Best US stocks to buy in July

We asked our freelance writers to reveal the top US stocks they’d buy in July, which included two Share Advisor ‘Fire’ recommendations!

The flag of the United States of America flying in front of the Capitol building

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Every month, we ask our freelance writers to share their top US stocks with investors — here’s what they rate highly for July!

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

ACI Worldwide

What it does: Develop digital payments software to process credit and debit card transactions with fraud protection.

By Mark David Hartley. ACI Worldwide (NASDAQ: ACIW) may not be a household name yet but it’s more than just another digital payments provider. The Nebraska-based company provides services to a host of well-known local and international clients. Think Co-op, Wendy’s, Westpac and Alipay, among others.

Recent Q1 earnings results revealed a 208% increase in operating cash flow and 93% increase in adjusted EBITDA. However, revenue growth was weak at only 9% and although net income improved, it still came in at a $8m loss. Overall, CEO Thomas Warsop said the results “exceeded expectations.”

It still carries a high level of debt ($1.03bn), with a debt-to-equity (D/E) ratio of 82.3%. That’s a risk if it increases but with earnings forecast to grow, I don’t expect that to happen. In the long term, I think the company has the potential to become a major player in the digital payments arena.

Mark David Hartley owns shares in ACI Worldwide.


What it does: Alphabet is one of the world’s most famous big tech companies, now invested heavily in AI.

By Oliver Rodzianko. In my opinion, Alphabet (NASDAQ:GOOGL) is one of the best investments on the US stock market right now. As such, it’s currently the second-largest holding in my portfolio.

It is incredibly rare for a big tech company to be trading below what it’s worth based on future earnings and cash flow generation. However, in this instance, I think the shares are roughly 10% undervalued based on my advanced models.

To understand the opportunity here more concretely, I compared the investment to Microsoft, which has a price-to-earnings ratio of around 38. Alphabet’s ratio is just 27.

Both are big competitors in the AI arms race. Therefore, Alphabet needs to be careful that Microsoft-backed ChatGPT doesn’t outdo Google’s Gemini.

However, I’m betting Alphabet will continue to be an AI leader over the long term. That’s why I’ll be doubling down on my investment in the company again soon.

Oliver Rodzianko owns shares in Alphabet.


What it does: Shopify is a cloud-based e-commerce platform powering millions of online stores worldwide.

By Zaven Boyrazian. Shopify (NYSE:SHOP) has evolved drastically over the last decade. What started out as a simple e-commerce website builder has evolved into a full-stack business ecosystem. The platform handles online checkout, customer analytics, marketing, payment processing, business financing, and even logistics.

As a result, merchants using the Shopify platform are now responsible for approximately 10% of all online transactions in the US. And despite what the volatile share price might suggest, the company is still growing at a double-digit pace, consistently beating analyst expectations. Not to mention that profit and free cash flow margins are also expanding.

The stock does trade at a lofty multiple. So, seeing volatility in the share price isn’t a major surprise. Nor is it the only risk investors have to consider. Worsening economic conditions have created hurdles in the short term. And the firm still has plenty of rivals to compete with like Amazon.

Yet, with explosive long-term potential, these risks may be worth taking, in my opinion.

Zaven Boyrazian owns shares in Shopify.

Super Micro Computer

What it does: The company provides computer hardware such as servers optimised for AI workloads. 

 By Dr James Fox. Super Micro Computer (NASDAQ:SMCI) stock is up 1,000% over 18 months, but that doesn’t mean it’s overvalued. 

The company, which makes hardware solutions, is one of the beneficiaries of the AI revolution. More than 50% of the company’s revenues now come from AI and data centres. 

Super Micro’s innovation and first-to-market approach have seen its share of this lucrative and fast-growing market surge, reaching 8.4% in the last quarter. 

While there may be bigger players in the segment, Super Micro’s open architecture and proprietary liquid cooling systems optimise server performance, and this is vital for demanding AI workloads. 

One concern, as suggested by a handful of analysts, is that hyperscalers are frontloading their CAPEX on data centres and AI, inferring that the current demand is just a spike. 

However, I do subscribe to that forecast. The consensus suggests that earnings will continue to grow by around 40% annually throughout the medium term, leading to a price-to-earnings-to-growth ratio of 0.73. 

James Fox owns shares in Super Micro Computer. 

TransMedics Group

What it does: TransMedics Group is a medical technology company that provides hospitals with its organ care system (OCS).

By Muhammad Cheema. If I had to put all my money into one stock it would be TransMedics (NASDAQ:TMDX).

This is because of how transformative its OCS system has been in the organ transplantation process. It keeps organs fresh for longer and has started taking over the whole process from organ retrieval to transportation. Transplant centers can therefore focus on patient care.

And the company’s results prove how successful it’s been. Quarterly revenue is growing insanely fast, recently rising by 133%. It also became profitable for the first time.

In terms of risks, the company is yet to make a profit on an annual basis. Furthermore, as TransMedics puts more emphasis on the logistics of the process, some focus could be taken away from producing innovative medical technology.

However, I only expect the company to keep growing as organ transplantation is a huge issue. Unfortunately, over 100,000 people in the US are currently waiting for a transplant. Ultimately, TransMedics’ process could help to bring this number now.

Muhammad Cheema owns shares in TransMedics.

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.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Alphabet, Amazon, Microsoft, Shopify, and TransMedics Group. 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.

More on Investing Articles

Investing For Beginners

Here’s how I’m trying to prevent a stock market crash from ruining my portfolio

Jon Smith explains which shares he's avoiding and what he's thinking of buying to try and protect his portfolio from…

Read more »

Bearded man writing on notepad in front of computer
US Stock

Call me crazy, but here’s why I’m eyeing up the CrowdStrike share price

Jon Smith notes the carnage caused by Friday's global outage, but flags up why he's thinks the CrowdStrike share price…

Read more »

Investing Articles

What do Hargreaves Lansdown results mean for the share price?

The Hargreaves Lansdown share price has surged in recent months on takeover expectations, but what will the recent results mean…

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

Newly minted S&P 500 stock CrowdStrike just crashed! Here’s why

Shares of S&P 500 firm CrowdStrike collapse as the company lies at the centre of a global IT outage. What…

Read more »

artificial intelligence investing algorithms
Investing Articles

Is Nvidia heading for the mother of all tech stock crashes?

Nvidia stock has soared, and the company briefly became the most valuable on the planet. But not everyone’s an AI…

Read more »

Dividend Shares

The BP share price is down 15% in 3 months. Time to buy?

In the space of just a few months, the BP share price has fallen by a double-digit percentage. Is this…

Read more »

Investing Articles

A 5.4% dividend bargain I’ll buy over Lloyds shares

Harvey Jones loves his Lloyds shares but now he's found a high-yielding FTSE 250 stock that may offer even more…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

Recommended by Warren Buffett, this top hedge fund’s betting on Rolls-Royce shares

When Warren Buffett ended his previous investment partnership, he recommended Bill Ruane’s Sequoia Fund. Today, its largest investment is in…

Read more »