To The Moon

July 2025 is a goldmine for savvy investors hunting for undervalued stocks with breakout potential. While giants like Nvidia and Tesla hog the headlines, under-the-radar names like Cloudflare ( $NETLINKZ LTD(NET.AU)$ ), CRISPR Therapeutics ( $CRISPR Therapeutics AG(CRSP)$ ), and Li Auto ( $Li Auto(LI)$ ) are quietly building momentum. These stocks, often overlooked, are poised to capitalize on cloud security, biotech innovation, and electric vehicle (EV) growth. With the S&P 500 at 6,135 and a potential 5-10% pullback to 5,800-6,000 looming, these underrated picks offer high-reward opportunities with calculated risks. This report dives into the catalysts driving these stocks, their growth potential, and strategic investment approaches to seize July’s upside while navigating volatility.

Market Landscape: Opportunity Amid Volatility

The market in July 2025 is a mix of optimism and caution:

• Cloud Security Surge: Enterprises are boosting cybersecurity budgets by 15% annually, fueling demand for Cloudflare’s solutions as cyber threats escalate.

• Biotech Breakthroughs: The biotech sector is projected to grow to $3.2 trillion by 2030, with CRISPR’s gene-editing therapies leading the charge in precision medicine.

• EV Expansion: Global EV sales are expected to hit 17 million in 2025, with Li Auto’s hybrid models gaining traction in China despite trade tensions.

• Geopolitical Risks: The Israel-Iran conflict, pushing oil to $75 per barrel, and U.S.-China trade uncertainties add volatility, with a potential S&P 500 pullback to 5,800-6,000.

• Regulatory Hurdles: Biotech approvals and EV tariffs could impact growth, requiring tight risk management.

Social media sentiment on X highlights these stocks as “hidden gems,” with users praising their niche leadership but warning of volatility in a choppy market.

Top Underrated Stocks to Watch

Here’s a curated list of July’s underrated stocks with breakout potential, including catalysts and key levels:

• Cloudflare (NET): Up 30% YTD to $90, with Q1 2025 revenue up 28% to $370 million. Its AI-driven security and CDN solutions target $100 from $80.

• CRISPR Therapeutics (CRSP): Up 15% YTD to $60, with 50% success in sickle cell trials. Targets $70 from $50-$55.

• Li Auto (LI): Up 25% YTD to $30, with 40% Q1 2025 delivery growth. Targets $35 from $27-$28.

• Zscaler ( $Zscaler Inc.(ZS)$ ): Up 20% YTD to $190, with zero-trust security deals driving growth. Targets $220 from $180.

• NIO ( $NIO Inc.(NIO)$ ): Up 10% YTD to $5.50, with battery swap tech boosting China sales. Targets $7 from $5.

Key News and Highlights

Cloudflare’s Security Surge

Cloudflare’s cloud security and content delivery network (CDN) solutions are capitalizing on a 15% annual increase in enterprise cybersecurity budgets. Q1 2025 revenue grew 28% to $370 million, driven by AI integration and partnerships with Microsoft. Analysts target $100-$110, a 11-22% upside from $90, but a 70x P/E and potential tech sector pullbacks suggest a dip to $80-$85 as a buying opportunity.

CRISPR’s Biotech Breakthrough

CRISPR Therapeutics is pushing gene-editing boundaries, with a 50% success rate in sickle cell trials and a $1 billion R&D boost for oncology. Up 15% YTD to $60, it’s undervalued at a 25x P/E compared to biotech peers. Analysts target $70-$80, a 17-33% upside, but regulatory delays could push it to $50. A dip to $50-$55 offers a strong entry point.

Li Auto’s EV Momentum

Li Auto’s hybrid EVs are surging in China, with Q1 2025 deliveries up 40% to 80,000 units. Up 25% YTD to $30, it’s a value play at a 20x P/E. Analysts target $35-$40, a 17-33% upside, but U.S.-China trade tensions and tariff risks could drag it to $27. Buy at $27-$28 for long-term growth.

Zscaler’s Zero-Trust Edge

Zscaler’s zero-trust security platform is gaining traction, with Q1 2025 revenue up 30% to $500 million. Up 20% YTD to $190, it targets $220-$230, but a 90x P/E risks a dip to $180. Buy on dips for 15-20% upside.

NIO’s Battery Swap Play

NIO’s battery swap technology and 35% Q1 2025 delivery growth drive its 10% YTD gain to $5.50. Analysts target $7-$8, but trade tensions could push it to $5. Buy at $5 for 27-45% upside.

Trading and Investment Strategies

Short-Term Plays

• Buy Cloudflare on Dip: Enter at $80-$85, target $100, stop at $75. A 11-25% gain if cloud security demand persists.

• Buy CRISPR on Dip: Grab at $50-$55, target $70, stop at $45. A 17-40% upside on trial progress.

• Buy Li Auto: Enter at $27-$28, target $35, stop at $25. A 17-30% gain on EV momentum.

Long-Term Investments

• Hold Zscaler: Buy at $180-$185, target $220, for 15-22% upside with zero-trust growth.

• Hold NIO: Buy at $5, target $7, for 27-40% growth with battery swap tech.

• Diversify with Biotech ETF (XBI): Buy at $90, target $110, for broad biotech exposure.

Hedge Strategies

• VIXY ETF: Buy at $15, target $18, stop at $13, to hedge against volatility.

• SPY ETF Puts: Use puts at $614 to protect against a 5-10% S&P 500 pullback.

• Gold ETF (GLD): Buy at $200, target $220, stop at $190, as a safe-haven hedge.

My Trading Plan

I’m bullish on Cloudflare and CRISPR for their niche leadership and undervalued potential but cautious about volatility. I’ll buy Cloudflare at $80-$85, targeting $100, with a $75 stop, and CRISPR at $50-$55, targeting $70, with a $45 stop. For diversification, I’ll add Li Auto at $27-$28, targeting $35, with a $25 stop. I’m hedging with VIXY at $15, targeting $18, and keeping 20% cash to seize dips if geopolitical tensions (e.g., Israel-Iran conflict) or trade uncertainties shake markets. I’ll monitor cloud security budgets, biotech trial results, and EV delivery data for cues.

Visualizing Stock Performance

The Bigger Picture

July 2025 is a breakout moment for underrated stocks like Cloudflare, CRISPR Therapeutics, and Li Auto. Cloudflare’s cloud security dominance, CRISPR’s gene-editing breakthroughs, and Li Auto’s EV momentum offer high-reward opportunities, but high valuations (NET at 70x P/E, CRSP at 25x) and external risks (trade tensions, regulatory hurdles) demand caution. Zscaler and NIO add depth to the watchlist with their niche strengths. Investors should buy on dips for long-term upside, trade for short-term gains, and hedge with VIXY or GLD to navigate volatility. These hidden gems are ready to shine—pick your winners and trade smart.

What’s your top underrated stock for July 2025? Share your picks below!

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