I've Got These 3 Stocks on My XMas List
As we watch for a clues of a Santa Claus rally, I'm eyeing these names.
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Market breadth looks good on Wednesday morning with 65% of stocks trading higher and nearly 100 new 12-month highs but a few big-cap AI names are taking hits and dragging down the indexes. The Russell 2000 (IWM) small cap index is up 0.7% while the Nasdaq 100 (QQQ) big-cap technology index is down 0.2%.
News of a lack of financing for a Michigan data center is triggering another round of selling in Oracle (ORCL) , Nvidia (NVDA) , Broadcom (AVGO) , and Alphabet (GOOGL) . Those stocks offset the gains in thousands of small caps.
Conditions are still promising for some Santa Claus action, but unfortunately, the big-cap tech names are weighing on sentiment and are probably preventing more decisive speculative action. My list of stocks rising by more than 10% is still relatively short, despite the positive small-cap action. The AI problems are keeping more aggressive buyers on the sidelines for now. What we need is late-day strength and a strong finish to help turn the tide.
I've made a couple of buys today, but I need to see more strength before I'm willing to be more aggressive.
One name I added is Dutch Bros, Inc. (BROS) . Louis Llanes mentioned it as his top pick on our podcast and RBC Capital Markets as a "favorite 2026 idea," and it was recently upgraded to an $80 target by Mizuho.
According to theFly.com, RBC stated that, "The company has a long runway for unit growth in the US with attractive unit economics...." The company is viewed as appealing to Gen Z consumers, and as it grows into food and mobile ordering, it should be able increase morning sales, a time that has lagged behind competitors.
I put an initial position on my screens, and it will be adding at some point.
I have two other big caps that I believe will do well in 2026. I mentioned Amazon on Monday, and today Sarge presents a good summary of the bull case. I don't like the chart here, but it's on the radar for an eventual purchase.
A third big-cap I'm watching is Uber (UBER) . It is currently in a clear downtrend and still falling, but it is turning into a value play, and eventually, there should be some institutional interest. I have a position and will build it as soon as there is some support.
A small-cap name I bought today is OptimizeRX (OPRX) . OPRX provides digital healthcare software that helps pharmaceutical companies deliver messages to doctors and patients directly within electronic health records and prescribing systems. Its platform also uses data and analytics to target specific patient and physician audiences for digital marketing.
The stock has been downtrending since its earnings, but not because of anything particularly negative. It simply lacked support and buying interest. This morning, it announced four new partner agreements, which should help establish a floor of support.
The selling is picking up steam as anticipatory bulls are losing confidence once again. The good news is that conditions will be better for a snap-back rally, but the bleeding needs to stop first.
At the time of publication, DePorre was long BROS, AMZN, UBER, OPRX.
