Top Stock Picks-July Edition

The first stock that will preform well in the long-term is one of the most beloved restaurant in America, or at least is my favorite, Cheesecake Factory(CAKE). Cheesecake Factory has taken some heavy blows from Covid as dining in isn't available which makes up most of their revenue. However, this provides an opportunity to invest as the stock has dropped around 50% in the wake of covid, and  investors expect the stock to rise up to 48% in the next 12 months.

A bonus is that Cheesecake Factory offers a  6.38% dividend which is nice to have while you wait for the stock the rise and can help offset the short-term losses when you are waiting for a long term gain.

With Cheesecake Factory being one of the largest and most popular chain restaurants in America, they will post stronger sales as states start to reopen and people start to go back to their missed restaurants. This can be shown through Cheesecake factory beating analysts' earnings by 126% for Q1 EPS even during the quarantine with strong sales in carry-out and delivery.

If you are willing to wait, investing in Cheesecake Factory will prove to be a smart move because of their strength.

I would also recommend Uber Technologies(UBER) as the merger with Postmates will make them one of the largest food delivering services in the United States, and the acquisition of Routematch which will help expand their public transit.

These acquisitions will play a big role in Uber's stock as the Postmates ownership will cement them as the top food delivering company.

The predictions from other analysts also agree with me as 37 analysts predict that the median target price will be $41.00 which is a 35.5% gain and a high target of $58.00 which is a 91.7% gain in the next 12 months. Furthermore, out of 42 analysts, 32 believe that it is a buy while 3 believe it will outperform. The positivism of Uber stock's future shows how confident that investors are about the stock and that they see the stock having a strong performance.

Also Uber has been down over 25% since February meaning that right now would be a good time to invest as the price isn't too high. Uber is also projected to post 2.1B in sales this coming up quarter which is 40% less than last quarter's sales, but Uber has the potential to post stronger sales as more people are going out and traveling. If Uber, can beat predictions, it could help boost their stock. Another boost could come from predictions about them having a 52% growth in their EPS to -0.81 and over the last four quarters, they has beaten EPS estimates three times which shows some signs of hope for them beating it again.

A stock that would have a lot of potential of rallying over over 100% would be Nokia Corporation(NOK). Nokia has made some big moves such as selling their handset business to Microsoft(MSFT) for over 7 billion dollars while also making some questionable moves such as buying Alcatel-Lucent for over 16 billion dollars. These moves didn't help their company very much so new leadership could turn the company around.

First, Nokia is changing their upper management by appointing a new CEO and CFO and this change is important because this new leadership could help them come out as a strong competitor in the 5G race. If Nokia starts to focus more on getting 5G contracts and utilizes their over 100,000 employees, it will give will create a positive outlook for them and will help raise their beaten-down stock which has dropped over 90% since its peak.

Furthermore, networks makes up 75% of the revenue for the company so some analysts think that this new team is trying to focus on the networks business while using less resources for their non-network businesses.

The Trump Administration has also expressed interest in trying to help Nokia with the 5G business because the government is trying to stop buying equipment, especially 5G, from Huawei so an alternative would be Nokia and make them a strong competitor.

My boom or bust stock is Wingstop Inc(WING) which has gain popularity since the quarantine and has risen over 100% the past few months. According to CNN Business, a majority of analysts put a buy rating on it while no one put a sell or under perform rating on it. With Wingstop reporting there quarterly earnings up on July 29, they are predicted to have between a 3-20% growth in sales with a consensus of 12%, while they also beat EPS expectations by 13%. They have a strong upside as they are projected stronger sales and EPS than last quarter because of an increase in the popularity of ordering carry-out food. The stock has also fell 4% this past week setting up on opportunity to get on the train before it starts to take off.

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