Delta — Week of Aug. 2, 2026
Market Overview
As of August 2026, the S&P 500 is trading at approximately 7,467, reflecting a 0.8% gain in early trading. The index has experienced a decline of about 0.5% during the month, with analysts forecasting a potential downside of approximately 16%. The Nasdaq Composite closed at 25,373.85, showing a 1% increase recently. The market sentiment appears cautious amid ongoing inflationary pressures, with the current inflation rate at 4.2% and the Federal Reserve maintaining interest rates within the range of 3.50% to 3.75%. This economic backdrop suggests a complex environment for investors as earnings season continues and market analysts adjust their forecasts.
Long Picks
Credo Technology Group Holding Ltd CRDO
Technical Setup
Closed Jul 31, 2026 at $206.99 with recent volatility but maintaining a strong liquidity profile. The stock is approximately 33% below its 52-week high.
Fundamental Driver
With fiscal 2026 revenue tripling and a strong growth outlook, Credo is positioned as a high-margin player in the AI connectivity space, reflected in analyst ratings.
Analyst Detail
Credo is poised for significant growth as the demand for high-speed connectivity in AI applications continues to rise. With a favorable risk/reward profile, the stock's current price presents an opportunity for substantial returns as market conditions stabilize.
Dell Technologies Inc. DELL
Technical Setup
Closed Jul 31, 2026 at $405.37 after a volatile week. The stock gapped down but staged a two-day reversal, reclaiming its 50-day moving average, indicating a bullish trend. Current daily volume is about 4.3M shares, reflecting high liquidity.
Fundamental Driver
Dell reported $24.4B in AI-optimized server orders and raised FY27 guidance, indicating strong growth potential. The consensus target price of $495 suggests significant upside.
Analyst Detail
Dell is positioned as a key beneficiary in the AI infrastructure market, benefiting from a robust $51B AI server backlog. The recent market volatility presents a buying opportunity with a target price indicating a 23% upside potential.
Kodiak Gas Services, Inc. KGS
Technical Setup
Closed Jul 31, 2026 at $58.71, showing a stable price with a slight decline of about 1% in the previous week. The stock trades significantly below its 52-week high, providing an attractive entry point.
Fundamental Driver
Record revenue and EBITDA growth are bolstering Kodiak's strong market position. Analysts have raised their targets significantly, indicating confidence in the company's future performance.
Analyst Detail
As the largest provider of natural gas compression infrastructure, Kodiak is well-positioned to benefit from the surging demand for natural gas in AI data centers. The upcoming earnings release is expected to further support the bullish outlook with potential price appreciation towards analyst targets.