Stocks to Buy on the Market Pullback

July 19, 2026

Micron stock chart showing key levels of support and resistance

Micron Technology (MU)

If the stock cannot defend 800, there’s a high chance it falls to 650.00-700 and consolidates for weeks / months before attempting another leg up. The faster it breaks above 905.00, the higher probability it sees the next resistance within a 4-6 week timeframe.

Since the market correction in April, Micron Technology has stood out as one of the market’s strongest performing stocks, nearly tripling in value before its recent pullback. That rally was built on expectations for explosive AI memory demand, and Micron’s latest earnings did more than validate those expectations.

Despite the blowout report, Micron has fallen sharply alongside the broader semiconductor sector. The pullback appears driven more by profit taking, stretched positioning, and concerns surrounding the sustainability of the AI trade than deterioration in Micron’s actual business.

Micron’s Blowout Earnings

Micron reported fiscal Q3 revenue of $41.46 billion, up from $9.30 billion during the same quarter last year and far ahead of Wall Street’s $35.85 billion estimate. Adjusted EPS reached $25.11, also beating expectations of roughly $20.78. Profitability was arguably even more impressive. Micron’s non-GAAP gross margin hit 85% vs 39% one year earlier, while the company generated $18.3 billion in adjusted free cash flow. Micron’s massive margins show that they’re clearly benefiting from exceptional pricing power as AI customers compete for limited supply. Micron expects tight memory conditions to continue beyond 2027 as AI related demand grows faster than the industry can add new supply.

The Business Is Becoming More Predictable

The biggest concern surrounding Micron has always been the cyclical nature of memory. When supply is tight, pricing and profits rise rapidly, but when manufacturers add too much capacity, memory prices can collapse just as quickly. Micron is attempting to reduce that volatility through longer term customer agreements (this is key for our theory to remain intact). The company announced 16 strategic agreements containing approximately $22 billion in customer commitments. The remaining performance obligations connected to these agreements have reached roughly $100 billion.

That does not eliminate the memory cycle, but it gives Micron substantially more revenue visibility than it had during previous cycles…which gives us a bit more “comfort” buying this high in the cycle. It also shows how urgently data center, automotive, and consumer customers are trying to secure memory supply. Micron’s HBM4 products are already shipping in high volume for its lead customer’s platform. HBM4E remains under development, with production expected in 2027.

Hyper Stocks Summary

Micron is still a cyclical company, but this pullback has compressed its forward P/E to 6-8x, unusually inexpensive for a company currently producing triple digit growth and playing such an important role in the AI infrastructure buildout. New manufacturing capacity, weaker AI spending, lower cost memory alternatives, or increased competition from Samsung, SK Hynix, and Chinese producers could eventually pressure pricing, but the near term business remains exceptionally strong. Demand is exceeding supply, management expects tight conditions to continue beyond 2027, customers are signing long term agreements to secure capacity, and Micron’s next generation HBM products are moving into production.

Zebra Technologies (ZBRA)

Price target: Members Only

If you have ever seen a retail worker scan a barcode, a delivery driver track a package on a rugged device, or a hospital tracking wristbands, you have likely interacted with Zebra Technologies’ ecosystem. Zebra serves over 80% of Fortune 500 across retail, healthcare, manufacturing, and transport/logistics. They are effectively the infrastructure backbone for modern supply chains.

To no surprise, Zebra is pivoting heavily from a pure hardware vendor to an AI driven software and hardware ecosystem. Hardware can be great, but software is where the big profit margins come in. The companies current projects and initiatives include:

Frontline AI: Gives retail workers AI assistants on their handheld devices to answer questions, locate inventory, and solve problems faster.
Device and Inventory Management: Helps companies manage their connected devices while using AI to predict changes in inventory demand.
Machine Vision: Uses advanced cameras and 3D vision to automate fast, accurate product inspections in warehouses.

Zebra hasn’t reported any substantial returns on their AI initiatives yet (making it a big focus for us in the coming earnings), but enterprise data does support that there’s a huge push by retailers to actively pivot into AI for their inventory optimization.

Brief Financial Overview

Zebra finally looks like it’s moving past its post pandemic hangover, when customers ordered too much equipment and then spent years working through excess inventory. The recovery is now showing up in the numbers, with Q1 sales rising 14.3% to nearly $1.5 billion and adjusted earnings beating expectations. Management also raised its full year outlook (big deal for our outlook), now expecting 10%–14% revenue growth, more than $900 million in free cash flow, and a healthy backlog supported by improving customer demand.

The main risks are still tied to the economy, retailers and logistics companies could delay equipment upgrades if spending weakens, while rising memory costs, supply constraints, tariffs, and geopolitical uncertainty could pressure margins. Overall, though, Zebra appears to be entering a much healthier growth cycle after several difficult years.

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Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.

Hyper Stocks and its contributors may hold positions in some of the securities or assets mentioned above. These positions are subject to change without notice. Any opinions expressed reflect current views at the time of writing and are not guarantees of future performance. Past performance does not guarantee future results.