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Top 6 Stocks to Buy for July

These small- and midcaps have positive fundamental and technical characteristics

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Top Stock to Buy #4 – Mueller Water Products (MWA)

Mueller Water Products (MWA) is a manufacturer and marketer of almost anything that has to do with the transmission, purification, measurement and distribution of water. Its growth is directly related to new housing starts, which are sharply increasing.

The company was recently listed in the top four small-cap stocks in the industrial equipment and components industry with the highest cash. BB&T Capital Markets notes MWA’s discount to the housing group and targets the stock at $8.50 over the next 12 months.

On May 1, MWA broke from a five-month consolidation on a breakaway gap that vaulted the stock from $6 to $7.75 in one month. It retraced the breakout and substantially closed the open gap previously created. Then, following a buy signal from our proprietary indicator, the Collins-Bollinger Reversal (CBR), jumped almost a dollar to $7 and its 50-day moving average.

Note the strong MACD signal. Buy MWA under $7 for a move above $8.25. This stock is an excellent long-term hold for participation in the growth of the water industry.

MWA Chart
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