Sun, August 17, 2025 | 8:11PM ET

August Super Granny and Super SMID Granny Market Update + SMID Granny August Rebalance +18 adds/ -13 deletes.

Tom Lee, CFA ^AC

Head of Research

________________________________________________

Updating our list of 5 Super and 5 Sleeper Grannies
SMID Grannies August Quarterly rebalance today
Updating 5 Super and 5 Sleeper SMID Grannies
Chartbook linked below
See below for SMID Grannies adds and deletes

To download the slide deck for our Market Update Webinar, please click HERE.

SUPER GRANNIES: 5 Super and 5 Sleeper

Back by popular demand, we are re-introducing our “Super Grannies” (most timely) and “Sleeper Grannies” large-cap stock ideas.

The rationale is many clients ask us to narrow our recommendations down to a list of “fresh money” ideas.
We established a criteria of 4 factors to narrow the list to tactical buys:
– fundamentals using DQM model managed by “tireless Ken”
– IBD momentum rating
– technical strength measured by Price >20 DMA, 20 DMA vs 200 DMA and combos
– Mark Newton’s judgement on technical outlook

We have 5 tactical buys aka “Super Grannies”
– NVIDIA Corp (NVDA)
– Arista Networks Inc (ANET) <– carry over
– Goldman Sachs Group (GS) <– carry over
– Advanced Micro Devices Inc (AMD)
– Meta Platforms Inc (META) <– carry over
The bottom 5 “Sleeper Grannies” are:
– CrowdStrike Holdings Inc (CRWD)
– Palo Alto Networks Inc (PANW)
– Tesla Inc (TSLA)
– Costco Wholesale Corp (COST)
– Willis Towers Watson PLC (WTW)

REBALANCE SMID GRANNIES: +18 adds, (-13 deletes). YTD outperformance +351 bps

Last December, we maintained Small-caps as one of our #1 recommendations in our 2025 year-ahead outlook. We also created the SMID Granny portfolio strategy last year as many of our clients asked us for our Top SMID stock picks.

We believe the SMID Grannies could benefit from the multiple themes and secular tailwinds
SMID Grannies were selected from a universe consisting of 2,194 small and mid-cap stocks.
From the SMID Granny portfolio, we employed the same framework mentioned above to identify the 5 most timely ideas and 5 least timely ideas within the SMID Granny portfolio.

18 rebalance additions are:

Discretionary: CHWY, WRBY, RSI
Industrials: MLI, BWXT, KTOS, FIX
Technology: ZETA, MDB, ACLS
Comm Services: RDDT
Financials: AFRM, TREE, GCMG, ATLC
Real Estate: JLL
Healthcare: PODD, DOCS

13 rebalance deletions are:

Discretionary: FTDR
Industrials: ENS, ESE
Technology: OKTA, OSPN, AVPT, TWLO, ZS
Financials: SNEX, SKWD, OPFI, AX
Staples: SFM

August Super Granny and Super SMID Granny Market Update + SMID Granny August Rebalance +18 adds/ -13 deletes.

SUPER SMID GRANNIES: 5 Super and 5 Sleeper

“Super SMID Grannies” (long) and “Sleeper SMID Grannies” are derived from our SMID stock list of 50 ideas called “SMID Granny Shots”

We have 5 tactical buys aka “Super SMID Grannies”
– EMCOR Group Inc (EME) <– carry over
– Kratos Defense & Security (KTOS)
– Robinhood Markets Inc (HOOD) <– carry over
– Stride Inc (LRN)
– Reddit Inc (RDDT)
The bottom 5 “Sleeper SMID Grannies” are:
– Semler Scientific Inc (SMLR)
– Dutch Bros Inc (BROS) <– carry over
– MongoDB Inc (MDB)
– IonQ Inc (IONQ)
– Strategy Inc (MSTR)

Key Incoming Data August:

~~8/1 8:30 AM ET: Jul Non-farm Payrolls~~ Mixed
~~8/1 9:45 AM ET: Jul F S&P Global Manufacturing PMI~~ Tame
~~8/1 10:00 AM ET: Jul F U. Mich. 1yr Inf Exp~~ Tame
~~8/1 10:00 AM ET: Jul ISM Manufacturing PMI~~ Tame
~~8/4 10:00 AM ET: Jun F Durable Goods Orders MoM~~ Tame
~~8/5 8:30 AM ET: Jun Trade Balance~~ Tame
~~8/5 9:45 AM ET: Jul F S&P Global Services PMI~~ Tame
~~8/5 10:00 AM ET: Jul ISM Services PMI~~ Tame
~~8/7 8:30 AM ET: 2Q P Unit Labor Costs~~ Tame
~~8/7 8:30 AM ET: 2Q P Nonfarm Productivity QoQ~~ Tame
~~8/7 9:00 AM ET: Jul F Manheim Used Vehicle Index~~ Tame
~~8/7 11:00 AM ET: Jul NYFed 1yr Inf Exp~~ Tame
~~8/12 6:00 AM ET: Jul Small Business Optimism Survey~~ Tame
~~8/12 8:30 AM ET: Jul Core CPI MoM~~ Tame
~~8/14 8:30 AM ET: Jul Core PPI MoM~~ Hot
~~8/15 8:30 AM ET: Aug Empire Manufacturing Survey~~ Tame
~~8/15 8:30 AM ET: Jul Retail Sales~~ Tame
~~8/15 10:00 AM ET: Aug P U. Mich. 1yr Inf Exp~~ Mixed
~~8/15 4:00 PM ET: Jun Net TIC Flows~~ Tame
8/18 10:00 AM ET: Aug NAHB Housing Market Index
8/19 9:00 AM ET: Aug M Manheim Used Vehicle Index
8/20 2:00 PM ET: Jul FOMC Meeting Minutes
8/21 8:30 AM ET: Aug Philly Fed Business Outlook
8/21 9:45 AM ET: Aug P S&P Global Services PMI
8/21 9:45 AM ET: Aug P S&P Global Manufacturing PMI
8/21 10:00 AM ET: Jul Existing Home Sales
8/25 8:30 AM ET: Jul Chicago Fed Nat Activity Index
8/25 10:00 AM ET: Jul New Home Sales
8/25 10:30 AM ET: Aug Dallas Fed Manuf. Activity Survey
8/26 8:30 AM ET: Jul P Durable Goods Orders MoM
8/26 9:00 AM ET: Jun S&P CS home price 20-City MoM
8/26 10:00 AM ET: Aug Conference Board Consumer Confidence
8/26 10:00 AM ET: Aug Richmond Fed Manufacturing Survey
8/28 8:30 AM ET: 2Q S GDP QoQ
8/28 11:00 AM ET: Aug Kansas City Fed Manufacturing Survey
8/29 8:30 AM ET: Jul Core PCE MoM
8/29 10:00 AM ET: Aug F U. Mich. 1yr Inf Exp

Economic Data Performance Tracker 2025:

Economic Data Performance Tracker 2024:

Economic Data Performance Tracker 2023:

Disclosures (show)

This research is for the clients of FS Insight only. FSI Subscription entitles the subscriber to 1 user, research cannot be shared or redistributed. For additional information, please contact your sales representative or FS Insight at fsinsight.com.

Analyst Certification (Reg AC)

Tom Lee, CFA, the research analyst denoted by an “AC” on the cover of this report, hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships. Neither I, nor a member of my household is an officer, director, or advisory board member of the issuer(s) or has another significant affiliation with the issuer(s) that is/are the subject of this research report. There is a possibility that we will from time to time have long or short positions in, and buy or sell, the securities or derivatives, if any, referred to in this research.

Conflicts of Interest

This research contains the views, opinions and recommendations of FS Insight. At the time of publication of this report, FS Insight does not know of, or have reason to know of any material conflicts of interest.

General Disclosures

FS Insight is an independent research company and is not a registered investment advisor and is not acting as a broker dealer under any federal or state securities laws.

FS Insight is a member of IRC Securities’ Research Prime Services Platform. IRC Securities is a FINRA registered broker-dealer that is focused on supporting the independent research industry. Certain personnel of FS Insight (i.e. Research Analysts) are registered representatives of IRC Securities, a FINRA member firm registered as a broker-dealer with the Securities and Exchange Commission and certain state securities regulators. As registered representatives and independent contractors of IRC Securities, such personnel may receive commissions paid to or shared with IRC Securities for transactions placed by FS Insight clients directly with IRC Securities or with securities firms that may share commissions with IRC Securities in accordance with applicable SEC and FINRA requirements. IRC Securities does not distribute the research of FS Insight, which is available to select institutional clients that have engaged FS Insight.

As registered representatives of IRC Securities our analysts must follow IRC Securities’ Written Supervisory Procedures. Notable compliance policies include (1) prohibition of insider trading or the facilitation thereof, (2) maintaining client confidentiality, (3) archival of electronic communications, and (4) appropriate use of electronic communications, amongst other compliance related policies.

FS Insight does not have the same conflicts that traditional sell-side research organizations have because FS Insight (1) does not conduct any investment banking activities, and (2) does not manage any investment funds.

This communication is issued by FS Insight and/or affiliates of FS Insight. This is not a personal recommendation, nor an offer to buy or sell nor a solicitation to buy or sell any securities, investment products or other financial instruments or services. This material is distributed for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice.
The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.
Intended for recipient only and not for further distribution without the consent of FS Insight.

This research is for the clients of FS Insight only. Additional information is available upon request. Information has been obtained from sources believed to be reliable, but FS Insight does not warrant its completeness or accuracy except with respect to any disclosures relative to FS Insight and the analyst’s involvement (if any) with any of the subject companies of the research. All pricing is as of the market close for the securities discussed, unless otherwise stated. Opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The opinions and recommendations herein do not take into account individual client circumstances, risk tolerance, objectives, or needs and are not intended as recommendations of particular securities, financial instruments or strategies. The recipient of this report must make its own independent decision regarding any securities or financial instruments mentioned herein. Except in circumstances where FS Insight expressly agrees otherwise in writing, FS Insight is not acting as a municipal advisor and the opinions or views contained herein are not intended to be, and do not constitute, advice, including within the meaning of Section 15B of the Securities Exchange Act of 1934. All research reports are disseminated and available to all clients simultaneously through electronic publication to our internal client website, fsinsight.com. Not all research content is redistributed to our clients or made available to third-party aggregators or the media. Please contact your sales representative if you would like to receive any of our research publications.