Best Stock Picks For July 2020

High growth stocks to add to your portfolio

Below are 5 stocks top investors believe as strong investment choices for July 2020. If you would like to understand how these stocks were picked, please read until the end of this article.

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#1: Twilio

Twilio is a cloud computer communications platform that allows software developers to programmatically make and receive phone calls, text messages, and perform other communication functions. The company's active customers grew 23% year over year. In addition, the coronavirus pandemic has helped spur demand for Twilio’s video and other digital communications services. Not only are app users finding Twilio engaging, but existing customers are spending 43% more on average than the previous year.

The stock doubled in value since the start of this year. The share price increased by 76% alone in May as the company published impressive first-quarter results. Motley Fool believes the stock could double again in the second half of 2020: “Revenue grew 57% in its latest quarter, and its adjusted profit exceeded analyst expectations for the third consecutive period.” These reasons make Twilio an attractive buy for top investors.

Quick Stats

• Year to date, the company’s stock has decreased by 122.68%
• Current Trade Price: $218.85
• 52 Week Low: $68.06
• 52 Week High: $222.38
• Net Income in 2019: -$307,063,000
• CNN Money forecasts that this stock could reach $240 in the next 12 months (9% increase in value).

#2: Sirius XM

Sirius XM is an American broadcasting company. Although growth is slowing, Warren Buffet and The Motley Fool recommends investors to purchase Sirius XM stock due to the 30 million paid subscribers. The company also acquired Pandora in 2018, which is used by millions of people across the world. Currently, the stock price is close to the all-time low and will most likely surge as more people are utilizing Sirius XM and Pandora with shelter-in-place orders.

Motley Fool describes Sirius XM and Pandora users: “They’re devoted to the personalities behind their favorite programs, and they’re willing to keep paying for ongoing access to shows done by the likes of Howard Stern. Sirius also offers access to sports events and programs that may not be available any other way, like Aussie Football Rules America with Eddie McGuire.” These reasons make Sirius XM an attractive buy for investors in July.

Quick Stats

• Year to date, the company’s stock has decreased by 18.39%
• Current Trade Price: $5.83
• 52 Week Low: $4.11
• 52 Week High: $7.40
• Net Income in 2019: $914,000,000
• CNN Money forecasts that this stock could reach $7.50 in the next 12 months (29% increase in value).

#3: Wells Fargo

Wells Fargo is a United States-based multinational financial services company. The company has been under fire for numerous scandals that led to the company’s recent underperformance. In addition, the pandemic has negatively impacted the company’s stock value. Although the company is going through a rough time, there are many other factors to consider for long-term growth.

Wells Fargo has a long history of responsible lending and high asset quality. The stock is currently a steal for long-term investors. The company has a strong sales culture and leadership team. Recently, the company appointed Charles Scharf, former CEO of Visa, who has an excellent track record of effective leadership. The company is profitable and in strong financial shape to make it through the pandemic. If you purchase and hold Wells Fargo stock long-term, top investors predict the return will be worth it.

Quick Stats

• Year to date, the company’s stock has decreased by 52.45%
• Current Trade Price: $25.55
• 52 Week Low: $22.00
• 52 Week High: $54.75
• Net Income in 2019: $19,549,000,000
• CNN Money forecasts that this stock could reach $65.00 in the next 12 months (154% increase in value).

#4: Nintendo

Nintendo is a Japanese consumer electronics and video game company. In March 2020, video game sales increased 35% to the highest levels since 2008. With stay-at-home orders, more and more people are turning to video games to pass time. Nintendo has seen a huge surge in purchases for the Switch as well as video games. Some popular video games include Mario Kart, The Legend of Zelda, Luigi’s Mansion and Super Smash Bros.

Top investors predict that Nintendo will continue to do well in the future. It’s uncertain when stay-home-orders will officially end, fueling the company’s current growth. In addition, the company plans to launch the Switch 2 in 2021, which will further propel the company’s sales. InvestorPlace states that: “The valuation on NTDOY stock remains reasonable considering the company’s strong long-term growth prospects.”

Quick Stats

• Year to date, the company’s stock has increased by 12.26%
• Current Trade Price: $56.02
• 52 Week Low: $35.82
• 52 Week High: $58.95
• Net Income in 2019: $194,009,000,000
• CNN Money forecasts that this stock could reach $78.10 in the next 12 months (39% increase in value).

#5: Facebook

If you missed the first dip in March where Facebook stock hit an all-time low, July may be a great time to invest in Facebook. Currently, the company is under heat for not doing enough to combat hate speech and discrimination on the platform. Many brands including Coca Cola, Patagonia, and Unilever decided to cut advertising on Facebook for the month of July. Some brands are pausing spend until the end of the year. This means that the company will lose billions of dollars in advertising revenue. When the boycott announcements came out, the stock price dropped about 5%.

However, many investors believe this negative impact will only be short-term. Facebook is working on many platform updates to combat hate speech, discrimination, and other social and political issues. Once that is in place, brands will start spending on the platform again as the ROI beats no other social media network. It’s predicted that Facebook will return back to normal levels once they get over this hurdle. The stock will most likely decrease a little more in July and the remainder of Q3 2020. This makes Facebook an attractive option for long-term investors.

Quick Stats

• Year to date, the company’s stock has risen by 9.74%
• Current Trade Price: $225.32
• 52 Week Low: $137.10
• 52 Week High: $245.19
• Net Income in 2019: $18,485,000,000
• CNN Money forecasts that this stock could reach $300 in the next 12 months (33% increase in value).

My Strategy:

When looking for a company to invest in, there are many factors to consider. First, look at the financials and make sure the company is generating positive revenue year over year. Then look to see how much the company is burning through cash each year. Companies with positive net revenue are worthwhile investments.

Moreover, scour the web to see if the company is growing each year. Are the products and services the company is selling in hot demand? Are people buying the company’s products and services? These are also important factors that will impact the longevity of a company.

Another piece of advice that many top investors recommend is to buy and hold for the long term.

Investopedia states:

The main reason to buy and hold stocks long-term is that long-term investments almost always outperform the market when investors try and time their investments.

Make sure to do your research prior to investing in any company.

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