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Strong Performance on Wall Street in June and Outlook for July
Wall Street closed out a highly successful June following an impressive May. The three major stock indexes — the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite — all saw significant gains, with the Dow rising 4%, the S&P 500 climbing 5%, and the Nasdaq surging 6%. These positive movements were fueled by optimism surrounding major trade deals, a ceasefire in the Middle East, and expectations of further interest rate cuts later this year. As investors look ahead, the momentum is expected to continue into July, supported by strong economic data.
One of the key indicators showing improvement was the ISM manufacturing and services purchasing managers’ index (PMI) for June, which came in better than anticipated. Factory orders in May increased compared to the contraction seen in April, signaling a positive shift in industrial activity. Additionally, job additions in June exceeded expectations, reinforcing confidence in the economy and reducing the risk of a near-term recession. The unemployment rate also declined slightly, dropping to 4.1% from 4.2% in May. When combined, the figures for May and April showed a total increase of 11,000 jobs, further highlighting the strength of the labor market.
Given these positive trends, investors are now turning their attention to growth stocks that could benefit from the current favorable environment. Growth stocks typically offer aggressive earnings or revenue growth, which can lead to higher stock prices over time. Here are five growth stocks recommended for July:
- AppLovin Corp. (APP)
- Intuit Inc. (INTU)
- monday.com Ltd. (MNDY)
- Credo Technology Group Holding Ltd. (CRDO)
- Gold Fields Ltd. (GFI)
Each of these stocks carries a Zacks Rank #1 (Strong Buy) and has a Growth Score of A. They represent companies with strong fundamentals and promising growth potential.
AppLovin Corp.
AppLovin operates as a software-based platform that helps mobile app developers enhance the marketing and monetization of their apps. Its technology allows developers to market, analyze, and publish their apps efficiently. The company recently introduced its AI-powered AXON 2.0 technology, which has driven significant revenue growth. Additionally, strategic expansions into gaming studios and the direct-to-consumer and e-commerce space have contributed to its success.
AppLovin is expected to see revenue growth of 16% and earnings growth of 85.2% this year. The Zacks Consensus Estimate for its current-year earnings has improved by 0.4% in the last 30 days, reflecting growing confidence in the company’s performance.
Intuit Inc.
Intuit continues to benefit from steady revenue growth across its Online Ecosystem and Desktop business segments. Its Online Services segment is particularly strong, driven by products like Mailchimp, payroll, and Money, which includes payments, capital, and bill pay. Intuit has also launched “Intuit Assist,” a generative AI-powered financial assistant integrated into products such as TurboTax, Credit Karma, QuickBooks, and Mailchimp. This innovation aims to provide personalized insights and recommendations to help small businesses and individuals achieve financial success.
Intuit’s cloud-based subscription model is expected to drive stable long-term revenues. The company is projected to see revenue growth of 11.7% and earnings growth of 13.7% next year. The Zacks Consensus Estimate for next-year earnings has improved by 4.6% over the past 60 days.
monday.com Ltd.
monday.com develops software applications that cater to organizations, educational institutions, and government bodies. Its Work OS is a cloud-based visual work operating system that uses modular building blocks to create customized work management tools. The company also offers solutions for sales CRM, software development, and customer success services.
monday.com is expected to grow revenue by 25.6% and earnings by 8.3% this year. The Zacks Consensus Estimate for current-year earnings has improved by 1.9% in the last 30 days, indicating strong investor sentiment.
Credo Technology Group Holding Ltd.
Credo Technology provides high-performance serial connectivity solutions for markets such as hyperscale datacenters, 5G carriers, enterprise networking, artificial intelligence, and high-performance computing. Its products include HiWire active electrical cables, optical digital signal processors, and SerDes chiplets, among others.
The company is expected to see revenue growth of 85.8% and earnings growth of more than 100% this year. The Zacks Consensus Estimate for current-year earnings has improved by 37% in the last 60 days, reflecting strong performance and investor confidence.
Gold Fields Ltd.
Gold Fields is a global gold producer with operations in several countries, including Chile, South Africa, Ghana, Canada, Australia, and Peru. The company also explores for copper and silver deposits. It is expected to see revenue growth of 71% and earnings growth of 93.9% this year. The Zacks Consensus Estimate for current-year earnings has improved by 9.4% in the last 30 days, signaling positive momentum.
