The Motley Fool

3 of the best shares to buy before July

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.

Full length shot of a happy senior couple drinking coffee and spending time together at home
Image source: Getty Images

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.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

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.

Our 5 Top Shares for the New “Green Industrial Revolution"

It was released in November 2020, and make no mistake:

It’s happening.

The UK Government’s 10-point plan for a new “Green Industrial Revolution.”

PriceWaterhouse Coopers believes this trend will cost £400billion…

…That’s just here in Britain over the next 10 years.

Worldwide, the Green Industrial Revolution could be worth TRILLIONS.

It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead!

Access this special "Green Industrial Revolution" presentation now

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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.