It's already feeling like a scorcher of a summer, and I'm not just talking about the temperatures outside. Wall Street has been heating up in recent weeks, sending the major indexes to new highs. A lot of the stocks I like are also starting to tick higher, too, even if many of them are nowhere close to their all-time peak prices.
Shares of fuboTV (FUBO 6.72%), Coupang (CPNG 1.16%), and Sirius XM Radio (SIRI 0.96%) have been heading upward, and I expect them to continue to move higher this month. Here's why I think these are three hot stocks to buy in July.
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FuboTV
FuboTV runs a fast-growing live TV streaming service, and its shares have taken investors on a roller-coaster ride since they hit the market at $10 just nine months ago. The stock traded briefly above $60 in late December -- boosted by its strong subscriber numbers and its potential as a sports-first platform to cash in on lucrative opportunities in the gambling market. But the shares went on to tumble below $15 by mid-May. Now, though, they are trading at more than twice their May low.
For the underlying business, growth has been impressive. FuboTV has posted year-over-year revenue gains of 71%, 98%, and 135% in its first three quarters as a public company. Accelerating growth is always a good look.
With its subscriber base closing in on 600,000, fuboTV is ready to put a pair of recent gambling acquisitions to the test. It will pull the first lever this summer by introducing fantasy sports-related games and contests, a move that should increase the stickiness of its live TV streaming service. And it's already fairly sticky: Its viewers spend an average of roughly four hours a day on the platform. The company will pull the more significant lever in the fourth quarter when it rolls out a sportsbook that will let viewers wager on events in real time.
Coupang
South Korea's leading online retailer went public in March at $35 a share, and shot as high as $69 on its first day of trading. Two months later, it had given back all of those gains and fallen below $35 to officially become a broken IPO. It has since clawed its way back above its debut price, but it has a long way to go.
As a business, Coupang is growing quickly. Revenue soared 91% last year, and it built on that performance with a 74% year-over-year increase in 2021's first quarter. There's a lot to like about Coupang, including some things that make it even more efficient than the world's e-commerce leader. With 100 distribution centers across South Korea, it has hubs within seven miles of 70% of its potential customers. It can deliver orders placed by midnight to the doors of its customers before the sun rises the next day. Coupang has a strong moat here, and eventually, the market will reward it.
Sirius XM Radio
One smart way to play the reopening of the U.S. economy is through an investment in Sirius XM Radio. The satellite radio provider has naturally struggled during the pandemic. People weren't driving around a whole lot last year, so a premium in-car radio service wasn't exactly a necessity.
Up until last year, Sirius XM stock had an amazing track record -- 11 straight years of positive returns. That streak unsurprisingly ended in 2020 even as many growth stocks moved higher. But its shares are on the rise again in 2021, even if the 5% year-to-date increase is well behind the general market's return.
That said, Sirius XM is set up nicely for a bounce in the second half. It's armed with 34.5 million subscribers. Folks are driving again. Car sales are picking up. And people have money to spend on premium radio.
For investors on the hunt for promising growth stocks, FuboTV, Coupang, and Sirius XM are well worth a look. They've already started to bounce back, and their refreshed momentum should keep them moving higher in July.
