Hot Stocks For The Month of July
Break out the tank tops and the sunscreen, because some stocks on the market appear poised to heat up just like the weather itself in July. As we step into the third quarter of the fiscal year there's ample reason to re-think your portfolio and pick up some investments that can make a lot of difference in the span of just a few weeks. While there's the usual evidence that the stock market cools off during the summer, a few lucky companies appear poised to break out of the status quo and provide strong dividends for their investors.
If you love the delicious combination of shredded pork and guacamole, know that millions of other Americans agree with the sentiment. Chipotle stock (CMG on the NYSE, trading for $609 a share) won't provide as much growth as if you had purchased shares five years ago, but it appears poised to rebound after positively taking it on the chin thus far through 2015. Chipotle thought they would enjoy a strong marketing campaign based on organic, non-GMO ingredients, but the strategy backfired: public opinion in the US has steadily turned in favor of GMOs, making Chipotle look like a company behind the times. They raised their restaurants' prices in the second quarter of 2014, resulting in slower business and less revenue. Even so, the short- and long-term for this Mexican fast-food franchise appear quite solid. Not only do they intend to open 200 new stores by the end of 2015, bringing the total number above 2000 in the US alone, but they're doing a fantastic job adding sales volume to each existing restaurant -- a ploy that their former ownership, McDonalds, has yet to catch onto. Rumors that Chipotle will expand into non-Mexican spin-off franchises make this a very tempting purchase at a very tempting price.
Menfolk without much interest in luxury handbags may be forgiven for having never heard of this fashion boutique, but you can be about as certain as certain gets that your mothers, sisters, wives, and daughters know all about their lines of clothing and accessories. The Michael Kors company (KORS on the NYSE, trading for $43.07 a share) already has celebrity endorsements ranging from J-Lo to Heidi Klum but their lucky hasn't held out much during the 2015 year. In fact, their current trading price sits just barely above the company's 52-week low. As such, Kors represents a big grower in the long term, especially since their price-to-growth ratio is below the all-important 1.00 threshold. There's reason to believe that they'll do well in the near future besides statistics, furthermore: they're expanding aggressively into e-commerce, with their online sales increasing by over 50% in the past year. They represent a textbook definition of buying low for a long-term investment strategy.
No company has the ability to shrug off bad press quite like Disney. Not even an outbreak of measles at the Happiest Place on Earth can sink the value of this iconic media franchise; indeed, Disney stock (DIS on the NYSE, trading for $114.92 a share) has gained about 20% value in the six months since the announcement of the outbreak. Look at their performance in the past five years, furthermore, and you'll see one of the best growers in the entire market, increasing eightfold since 2009. Just about every piece of news of late has gone Disney's way: their new Pixar film has topped the box office revenue charts, ESPN took in a huge chunk of the $600 million generated from the Mayweather-Pacquiao fight, and let's not forget that the newest episode of Star Wars will debut this year and doubtless smash every record for film revenue in history. A cynic could look at Disney's stock and say they're well overdue for a run of bad luck, but it's hard to see bad luck in their future when they hold more winning cards than any other media institution.
No social media giant stays ahead of the trends quite like Twitter. They monetized hashtags, videos, and outlinking long before their competition (Facebook, Instagram, and YouTube) ever got around to doing it. Now Twitter (TWTR on the NYSE, trading for $35.71 a share) appears to be ahead of the curve yet again thanks to their Periscope platform, a video-streaming function that could change user interaction with social media itself. Periscope only hit the airwaves just weeks ago, but it's already proven extremely promising for Twitter. A poll of their most reliable demographic, web users between the ages of 18 and 35, found that no less than half would utilize Periscope's video-Tweeting ability in addition to standard Tweeting. With such a huge amount of guaranteed viewership, there's no doubt that advertisers will follow suit and flush Twitter with fresh ads and fresh cash. Since Twitter's stock has lost 30% of its value in the past two months as CEO Dick Costolo steps down, there's no better time to capitalize and ride the rewards as the stock climbs back up to re-take its lost value.
Bank of America
While bank stocks almost always offer good value, the forecast for Bank of America (BAC on the NYSE, trading for $17.01 a share) looks especially nice for the month of July. That's because BoA has hit that golden cross sweet spot where their 15-day average broke above their 200-day average, having gained seven percent in June alone. The 200-day average, furthermore, trends upwards into the longterm, meaning that it's by no means a pump and dump but an engine for good value throughout the rest of the year. Want more proof? The numbers don't lie: a Thompson Reuters report noted that BoA stock enjoys an historical average of 4.2% growth in the month of July. Investors should move soon on this one: BoA will release their earnings report in two weeks, possibly leading to investors building up the asking price for the company's shares.