Top stock picks for July

Credit: Simon Cunningham

Here are some of the Foolish writers’ favourite stock picks for the month of July.

Christopher Georges: Sirtex Medical Limited (ASX: SRX)

Sirtex shares have taken a hammering over the last month after the company announced it would miss its full year dose sales growth target. Although this was disappointing, it was not totally unexpected. The market appears to have over-reacted to this short-term disappointment and I believe this now presents a buying opportunity for risk tolerant investors.

Sirtex’s long-term growth story remains intact and the company still has the opportunity to significantly expand its target market if ongoing clinical trials deliver positive data.

Motley Fool contributor Christopher Georges owns shares in Sirtex Medical.

James Mickleboro: Catapult Group International Ltd (ASX: CAT)

Even though the share price of Catapult Group has rocketed over 55% this year I still believe it could be a great long-term investment today. The company provides wearable technology and software to top sports clubs and athletes across the world. Its management has estimated its addressable market growing to be worth almost $5 billion per year by 2021. As one of the industry’s market-leaders I feel Catapult Group is positioned for strong growth over the next few years.

Motley Fool contributor James Mickleboro has no financial interest in Catapult Group International Ltd.

Alan Edmunds: SEEK Limited (ASX: SEK)

During times of market uncertainty, I believe investors should deploy any spare funds into high-quality businesses. One such business that has suffered with the rest of the market is SEEK. Since reaffirming guidance in May, SEEK has fallen over 13% to around $15 per share. Personally I like management’s intention to invest now for future growth. In my opinion such forward thinking should be welcomed by long-term investors and that is why I believe SEEK will prove to be a good investment.

Motley Fool contributor Alan Edmunds owns shares in SEEK Limited

Regan Pearson:  Story-I Ltd (ASX: SRY)

Microcap, Story-i Ltd, is tiny, growing and extremely cheap. The company is an authorised Apple product retailer throughout Indonesia, Vietnam and Myanmar. Story-i has built up 17 stores since 2010 and also targets private schooling in Indonesia, where it bundles Apple devices and e-learning programs. The company is profitable, has no significant debt and based on expected 2016 full year earnings it will have grown revenue at a compounded 10.2% over the last four years. With a current share price of $0.07, Story-i sells for a forward price-to-earnings ratio of just 3.9.

Motley Fool contributor Regan Pearson has no financial interest in Story-i Ltd.

Ryan Newman: Somnomed Limited (ASX: SOM)

Investors are right to be cautious in the wake of Britain’s decision to leave the European Union, and businesses with defensive characteristics may be a good option. One such company is SomnoMed. It provides treatment solutions for sleep apnea that are less expensive and less invasive than the alternatives provided by various rivals. This makes it a more appealing option for the patient, while doctors are also more likely to recommend it based on higher compliance rates. Sleep apnea is a serious condition and one that typically needs to be treated no matter the state of the wider economy.

Motley Fool contributor Ryan Newman does not own shares of SomnoMed Limited.

Rachit Dudhwala: Clydesdale and Yorkshire Bank (ASX: CYB)

With Brexit campaigners officially winning the UK’s referendum last Thursday, stocks exposed to European economies have slumped in the fallout. None more so than Clydesdale & Yorkshire Bank. Shares in the National Australia Bank spin-off have plummeted over 25% as investors assess Brexit’s impact on the UK bank’s future earnings. With the stock now trading well and truly below book value, long-term investors should keep an eye on European developments and look to add it to their portfolio as a rebound opportunity.

Motley Fool contributor Rachit Dudhwala does not own shares in Clydesdale & Yorkshire Bank.

Tim McArthur: Village Roadshow Ltd (ASX: VRL)

Shares in this leading entertainment and tourism company have sunk 30% since the beginning of calendar year 2016. At $5 a share, Village Roadshow is trading not only near a 52-week low, but also at its lowest level since early 2013.

Assets owned and operated by the group include theme parks such as Sea World Resort and other cinema related businesses. Providing exposure to the tourism thematic and trading on a financial year 2017 price-to-earnings ratio of 14.3 times (according to Reuters), I think the stock looks good value relative to the market.

Motley Fool contributor Tim McArthur does not own shares in Village Roadshow Ltd.

Tom Richardson: Vocus Communications Limited (ASX: VOC)

This is a re-recommendation for an internet services business that recently acquired inter-city fibre network owner NextGen to expand its physical digital-infrastructure across Australia and overseas. The stock has more than quadrupled in value over the past four years thanks to an aggressive acquisition strategy and some superb capital management in building out its tech infrastructure. Thanks to the digital tailwinds and astute management team I expect it will thump the market over the next three to five years.

Motley Fool contributor Tom Richardson owns shares in Vocus Communications.

How 1 Man Turned $10K Into Over $8 Million

Discover how one man turned a modest $10,600 investment into an $8,016,867 fortune. Learn more about this man and how you can start down the path toward financial independence. Simply click here to learn more.

Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.