5 Must-Buy Growth Stocks for July After an Impressive June
The trend is likely to continue in July supported by strong economic data. The ISM (Institute of Supply Management) manufacturing and services purchasing managers' index (PMI) data for June were better than expected. Factory orders (orders for both durable and non-durable goods) jumped in May compared with the contraction in April.
Finally, job additions in June were firm well ahead of the consensus estimate eliminating the risk of a near-term recession in the economy. Moreover, the tally for May and April together increased by 11,000. The unemployment rate ticked down to 4.1% in June from 4.2% in May.
At this stage, we recommend five growth stocks for July. Growth investors are primarily focused on stocks with aggressive earnings or revenue growth, which should propel their stock prices higher in the future.
These stocks are: AppLovin Corp. APP, Intuit Inc. INTU, monday.com Ltd. MNDY, Credo Technology Group Holding Ltd. CRDO and Gold Fields Ltd. GFI. Each of our picks sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A. 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
AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
AppLovin's last reported financial results demonstrate its strong fundamentals and growth potential. The introduction of APP's AI-powered AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth. APP's AI-enabled Audience+ marketing platform is also increasing its reach into the direct-to-consumer and e-commerce space.
AppLovin has an expected revenue and earnings growth rate of 16% and 85.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% in the last 30 days.
Intuit has been benefiting from steady revenues from the Online Ecosystem and Desktop business segments. INTU's strong momentum in Online Services revenues is driven by the solid performance of Mailchimp, payroll and Money, which includes payments, capital and bill pay.
Intuit's generative AI-powered "Intuit Assist," provides a financial assistant, enabling personalized insights and recommendations, integrated into products like TurboTax, Credit Karma, QuickBooks, and Mailchimp, aiming to fuel small business and personal financial success.
INTU's Credit Karma business is benefiting from strength in Credit Karma Money, credit cards, auto insurance and personal loans. INTU's strategy of shifting its business to a cloud-based subscription model will help generate stable revenues over the long run. Cloud is a flourishing part of the technology space and has been gaining momentum in recent years.
Intuit has an expected revenue and earnings growth rate of 11.7% and 13.7%, respectively, for the next year (ending July 2026). The Zacks Consensus Estimate for next-year earnings has improved 4.6% over the last 60 days.
monday.com develops software applications in the United States, Europe, the Middle East, Africa, and internationally. MNDY provides Work OS, a cloud-based visual work operating system that consists of modular building blocks used and assembled to create software applications and work management tools.
MNDY also offers product solutions for work management, sales CRM, software development verticals, business development, presale, and customer success services. MNDY serves organizations, educational or government institutions, and distinct business units of an organization.
monday.com has an expected revenue and earnings growth rate of 25.6% and 8.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.9% in the last 30 days.
Credo Technology is a provider of high-performance serial connectivity solutions for the hyperscale datacenter, 5G carrier, enterprise networking, artificial intelligence and high-performance computing markets.
CRDO's products include HiWire active electrical cables, optical digital signal processors, low-power line card PHY, serializer/deserializer (SerDes) chiplets, and SerDes IP, as well as integrated circuits, active electrical cables. CRDO also offers intellectual property solutions consisting of SerDes IP licensing.
CRDO sells its products to hyperscalers, original equipment manufacturers, original design manufacturers and optical module manufacturers, as well as into the enterprise and HPC markets.
Credo Technology has an expected revenue and earnings growth rate of 85.8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 37% in the last 60 days.
Gold Fields operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Canada, Australia, and Peru. GFI also explores for copper and silver deposits.
Gold Fields has an expected revenue and earnings growth rate of 71% and 93.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.4% in the last 30 days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intuit Inc. (INTU) : Free Stock Analysis Report
Gold Fields Limited (GFI) : Free Stock Analysis Report
AppLovin Corporation (APP) : Free Stock Analysis Report
monday.com Ltd. (MNDY) : Free Stock Analysis Report
Credo Technology Group Holding Ltd. (CRDO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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