Investing features many similarities to the game of baseball, which helps drive the case for the best long-term stocks in July. Unlike the NFL where teams play only 17 regular-season games, in MLB, there are 876 – no, excuse me, 162 games. But it certainly feels like 876 games, which tends to irritate casual observers of America’s pastime.
How does this relate to long-term stocks to buy? Inherently, we understand from learning aphorisms such as “The Tortoise and the Hare” that slow and steady wins the race. And baseball is about overcoming the long grind. Of course, every now and then, investors get antsy and want to push their luck with speculative ventures. However, going the patient route typically offers the highest probability of success.
Now, that doesn’t mean that taking a conservative approach to the market has to be unbearably boring. Certainly, high-potential long-term stocks abound if you know where to look. Also, the added time enables you to dial up the risk-reward factor.
If you’re ready to run the marathon – and not just a quick sprint – below are the top long-term stocks for July.
Duke Energy (DUK)
To use hyperbole, I’ve mentioned Duke Energy (NYSE:DUK) about a million times in the past. However, for the topic of best long-term stocks in July (or any month), Duke makes plenty of sense. First, let’s get the obvious upside catalyst out of the way. As a public utility, the company benefits from a natural monopoly. Basically, the barrier to entry is so steep that most prospective competitors don’t even bother.
Fundamentally, I appreciate that Duke fortuitously happens to be located primarily in the Carolinas, which of course represent two beautiful states. I’ve never been there but I consistently hear great things about the Carolinas. And here’s the big takeaway: these states offer much lower costs of living compared to major metropolises such as New York City or Los Angeles.
Ditto for the other states that Duke Energy covers – Florida, Indiana, Ohio, and Kentucky. Put another way, Duke is positioned where the top demographic right now (the millennials generation) is migrating to. Therefore, DUK symbolizes one of the long-term stocks to buy.
Welltower (WELL)
A real estate investment trust, Welltower (NYSE:WELL) invests in healthcare infrastructure. Specifically, it focuses on senior care facilities. If you’re even moderately aware of basic U.S. demographic realities, then you’ll know that WELL really sells itself as one of the best long-term stocks in July. While you arguably have many Julys to consider exposure, you may want to think about this year’s version.
According to a recent CNBC report, demand for assisted and independent living facilities is on the road to recovery. And soon enough, entities like Welltower could blossom. Obviously, that’s because the massive baby boomer generation is only getting older.
“This is a very, very rare occurrence in real estate in general, where your demand trends are accelerating and your supply is going to be stuck … for at least a couple of years,” said Wells Fargo analyst Connor Siversky. I couldn’t agree more. WELL makes an excellent case for top long-term stocks for July. Just in this year alone, shares gained over 21% of equity value.
Alphabet (GOOG, GOOGL)
Confession time: I was about to stick the company founded by Bill Gates and Paul Allen here. However, that would crowd too many mentions of that company within too short a timeframe. So, let’s go with Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). To be sure, that other company may seem a better idea for best long-term stocks in July. After all, its partnership with OpenAI and the underlying ChatGPT seems extremely lucrative.
In contrast, Alphabet’s Google AI chatbot Bard hasn’t exactly enjoyed an auspicious debut. Sure, AI chatbots make mistakes – I’ve encountered a few of them using ChatGPT. However, Bard seemed particularly off the mark when it initially made its demo.
Still, under the context of high potential long-term stocks, I believe GOOGL makes for a compelling argument. First, in the financial realm, Alphabet is a strong revenue generator and consistently posts net income.
Second and more importantly, Alphabet is too smart to not address prior shortfalls. Therefore, it’s one of the confident names to trust for investing in long-term stocks.
Robert Half (RHI)
Although the work-from-home narrative dominates post-pandemic headlines, I have a hard time believing that the privilege will become a permanent fixture. Therefore, as a contrarian idea, staffing service agency Robert Half (NYSE:RHI) makes a lot of sense. When it comes down to it, employers will become too skeptical about the supposed productivity gains of remote work.
It’s all about human nature. According to Ohio State University, only 9% of Americans that make new year’s resolutions complete them. What’s more, 23% of people quit their resolution by the end of the first week. Now, I may be stupid. Unfortunately, I have serious reservations that your employers are stupid. Therefore, companies will recall their workers (probably). It’s already happening aggressively too.
However, hiring managers will eventually have the difficult task of filtering the winners from the whiners. That’s where an organization like Robert Half can conduct some of the dirty work. It’s highly cynical and a lot can go wrong with this hypothesis. However, I like RHI as one of the best long-term stocks in July.
AbbVie (ABBV)
I know I just recently spoke about pharmaceutical giant AbbVie (NYSE:ABBV). However, with the provided framework of best long-term stocks in July, I’ve got to mention ABBV one more time because of its powerful relevancy. As you may know, AbbVie bought out Allergan. With the acquisition, the former entity now controls Botox, a neurotoxic protein that helps people look younger.
Now, as millennials and members of Gen Z get older, demand for Botox should rise accordingly. Of course, that’s great news for ABBV, making it one of the long-term stocks to buy. But then, how can I be so confident that Botox sales will rise?
If you think about it, millennials came of age during the time of burgeoning digitalization, particularly social media. Further, Gen Z has practically no recollection of the analog era. It’s not that much of a stretch to say that these age cohorts are generally (not all) superficial.
Once those wrinkles set in, I firmly believe millennials and Gen Z will panic. Cynically, that’s wonderful news for AbbVie.
Republic Services (RSG)
Back many, many years ago, “Rich Dad Poor Dad” author Robert Kiyosaki once stated that cash is trash. For context, he was referring to the devaluation of the dollar and the wisdom of investing in precious metals. However, when you’re talking about Republic Services (NYSE:RSG), it’s the opposite situation: trash is cash. And that right there makes RSG one of the best long-term stocks in July.
As a waste disposal service, Republic offers relevance irrespective of whatever’s going on in the economy. To be fair, RSG might not be one of the outright high-potential long-term stocks. If you’re looking to swing for the fences, Republic isn’t your ideal go-to name. However, if you’re looking to get on base, it’s difficult to pass up RSG.
Fundamentally, Republic benefits from a massive moat. Basically, it’s going to be difficult for would-be competitors to make new landfills. Also, the presence of humans leads to garbage production. Given its permanently pertinent business model, RSG ranks among the top long-term stocks for July.
ChargePoint (CHPT)
Although contemporary political and ideological forces constantly push electric vehicles, the reality is that the sector will require major infrastructural transformations to be viable. In recent years, state power grids bucked under the pressure of heat waves. So, if the electric grid can’t handle air conditioners, then EVs would represent a massive problem. Still, if you’re an optimist, check out ChargePoint (NYSE:CHPT) as one of the best long-term stocks in July.
As a provider of EV charging stations throughout the world, ChargePoint makes plenty of sense if you’re bullish on electrification. Fundamentally, it’s difficult to decipher which EV brand will ultimately win out. I highly doubt that several dozen competitors will operate in the space. Eventually, consolidation will likely occur as it did for the combustion-based automotive industry.
However, what will be relevant is the need for public charging. Sure, the EV range will likely rise over the next several years. Still, for long-distance or interstate driving, public infrastructure will be a necessity. Thus, CHPT makes a strong case for investing in long-term stocks.
On the date of publication, Josh Enomoto 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.