There’s an old investing adage that says “sell in May and go away.” Supposedly the best six months of the year to buy stocks are between November and April and avoiding the summer doldrums will enhance your portfolio’s returns. But had you followed that advice this year, you would have missed out on some great summer investments. Between May 1 and July 1, the S&P 500 returned 6.8%. On an annualized basis, that would equate to a better than 40% return on your investment.

I’m not saying the broad-based index will return so much over that 12-month period, but don’t let simple sayings get in the way of finding good stocks to buy right now. The following three companies represent a handful of the top July stock picks you can find today. Investors should give these summer investments a closer look to add to their portfolios this month.

Lowe’s (LOW)

The ongoing housing market turmoil hasn’t hurt home improvement center Lowe’s (NYSE:LOW) and it remains one of the top summer investments for in July. 

Although soaring home prices and rising interest rates have caused home sales to slow, they haven’t collapsed as expected. The National Association of Realtors says seasonally-adjusted existing-home sales crept 0.2% high in May for an annualized rate of 4.3 million. That’s down 20% from last year. And though inventory of unsold existing homes grew 3.8% in May to 1.08 million, that represents just a three month supply of available homes. It’s considered a shortage when there’s less than a six month supply.

This is key because professional housing contractors turn to Lowe’s and rival Home Depot (NYSE:HD) for their building needs. But it’s only half the equation. The current housing market also serves to incentivize homeowners to stay put rather than move. When that happens, they’ll spend money renovating their existing home. With the average age of homes in the U.S. at 40-years old, home improvement demand is going to remain elevated over the long run.

Even with the dicey market, Lowe’s is still expanding. While same store sales were down 4% last quarter due mostly to a late start to spring, the home center’s comps in the pro sector were positive for the period despite severe lumber price deflation. That came on top of a 22% surge in pro comps last year. And when the weather improved, Lowe’s saw the DIY segment grow, too.

Lowe’s has paid a dividend to shareholders every quarter since going public in 1961. It has increased the payout for 57 consecutive years. The dividend yields 2% annually making the home improvement center a top July stock pick.

Polaris (PII)

Powersports vehicle manufacturer Polaris (NYSE:PII) will report second quarter earnings later this month. Investors could be in for a fun ride. The stock is outpacing the S&P 500 with shares running 10% higher between May and July.

Polaris is dominant in the powersports space. Its RZR side-by-side all-terrain vehicles came to define the industry with its trail-width compliant design. Off-road vehicle (ORV) sales account for 75% of total $8.6 billion in adjusted annual revenue. Almost 80% of its business is in the U.S.

It holds the No. 1 position in the ORV market with a 30% lead on its nearest rival. It is No. 2 in motorcycles with its Indian brand behind Harley-Davidson (NYSE:HOG) in big-block bikes, and has a 115% lead over the No. 3 player. And it’s the top player in the marine segment with a 30% lead over the next largest company.

It suggests Polaris has a wide competitive and economic moat to maintain its leadership position in the powersports industry. It also pays a dividend that yields 2.2% annually. Polaris has increased the payout for 28 straight years making the stock a dividend aristocrat. 

Polaris is a deeply discounted stock regardless. Shares trade at just 11 times trailing earnings and estimates. It goes for only a fraction of its expected earnings growth rate as well as sales. The powersports vehicle maker is a stock for summer investments that will have your portfolio roaring ahead for years to come.

Smith & Wesson Holdings (SWBI)

Smith & Wesson Holdings (Nasdaq:SWBI) is arguably a more controversial pick as an investment opportunity in July. The premiere U.S. gunmaker is something more of a cyclical stock whose sales tend to rise and fall more on macroeconomic and geopolitical events than on typical business cycles. Yet the overall long-term demand trend tends to be up.

FBI criminal background checks of potential gun buyers are running 4% higher through May. The firearms industry group National Shooting Sports Foundation adjusts the raw FBI data to eliminate duplicate checks, such as those done on existing concealed carry permit holders to see if they’re still eligible for a permit. It finds actual gun sales virtually flat year over year. Yet the 1.17 million adjusted background checks performed in May is the 46th consecutive month that has exceeded 1 million checks. 

Demand for firearms for personal protection remains strong. It’s just not at the same level as during the previous record-breaking years and 2023 is still on track to be one of the industry’s top sales years regardless.

Smith & Wesson remains a discounted stock because of the seeming weakness. Although its shares have bounced nearly 60% from the low point they hit in December, they still trade at 13 times earnings estimates and below twice sales. Wall Street is looking for Smith & Wesson Brands to grow profits at a 15% compounded annual rate over the next five years.

The gunmaker might not be a stock for everyone, but it remains one of the best stock to buy in July.

On the date of publication, Rich Duprey held a LONG positions in LOW, PII, and SWBI stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.