How to Find the Best Stocks to Buy in July 2025

Market Overview - Wall Street is optimistic about reduced tensions in the Middle East, particularly following a cease-fire agreement between Israel and Iran announced by President Trump, which is expected to foster peace [1] - The Nasdaq index increased by 1.5% on Tuesday morning, continuing a strong performance from Monday, while oil prices have been declining [1] - Investors are focusing on avoiding major conflicts, which allows them to concentrate on cooling inflation, trade agreements, and the potential for robust second-quarter earnings [1][2] Investment Strategy - The market is approaching all-time highs as it enters July and the Q2 earnings season, with bullish sentiment prevailing despite potential short-term volatility [2] - Investors are encouraged to utilize a Zacks screen to identify top-performing Zacks Rank 1 (Strong Buy) stocks to enhance their portfolios [2][3] Zacks Rank 1 Stocks - Zacks Rank 1 stocks have historically outperformed the market, averaging an annual return of approximately 24.4% since 1988 [5] - There are over 200 stocks that hold a Zacks Rank 1 at any time, necessitating the use of filters to narrow down the list to more manageable options [3] Jabil Inc. (JBL) Highlights - Jabil Inc. is identified as a strong long-term buy, particularly due to its recent strong Q3 FY25 earnings report, which exceeded estimates by 10% and led to an upward revision of guidance [9][10] - The company plans to invest around $500 million to enhance its manufacturing capabilities in the Southeast, supporting cloud and AI data center infrastructure [9] - Jabil's Intelligent Infrastructure segment is a key growth driver, benefiting from increasing demand driven by AI [9][10] Financial Performance - Jabil is projected to grow adjusted earnings by 10% in FY25 and 19% in FY26, with revenue expected to increase by 1% in FY25 and 6% in FY26 [10] - The stock has appreciated 860% over the past decade, significantly outperforming the tech sector, and has seen an 85% increase in the last 12 months compared to the tech sector's 8% [11] - Despite its strong performance, Jabil trades at a 15% discount to the tech sector, with a forward P/E ratio of 22.4X [11]