3 of the best shares to buy before July

Paul Summers highlights three companies that could be the best shares for him to buy before they report on trading next month.

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Today, I’m looking at what could be three of the best shares for me to buy before July starts. Why before July? Well, all of the companies highlighted below are down to provide updates to the market next month. And, based on what they had to say earlier in 2021, I think there could be more good news ahead.

Watches of Switzerland

Luxury watch retailer Watches of Switzerland‘s (LSE: WOSG) share price has climbed almost 200% since last June due to strong trading. That’s despite store closures and much-reduced travel and tourism due to the pandemic.

Back in May, WOSG reported a 3.6% rise in sales in the UK where it’s the largest retailer of major brands such as Rolex. An “outstanding result” was also achieved in the US.

I doubt momentum has reversed in the last couple of months. In fact, sales are already expected to grow 16-21% in FY22 as people treat themselves to a new timepiece with lockdown savings. Factor in more airport sales as restrictions are lifted and WOSG’s shares could continue rising after the full-year numbers are confirmed on 8 July.

On 26 times earnings for FY22, the shares certainly aren’t cheap. Some may also feel that the good news is priced in for now. As a long-term investment, however, I continue to regard WOSG as an attractive option for growth investors such as myself.

Howden Joinery

A second stock that could see further positive momentum in July is kitchen supplier Howden Joinery (LSE: HWDN). It reports half-year numbers on 22 July.

Howden’s shares are already up 48% over the last year, supported by the recent boom in home improvement. Back in April, the company reported a 13.1% rise in revenue for Q1 compared to 2019 (the year before the pandemic kicked off). 

Of course, property owners may choose to spend their money on other things once Covid-19 restrictions are completely lifted. Moreover, we don’t know for sure whether the working-from-home trend will truly last. 

Even so, I wouldn’t be inclined to sell based on the valuation. A P/E of 24 is undoubtedly steep. However, this isn’t too lofty for a company that consistently generates great returns on the money it invests. Howden also has the sort of solid balance sheet I look for when hunting for the best shares to buy and hold for the long term so I’m watching it closely. 

Smith & Nephew

A final stock I think could be worth me picking up before next month is medical equipment company Smith & Nephew (LSE: SN). Half-year results from the FTSE 100 member are due on 29 July. 

In contrast to the other stocks mentioned, SN’s share price has barely climbed at all over the last year. Nevertheless, I think this could be set to change as postponed elective surgeries are finally allowed to proceed. Indeed, the company highlighted “improving visibility” back in April. A strongly rebounding Chinese market also gave us insight into how the company’s earnings in other parts of the world may fare post-pandemic.

Once again, there are no guarantees. There could still be a few chapters left in the Covid-19 tale left to unfold. Investors could be left waiting longer for that recovery if the Delta variant proves more problematic. Like the other stocks mentioned here, SN’s valuation of almost 25 times earnings doesn’t scream value either. But I’m considering this one.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Howden Joinery Group and Smith & Nephew. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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