Schaeffer's 43rd Anniversary Stock Picks in 2024

2 Big-Box Retail Stocks to Target in July

Plus, another 23 stocks that tend to outperform in July

Digital Content Manager
Jul 1, 2024 at 2:59 PM
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With a new month and quarter kicking off, now is a good time for investors to reassess their portfolios. From a bullish standpoint, retailers Target Corp (NYSE:TGT) and Costco Wholesale Corporation (NASDAQ:COST) may be solid buy-the-dip plays, as both were last seen trading below breakeven, but still rank among the best equities to own in July.

Per Schaeffer's Senior Quantitative Analyst Rocky White, COST and TGT are the top retailers on a list of 25 best performing S&P 500 Index (SPX) stocks to own this month. Both finished July higher 90% over the past decade, and averaged a 5.7% gain.

Best of July 2024 

TGT is down 1.6% to trade at $145.72 at last check, after bouncing off long-term support from the 200-day moving average. While the equity distanced itself from this year's April 1 peak of $181.86, it sports a 10.2% year-over-year lead.

Premiums are also affordable amid low volatility expectations, per Target stock's Schaeffer's Volatility Index (SVI) of 21% that sits in the low 3rd percentile of annual readings.

COST was last seen down 0.5% at $846.32, taking a breather from its June 18, record high of $873.95. The shares have been getting support from the $840 level since early June, despite today pacing for a third-straight daily loss. Longer term, Costco stock boasts a 28.2% year-to-date lead.

A shift in sentiment could generate tailwinds. The security's 10-day put/call volume ratio of 1.12 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 91% of readings from the past year, meaning options traders favored bearish bets over the last two weeks.

Costco stock also boasts affordable premiums in tandem with low volatility expectations, per its SVI of 17% that sits in the 9th percentile of annual readings.

 

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