Best AIM stocks to buy in July

We asked our writers to share their best AIM-listed stocks to buy in July, featuring two manufacturers.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Jumbo jet preparing to take off on a runway at sunset

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.

We asked our freelance writers to share their top ideas for stocks listed on the Alternative Investment Market (AIM) with investors — here’s what they said for July!

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

Ashtead Technology Holdings

What it does: Ashtead Technology is a subsea equipment rental company operating globally in both offshore wind and oil and gas markets.   

Should you invest £1,000 in Kainos right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Kainos made the list?

See the 6 stocks

Created with Highcharts 11.4.3Ashtead Technology Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

By Ben McPoland. Given its double-digit dip since May, Ashtead Technology (LSE: AT.) stock now looks attractive to me. In 2023, the firm’s revenue surged 51% year on year to £110m, with growth across all its geographic markets. Adjusted earnings per share (EPS) rocketed 73% to 33.4p.

It also acquired ACE Winches in November, bolstering its vast offerings of offshore rental equipment. That said, acquisitions have increased its net debt over the last few years, which is worth keeping an eye on.

As I write, the stock’s forward price-to-earnings (P/E) ratio is about 19. I think that looks attractive, especially as The City sees the company’s revenue nearly doubling to £200m by the end of 2026.

Looking further ahead, the firm appears to be in the sweet spot. Not only are companies increasingly opting to rent equipment to lower capital expenditure, but the energy transition means both the decommissioning of oil and gas infrastructure and offshore wind markets are tipped for strong future growth.

Ben McPoland owns shares of Ashtead Technology.

James Halstead

What it does: James Halstead is a manufacturer and international distributor of floor coverings

Created with Highcharts 11.4.3James Halstead Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

By Paul Summers. The AIM isn’t exactly overburdened with high-quality companies but there are a few diamonds in the rough. One example, in my view, is floor covering specialist James Halstead (LSE: JHD). 

Having generated consistently excellent returns on the money it puts to work, this firm has delivered great gains for long-term holders.

That said, the last two years have been tough for the share price as inflationary pressures have kicked in.

But I think we’re past the worst. Supporting this, the company announced in March that pre-tax profit had climbed 18% to £27.4m for the second half of 2023.

At a pretty expensive valuation of 19 times forecast FY25 earnings, things could get nasty if I’m wrong.

Then again, a strong balance sheet suggests Halstead should be able to weather any further storms. There’s a chunky 4.5% dividend yield too. 

I reckon this is one to consider tucking away.

Paul Summers has no position in James Halstead

Volex

What it does: Volex is a manufacturing company that specialises in power cords and data transmission cables. It serves customers in the data centre, consumer electronics, healthcare, and electric vehicle (EV) markets. 

Created with Highcharts 11.4.3Volex Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

By Edward Sheldon, CFA. One investment theme I’m really excited about right now is the global data centre buildout. Across the world, large technology companies are building data centres everywhere to handle the huge amount of data being generated today (and use it for things like artificial intelligence). 

Volex (LSE: VLX) strikes me as a great way to play this theme. A manufacturing company, it generates a decent chunk of its revenues from the production of power cords and data transmission cables for data centres.

And sales from this side of the business are growing fast. In H1 FY2024, for example, revenues in its ‘Complex Industrial Technology’ division grew by a huge 30.1% on an organic basis to $101m (about 25% of total revenues). 

It’s worth noting that sales in its other divisions have not been growing as quickly. In H1 FY2024, revenues from its EV division actually declined. Low or negative growth from these divisions could be a risk going forward. 

With the stock trading at a low earnings multiple, however, I like the risk/reward setup. 

Edward Sheldon owns shares in Volex 

Should you buy Kainos shares today?

Before you decide, please take a moment to review this first.

Because my colleague Mark Rogers – The Motley Fool UK’s Director of Investing – has released this special report.

It’s called ‘5 Stocks for Trying to Build Wealth After 50’.

And it’s yours, free.

Of course, the decade ahead looks hazardous. What with inflation recently hitting 40-year highs, a ‘cost of living crisis’ and threat of a new Cold War, knowing where to invest has never been trickier.

And yet, despite the UK stock market recently hitting a new all-time high, Mark and his team think many shares still trade at a substantial discount, offering savvy investors plenty of potential opportunities to strike.

That’s why now could be an ideal time to secure this valuable investment research.

Mark’s ‘Foolish’ analysts have scoured the markets low and high.

This special report reveals 5 of his favourite long-term ‘Buys’.

Please, don’t make any big decisions before seeing them.

Claim your free copy now

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.

The Motley Fool UK has recommended Ashtead Technology Plc. 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

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Investing Articles

Up 50%? The Aston Martin share price forecast is mind-blowing! 

If analysts are right, the Aston Aston Martin share price could absolutely rocket in the year ahead. Harvey Jones says…

Read more »

Investing Articles

As the S&P 500 drops, here are 2 Stocks and Shares ISA holdings I’m watching

Our writer has different views on how President Trump's tariffs might affect these two US holdings in his Stocks and…

Read more »

Surprised Black girl holding teddy bear toy on Christmas
Investing Articles

£10,000 invested in Tesla stock at Christmas is now worth…

Tesla stock has been one of best-performing investments of the past decade. But things haven't gone to plan for investors…

Read more »

Investing Articles

Up 279% in 5 years, could Meta stock keep soaring?

Meta stock has more than tripled in five years. This writer sees lots to like about the business but also…

Read more »

Pink 3D image of the numbers '2025' growing in size
Investing Articles

25% total return in a year? Is now the perfect time to buy BP shares?

BP shares are on the front line of today's global economic and political uncertainty but analysts think they can still…

Read more »

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

With Cash ISA changes coming, could now be the time to consider buying shares?

Changes to the Cash ISA could lead to greater investment in the stock market. This could be a good thing…

Read more »

Investing Articles

These FTSE 100 dividend shares just got cheaper, thanks to President Trump!

Investors buying dividend shares can lock in bigger long-term yields when share prices take a tumble. These two just did…

Read more »

Investing Articles

At a 52-week low but Taylor Wimpey shares are forecast to rise 35% in a year and yield almost 9%!

Taylor Wimpey shares have had a rough ride but Harvey Jones says analyst forecasts are upbeat, while there is also…

Read more »