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
- Delta Air Lines, Inc. (DAL)
- Bank of America Corp. (BAC)
- AT&T (T)
- Coca-Cola Co. (K.O.)
- 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…