Wall Street closed a highly successful June after an impressive May. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallied 4%, 5% and 6%, respectively. Hope for major trade deals, the ceasefire in the Middle East and expectations of further interest rate cuts in the second half of 2025 bolstered investors sentiments.
The trend is likely to continue in July supported by strong economic data. The ISM (Institute of Supply Management) manufacturing and services purchasing managers’ index (PMI) data for June were better than expected. Factory orders (orders for both durable and non-durable goods) jumped in May compared with the contraction in April.
Finally, job additions in June were firm well ahead of the consensus estimate eliminating the risk of a near-term recession in the economy. Moreover, the tally for May and April together increased by 11,000. The unemployment rate ticked down to 4.1% in June from 4.2% in May.
At this stage, we recommend five growth stocks for July. Growth investors are primarily focused on stocks with aggressive earnings or revenue growth, which should propel their stock prices higher in the future.
These stocks are: AppLovin Corp. APP, Intuit Inc. INTU, monday.com Ltd. MNDY, Credo Technology Group Holding Ltd. CRDO and Gold Fields Ltd. GFI. Each of our picks sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
AppLovin’s last reported financial results demonstrate its strong fundamentals and growth potential. The introduction of APP’s AI-powered AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth. APP’s AI-enabled Audience+ marketing platform is also increasing its reach into the direct-to-consumer and e-commerce space.
AppLovin has an expected revenue and earnings growth rate of 16% and 85.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% in the last 30 days.
Intuit has been benefiting from steady revenues from the Online Ecosystem and Desktop business segments. INTU’s strong momentum in Online Services revenues is driven by the solid performance of Mailchimp, payroll and Money, which includes payments, capital and bill pay.
