Published - July 4rth, 2023 @ 4:30 PM (CET)
As the financial market continually transforms, investors are perennially on the hunt for the next lucrative venture. Growth stocks frequently emerge as enticing investment prospects, offering substantial potential for substantial long-term yields. In this piece, we'll delve into several standout growth stocks to monitor in July 2023 and beyond, and discuss their potential merits for inclusion in your investment portfolio.
MicroVision
Gearing up for a promising month, next generation innovator in auto-technology, MicroVision Inc. (NASDAQ:MVIS), is capturing investors' attention. A remarkable stock surge of over 17% on June 30, 2023, rocketing past the S&P 500 index, placed the firm firmly in the spotlight.
Strategically leveraging an at-the-market (ATM) offering of its common stock, MicroVision successfully bolstered its cash position to a robust $95 million. The raised capital, destined for accelerating the achievement of its ambitious 2023 objectives, empowers the lidar sensor specialist to make significant strides in the fast-paced realm of advanced automotive safety and autonomous driving applications.
Despite a recent $59 million trailing-twelve-month loss, industry analysts have placed a vote of confidence in MicroVision, forecasting a breakeven by 2025, on the back of an expected 50% YoY growth rate. The company's unique debt-free standing further enhances its appeal, marking it as a less risky prospect amidst cash-burning growth peers.
Investors are taking notice, as evidenced by the purchase of 17,480 call options on July 1, 2023, a significant increase in trading activity. With a market cap of $794.34 million, MicroVision is primed to emerge as a top contender in the investment arena this July. It’s worth keeping a close watch on this stock.
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Palo Alto Networks
After a four-year lull of unprofitable quarters, cybersecurity giant Palo Alto Networks has made a promising shift into profitability. Beginning 2023 with a net income of $107.8 million, the firm indicates solid expansion, with profit margins increasing from 0.21% to 6.26%.
Forecasting further growth, PANW anticipates FY23 revenues to be between $6.88 billion to $6.91 billion, indicative of a 23.5% YoY surge. The $4.27 Zacks Consensus EPS estimate also points to an impressive 70% YoY growth for the current fiscal year.
Despite a current high P/E ratio of around 400, the forward P/E ratio paints a brighter picture at just over 50. Scotiabank's recent upgrade of PANW's price target from $269 to $285, suggests a potential upside of 12.50%.
With strong top-line growth, an upswing in profitability, and a positive future outlook, Palo Alto Networks (NASDAQ:PANW) is emerging as an appealing investment contender in July 2023.
Exxon Mobil
Exxon Mobil (NYSE:XOM) is making significant strides into the lithium sector, key to electric vehicle batteries, and a crucial factor in the push towards renewable energy. It has recently partnered with Tetra Technologies (NYSE:TTI) to develop more than 6,100 lithium-rich acres in Arkansas, solidifying Exxon's entry into the fast-growing lithium market in the U.S.
Despite a minor dip, with the XOM stock down 3% for the year, it's worth noting a promising rally during the last week of the quarter. As of the latest trading session, Exxon Mobil's stock stood at $107.46, a +0.2% move from the previous day, outpacing the S&P 500's 0.12% gain.
On the horizon, Exxon Mobil is projected to report an EPS of $2.65 in its upcoming earnings release, with expected net sales of $88.71 billion. Despite appearing to indicate a YoY decrease, these projections are coupled with a forward P/E ratio of 11.34, and a PEG ratio of 0.64, which, in the context of a diversifying portfolio, hint at a potentially attractive investment this July.
Opera
Embracing the growing trend of AI integration, Opera (NASDAQ:OPRA), the innovative browser developer, has unleashed Aria - a unique AI browsing tool available to all Android and Windows, macOS, or Linux users.
This tool, developed in collaboration with OpenAI, introduces an innovative browsing experience by delivering real-time web results and facilitating user interaction with AI in a variety of tasks.
The success of Opera's growth strategy, focusing on monetization and efficient use of AI, has seen its stock soar by 203% this year. Moreover, Opera's market cap stands at a healthy $1.6 billion.
As of July 2, 2023, Opera's stock stands at a record high, with analysts suggesting it’s still an opportune time for investment. The company's robust profitability and strategic focus on high-monetizing jurisdictions have resulted in a 174% rise in average revenue per user since 2019. A true trailblazer, Opera's incorporation of AI into browsing points to a future of growth and progress.
Amazon
Amazon (NASDAQ:AMZN), the world's largest cloud services provider, has impressively incorporated artificial intelligence (AI) into its operations, from logistics to digital advertising and product placement. Recent challenges have not deterred Amazon's CEO, Andy Jassy, who remains committed to strategic long-term investments. Since 2019, Amazon has poured over $180 billion into capital expenditure, much of it dedicated to AI and technology.
Despite facing recent economic turbulence, Amazon demonstrated a promising Q1 performance with a 9% sales growth, pushing its revenues to $127 billion. Additionally, Amazon's North American sector has returned to profitability, a clear sign of the company's ongoing recovery.
Amazon, an active player in the tech 'Magnificent Seven,' stands out due to its comparatively low forward price-to-sales ratio. Notably, this is an important measure for the tech giant, further bolstering its appeal as an attractive investment opportunity.
While investors may be cautious of potential disruptions caused by AI, Amazon's Q1 report showed that digital ads, influenced by AI, contributed $9.5 billion to its revenue, a 21% rise from last year. It appears that AI has been a net positive for Amazon, making it a compelling stock to watch this July. This, combined with Amazon's position below its all-time high and a favorable P/S ratio, presents a unique opportunity for potential investors.
Conclusion
The month of July 2023 appears set to be a dynamic one for the stock market, with key players from various sectors poised to make significant waves. MicroVision is leveraging its financial position and innovative automotive tech to become a potential game-changer, despite recent losses. Palo Alto Networks has returned to profitability and predicts a promising fiscal year, marking it as a cybersecurity stock worth considering. Exxon Mobil's strategic venture into the lithium sector, a critical element in the renewable energy sphere, and attractive valuation ratios make it a potentially appealing investment.
Meanwhile, Opera is revolutionizing the tech scene with the integration of artificial intelligence in web browsing, resulting in skyrocketing stock value and making it a stock to keep an eye on. Lastly, Amazon, in spite of recent hurdles, continues to display strong performance, specifically in its AI-enhanced operations, marking it as an enticing prospect for investors.
Therefore, savvy investors might find it beneficial to diversify their portfolios by considering these trending stocks, each leading within their unique spheres and exhibiting promising potential. As always, individual investors should evaluate their risk tolerance and investment goals while also conducting in-depth due diligence before making any investment decisions.
The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.
