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I think you stay the course in this market, leaning bullish but not getting overexposed and cutting some underperforming and/or stagnant positions as you add new ones. With the Federal Reserve cutting rates, the US economy and stock market should be able to breathe a little easier. One name I like is Klaviyo Inc. (KVYO)

That said, we still have two overseas conflicts and a looming presidential election here in the US. While elections don’t historically alter the course of the stock market on their own, this one is likely to bring more uncertainty than most in recent history. And as a general rule, the stock market doesn’t like uncertainty.

On balance, I’m still leaning bullish, trying to let winners ride and swinging at new ideas that have potential to generate double-digit (or more) gains in the coming months. But I’m also keeping both feet planted on the ground and not ignoring that there are risks out there.

As for KVYO, the stock still looks strong and it just earned an upgrade to “Buy.” Virtually nothing has changed in the last month, other than that management participated in conferences hosted by both Goldman Sachs and Piper Sandler to help get the story out.

That story goes like this: Klaviyo, which is twelve years old, came public last August. While it is known as a marketing automation platform that helps customers generate returns from marketing investments, the company is also a data specialist.

Its products are geared toward the retail and e-commerce areas of the market (95% of revenue), though recent efforts to expand into other verticals may be starting to bear fruit and could represent expansion opportunities. Klaviyo’s solutions were designed for online stores on Shopify Inc. (SHOP) and BigCommerce Holdings Inc. (BIGC)

Thus far, email has been Klaviyo’s main channel through which customers reach consumers, but that’s beginning to change. The company has developed mobile push solutions like SMS (text messages). This gives customers the option to create campaigns leveraging both SMS and email, which can work well together.

Klaviyo posted an impressive Q2 beat on Aug. 7, reporting revenue growth of 35% to $222 million and EPS growth of 67% to $0.15. That puts the company on track to grow both the top and bottom line in the 30% to 35% range this year, with upside potential from the growth initiatives just discussed.

Recommended Action: Buy KVYO.

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