2 Stocks to Watch in July

Hi. I’m Susan Dziubinski with Morningstar. We’re halfway through 2022, and investors have endured a wild ride. The day-to-day market volatility we’ve experienced has been unnerving for most. Yet that very same volatility can provide investors with buying opportunities.

Here are two stocks we think investors should have on their watchlists in July. These stocks may be about fairly valued today, but they’re worth keeping an eye on, because if volatility persists, these stocks may dip into buying range this month. Both of the stocks we’re spotlighting today come from the healthcare sector.

The first stock is Pfizer PFE. Most of us today know Pfizer as one the leading manufacturers of COVID-19 vaccines and treatments. But Pfizer has a substantial portfolio of diverse, patent-protected drugs and a rich pipeline that should help the company withstand generic competition. In fact, we think Pfizer has unmatched financial resources and established research power, and the drugmaker is launching several potential blockbuster drugs in cancer, heart disease, and immunology. We think Pfizer’s shares are worth $48 each.

The second name on our list of stocks to watch in July is Intuitive Surgical ISRG. Intuitive Surgical develops, produces, and markets a robotic system for assisting in minimally invasive surgery. The company stands to benefit from increased adoption of robot-assisted surgery across the globe. We think there are especially ample opportunities overseas. Intuitive Surgical achieves a level profitability rarely seen among medical-equipment makers. And while there is competition from the likes of Medtronic and Johnson and Johnson, we don't think any competitor can significantly disrupt Intuitive's business. We think shares are worth $204 apiece. Morningstar sector director Damien Conover and regional director Alex Mozorov provided the research behind this segment.