If the market has another July like it did last year, finding stocks to buy for outperformance is going to really, really hard. Heck, the S&P 500 closed out July 2013 with a total return of nearly 5%.
No, we’re not likely to see a repeat of that torrid performance, but this still is a seasonally solid time for the market. From 1928 to 2014, the S&P 500 generated an average monthly price gain of 1.6%, according to updated data from Yardeni Research.
Finding stocks to buy for tactical outperformance is always challenging, but between last year’s great run and the historical monthly benchmark, well … the bar for July is pretty high.
If you have any hope of beating the market this month, you need to find stocks to buy with both strong technicals and superior seasonality. Price momentum and a long history of strong average monthly returns tilt the odds in your favor that these stocks to buy will lead the market higher.
After screening the S&P 500 for stocks showing everything from price strength to positive seasonality, we found a number of equities with compelling technicals. Based on these strengths, here are five stocks to buy for July: