The Most-Traded Stocks by TipRanks Investors in July 2023

July remained an exciting month for equity investors as the stock market rally faced the earnings test. With most large banks and big tech companies delivering better-than-expected quarterly numbers, the market continued to tick higher. 

The three major U.S. indices, namely the S&P 500 (SPX), Nasdaq (NDX), and the Dow Jones Industrial Average (DJIA), finished the month on a positive note, even though the Federal Reserve increased interest rates by 0.25% to a range of 5.25–5.5%. 

Although the U.S. Federal Reserve has not completed its cycle of interest rate increases, the economy is proving to be more favorable than initially anticipated. This provides the foundation for the continued uptrend in the equity market. To better understand July’s trading patterns, we looked into the month’s Buy and Sell transactions of investors who hold a TipRanks Smart Portfolio.

July’s Most-Bought Stock

Maintaining its lead, Apple (NASDAQ:AAPL) remained the most-bought stock for July. Investors’ confidence in the iPhone maker remains high due to the company’s large installed base of active devices (which crossed over 2 billion in Q3) and increased customer engagement for its services and offerings, which is driving overall Services revenue to new highs. 

In addition, Apple’s robust operating cash flows and focus on enhancing its shareholders’ value through multi-billion dollar share repurchases and dividend payments act as catalysts. 

However, the company is facing tough year-over-year comparisons. Also, a weak macro environment is hurting its product sales. Given the short-term headwinds, iPhone, iPad, and Mac sales dropped in the third quarter. On the positive side, its Services revenue reached $21.2 billion. 

With this backdrop, let’s look at analysts’ outlook for Apple stock.

Is Apple a Good Long-Term Stock? 

The expansion of the Apple ecosystem, the large installed base of active devices, growing Services revenue, solid cash flows, and continued share buybacks make Apple a long-term winner. 

On August 3, Goldman Sachs analyst Mike Ng said that AAPL’s growing installed base and “secular growth in Services” support its premium valuation. The analyst maintained a Buy on the stock. 

Including Mike Ng, 22 analysts rated Apple stock a Buy, and eight analysts recommended Hold. On TipRanks, AAPL stock sports a Moderate Buy consensus rating. Moreover, analysts’ average price target of $208.13 implies 16.80% upside potential. 

Top 10 Most-Bought Stocks

As seen from the buying patterns of investors, July was again a tech-laden month, with most of the top 10 most-bought stocks belonging to that sector. Here is a full list of the most-bought stocks in July:

1. Apple
2. Tesla (NASDAQ:TSLA)
3. Amazon (NASDAQ:AMZN)
4. Microsoft (NASDAQ:MSFT) 
5. Nvidia (NASDAQ:NVDA) 
6. Alphabet Class C (NASDAQ:GOOG)
7. Alibaba (NYSE:BABA)
8. Nio (NYSE:NIO)
9. Meta Platforms (NASDAQ:META)
10. Alphabet Class A (NASDAQ:GOOGL)

July’s Most-Sold Stock

EV (electric vehicle) titan Tesla was the most-sold stock in July. Investors continued to book profits in Tesla stock following its massive rally in the first quarter of 2023. Tesla delivered stronger-than-expected second-quarter results on July 19. Its adjusted EPS jumped 20% year-over-year and crushed the Street’s forecast. 

Tesla is making price cuts to boost volumes. Further, its CEO, Elon Musk, said during the Q2 conference call that the company could make further price cuts depending on market conditions. The company’s efforts to push volumes are weighing on its margins. 

Tesla’s industry-leading margins have been trending lower for the past several quarters. Nonetheless, its focus on cost reduction, continuous product improvement, and autonomy will help recoup margins and support free cash flow generation.

Despite pressure on margins, Tesla stock gained over 19% in July. However, the ongoing pressure on margins due to the lower average selling prices raises concerns. Against this backdrop, let’s look at what the Street recommends for Tesla stock.

Is Tesla Stock a Buy, Sell, or Hold?

The significant appreciation in TSLA stock and pressure on margins keep analysts sidelined. On the other hand, Bernstein analyst Toni Sacconaghi reiterated a Sell rating on Tesla stock on August 7. The analyst believes that the coming year will be tough for Tesla, especially in the absence of new product offerings before 2025. 

Overall, it has received 10 Buy, 13 Hold, and five Sell recommendations for a Hold consensus rating. Analysts average price target of $253.77 implies 4.78% upside potential from current levels.

Top 10 Most-Sold Stocks

Coming back to the list, here are July’s top 10 most-sold stocks:

1. Tesla
2. Amazon
3. Apple
4. Microsoft
5. Nvidia 
6. Alphabet Class A 
7. Meta
8. Nio
9. Advanced Micro Devices (NASDAQ:AMD)
10. Alibaba

We will be back soon with the most-traded stocks of August 2023. Until then, stay ahead of the market by tracking your portfolio’s performance easily with the Smart Portfolio tool on TipRanks.

Disclosure