Set The Thermostat To Patience And Buy The Dips

Today’s headliner just posted a clean beat, juiced cash flow, and reminded everyone that boring HVAC is where megaprojects quietly turn into multiyear backlogs.

The game plan is simple. You can start small buys on calm red days, let orders, margins, and free cash flow earn each add, and mute the hot takes.

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Solstice Advanced Materials | SOLS

Price: $47.50

Fresh coverage can wake a sleepy tape.

UBS opened with a Buy and a $62 target, leaning into SOLS’ mix of refrigerants, semiconductor materials, protective fibers, and healthcare packaging. 

That combo gives SOLS a seat at multiple tables: AI-era chip supply chains, global cooling demand, and defensive end-markets like pharma wrap.

The chart got a lift, but this is still a new issue with limited history, so treat it like a teenager with a driver’s permit, with steady hands. 

You can watch for pricing power in Refrigerants & Applied Solutions, any capacity adds in Electronic & Specialty Materials, and how management allocates cash between growth capex and bolt-ons.

If estimates drift higher on the back of new wins, you scale. If it’s just rating noise without orders, you wait.

Why this matters for you: Materials are the backbone of chips and chillers, so the right mix can compound without requiring heroics.

Amgen | AMGN

Price: $320.28

Big biotech brought receipts. Amgen had revenue and EPS ahead of expectations, guidance raised, and a bench of products all growing double-digits.

Repatha and Evenity did the headline work, but the broader story is portfolio breadth plus operating discipline (hello, 47% non-GAAP margin). 

The fun kicker is optionality here. Obesity (MariTide), cardiovascular programs, and manufacturing/AI investments can keep the flywheel turning into 2026.

Risks are pricing pressure never sleeps, and policy noise loves this sector. 

I would buy dips into the 200-day neighborhood (or prior breakout zones) and let adds be earned by sustained volume growth across multiple franchises, not just one hero drug.

If margins stay firm while R&D ramps, the multiple can expand without needing a miracle.

Why this matters for you: Healthcare cash flows can be your portfolio’s seatbelt, especially when the rest of the bus is speeding.

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Southwest Airlines | LUV

Price: $32.45

New codeshares keep landing as Southwest leans into going more global without buying a fleet of long-hauls. Smart, as it means distribution wins without capex bloat.

The tug-of-war is elsewhere with fares, fuel, deliveries, and (hello) a shutdown that’s now stretching travel operations. 

If the FAA’s traffic throttling lingers, near-term schedules get crimped, but loyalty and on-time improvements can soften the blow.

The valuation debate is spicy with some models seeing upside to fair value, while others squint at the earnings multiple. 

Your move is to keep sizing modest, buy weakness into clear support only if the ops metrics (turn times, completion factor, on-time) keep trending right, and let capacity discipline earn the adds.

If aircraft deliveries slip again or yields wobble, step back and wait for base-building.

Why this matters for you: Travel cycles are lumpy but owning the operationally fit names on sale is how you survive the bumps.

Humana | HUM

Price: $252.05

Beat the quarter, stock slipped lower though. That’s payer life in one sentence.

HUM topped on EPS and revenue, reaffirmed the full-year outlook, and keeps talking long-term customer value over flashy near-term membership grabs.

The watch-outs are real with medical trend and pharmacy costs look sticky into 2026, Stars work is still a journey, and regulators remain, well, regulators.

What you want to see is steady MLR management, progress on Stars recovery, and no surprises in utilization. 

Keep positions sized for headlines and buy on calm, broad-market down days rather than chasing single-day pops.

If cost trend commentary cools and guidance nudges up, you’ve got room to add.

Why this matters for you: Managed care can diversify a tech-tilted portfolio, but you have to respect the policy and cost-trend weather.

Johnson Controls | JCI

Price: $122.25

This is climate control as a business model.

JCI beat on EPS and revenue, expanded gross margin, and flexed serious free cash flow, then followed it with FY26 targets that read like a slow-burn compounding plan. 

Americas HVAC and controls did the heavy lifting, EMEA chipped in nicely, and APAC softness stayed contained.

The cherry on top was disciplined leverage and a history of buybacks that actually move the share count. 

It’s smart to buy the dips into prior support when orders and service revenue keep trending up, add if backlog-to-sales improves, and press only if the next print shows operating leverage near the 50–55% guide. 

Treat APAC weakness as a watch item, not a thesis breaker.

If the tape gets sweaty after a big beat, let it cool and then set your adds like a smart thermostat, gradual and rules-based.

Why this matters for you: Data centers, hospitals, airports, we know that everything needs air, controls, and service contracts. That’s durability.

Stat of the Day: 37 Days And Counting

The federal shutdown just set a new record.

Prolonged government pauses can ripple into travel, contractors, and certain health programs so tighten risk where headlines bite and keep a shopping list for quality names that get unfairly marked down.

Final Take: 

Same discipline, different engines. For building tech, track backlog, margins, and cash conversion. For materials, watch pricing and capacity adds.

For big biotech, demand breadth across franchises. For airlines, operational KPIs over vibes. For payers, cost trends and Stars before victory laps.

Buy red, size to your sleep, and let real proof points earn your next add.