Top stocks to look for in July 2022.

Top stocks to look for in July 2022.

What Position Does the S&P 500 Hold?

For 2022, two quarters have already passed, and throughout the previous six months, we have seen the S&P 500 decline sharply. The SPY is currently down 21.46 per cent from its 2022 opening price and up 3.4% from its most recent 2022 low, which was made on June 17, when it traded at $375.31. Despite recording lower lows and even lower highs, SPY is still in a bear market.

Reviewing the first half of 2022, we have seen ongoing rate hikes and growing inflation. The market is still looking for buyers as concern over an impending economic downturn has become a popular topic of conversation.

It appears that market behaviour won’t alter until the economic dynamics that drive up costs reach equilibrium as more money chases fewer commodities.

Bearishness has been lucrative so far in 2022. With each new market, the bottom came buying pressure, and more sellers came with each bear market rally. Even though several popular market assets appear to be trading at appealing price levels, overall selling pressure continues to outnumber purchasing demand across the board.

Top Stocks to Watch in July

1. Delta Air Lines, Inc. (DAL)
2. Bank of America Corp. (BAC)
3. AT&T (T)
4. Coca-Cola Co. (K.O.)
5. Merck & Co., Inc. (MRK)

1. Delta Air Lines, Inc. (DAL)

Earnings Date for Delta Air Lines, Inc. (DAL): July 13, 2022 (Before the opening)

Currently trading at $29.03, Delta (DAL) is up 3.33 per cent from its June 30 2022, low of $28.10. DAL is now down 37.26% from its April 21 2022, high of $46.27. The IV Rank is presently 70.1. For options in the money in August, the bid-ask spread ranges from $0.04 to $0.08.

In its most recent earnings reports, Delta revealed sales of more than $9 billion and a net loss of less than $1 billion. However, 2021’s final two quarters showed us to be profitable at $1 billion.

In each of the previous four quarters, Delta’s balance sheet has shown total assets between $72 and $76 billion and total liabilities between $68 and $74.1 billion. Over the last four quarters, Delta’s earnings reporting has been inconsistent.

Delta is an excellent option for premium selling methods due to its competitive markets, substantial volume, and high IV Rank. Earnings options plays can be executed with July expiration options or August expiration options with earnings on July 13. The projected movement for Delta over the next 49 days is roughly +/- $4.38.

2. Bank of America Corp. (BAC)

Earnings Date for Bank of America Corp. (BAC): July 18, 2022 (Before the opening)

The price of Bank of America (BAC) is currently $31.00, up 1.17 per cent from its July 1 2022, low of $30.64. Compared to its February 10 2022, high of $50.11, BAC is currently down 38.08 per cent. IV Rank as of right now is 54.7, according to assessment. The bid-ask spread is $0.01-$0.03 wide for August at-the-money options.

The last four quarters of Bank of America’s quarterly reports have revealed sales of $22 to $25 billion and net income of $9.3 to $7 billion. The net income has been declining over the last four quarters. The balance sheet of Bank of America has increased steadily during the previous four quarters.

Total liabilities increased from roughly $2.7 billion to $3 billion, while total assets increased from about $3 billion to $3.2 billion. Over the last four quarters, Bank of America’s profit reporting have been inconsistent.

Bank of America is a solid option for premium selling techniques due to its competitive markets, high volume, and high IV Rank. Investors should turn to the August monthly expiration options for earnings options bets with earnings on July 18. For the following 49 days, Bank of America is anticipated to move by around +/- $3.03.

3. AT&T (T)

Date of AT&T (T) Earnings: July 21, 2022 (Before the opening)

Currently trading at $21.06, AT&T (T) has increased by 23.19 per cent from its 2022 low of $17.10 on February 24. T has dropped 2.28 per cent from its May 26 high of $21.53 for 2022. IV Rank as of right now is 61.6, according to estimation. The bid-ask spread is $0.01-$0.04 wide for August at-the-money options.

According to AT&T’s most recent four quarters of earnings reporting, net income ranged between $1.5 and $5.9 billion, while sales decreased from around $44 to $38.1 billion. The balance sheet of AT&T has increased during the last four quarters.

Total liabilities increased from around $364 billion to $390 billion, while total assets increased from $544 billion to $577 billion. Over the past four quarters, AT&T’s earnings reports have mainly remained consistent.

AT&T is a solid option for premium selling techniques due to its competitive markets, large volume, and high IV Rank. Investors could turn to the August monthly expiration choices for option bets, given the earnings on July 21. The anticipated change for AT&T over the next 49 days is roughly +/- $1.27.

4. Coca-Cola Co. (K.O.)

Earnings Date for Coca-Cola Co. (K.O.): July 26, 2022 (Before the opening)

At the time of writing, Coca-Cola (K.O.) is trading at $63.54, up 10.50 per cent from its 2022 low of $57.50 on February 24. Currently, K.O. is down 5.42 per cent from its April 25 high of $67.20 for 2022. IV Rank as of right now is 54.8, according to an assessment. The bid-ask spread for ATM options in August is $0.03-$0.04 wide.

Sales during the previous four quarters of Coca-Cola ranged between $9.4 and $10.5 billion, while net income was between $2.4 and $2.8 billion. The financial sheet of Coca-Cola has increased over the last four quarters.

Total liabilities have maintained between $66.4 billion and $69.5 billion, while total assets have stayed between $90.1 billion and $94.4 billion. Over the last four quarters, Coca-earnings Cola’s reports have remained stable.

Coca-Cola is a solid option for premium selling methods due to its competitive markets, high volume, and high IV Rank. Investors could seek the August monthly expiration options for options expiration plays given the July 26 earnings date. The projected change for Coca-Cola during the 49 days is roughly +/- $3.63.

5. Merck & Co., Inc. (MRK)

Earnings data for Merck & Co., Inc. (MRK) is July 28, 2022. (Before the open)

Merck (MRK) is currently trading at $90.90, up 24.73 per cent from the low it reached on February 24 of $72.88 for the year 2022. About its July 1 2022, high of $95.72, MRK is currently down 5.09 per cent. IV Rank as of right now is 44.7, according to estimation. ATM option spreads in August range from $0.07 to $0.15.

Over the previous four quarters, Merck ranged between $11.4 and $16 billion, and net income was between $1.5 and $4.6 billion. The last four quarters have seen an upward trend in Merck’s balance sheet. Total liabilities have maintained between $57.3 billion and $67.5 billion, while total assets have stayed between $90.6 billion and $106.7 billion. We have seen an increase in the last four quarters of Merck’s earnings releases.

Merck is an excellent option for premium selling methods due to its competitive marketplaces, large volume, and high IV Rank. Investors could seek the August monthly expiration options for options expiration plays, given the earnings on July 28. The projected change for Merck over the next 49 days is roughly +/- $5.96.

Additional Stocks to Watch in July 2022 (in no particular order)

• JPMorgan Chase & Co. (JPM)
• Morgan Stanley (M.S.)
• Halliburton Co. (HAL)
• Abbott Laboratories (ABT)
• Verizon Communications Inc. (V.Z.)
• General Electric Co. (G.E.)
• United Parcel Service Inc. (UPS)
• Cameco Corp. (CCJ)
• Spotify Technology S.A. (SPOT)
• Southwest Airlines Co. (LUV)
• Phillips 66 (PSX)
• Wells Fargo & Co. (WFC)
• Johnson & Johnson (JNJ)
• AstraZeneca PLC (AZN)
• Citigroup, Inc. (C)

Penny Stocks to Watch in July 2022

To put it mildly, since the beginning of 2022, the stock markets have been volatile. Investors are conflicted about whether to seek safety or pursue the many chances in the face of inflation, war, food insecurity, stock market volatility, an impending recession, and wildly fluctuating oil prices.

Many attractive opportunities are available right now, sometimes even due to the general economic unrest. Here are a few intriguing penny stock investments that should do well while most stocks are under pressure.

Penny Stock Analysis

Smith Micro Software Inc. (SMSI)

Smith Micro Software, Inc. (SMSI), a mobile software developer, has had a mixed month, edging down 3.53 per cent during that period but recovering marginally by 5.13 per cent over the most recent week.

The investment thesis for SMSI is still looking good despite its slightly underwhelming performance. With Tier-1 carriers expected to integrate the company’s SafePath application onto their phones, earnings per share (EPS) are expected to increase by more than 160 per cent the following year. A gross margin of 75% also demonstrates the efficiency of the business’s operations.

Wrap Technologies Inc. (WRAP)

Wrap Technologies, Inc. (WRAP), a provider of public safety technology, has recently been a wild ride for investors. Until Friday, June 24, when Wrap Technologies shares abruptly rose to $3.50 price levels without any news flow to justify the rise, the stock essentially traded sideways for most of June.

Even if the increase was brief, Wrap Technologies’ financial data indicate that it still has unrealised potential at its current $1.98 price. Look at their robust balance sheet, which has a zero debt/equity ratio, double-digit quick and current ratios, and more. EPS are anticipated to increase by a respectable 22 per cent in 2019.

You may want to consider selling their company shares if it can’t quickly increase its low revenues.

New Stocks to Watch

NetSol Technologies, Inc. (NTWK)

The manufacturer of software for the automotive and banking/finance industries is NetSol Technogies, Inc. (NTWK). The company’s dashboard offers some attractive financial information. Some examples are examples of a 10.83x price-to-earnings ratio, a 0.39x price-to-earnings-to-growth ratio, a 3.70x price-to-free cash flow ratio, and a 4.54 book/share value.

Additionally, a strong balance sheet (with very little debt and current assets exceeding current liabilities by 2.30x) gives investors confidence in the company’s ability to manage the choppy economic waters. Over the following five years, an encouraging 28 per cent growth in EPS is predicted. According to CEO Najeeb Ghauri, NetSol expects to expand sales and revenue by 10% and recurring payments by 20% in 2022.

These fundamentals and the increasing interest in the software-as-a-service (SaaS) concept imply that NetSol stock is undervalued and a great deal at its current price of $3.18.

OMNIQ Corp. (OMQS)

For supply chain management, homeland security, public safety, traffic and parking management, and access control applications, the business “uses patented and proprietary A.I. technology to enable data collecting, real-time surveillance and monitoring.” At the most recent conference call, management assessed the value of all the markets it serves at $27 billion. CEO Shai Lustgarten said this amount might reach $70 billion in the following three years.

OMNIQ is demonstrating appealing momentum in addition to a sizable and expanding potential market. For instance, annual income was predicted to be $50 million as of December 2020 before rapidly increasing to $78.25 million in December 2021.

Management expects yearly revenue to reach $105.77 million in December 2022 before increasing to $130 million in December 2023. The corporation is also projecting a 125 per cent increase in EPS for the upcoming year.

Since they are the company’s projections, they should be treated cautiously. However, OMNIQ’s most recent numbers for the first quarter of 2022 show clear indications of its expansion, with gross profit increasing by 132% from the same quarter in 2021 and sales increasing by 33% over the same period.

Are Communications Stocks on Your Watchlist for July 2022?

Over time, the communication sector has advanced significantly. There are many different ways to communicate now that technology has gone. Along with more established telecommunications providers like T-Mobile (NASDAQ: TMUS) and Verizon (NYSE: V.Z.), this industry also includes massive social media players like Meta (NASDAQ: META) and Twitter (NYSE: TWTR). Of course, people use and depend on these businesses regularly. As a result, stock market investors frequently communicate stocks on their thoughts.

Consumer dependence on these companies’ goods and services makes the communications industry resilient. Even if stories about the recession and inflation dominate the news, individuals still don’t hide their want to keep entertained and connected. For instance, throughout its first 28 days of availability, the most recent season of Netflix’s (NASDAQ: NFLX) Stranger Things drew more than 1.15 billion hours of viewers. It is the most watched English-language programme on the streaming service. There is still more to anticipate as the communication industry develops further. The best communication stocks to watch in the stock market are listed below.

Stocks To Watch In July 2022: Communications

• Roblox Corp (NYSE: RBLX)
• DoorDash Inc (NYSE: DASH)
• Roku Inc (NASDAQ: ROKU)
• AT&T Inc (NYSE: T)

Roblox

A technological startup called Roblox runs a platform for human co-experience. User-generated and 3D experiences can be explored and created by users interacting. Many people think the business is one of the leaders in the metaverse industry. Despite losing more than 50% of its value this year, RBLX stock has recently begun to recover. The stock has increased by 28% during the last month. Good Gaming, Inc.’s MicroBuddiesTM brand will be extending into the Roblox platform, according to an announcement made last month by Roblox. Roblox, in the opinion of Good Gaming, will make the most of its new tactical possibilities for growth in the interactive entertainment industry.

Additionally, there are several positive critical metrics for May 2022 that may give investors a reason for hope. Daily active users increased by 17% yearly to 50.4 million for the corporation. In addition, there were 3.6 billion hours worked, a 10% rise over the previous year. In addition, Roblox anticipates monthly revenue to increase by 28% to 30% year over year, to between $194 million and $197 million. Would you wager on the RBLX stock to maintain its current momentum in light of that?

DoorDash

Next, let’s look at DoorDash, a business that uses technology to connect individuals. It offers a local logistic platform that links retailers, customers, and dashers in more detail. With the help of the company’s DoorDash Marketplace, businesses may grow their customer base and build an online presence. This makes it possible for small local businesses to quickly and conveniently satisfy customers’ needs. DoorDash announced in June that it had successfully acquired Wolt Enterprises, a provider of food delivery services in Europe. This is one of the strategies the business will use to hasten its global expansion. DoorDash will now be available in 27 nations, including the United States.

Additionally, the business recently worked with Loblaw Companies. The two companies will offer Canadian clients a brand-new, cutting-edge grocery delivery service. Beginning in August, customers will access groceries and convenience goods through PC ExpressTM Rapid Delivery, with a projected express delivery time of 30 minutes or less. Not to mention, all Loblaw banner stores will provide same-day delivery of groceries and convenience items via DoorDash Drive. Would you classify DASH stock as a top communication stock to watch as the company grows?

Roku

Roku runs a television (T.V.) streaming service in the U.S., Mexico, and Canada. Platform and Player are the two divisions through which it works. Digital advertising and related services are sold through the Platform part of the company. The selling of streaming players, audio devices, and accessories is handled by its Player sector. To make T.V. streaming the next e-commerce shopping destination, Roku and Walmart (NYSE: WMT) partnered in June to form the first-ever collaboration of its sort. Streamers can buy Walmart’s featured products directly from the Roku platform. This innovative partnership will likely advance purchasing beyond the Q.R. code and alter how users interact with and purchase T.V. and video content.

Roku and NBCUniversal Local have also collaborated to add some of the latter’s local news stations to the Roku Channel. Users can access these stations through the Live T.V. Guide on The Roku Channel. Even if there are many entertainment options nowadays, the news media is still a crucial source of information. In the modern era, viewers are increasingly choosing to watch news content. Because streaming is so accessible, this new service might prove popular with viewers. Do you anticipate that ROKU stock will have a strong year’s second half?

AT&T

And last but not least, we have AT&T, a telecom company. The corporation has a significant presence in the media and television industries and is well-known for its wireless and broadband services. Using various forms, the WarnerMedia division creates, produces, and distributes motion pictures, television shows, video games, and other material. T stock has increased by more than 10% since the beginning of the year despite trading sideways for most of the time. Additionally interesting is the fact that the business declared a quarterly dividend of $0.2775 per share on its common shares last week.

Additionally, AT&T observes an ongoing rise in the use of its goods and services. AT&T’s cutting-edge fibre network installation to more than 22,000 client locations across the city was announced by the mayor of Amarillo last week. In the city centre, the project is projected to give families, companies, and possibly government organisations access to AT&T Fiber. Should investors closely monitor T stock right now in light of these encouraging developments?

Edited by Prakriti Arora