Stock Picks for July 2026
Today is July 24th , 2026 and it’s time for some stock picks.
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Market overview and outlook
This time last year I picked Alison Transmission (ALSN), Hartford Insurance Group (HIG) and Alphabet (GOOGL). These stocks were up 23.6%, 17.0% and 96.9% respectively in USD including dividends, for an average return of 45.8%. This compares with 21.6% for the MSCI World Equity Index in USD including dividends as represented by the URTH ETF.
Despite inflation being higher than average, a war in Iran and an economy that’s mostly flat with the exception of AI spending on things like GPUs, CPUs, data center build up, AI model research and development, world equity markets have continued to perform very well as is evident by the performance of the various equity benchmarks. Google for example almost caught up with Open AI and Anthropic on the AI front and the market rewarded that stock
handsomely.
Going forward however we believe that equity returns will be below average as stock valuations are well above average. It is therefore even more important than usual to own good companies that trade at reasonable valuations in order to have good returns for then next 3-5 years and beyond. Our top stock picks for July represent such investment opportunities.
APA Corp (NYSE: APA)
My first stock pick is APA Corp, symbol APA on the NYSE. This is the old Apache Corp, a major Oil & Gas producer with approximately 80% of revenues from oil, 10% from natural gas and 10% from natural gas liquids. Its main operations are in the Permian Basin in Texas and New Mexico, in Egypt, Suriname and Alaska.
The bullish case for oil and gas stocks centers on strong global demand, companies prioritizing steady profits over overproduction, and ongoing 2026 supply threats in the Strait of Hormuz keeping prices high. APA stock is cheap due to short-term worries possibly about political instability in Egypt, but the reality is they are successfully cutting costs in Texas to pay down debt and fund reliable dividends. Additionally, APA is building a massive offshore oil project in Suriname set for 2028. Buying APA today could give us a highly profitable, cash-generating business right now, plus huge future growth potential at a major discount, trading at about 6 times earnings. I like it.
RenaissanceRe (NYSE:RNR)
My second stock pick is going to be a property and casualty re-insurance company, RenaissanceRe, symbol RNR on the NYSE. The Bermuda based reinsurer bounced back impressively in 2026 after the losses the sector experienced last year with the California wildfires. Structural hard market conditions in property and casualty reinsurance driven by inflation-linked demand growth and disciplined pricing are generating exceptional profitability across the sector, with RenaissanceRe standing as the premier beneficiary. RNR is capitalizing on these tailwinds by leveraging its unmatched property catastrophe expertise, a rapidly expanding casualty and specialty portfolio following the Validus acquisition, and a capital-light third-party capital management platform that generates high-margin fee income. Backed by stellar combined ratios, a strong balance sheet, and aggressive share buybacks driving rapid book value compounding, RNR offers a great risk-adjusted return profile for investors as it’s trading at a compelling valuation of about 8 times earnings.
AerCap Holdings (NYSE: AER)
My third stock pick is AerCap Holdings, symbol AER on the NYSE. With about 27 billion in market capitalization AER the world’s largest company in the aircraft leasing business. The bullish thesis for AerCap Holdings (AER) in 2026 is anchored in a structural supply-demand imbalance that essentially forces airlines to become price-takers in the leasing market.
Persistently high global air traffic demand is colliding head-on with severe OEM production bottlenecks at Boeing and Airbus, which are further compounded by ongoing engine durability issues that keep existing planes grounded. Because airlines cannot reliably acquire new aircraft directly from manufacturers, they are heavily dependent on lessors to secure scarce capacity.
As the world’s largest aircraft lessor, AerCap is perfectly positioned to exploit this environment, driving lease rates significantly higher and generating massive gains on asset sales as aircraft values remain historically elevated. Furthermore, management is aggressively converting this cash flow windfall into shareholder returns, highlighted by a $1 billion share repurchase program extending through 2026, while continuously refreshing its $70 billion portfolio with high-demand, fuel-efficient assets like 787 Dreamliners, cementing supreme pricing power and long-term earnings visibility.
Strong fundamentals and a good valuation for this stock which trades about 8 times earnings make it a stock we like!
Give Us a Call
As always, if you have questions about whether these stocks fit in your portfolio or if you have any other investment-related questions, give us a call! 604-288-2084
Thank you!
- Stock Picks for July 2026 - July 24, 2026
- Stock Picks for June 2026 - June 19, 2026
- Top ideas for new money for 2026 - January 12, 2026
