Best Stocks to Buy in July?

Which are the best stocks to buy?

When looking for the best stocks to buy, it’s natural to ask your broker what they recommend. They’ll probably give you a list of what they believe are the best bets currently, along with a few reasons why. However the opinion of one analyst can often be wildly wrong – not because the analyst is bad at his/her job, but because the world and its financial markets are a complex place!

Share prices go up and down, as do broker ratings and target prices. When many brokers cover a particular stock, there’s naturally a range of views to be had and a range of target prices. Now, the price could go up to the highest target price, or down to the lowest, but it’s more likely to move (up or down depending) towards the average of all target prices. This is an oft-observed phenomenon because different analysts weigh different drivers differently, so if you average all their individual views you tend to get the market’s view.

Whether the average target price is above or below the current price will depend on the extent to which individual brokers are bullish on the stock in question, so a good place to start in trying to find the best stocks to buy would be to find those with no ‘sell’ ratings, right?!

Well, here they are:

Source: Bloomberg, 13 July

We’ll have a look at 5 of the above stocks – the ones that potentially have the best growth potential.

Will travel stock TUI AG (TUI) benefit from a recovery in the pound as markets’ nerves are calmed by a new UK prime minister who’s in no hurry to put her foot on the Brexcelerator?

Will Shire (SHP) continue to be the destination of choice for the post-23 June safe haven speculators looking for a bit more than just a port in a storm?

Will Worldpay Group (WPG) head back to its post-IPO highs?

Can CRH (CRH) continue to count on the foreign exchange translation benefits due to the weaker Pound Sterling?

Can Carnival (CCL) keep on cruising to new all-time highs?

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

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