catalyst: Supply Chain Recovery and Margin Expansion
Clorox is recovering its supply chain after last year’s cybersecurity breach, and second quarter results showed gross margins climbing to 42 percent, the best in more than two years. Analysts see more room for improvement in operating leverage as raw material costs decline.
The company retains strong pricing power, and demand for household and cleaning products remains steady despite weaker consumer sentiment in some categories. Long-term investors also benefit from a 3.2 percent dividend yield and a 46-year payout history.
Shares remain about 15 percent below 2024 highs, leaving room for a move higher if margin recovery continues.
Lockheed Martin Corp.
Ticker: LMT | Market Cap: $102.1B | Catalyst: Multi-Billion Dollar Contract Wins
Lockheed Martin secured more than $4.2 billion in new defense contracts, including a $4.23 billion award to expand production of the Guided Multiple Launch Rocket System. Additional contracts cover submarine electronic warfare systems and upgrades to the Terminal High Altitude Area Defense interceptor program.
These awards bring the total value of key programs into the tens of billions, ensuring multi-year revenue visibility through at least 2028. Shares are down 9 percent this year, but the growing backlog and steady defense spending provide a strong base for recovery.
If sentiment toward defense contractors improves, the stock could move back toward the $500 range in a relatively short period.
Poll: Imagine you could time-travel with $10,000. Where are you investing it?
This week’s edge is in companies with strong catalysts and attractive risk-reward setups.
From an AI-focused creative software leader to renewable energy and defense names with clear growth paths, along with consumer and e-commerce plays showing renewed momentum, these are the types of positions that can lead the next leg higher.
Staying early could be the difference between catching the breakout or chasing it later.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
Click here to get our daily newsletter straight to your cell for free.
P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.
Legal Stuff: Stocks featured in this newsletter are for entertainment purposes only. You should not base any investment decisions on information contained in my newsletter. Stocks featured in this newsletter may be owned by owners/operators of this website, which could impact our ability to remain unbiased. Please consult a financial advisor before making any trading decisions. I may earn a small commission from links placed inside these emails.
