Top 5 Stocks for July

Growing Profits By Leaps and Bounds

Fertilizer companies are prospering these days as farmers race to boost crop yields to meet the global demand for food. That’s why this regional manufacturer of nitrogen and phosphate fertilizers is one of my top stocks for July[1].

It operates smack dab in the middle of the American heartland with a network of manufacturing and distribution facilities throughout the Midwest. Right now it’s benefiting from positive analyst upgrades and trading at less than nine times forecasted earnings.

Stock #2:

Hitting Pay Dirt

This fertilizer powerhouse just partnered with Myriad Genetics to map the rice genome. And while this may sound like pure science-fiction to you, that’s exactly why I added it to this month’s list. By mapping the rice genome, this company is leading the way to making rice crops more resistant to disease, thus boosting crop yields and rice production throughout the world.

Crop protection is what those in the industry call it. And this company’s research arm currently generates about 75% of the company’s sales worldwide. Continued demand for biofuels will enable this company to target double-digit growth in earnings per share through 2010.

Stock #3:

The Great Commodity Gold Rush

My third top stock is a leading Russian company with business in three hot industries right now: mining, steel and energy. You can see why this stock is a great buy as steel prices are soaring and energy prices continue to climb.

Recently, the company announced that it will raise more than $2 billion from a preferred share offering. Typically, when a company is in the midst of a secondary offering, it can impede near-term appreciation due to the uncertainty regarding the pricing of the secondary offering. However, since we own the common shares here at Blue Chip Growth[2] and it will be issuing preferred shares, we have high growth expectations for the stock.

Cash-In on Corn

Corn prices have hit record highs as the tragic Iowa floods took their toll on America’s crops. This devastating news has turned into great news for this fertilizer company as it races to meet the global demand for ethanol. Let’s face it, the only way for farmers to boost output is to use more fertilizer.

The company’s CEO has gone on record as saying that his company is poised for significant growth in the next five years as soaring grain prices give farmers the means to pay more for the added fertilizer. “We have a lot of pricing power. We’re nowhere near peak pricing.” I couldn’t agree more.

Home Grown Profits

The fertilizer giant posted a 4.3% earnings surprise in April. Its first-quarter sales came in at $0.99 per share, beating analysts $0.95 per share expectations. By outdoing analysts’ earnings expectations, the company brought in an excellent earnings surprise. Already analysts have scrambled to raise their estimates higher. Well, that’s nothing new to us: We’re up 217% in the company since October 2007! 

This company is banking on the global food crunch to continue, and frankly, so are we! That’s why I’m adding one more fertilizer favorite to my top stocks for July.

At Blue Chip Growth, our buy list is filled to the brim with companies that are profiting from the rising cost of food and fuel! Who says you can’t make more money in the current market? Get the names of all 5 stocks today by signing up for a risk-free trial subscription to Blue Chip Growth[3].

I’ve dedicated half of my July issue to analyzing buy prices, earnings data and analysts expectations just for these five stocks! That’s how excited I am about their profit potential! Accept your risk-free trial to Blue Chip Growth by clicking here[4] and get immediate online access to the July issue. Plus, up to 6 FREE Bonus Reports!