The stock market is constantly evolving, with many companies grabbing the headlines in the wake of new innovations. Over the last year, the focus on strong buy stocks tied to artificial intelligence is showing signs of a slowdown.
While these companies, in most cases, deserve the spotlight, sometimes it can become a little overblown. Currently, valuations in the technology sector seem unsustainable and create a market imbalance. This can pave the way for a subset of silent stocks that can quietly outperform the broader market.
Industry-specific tailwinds and strong financial performance often support the companies’ long-term growth prospects. They can involve emerging sectors like online education, fintech and cybersecurity, each having a unique appeal to create a strong buy case. As the market grows increasingly uncertain with the 2024 election underway, these three companies are poised to thrive in the second half of the year.
Now, here are the top strong buy stocks to snap up in July 2024!
CACI International (CACI)
CACI International (NYSE:CACI) makes the case for one of the best strong buy stocks for July. The company specializes in cybersecurity, IT and mission-critical support for the defense industry. This fits well with the growing concerns surrounding geopolitical uncertainty and rising cyber crimes across the globe.
CACI International is currently at the forefront of some of the world’s most pressing problems. As a key partner to the U.S. federal government, CACI provides solutions to keep the country safe and competitive on the global stage. The company’s financial performance over the last several quarters is notable, driven by new contract news and backlog growth. Its growth strategy through acquisitions has largely contributed to its expansion in revenue and adjusted EBITDA. In its latest quarterly results, revenue increased 11% year-over-year (YOY) to $1.94 billion. Earnings per share swelled 18% YOY to $5.13, with adjusted EBITDA margin up 0.3%. With $3.5 billion in new contract awards in the quarter, CACI stock should certainly be kept on your radar in July.
Stride (LRN)
Stride (NYSE:LRN) is another silent stock that investors will regret not buying in July. As a leader in online education, Stride specializes in providing virtual learning services for students of all age groups.
Stride is truly a remarkable company that you’ve probably never heard of. Founded in 1999, Stride has been an innovator in online education far before the 2020 COVID-19 pandemic. It adopted both online and hybrid learning models that have increased in popularity in the education space for K-12 and adult learners. This approach garnered Stride an extremely loyal consumer base over the past two decades, contributing to its impressive financial results. While the pandemic certainly boosted demand for its services, its growth has continued to accelerate despite the re-opening of the global economy. In Q3 FY24, revenue increased 11% year over year to $521 million. Earnings per share rose 23% to $1.60 per share, with adjusted operating income hitting a record high of $96.4 million. As the online education market continues to expand, Stride remains one of the top strong buy stocks for July 2024.
Payoneer (PAYO)
Payoneer (NASDAQ:PAYO) is a leading provider of cross-border payments and an emerging fintech company with significant growth potential. The company may have hit a key inflection point in 2023, signaling that the stock might be undervalued at current levels.
When you think of fintech you often look to popular names like Visa (NYSE:V) and Mastercard (NYSE:MA). These companies are the pinnacle of financial technology and innovation and often leave very little room for smaller players to compete. The truth is that the vast majority of fintech companies in the public and private markets aren’t profitable and don’t survive. That means if you do and your services are able to gain mass appeal, you’re clearly doing something right.
After achieving its first full year of GAAP profitability in the 2023 fiscal year, the company is off to a great start. In the first quarter, revenue increased 19% YOY to $228.2 million. Earnings per share skyrocketed 300% to 8 cents per share, with B2B payment volume up 33% from the year prior. With management forecasting 2024 to be another profitable year, Payoneer is just getting started.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.