7 A-Rated Stocks to Buy For July
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This may feel like the dog days of summer, but it also marks a significant event on the investing calendar – the beginning of the third quarter. Yes, 2024 is halfway done, and if you’re still trying to outperform the market this year, you should look at adding A-rated stocks to your portfolio.
The ratings come from the Portfolio Grader, a free tool ideal for sorting and screening stocks. To get an “A” rating, a stock must have high grades in factors such as growth, earnings performance, momentum, and analyst sentiment.
As companies begin the year’s second half, many are reassessing their strategies and goals to hit their full-year numbers. As an investor, you should do the same thing.
This has been a good year, so far, for the market, with the tech-heavy Nasdaq composite showing a 21% gain. The S&P 500 is close behind at 16%, while the Dow Jones Industrial Average is only showing a 4.3% gain.
So, as you look at your portfolio for the year’s second half, you should put heavy consideration into tech stocks. You’ll see today’s list of A-rated stocks with a heavy emphasis on tech – none of which are represented on the Dow 30 list of Dow Jones stocks.
Nvidia (NVDA)
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Any company changing life as we know it will get the No. 1 spot on my list of top stocks to buy – and for several months now, that’s been Nvidia (NASDAQ:NVDA).
The semiconductor company makes most – nearly all – of the high-powered chips needed for complex operations that power machine learning, the Internet of Things, and generative artificial intelligence.
Nvidia saw revenue in its most recent quarter jump 262% from a year ago to $26 billion, and earnings per share of $6.12 up 629% from last year.
And even though logic dictates that this massive growth can’t continue forever – after all the company is facing some more difficult comparable numbers – Nvidia continues to roll.
Its H100 processors have led the charge, but Nvidia’s H200 processors work even faster. And the Blackwell platform lets any organization operate large language models with 25 times less cost and energy.
That’s why I’m betting on Nvidia to continue to perform. The stock is up 159% this year and gets an “A” rating in the Portfolio Grader.
Meta Platforms (META)
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The home of Facebook, Instagram, Reels, WhatsApp and Messenger, Meta Platforms (NASDAQ:META) has a massive audience of users who use the social media platforms to connect with friends, family and to make new connections.
That’s a winning formula for Meta, because all that sharing gives Meta an enormous amount of information about its customers likes, dislikes, hobbies, political affiliations and spending habits – all information that advertisers can use to directly target customers with ads.
Meta got 98% of its revenue in the first quarter from advertising. Bringing in $36.4 billion, up 23% from a year ago. Earnings per share was $4.71, up from $2.20 per share in the first quarter of 2023.
Meta is also deeply involved with artificial intelligence with Meta AI, a large language model that can do everything from creating images and animated custom GIFs to suggest a dinner menu based on what ingredients you have on hand.
Meta’s Q2 earnings report is slated for July 31. If it continues to grow revenue and daily average users, the stock will have a massive summer.
META stock is up 44% this year and gets an “A” rating in the Portfolio Grader.
Chipotle Mexican Grill (CMG)
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Chipotle Mexican Grill (NYSE:CMG) is an amazing fast-casual restaurant stock. The company perfectly positioned itself as an alternative to a slew of burger joints by offering custom-made burritos and burrito bowls consisting of fresh ingredients – nothing is ever frozen.
That’s why Chipotle grew to over 3,400 locations. And unlike many other chains, Chipotle doesn’t sell franchises. All of its locations are owned and operated by the company, so Chipotle can do a better job in maintaining quality and standards.
And if you thought Chipotle stock was too expensive to buy without fractional shares, think again. The company in late June executed a 50-for-1 stock split so shares of CMG stock are just over $60.
That makes them far more accessible to retail investors and it’s much easier to make options trades with CMG stock as well.
Revenue in the first quarter was $2.7 billion, up 14.1% from a year ago. Comparable restaurant sales were up 7% and operating margins rose from 15.5% to 16.3%.
Chipotle stock is up 34% in 2024 and gets an “A” rating in the Portfolio Grader.
Super Micro Computer (SMCI)
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The massive advances in generative AI and large language models has been a tailwind for Super Micro Computer (NASDAQ:SMCI), also known as Supermicro.
The company provides the custom server infrastructure that allows customers to bundle their GPUs and perform AI functions.
The company has a close relationship with Nvidia as its preferred server partner. And it also has a customer-friendly business model because its servers are like building blocks – parts can be easily swapped out and upgraded rather than a customer replacing the entire thing.
Earnings for the fiscal third quarter of 2024 included sales of $3.85 billion, up from $1.28 billion a year ago. Income was $402 million and $6.56 per share versus $86 million and $1.53 per share last year.
SMCI stock is down from all-time highs hit in March, but the stock still gained 197% in 2024 and maintains its “A” rating in the Portfolio Grader.
CrowdStrike (CRWD)
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With more of our business, banking and personal information on computers these days, there’s much more of a need for companies like CrowdStrike (NASDAQ:CRWD).
CrowdStrike is a computer security company that operates a cloud-native platform that provides endpoint protection, cloud workloads, identity and data.
CrowdStrike’s Falcon platform is powered by AI and machine learning to respond to and stop threats in real time. The company also sells modules, which are extensions that customers can add to customize their platforms and increase protection.
Modules include endpoint security, data security, IT operations, threat intelligence and more.
CrowdStrike says 65% of its customers purchase and use at least five modules, making it a lucrative business model.
Revenue for the company’s first quarter of fiscal 2025 was $921 million, up 33% from a year ago. Subscription revenue was $872.2 million, up 34% from the first quarter of fiscal 2024.
CRWD stock is up 51% this year and gets an “A” rating in the Portfolio Grader.
Netflix (NFLX)
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Netflix (NASDAQ:NFLX) is the king of streaming services, ranking No. 1 as the biggest paid-for streaming company on the planet (it trails only YouTube, which is free to watch and ad-free with a premium subscription).
Netflix currently has 269.6 million paid subscribers – a number that increased dramatically last year when the company dumped its longtime password-sharing program and began charging customers an $8 surcharge to grant access to an account outside of the household.
The decision was controversial with customers, but wildly effective. Paid memberships are up from 232.6 million a year ago because people find value in Netflix’s content.
Revenue of $9.3 billion in the first quarter was up 14.8% from a year ago, and Netflix forecast additional growth to $9.49 billion when it reports Q2 earnings in mid-July.
NFLX stock is up 40% this year and gets an “A” rating in the Portfolio Grader.
Williams-Sonoma (WSM)
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Williams-Sonoma (NYSE:WSM) proves that you don’t have to be a tech company to be an A-rated stock.
The California-based company sells kitchenware and home furnishings, operating under the brands that include Williams Sonoma, Pottery Barn and West Elm.
In addition to retail stores in the U.S., Canada, Australia and the U.K., Williams-Sonoma franchises brands to third parties that operate in the Middle East, Mexico and the Philippines.
The company is also in the process of a 2-for-1 stock split. Shareholders as of June 27 will receive the split through a stock dividend that will be issued on July 8; shares will then start trading on a split-adjusted basis on July 9.
But if you missed the split, there’s still plenty of reasons to have WSM stock. The company saw revenues drop in the first quarter to $1.66 billion from $1.75 billion a year ago.
But it was also more efficient, with profits of $802 million up from $675 million; net earnings of $265.6 million versus $156.5 million a year ago, and earnings per share of $4.07 versus $2.35 in the first quarter of 2023.
WSM stock is up 39% in 2024 and gets an “A” rating in the Portfolio Grader.
On the date of publication, Louis Navellier had LONG position(s) in NVDA, SMCI and CRWD. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article had a LONG position in NVDA. The InvestorPlace Research Staff member did not have (either directly or indirectly) any other 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
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