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Forbes
5 days ago
- Business
- Forbes
The 6 Best Stocks To Buy Now For July 2025
Opt for companies with reasonable valuations and strong outlooks to hedge against a downturn later ... More this year. The S&P 500 is flirting with a new high this June, despite geopolitical unrest and a fast-approaching tariff deadline. When investor enthusiasm runs hot, it can be a good time to exercise caution. Should inflation or unemployment jump later this year, you'll appreciate having defensive options in your portfolio. That's why these top stocks for July have defensive qualities alongside double-digit upside potential. Any one of them could be the all-field player your portfolio needs to thrive amid the economic complexities of 2025. How These Top Stock Picks Were Chosen Analysts at Wealth Management see opportunities later this year in utilities, financials and international industrials alongside ongoing growth in technology. Utilities have long been viewed as defensive stocks, but they now have good growth potential, too—since the AI data center buildout is driving electricity demand higher. Financials can be a defensive play against rising interest rates, but they're also likely to thrive as banking regulations ease under President Trump. Also, regional financial companies and utilities have the added advantage of limited tariff exposure. The selection criteria for these top stock picks were designed to capitalize on these trends. All six stocks are either utilities or financials that meet these parameters: The six stocks chosen also pay dividends, with yields ranging from 0.7% to 6.5%. 6 Top Stocks To Buy Now In July 2025 The table below highlights six reasonably valued financial and utility stocks that are expected to deliver double-digit EPS growth this year. A review of each company follows. Metrics are sourced from company reports, and author calculations. For more top stock ideas, see this list of best stocks to buy for 2025. 1. PG&E Corporation (PCG) (H2) PCG by the numbers: PG&E sells electricity and natural gas to residential, commercial and agricultural customers in Northern and Central California. PG&E's 2025 non-GAAP core earnings EPS guidance is $1.48 to $1.52. The midpoint of the range, $1.50, represents an increase of 10.2% from 2024. Longer term, analysts expect the utility company to continue increasing earnings by high single digits, reaching EPS of $2.12 in 2029. A strong data center pipeline and aggressive capital spending plan are contributing to PG&E's optimistic outlook. The utility has 18 projects in the final engineering phase, with some scheduled to come online next year. PG&E's capital spending budget from 2025 through 2028 totals $52.5 billion. Cost control and risk mitigation are also priorities. PG&E's long-term operations and maintenance cost reduction target is 2% annually. The company exceeded this goal in 2023 and 2024. The risk mitigation efforts are focused on improving wildfire response and powerline safety. PG&E's quarterly dividend is $0.025 and the yield is 0.7%. 2. Edison International (EIX) EIX by the numbers: Edison International provides electricity to residential, commercial, agency and industrial customers in Southern California. Edison International's 2025 core EPS guidance is $5.94 to $6.34. The midpoint of the range, $6.14, is 24.5% higher than EIX's 2024 core EPS of $4.93. The EIX leadership team says the company can grow core EPS 5% to 7% annually through 2028. The targeted range for 2028 core EPS is $6.74 to $7.14. EIX's stock price fell dramatically after the California wildfires in January 2025. The stock had been trading above $80 per share since the prior summer. It's now in the $50s. Several analysts see this as a buying opportunity. The consensus price target on the utility is $76.82, equating to 51.5% upside. Edison is facing lawsuits related to the wildfires, a risk investors should weigh carefully. California has a wildfire fund to protect its utility companies from bankruptcy if courts rule one of them liable for fire damages. Unfortunately, the $21 billion fund may not be enough to cover losses from the Eaton Fire. PG&E executives have said they don't think the utilities or their shareholders should contribute to the fund. Edison International pays a quarterly dividend of $0.8275 per share, for a yield of 6.5%. 3. SouthState Corporation (SSB) SSB by the numbers: SouthState Corporation operates a regional bank serving consumer and business customers in Texas and the southeastern U.S. Analysts expect SouthState to deliver EPS of $8.62 in 2025, up nearly 24% from the $6.97 result in 2024. By 2027, analysts expect SouthState's EPS to reach $10.50. SouthState implemented pivotal changes in the first quarter. The company completed its acquisition of Independent Bank Group, with branches located in fast-growing Texas markets. SouthState also completed a sale and leaseback of 165 bank branches and restructured $1.8 billion of securities. The acquisition expands SouthState's footprint into key markets. And the restructuring helped boost the bank's net interest margin to 3.85% from 3.48% in the prior quarter. The company is well-positioned for the future, with improved financial strength and profitability. SouthState pays a quarterly per-share dividend of $0.54, for a yield of 2.3%. 4. Webster Financial Corporation (WBS) WBS by the numbers: Webster Financial Corporation operates a regional bank serving consumers and business customers in Connecticut, Massachusetts, Rhode Island and the New York metro. The 2025 EPS expectation for Webster Financial is $5.79, up 32.6% from last year's $4.37 result. Additionally, eight analysts project the company's 2027 earnings to eclipse $7 per share. Webster reported solid first-quarter 2025 results that included deposit and loan growth across multiple business lines. The bank also grew net interest income 0.6% on a higher net interest margin. However, WBS did increase its allowance for credit losses in the first quarter. CFO Neal Holland cited an uncertain economic outlook and the need to prepare "for a wider range of economic scenarios." Despite the uncertainty, WBS increased its common stock repurchase authorization by a generous $700 million in May. The move signals confidence in the bank's outlook. Webster Financial pays a quarter per-share dividend of $0.10, for a yield of 2.9%. 5. UMB Financial Corporation (UMBF) UMBF by the numbers: UMB Financial provides regional banking services to consumers and businesses in the Midwest and California. Services include traditional depository services plus wealth management, financial planning and institutional banking. Analysts expect UMBF to produce 2025 EPS of $10.23, a 13.8% improvement over 2024 EPS of $8.99. The earnings growth is projected to continue, albeit more slowly, in 2026 and 2027. The 2027 EPS outlook for UMBF is $12.25. UMB Financial has historically been a conservatively managed business. Strategic priorities include balance sheet health, liquidity and above-average credit quality. This approach has contributed to double-digit net income growth in three of the last four years. Business prudence also allowed UMBF to close the largest acquisition in its history in January. The purchase of Heartland Financial increased the bank's asset size by 32% and expanded UMBF's footprint into California, New Mexico, Minnesota, Wisconsin and Iowa. The acquisition also contributed to a 37-basis point reduction in deposit costs and a 39-basis point improvement in net interest margin in the first quarter. UMBF pays a quarterly dividend of $0.40, for a modest yield of 1.5%. 6. Old National Bancorp (ONB) ONB by the numbers: Old National Bancorp operates the sixth largest commercial bank in the Midwest. The bank offers retail and commercial banking, wealth management, investing and capital markets services. Old National Bancorp produced 2024 EPS of $1.68. Analysts expect 2025 EPS of $2.17, which equates to earnings growth of 29.2%. Current EPS projections for 2026 and 2027 are $2.66 and $2.98, respectively. ONB's first quarter results beat analyst expectations for revenue and adjusted EPS. The leadership team cited solid organic loan and deposit growth combined with tight control of operating expenses. Other highlights included continued strong capital ratios and stable credit quality metrics. The positive results positioned ONB well for its merger with Bremer Bank, which closed after quarter-end on May 1. The ONB team expects the transaction to contribute to lower deposit costs and loan growth going forward. The combined entity at close had about $70 billion in assets and $37 billion in assets under management, placing it in the top 25 of U.S.-based banks. ONB pays a quarterly per-share dividend of $0.14, for a yield of 2.6%. Bottom Line For the second half of 2025, utility and midsized financial stocks could provide defensive growth, plus a nice boost to your cash income. Opt for companies with reasonable valuations and strong outlooks to hedge against a downturn later this year.
Yahoo
20-06-2025
- Business
- Yahoo
3 Reasons Why Kroger Stock Is a Buy Now
Kroger's first-quarter earnings report shows why it's a safe, defensive play right now. The stock is attractively priced and provides a consistent dividend. 10 stocks we like better than Kroger › These are challenging times. There's conflict here in the U.S., war breaking out in the Mideast, trade wars, and tariffs, as well as rising prices and recession fears. As gold prices soar and investors seek safe havens, how does one stay in the stock market and hedge against uncertainty? Defensive, recession-resistant stocks are the way to go, and in that category, Kroger (NYSE: KR) stock deserves a closer look. Kroger is a grocery giant that walks under the radar. Sure, it's not a flashy artificial intelligence stock, but it's one of the nation's largest grocery store chains and offers reliable earnings, rewards its shareholders, and plays an indispensable role in the communities in which it operates. Kroger reported first-quarter earnings before the opening bell today. So, let's take a look at three reasons why Kroger stock is a buy now. There are few businesses that are more stable than the ones that provide our food. Even when people tighten their budgets, cancel vacations, or delay big-ticket purchases, they're still going to spend money at the grocery store. Kroger currently operates more than 2,700 stores across the United States, including brands like Fred Meyer, Ralphs, King Soopers, Harris Teeter, and, of course, Kroger. It also operates more than 2,000 pharmacies in its stores and 1,500 fuel centers. That helps expand Kroger's reach into several revenue streams. In addition, Kroger has nearly three dozen food production and manufacturing facilities where it produces private-label, low-cost products. These store brands are usually much cheaper than name-brand items and provide Kroger with greater profit margins -- particularly when customers are looking to stretch their grocery dollars. Berkshire Hathaway CEO Warren Buffett would likely be the first to tell you that the best stocks to hold represent companies that take care of their shareholders. And Kroger is definitely one of those. Kroger stock currently offers a dividend yield of around 2% and the company has increased its dividend payout annually for the last 19 years. In addition, Kroger is providing more value to shareholders through a $7.5 billion share repurchase authorization, which includes a $5 billion accelerated buyback that was announced after its bid to acquire Albertsons failed. Solid dividends and share buyback programs are important for any investor who is looking to build a portfolio with sustainable wealth. And perhaps that's why Berkshire Hathaway's portfolio contains 50 million shares of Kroger stock, valued at about $3.5 billion. One thing that you want to avoid when choosing defensive stocks is picking one that will negatively surprise the market when it gives a quarterly report. That's another reason to like Kroger: It consistently delivers in its quarterly reports, matching or beating analysts' expectations for earnings in each of the last four quarters. That trend continued this week when Kroger issued its first-quarter numbers. Adjusted earnings per share of $1.49 were $0.04 better than expectations, and the company's gross margin increased from 22% a year ago to 23% now. The company just missed the revenue estimate, posting $45.12 billion versus analysts' consensus expectations of $45.16 billion. Investors were pleased, and the stock is up 7% at 10:15 a.m. Kroger also announced it was taking a $100 million impairment charge related to the planned closings of 60 locations in the next 18 months. It increased its full-year identical sales guidance (excluding fuel sales) from an increase of 2% to 3% to an increase of 2.25% to 3.25%. This metric looks at sales in locations open five or more quarters. While the company didn't break down its sales by segment, it said its e-commerce sales were up 15% on a year-over-year basis. "We continue to believe that our strategy focusing on fresh, Our Brands and eCommerce will continue to resonate with customers and our resilient model positions us well to navigate the current environment," Chief Financial Officer David Kennerley was quoted as saying in the company press release. Another thing that stands out is Kroger's valuation. Its forward price-to-earnings ratio of about 15 is attractive, as well as its price-to-sales ratio of around 0.3. It's much cheaper than competitors Walmart, Amazon, and Costco Wholesale. So, Kroger is providing great value and security in a challenging economic environment, and is doing so while being a dominant player in the grocery market. Kroger is a great long-term play that investors should consider right now. As uncertainty rises, it makes sense to gravitate toward stocks that are steady, essential, and take care of their shareholders. While it was a disappointment that the Albertsons deal failed to materialize, I'm comfortable with the moves that Kroger is making now -- shedding unprofitable stores, focusing on e-commerce and its in-house brands. That's the kind of steady performance that I'm looking for when I consider defensive stocks. Before you buy stock in Kroger, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Kroger wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Patrick Sanders has no positions in any of the stocks mentioned. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Costco Wholesale, and Walmart. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy. 3 Reasons Why Kroger Stock Is a Buy Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
11-06-2025
- Business
- Telegraph
Electrify your portfolio with this reliable infrastructure gem
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. Investing in defensive stocks typically represents a significant opportunity cost. In exchange for holding companies that offer a relatively stable financial and share price performance irrespective of the prevailing economic weather, investors have historically accepted lower total returns compared with volatile cyclical stocks that benefit from positive underlying economic growth. Given that Questor is generally unconcerned about the potential for elevated short-term share price volatility, with our focus squarely trained on long-term returns, our bullish stance on National Grid may be somewhat surprising. After all, we are highly optimistic about the long-term outlook for the UK economy and stock market amid ongoing interest rate cuts. However, our positive stance on the highly defensive utility company begins to make much more sense when its total return prospects are taken into account. Although its price-to-earnings ratio of 14.2 suggests there is limited scope for an upward rerating, the company's recently released full-year results show it remains on track to deliver annualised earnings per share growth of 6-8pc over the next four years. Even if its earnings multiple remains unchanged, it therefore offers relatively upbeat capital growth potential.
