🎯 Best Bulls - July 2025
Check out our 3 best buys for this month!
Every month, we search for great companies trading at a fair price and highlight three stocks that we believe are particularly interesting based on our analysis.
Since December, we’ve highlighted 14 Best Bulls — and the results have been exceptional!🔥 13 are up, with only one showing a small decline. Our top-performing Best Bull has already gained an impressive +53% 🚀 in just a few months!
In our selection process, we focus on both strong fundamentals and attractive valuations. However, we firmly believe that it’s better to own a wonderful company at a fair price than a fair company at a wonderful price. That’s why fundamentals carry more weight in our assessment than valuation alone.
Here are our top 3 best buys for this month. Especially No.1 really looks like a steal right now! 🎯
Disclaimer:
The information and opinions provided in this article are for informational and educational purposes only and should not be considered as investment advice. Please consult the general disclaimer for more details.
#3: Adobe (NASDAQ: ADBE)
Adobe: a quick guide
Adobe is the company behind some of the world’s most iconic creative tools — like Photoshop, Illustrator, Premiere Pro, and Acrobat. These tools are part of Adobe Creative Cloud, a subscription platform used by millions of people to design, edit, and publish digital content.
From students and freelancers to marketers, designers, and large enterprises, Adobe is essential in industries like media, advertising, education, and film. Whether it’s a YouTube thumbnail or a blockbuster trailer — Adobe powers the creative process behind the scenes.
In recent years, Adobe has added powerful AI features through Adobe Firefly, its own generative AI engine. Firefly allows users to generate images, edit content, and automate design tasks using simple prompts, seamlessly integrated into apps like Photoshop and Illustrator.
Why is Adobe under pressure?
Adobe’s stock peaked in November 2021 at over $690. Since then, its share price has tumbled sharply, not because the business is struggling, but on rising worries over generative AI.
Many investors worry Adobe could be disrupted by faster-moving players like Canva, Figma, and Midjourney, which offer simple AI tools targeting casual users and small teams. But Adobe plays in a different league: it focuses on creative professionals and businesses that need precision, power, and flexibility.
Its tools are deeply embedded in real-world creative workflows — from ad agencies and film studios to enterprise marketing teams. That’s why we see AI not as a threat, but as a growth driver. Adobe’s generative AI engine, Firefly, is built into its core apps, making the creative process faster and more efficient, without replacing it.
Where others offer individual tools, Adobe delivers a full ecosystem. With its scale, brand trust, and subscription-based model, we believe Adobe is well-positioned to remain the standard in professional creativity — even in an AI-first world.
Why Adobe looks attractive now
Adobe currently trades at a P/E ratio of 24 and a forward P/E of 18.3, far below its 10-year average of 51 and approaching all-time lows (source: GuruFocus). Despite the stock being down more than 45% from its peak, the business continues to grow and innovate.
Margins remain exceptional, with gross margins above 89% and net margins over 30% (source: Koyfin) — rare even for top software businesses. Its subscription model and strong cash flows add stability and flexibility.
On top of that, Adobe’s management has a proven track record, from pioneering the shift to subscriptions to taking the lead in AI. It’s not reacting to trends — it’s shaping them. We believe the recent weakness in the share price reflects fear, not fundamentals. For long-term investors looking for quality, durability, and exposure to digital and AI-driven growth, this could be one of the best opportunities in years to buy into a high-quality leader at a fair price.
Last month, Vincent also further increased his position in Adobe. Read the transaction alert here.
Only Vincent currently holds a position in Adobe.
Fundamental score: 76 🟢 → Quality
Current stock price: $378.47
You’ve just seen #3 — the creative-software titan now trading at valuations near their all-time lows.
Honestly? The next two have even stronger fundamentals and could offer more upside!
🔥 One integrates AI into every workflow — but Wall Street hasn’t noticed yet.
🔒 The other holds a duopoly in a market where demand is exploding!
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