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5 Momentum Stocks to Buy for July After a Strong June
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Wall Street closed June on an impressive note. The broad-market benchmark — S&P 500 Index — achieved its strongest monthly performance since October 2022, surging by 6.5%. The tech-laden Nasdaq Composite also experienced significant growth, advancing 6.6%. Both indexes marked their fourth consecutive month of positive gains. Additionally, the blue-chip Dow recorded a notable climb of 4.6%, delivering its most remarkable month since November 2022.
At this stage, it will be prudent to invest in momentum stocks for July. Five such stocks are — NVIDIA Corp. (NVDA - Free Report) , Palo Alto Networks Inc. (PANW - Free Report) , Celsius Holdings Inc. (CELH - Free Report) , Lennar Corp. (LEN - Free Report) and Kimberly-Clark Corp. (KMB - Free Report) .
U.S. Economy Remains Strong
The Bureau of Economic Analysis reported in its third estimate that the U.S. economy grew at 2% in first-quarter 2023. The first estimate was 1.1% and the second estimate was 1.3%. The consensus estimate was 1.5%. The U.S. GDP increased 2.6% in fourth-quarter 2022. The final figure of the first-quarter 2023 GDP eliminates the concerns of a large section of economists and financial researchers that may fall into a recession in the near future.
Consumer spending (known as personal consumption expenditure), the largest component of the U.S. GDP, grew 4.2% in first-quarter 2023, marking its highest level since second-quarter 2021. Exports jumped 7.8% in the reported quarter in contrast to a decline of 3.7% in the previous quarter.
The PCE (personal consumption expenditure) inflation and core PCE Inflation (excluding volatile items like food and energy) climbed 4.1% and 4.9%, respectively. Both inflation gauges were 0.1% lower than their respective consensus marks.
Momentum Likely to Continue
Macro-economic data for second-quarter 2023 are yet to be released. However, the situation is likely to remain the same based on already released data for the last three months. The labor market remains tight despite a massive hike in the Fed fund rate.
Moreover, July generally remains favorable for U.S. stock markets. Sine the great recession of 2009, July turned out the best month for the Dow and the second-best month for the S&P 500 and the Nasdaq Composite.
Our Top Picks
We have narrowed our search to five large-cap stocks that have strong momentum for July. These stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a Momentum Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
NVIDIA is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. A surge in Hyperscale demand and a solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds for NVDA.
NVIDIA has an expected revenue and earnings growth rate of 58.1% and more than 100%, respectively, for the current year (ending January 2024). The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the last 30 days.
Palo Alto Networks has been benefiting from continuous deal wins and the increasing adoption of PANW’s next-generation security platforms, attributable to the rise in the remote work environment and the need for stronger security.
Palo Alto Networks has an expected revenue and earnings growth rate of 21.3% and 16.9%, respectively, for the current year (ending July 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 30 days.
Celsius Holdings specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. CELH markets Celsius, the calorie burner, through its wholly-owned operating subsidiary, Celsius Inc. CELH sells its products through grocery, drug, convenience, club and mass, and health and fitness channels.
Celsius Holdings has an expected revenue and earnings growth rate of 69.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 30 days.
Lennar has been benefiting from effective cost-control measures and higher operating leverage. LEN is using its dynamic pricing model, which enables it to set prices according to evolving market conditions. Courtesy of this strategy, Lennar had earlier taken advantage of the strong demand trend, which helped it to maximize cash flow and return on inventory.
Lennar has an expected revenue and earnings growth rate of 2.5% and 3.4%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.2% over the last 30 days.
Kimberly-Clark has been benefiting from its three growth pillars. These include focus on improving KMB’s core business in the developed markets, speeding up growth of the Personal Care segment in developing and emerging markets and enhancing digital and e-commerce capacities. Apart from this, KMB’s pricing and saving initiatives have been aiding amid cost inflation.
Kimberly-Clark has an expected revenue and earnings growth rate of 2.3% and 10.1%, respectively, for the current year. The Zacks Consensus Estimate for next-year earnings has improved 0.7% over the last seven days.
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5 Momentum Stocks to Buy for July After a Strong June
Wall Street closed June on an impressive note. The broad-market benchmark — S&P 500 Index — achieved its strongest monthly performance since October 2022, surging by 6.5%. The tech-laden Nasdaq Composite also experienced significant growth, advancing 6.6%. Both indexes marked their fourth consecutive month of positive gains. Additionally, the blue-chip Dow recorded a notable climb of 4.6%, delivering its most remarkable month since November 2022.
At this stage, it will be prudent to invest in momentum stocks for July. Five such stocks are — NVIDIA Corp. (NVDA - Free Report) , Palo Alto Networks Inc. (PANW - Free Report) , Celsius Holdings Inc. (CELH - Free Report) , Lennar Corp. (LEN - Free Report) and Kimberly-Clark Corp. (KMB - Free Report) .
U.S. Economy Remains Strong
The Bureau of Economic Analysis reported in its third estimate that the U.S. economy grew at 2% in first-quarter 2023. The first estimate was 1.1% and the second estimate was 1.3%. The consensus estimate was 1.5%. The U.S. GDP increased 2.6% in fourth-quarter 2022. The final figure of the first-quarter 2023 GDP eliminates the concerns of a large section of economists and financial researchers that may fall into a recession in the near future.
Consumer spending (known as personal consumption expenditure), the largest component of the U.S. GDP, grew 4.2% in first-quarter 2023, marking its highest level since second-quarter 2021. Exports jumped 7.8% in the reported quarter in contrast to a decline of 3.7% in the previous quarter.
The PCE (personal consumption expenditure) inflation and core PCE Inflation (excluding volatile items like food and energy) climbed 4.1% and 4.9%, respectively. Both inflation gauges were 0.1% lower than their respective consensus marks.
Momentum Likely to Continue
Macro-economic data for second-quarter 2023 are yet to be released. However, the situation is likely to remain the same based on already released data for the last three months. The labor market remains tight despite a massive hike in the Fed fund rate.
Moreover, July generally remains favorable for U.S. stock markets. Sine the great recession of 2009, July turned out the best month for the Dow and the second-best month for the S&P 500 and the Nasdaq Composite.
Our Top Picks
We have narrowed our search to five large-cap stocks that have strong momentum for July. These stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a Momentum Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
NVIDIA is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. A surge in Hyperscale demand and a solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds for NVDA.
NVIDIA has an expected revenue and earnings growth rate of 58.1% and more than 100%, respectively, for the current year (ending January 2024). The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the last 30 days.
Palo Alto Networks has been benefiting from continuous deal wins and the increasing adoption of PANW’s next-generation security platforms, attributable to the rise in the remote work environment and the need for stronger security.
Palo Alto Networks has an expected revenue and earnings growth rate of 21.3% and 16.9%, respectively, for the current year (ending July 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 30 days.
Celsius Holdings specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. CELH markets Celsius, the calorie burner, through its wholly-owned operating subsidiary, Celsius Inc. CELH sells its products through grocery, drug, convenience, club and mass, and health and fitness channels.
Celsius Holdings has an expected revenue and earnings growth rate of 69.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 30 days.
Lennar has been benefiting from effective cost-control measures and higher operating leverage. LEN is using its dynamic pricing model, which enables it to set prices according to evolving market conditions. Courtesy of this strategy, Lennar had earlier taken advantage of the strong demand trend, which helped it to maximize cash flow and return on inventory.
Lennar has an expected revenue and earnings growth rate of 2.5% and 3.4%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.2% over the last 30 days.
Kimberly-Clark has been benefiting from its three growth pillars. These include focus on improving KMB’s core business in the developed markets, speeding up growth of the Personal Care segment in developing and emerging markets and enhancing digital and e-commerce capacities. Apart from this, KMB’s pricing and saving initiatives have been aiding amid cost inflation.
Kimberly-Clark has an expected revenue and earnings growth rate of 2.3% and 10.1%, respectively, for the current year. The Zacks Consensus Estimate for next-year earnings has improved 0.7% over the last seven days.