Top stocks for july 2022

In this article, I'm going to cover six stocks for the month of July 2022. Over the last month, I've researched 100 different companies and this is my list of growth stocks I think should be on your watch list. I am going to share with you my full analysis of each of these companies. I'll go over key numbers, recent news, and why expect them to grow in the long term.

First company

The first company we're talking about today is CVS Health Corp ( $CVS ), this is an American healthcare company and the parent company of CVS Pharmacy, CVS Caremark, and Aetna.

Right now one share of CVS trading for $94.52, with a 52-week low of $79.33, and a 52-week high of $111.25. Here's the price chart for the last 12 months. One year ago, they were trading at just over $60, and a share slowly rose to over $100.

With a slight correction back to around 90, they have a market cap of $123.945 billion and a P E ratio of 15.72 earnings per share of $6.01.And they actually pay a metal dividend of 2.42%, which is an awesome bonus Yahoo Finance has been marked as near fair value with a bullish pattern detected.

If you take a look at the valuation measures we can see the five-year expected PEG ratio is 1.51. And the price-to-book ratio is 1.62. They have a current profit margin of 2.68% with a pretty good return on equity of 10.99%.

This is all on revenues of $298.778 billion in the last 12 months. If we look at the balance sheet and so they have total cash of $11.34 billion with a current ratio of 0.88. And the dividend payout ratio is 34.11%, which is definitely on the safe side.

It's always interesting to see what analysts have to say So on a scale of one to five, one means strong buy and five means sell. So, the rating of CVS is 2.2. which means stocks to buy. and the average analyst price target is $117.22.

Which is over 20% higher than the current price of $94.52. So, CVS has been bringing in significant profits for the past few years. CVS's revenue grew 54% to $300 billion from $195 billion back in 2018.

The company's price-to-sales ratio has remained at around 0.4. And there has been a 26% rise in CVS's outstanding shares from 1 billion back in 2018 to 1.3 billion right now, of course, this growth shouldn't be too surprising for an industry giant CVS in terms of growth and expansion. 

CVS has a few ideas on the horizon. First, the company is planning on expanding its Project Health, which is a free community-based health screening program. Within this project, CVS will also add four new mobile units this year that will help host dedicated events for children and seniors.

The healthcare company also plans on hosting over 1600 screening events in 45 markets in the US and Puerto Rico. Now one of the biggest overarching worries of the whole market is rising prices due to inflation. For CVS Pharmacy sales likely won't suffer due to the constant demand for its health care products and services.

Because of this persistent demand. CVS has pricing power that can be used to protect its profit margins. Even during inflation. These evergreen profit margins can be seen in the company's financials.

For example, last month, CVS released earnings and announced that the company increased its total revenues by 11.2% year over year to $76.8 billion.

That’s generating cash flow from operations of $3.6 billion and boosted its adjusted operating income, net income, and diluted and adjusted EPS ratios and CVS is expected to give its next earnings report within the month on August 3. 

So be on the lookout for that if the healthcare company continues to deliver these great numbers. I don't see any reason to discount CVS as an investment worth your time, money, and due diligence.

Second Company

The second stock on our list is Devon Energy Corp ( $DVN ). This is an American energy company that is known for its hydrocarbon exploration activities in the US. One share of DVN is trading at $53.77 with a 52-week low of $24.05 and a 52-week high of $79.40.

If you look at the one-year price chart, you can see astronomical earnings growth for the past year with a correction in the last month. The market cap of the company is $35.48 billion with a P E ratio of 10.05 which is quite low in today's market.

The earnings per share is $5.35. They paid an astronomical 9.45% dividend yield. The company’s five-year expected PEG ratio is 0.8 and a price-to-book ratio of 4.3. the profit margin of the company is 24.03% and its return on equity is 40.31%.

They made revenues of $14.94 billion in the last 12 months. And they sitting on total cash of $2.46 billion with a current ratio of 1.33 which is excellent. The payout ratio for the dividend is 49.91% which is okay. 

The rating of DVN is 2.1, meaning it is a buy and the average analyst price target is $84.43 which is close to 60% higher than the current price. So, DVN is in my opinion only stronger given stocks on the market. 

The company has a dividend yield of over 9% which is over six times higher than the average s&p 500 stock yield. The company has paid a dividend for 29 consecutive years which is a really strong case for its durability and longevity.

Their dividend consists of two parts a fixed component and a variable component the variable part is funded by excess free cash flow, which they expect will jump around 75% year over year in 2022. That sounds like absolute bullish news to me.

Last month, Devon Energy released its earnings for q1 of 2022 were reported that its fixed and variable dividend increased by 27%. This is an even stronger case for the reliability of the company as Devon's program is still taking significant leads and bounds nearly three decades later. 

They also have a stock buyback program that has expanded to $2 billion. The company has repurchased 3% of its outstanding shares since its program Inception which reflects the abundance of cash at Devon's disposal and the increase in value that will expense due to the buyback.

And finally, DVS's cash balance increased by over $350 million in q1 of 2022, which means that there's more cash to give back to shareholders through dividend payments or to reinvest in its own business, or both.

They also recently announced that they are entering into a definitive purchase agreement to acquire the leasehold interest and related acids of Rimrock oil and gas a bolt-on acquisition where the purchase of RIM rocks assets will assist with increasing relevant per share metrics in the first year.

As well as the return of capital to shareholders through the approval of a 13% increase to the fixed quarterly dividend. Overall, I think that DVN is a solid pick with a very high dividend yield. Yeah, definitely do your own due diligence on the stock. 

Third Company

the next stock on our list is ETSY ( $ETSY ). This is an American e-commerce company that specializes in the sale of arts and crafts supplies, as well as handmade or vintage items. Right now one share of ETSY is trading at $83.62 with a 52-week low of $67.01 and a 52-week high of $307.75.

In the one-year price chart, the price of Etsy has gone up a lot and also gone down a lot. One year ago the share price at about $125 then it increase all the way to around 300. Then it gets a steep decline all the way to the current price. The market cap of the company is $10.63 billion with a P E ratio of 27.87 and earnings per share of $3.

The company’s five expected PEG ratio is 1.17 and the price-to-book ratio is 13.49. The current profit margin is quite strong at 18.49%. And they have a really great return on equity of 64.07% on revenues of $2.36 billion in the last 12 months. If we look at the balance sheet they have total cash of $982.22 million, with a strong current ratio of 2.68.

The rating of ETSY is 2 which means buy. The average analyst price target is $141.55 which is about 75% higher than the current price of $83.62. So, he is currently growing slower than the expected rate during a post-lockdown market. there are several reasons why.

• The company is growing faster than its most valuable acquisitions of the past few years.
• The company's growth and adjusted EBITDA decline in 2021 and q1 of 2022.
• Etsy stock reached an all-time high back in 2021 which analysts believe was an intense overvaluation of the E-commerce giant's true value. 

However, I do think that things should turn around, and here's why. First of all, there's been a shift towards the products that ETSY offers on its platform. For example, the Harris poll found that 67% of American shoppers prefer to shop for gifts online during the holidays and you won't find gifts more unique and creative elsewhere on the internet except for the ones sold on Etsy. 

The poll also found that approximately two out of five millennial women prefer to receive handmade gifts which are products that only Etsy really offers. Amazon's handling marketplace tried to rival ETSY’s business a few years back. At this point, ETSY has developed a very strong foothold in its respective sector.

The strong foothold has evolved from some of these acquisitions in the past decade, for instance, the company's 2021 the takeover of Depop, which mostly sells secondhand clothing to shoppers under 26 years old that gave it a very firm position in the constantly growing Gen Z markets for years to come Morgan uses that the company's engagement rate is actually going up. 

According to the company, 49% of shoppers made two or more purchases in 2021 Compared to 41% in 2019. There's no reason to expect this number to decline significantly anytime soon.

And for the growth of the business ETSY has room for overseas expansion as a plan to gradually brought its reach into large e-commerce markets like Latin America and Southeast Asia. Overall very interesting stock that has seen some major declines in the recent future. So yeah, hopefully, we do see some type of recovery in its stock price. 

Fourth Company

The fourth company on our list is the SCHWAB LARGE-CAP VALUE ETF ( $SCHV ). This is a fund that tracks the total return of the Dow Jones us large-cap value total stock market index. Right now one share of this ETF is $64.15 with a 52-week low of $60.51 and a 52-week high of $74.73.

The fund started in 2009. And they have total net assets right now of $9.336 billion. One thing I really liked about this ETF is that its expense ratio is 0.04%, which is an industry low and saves you a ton of money in the long term. 

There are 533 Total holdings in this ETF fund and it is categorized as a large value fund dividend yield of 2.35%. And looking at the fund characteristics and see that we have a price-earnings ratio of 16.78 return equity of 24.26% and price to-book ratio of 2.85. 

This ETF’s top portfolio holdings include Berkshire Hathaway Inc Class B, Johnson & Johnson, Exxon Mobil Crop, Procter and Gamble, JPMorgan Chase, Home Depot Inc, Pfizer Inc, Chevron Corp, and Abbvie Inc. 

The common theme for SCHV these holdings include companies that are rigid and durable. For example, Warren Buffett's Berkshire Hathaway Class B stock is one of the most durable long-term stocks out there, its presence in the ETF strongly indicates its emphasis on large-cap value stocks.

That's one of the greatest benefits of investing in large-cap stocks. You have a relatively stable, secure, and less volatile place to put your money. The fund also has companies from many different sectors and you'll see that the largest allocation of funds goes into the financial sector followed by healthcare industries and information tech.

But also note that the fund holds stocks from the communication services and real estate sectors reinforcing the broad diversity of the fund's portfolio. As I mentioned earlier, they also have a 0.04% expense ratio, which is probably my favorite part of this fund.

To me, this ETF sounds like quite a lot of long-term bang for your bucket. For any investors who are looking for a very stable and durable place for investments, SCHV might be the way to go. 

Fifth Company

The fifth stock on our list is BERKSHIRE HATHAWAY- B ( $ BRK-B ). Berkshire Hathaway is a multinational conglomerate holding company known for its ownership of sub-companies like GEICO, Duracell Kraft, Heinz, and See's Candies.

The Class B shares are a more affordable share that represents Berkshire Hathaway's equity value. Right now one share BRK-B is trading at $278.28 with a 52-week low of $263.68 and a 52-week high of $362.10.

In the price chart for the last year, BRK-B had pretty great growth all the way until about March of this year, followed by a pretty big correction to the current price. The market cap of the company is $614.064 billion with an ultra-low P E ratio of 7.41, which is awesome and earnings per share is $37.54.

BERKSHIRE HATHAWAY's profit margin sitting at 29.59% ever returned FDA of 17.38% and revenues in the last four months of $282.31 billion, which constitute a quarterly revenue growth year over year of 9.6%. They have total cash of $106.26 billion, which is an astronomical amount of money and the current ratio is 1.24.

The rating of BERKSHIRE HATHAWAY is 2.8 meaning it is a hold, and the average analyst price target is $370, which is over 30% higher than the current price of $270.28. So in the news, Warren Buffett recently bought $2.5 billion worth of Citigroup. 

And one of the reasons why is because Citigroup has been underperforming for the past few years and has been viewed as the underdog of the banking industry, Warren Buffett is known to love banks, but more importantly, he likes the fact that Citigroup is executing a complete makeover of its business.

And he thinks that the value of the stock has not been cut fast enough to fully reflect the new prospective value of the bank. And you see the strategies being implemented at this very second include the termination of some international operations and brand new leadership and new expectations for the bank.

This affects Berkshire Hathaway because Citigroup will become a massive part of Berkshire Hathaway's portfolio and the value of the stock. If you look at the performances of Berkshire Hathaway's largest subsidiary companies and all his holdings being Delancey, why is BRK-B the smart way to invest.

Let's started with Coca Cola we're looking at a company with an immense geographic presence and one of the strongest brands in the US with incredible marketing as the company has been able to engage and appeal to people of all ages.

Next, we have American Express, which is a recession-proof financial services company that is good at attracting well-to-do clients that reinforce the credit and durability of the business as a whole. And also we have Moody's which is a company more known for its crap reading segments, which will always be kept busy as the national market expands business form, loans are taken out and new debt is created.

But on top of that, Moody's also has an analytics segment that applies to businesses and their assessment of credit risks as well as their navigation of financial regulations. The big picture here is that BRK-B is a collection of carefully selected socks that are allotted for their durability and survivability through bearish markets.

And given the overall bullish long-term performances of these three companies as well as many more in their portfolio, I'd say that it's safe to say that BRK-B is a great way to invest, especially if you want a more safe holding, overall it is a great sock and one of the best value stocks on the market.

Sixth Company

Next on the list is DANAHER ($DHR). This is an American multinational conglomerate that is known for its design, manufacture, and sale of professional medical, industrial and commercial products and services. Right now one share is trading at $256.83 with a 52-week low of $233.71 and a 52-week high of $333.96.

If we look at the price chart for the past year, we saw immense growth up until July, and September 2021, followed by a gradual decline to the current price. The market cap of the company is $186.735 billion with a P E ratio of 29.73. The earnings per share of the company are $8.64 and a very small dividend yield of 0.41%.

The company’s five expected PEG ratio is 3.84 with a price-to-book ratio of 4.12. The current profit margin is 21.32%. And the current return equity is 14.68%. Its quarterly revenue growth year over year of 12.1%.

If we look at the balance sheet, we have total cash of $3.72 billion and a current ratio of 1.68.The rating of DANAHER is 1.8, meaning it is a buy and the average analyst price target is $328.41, which is just over 20% higher than the current price.

So, DANAHER is all about the long game. The company's reports for 2020 include a full year of core sales growth in the mid-single digits a full year COVID-19 related testing sales growth in the low single digits and a full year based business core sales growth in the high single digits.

The base business core sales growth is relatively low but steady and steady. Over the course of years. The company's growth will definitely pay off for owners and shareholders the slow but steady long-term growth is reflected in the company's previous earnings report about two months ago.

For instance, data reported net earnings of $1.7 billion, or $2.31 per diluted common share until this is a 1% year over year increase and the company's revenues also increased 12% year over year to $7.7 billion. Docker is also anchored by its incredible diversity in products and services ranging from environmental solutions to biotech applications.

These companies reinforce durability and are collectively the reason why the company is still found on the fortune 500 today. Some interesting and bullish news recently is that DANAHER recently joined the Bespoke Gene Therapy Consortium.

BGTC dedicates itself to generating gene therapy resources that the research community can use to develop gene therapy solutions for rare disorders. Their commitment to this association shows their willingness to dedicate their resources and wealth to the betterment of public health. On top of all this stuff, you do get a small dividend yield of 25 cents per share.