PayPal, Texas Instruments, J.B. Hunt Lead July Upgrades Amid AI Lull

In July, three stocks emerged among the most-upgraded names tracked by MarketBeat despite having little or no direct connection to the artificial intelligence theme that has dominated market discussion. The trio reflects three different sectors—payments, semiconductors, and transportation—and each drew analyst attention for distinct operational reasons.

PayPal experienced a dramatic turnaround in July after a difficult start to 2026. The stock had fallen as much as 35% earlier in the year, including a single-day drop of over 20% following a February earnings report in which the company guided for slightly negative to slightly positive earnings per share growth when the market expected substantially positive growth. The announcement of a new CEO compounded the decline. However, in July, Stripe and Advent International submitted an acquisition offer valued at approximately $53 billion, or $60.50 per share. This price was well above PayPal's trading level at the time, and the stock soared over 32% in one month. PayPal management stated that the current offer is too low, leaving open the possibility of a higher bid. The acquisition interest and subsequent stock move prompted MarketBeat to track more than 10 price target increases and multiple rating increases in July.

Texas Instruments, the second most-upgraded stock, is a semiconductor company that generates data center-driven growth but remains far from the first chip stock investors think of when considering artificial intelligence exposure. The stock delivered a total return of over 60% in 2026 and carries an approximate 2% dividend yield, among the highest of any chip stock. The company's latest earnings report contained multiple positive surprises. It beat sales estimates by over $200 million, grew at nearly 23% year-over-year, and saw its large industrial end market grow by 30% year-over-year. The firm also substantially exceeded earnings per share estimates. Data center revenue doubled year-over-year, yet data centers represent just 9% of total sales in 2025, indicating that Texas Instruments' growth is broadly based rather than concentrated in a single end market. The company also achieved a strong gross margin expansion of 340 basis points, bringing the figure to 61%. These results impressed analysts, who logged more than 10 price target increases. The consensus price target near $312 implies approximately 10% upside from current levels. Looking ahead, analysts view continued recovery in the company's automotive segment—which accounted for 33% of total revenue in 2025—as a key watch item, particularly after growth accelerated in Q2 2026 with sales rising by a mid-teens percentage.

J.B. Hunt Transport Services posted its largest single-day gain of the year in mid-July, rising over 8%, following a much better-than-expected Q2 earnings report. The stock was already up more than 35% for 2026 before the report. The company's revenue rose 19% year-over-year, marking its highest growth rate in nearly four years, while operating income jumped 32% year-over-year. J.B. Hunt achieved this growth by combining higher shipping volumes with cost-cutting; the company cut structural costs by $135 million over the past year. The company's intermodal business line—which ships containers using a combination of trains and trucks—particularly impressed, with volumes rising 10% year-over-year to 578,000 loads, a quarterly record. These results secured over 10 analyst price target increases and multiple ratings boosts, the majority coming after the earnings release. The company sees additional runway to reduce costs and expand its intermodal business amid rising trucking rates and fuel costs, with its ability to execute on cost reduction and increase intermodal pricing identified as key watch items for 2027.