3 Non-Core Stocks I'd Swing Trade
Hi all 👋
Most of the investments I do are intended to be held for at least 3-5 years, however there are a few investments that I make purely for a swing trade purpose.
These are stocks where I don’t feel confident enough making big investments and making them core positions in my portfolio, but where I do feel confident enough that the valuation does not meet the current business fundamentals. In these instances, my holding period normally becomes less than a year, unless I start to see massively improving fundamentals that make me want to initiate it into more of a core position.
Here’s 3 stocks that fit these criteria currently.
OSCR
TEM
ZETA
I invested in one of these yesterday as paid subs would know and we are already up 18% in a day. If you want to become a paid subscriber for just $14 a month and get access to:
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1. Oscar Health | OSCR
Paid subs will know that I initiated a position in OSCR on 16/06/2025 which is up around 32% in the space of 5 trading days. There are many reasons I bought into this position, not least because the stock is incredibly undervalued even today and should 2-3x based purely on multiple expansion.
However, there’s a reason OSCR will never be more than a swing trade at the moment for me. The risks are just far too high:
The 80/20 rule makes it very hard for OSCR to sustainably grow profits and earnings. This will eventually be very detrimental to them (unless they manage to diversify out of the ACA market much more).
The ACA market is currently completely reliant on the government and changes in health regulations which could materially affect the OSCR business.
I’ll dive much more into these in my OSCR deep dive coming up, but fundamentally I don’t have as much confidence in OSCR as I do in LMND, TMDX, HIMS, NU. With that being said, OSCR’s valuation is the most ridiculous out of the other stocks I named above (if the ACA market doesn’t experience a sharp downturn).
They’re trading at 0.3x NTM sales, and less than 10x 2027 earnings. That’s insane for a company growing at the speed they are and it’s a fundamental mispricing in the market that we have taken advantage of.
I’ll keep OSCR as a smaller position for now. That’s not saying OSCR will never become a core position, but currently the downside is a bit too material for me.
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2. Tempus AI | TEM
TEM is another popular stock with potentially huge upside, but again a lot of unknowns that can’t make it a big position for me. I currently don’t own TEM, but it is high on my watchlist as I see the vision for what they’re doing. I think what people need to understand though is that TEM is currently not a pure AI play, like many think it is. It still has ~75% of its revenue come from its genomics business.
Ultimately, TEM is currently unprofitable healthcare company with a strong retail following, and huge growth. For me, that doesn’t offer enough of a compelling argument. If you add on the valuation to this, I become even less bullish.
They’re currently trading at 9.4x NTM sales and a ridiculous EV/EBITDA multiple of 450x meaning for me I think the stock has got slightly ahead of the business (especially with the hype around Nancy Pelosi’s buys). However, with all this being said, TEM has many characteristics that I love and I think in the short term whilst TEM is unprofitable, these will continue to drive some volatile moves for the stock which may present some opportunities.
3. Zeta Global Holdings | ZETA
Paid subs will know that I added ZETA to my watchlist ~10 days ago but unfortunately, I didn’t initiate a position before the 12% move on Friday. That by no means ZETA is now overstretched now though…just look at the chart:
ZETA is a global marketing tech company that leverages AI to generate some very impressive ROIs. I think ZETA is a company that may be subject to a private equity buyout over the next 12-24 months in which case the current valuation is far too cheap and we could likely see a buyout price at least 1.5-2x the current price.
With a NTM sales multiple at 2.5x and an EV/EBITDA multiple at 12.0x for a company growing, these are far too cheap for a company growing revenues at 35.6% and EBITDA at nearly triple figures, especially for a company with a very recurring revenue stream (+114% net retention rate).
Of the 3 companies here, ZETA is the one I’d be most happy making a very core position if it weren’t for the high risk of buyout. This shouldn’t change the investment thesis too much for me, but I’m looking for stocks to hold for a 3+ year time frame and if ZETA management are looking to take the company private at some point, then there’s much less upside available. With that being said, I think even if ZETA does get bought out there’s ~50% upside at least, and much more if we look longer term (no buyout).
For example, peers like HUBS, ADBE, BRZE trade for sales multiples considerably higher than ZETA despite having revenue growth figures ~50% as quick as ZETA.
Based on a simple forward looking revenue multiple of $1.7B in revenue in FY27, and a 5.0x sales multiple, you’re looking at a $8.5B market cap which gives you +100% from today over 24 months.
That’s all for today
I do hope you enjoyed this article. If there’s any feedback or additional information that you think would be necessary, please do reach out to me and let me know or leave a comment below.