As we venture into July, the hunt for momentum stocks to buy is heating up. A few of the market’s top performers are potentially on the brink of a breakout. Some factors fueling their surge relate to strong earnings reports, the release of innovative new products, and an uptick in investor sentiment. These high-octane stocks have the potential to notch up short-term profits for savvy investors who can seize the momentum at the right time.
If the economic landscape continues to brighten, and we can effectively sidestep the lingering recession, we may find ourselves amid a bull market. This could serve as a further catalyst for the best momentum stocks this July. Let’s look at three such stocks to invest in now.
6-Month % Gain: 49%+
Apple (NASDAQ:AAPL), renowned for its premium product offerings, maintains its reputation as a maestro of high-end market positioning. From iPhones to MacBooks, the tech titan has an uncanny knack for selling its legacy products suite at top-tier prices.
In an exciting new chapter, Apple is venturing into the realm of virtual reality with the Vision Pro. Despite VR headsets finding a niche within the gaming sphere, broader traction remains elusive. A successful launch could see a revenue surge, with the high-end headset slated for release next year sporting a $3,499 price tag.
Moreover, the second half of the year promises could be massive for the firm. The driving force is the anticipated release of the new iPhone in the third quarter. The new iPhone represents a significant sales opportunity with an average sale price nearing $1,000. Barclays analysts anticipate nearly 89 million iPhone 15 units could be sold in the first year alone. This paints a robust picture for the company’s financial prospects.
6-Month % Gain: 18%+
Riding high on its stellar first-quarter earnings report, high-end athletic apparel retailer Lululemon (NASDAQ:LULU) is basking in the investor limelight. In contrast to other retailers grappling with crippling economic conditions, Lululemon has effectively navigated these waters with self-assurance. This has bolstered investor optimism with its sturdy financial performance and upgraded guidance.
Lululemon has won the hearts of American consumers reporting first-quarter sales of $2 billion, marking a 24% year-on-year bump from the prior-year period. While the U.S. remains a major revenue contributor, Lululemon’s global footprint is expanding, highlighted by a 60% increase in international sales in the quarter.
As the company powers ahead with its “Power of Three x2” plan, investors can anticipate steady growth for the foreseeable future. The strategy refers to the plan of doubling the business over the next five years. With projected 2023 sales of $9.48 billion at the mid-point, a 17% increase from last year, and earnings per share of around $11.84, the future for Lululemon looks incredible.
6-Month % Gain: 43%+
Shipping and logistics behemoth FedEx (NYSE:FDX) stumbled in trading after reporting a dip in global volume in its recently released fourth-quarter results. This set full-year profit guidance below market expectations. The Memphis-based firm fell short of consensus estimates with quarterly total revenue of $21.9 billion. However, the prevailing sentiment around FedEx is far from doom and gloom.
In fact, market watchers are lauding the major strides FedEx has made in slashing structural and variable costs. This initiative aligns with a broader strategy. This is aimed at building a flexible network that can respond to fluctuations in cost and demand. Additionally, the proactive approach to cost management has the market punditry growing bullish on FDX stock.
The company also highlighted its ongoing commitment. They will reduce costs within FedEx Freight through furloughs to align staffing with demand and network optimization. Consequently, it delivered an adjusted operating income figure of $1.77 billion for the quarter, surpassing the $1.69 billion consensus.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines