For Immediate Release
Chicago, IL – July 7, 2026 – Stocks in this week’s article are First Advantage Corp. FA, Bioventus Inc. BVS and Ooma, Inc. OOMA.
3 Top Breakout Stocks to Snap Up for Big Upside in July 2026
As July begins, investors can enhance returns by taking a more active approach to stock selection, identifying potential breakout opportunities within well-defined price ranges. Under this strategy, a stock should be sold if it falls below the lower band. In contrast, a move above the upper band signals a potential breakout and an opportunity to stay invested to capture continued upside momentum.
Using this framework, First Advantage Corp., Bioventus Inc. and Ooma, Inc. stand out as potential breakout stocks in July.
Identifying Breakout Stocks for Maximum Returns
To pick a breakout stock, calculate support and resistance levels. A support level is the lower bound for stock movements, while a resistance level refers to the maximum price it trades at within a considerable period.
In other words, the demand for a stock is lowest at its support level, meaning most traders are willing to sell it. The majority of traders are willing to go long the stock at the resistance level, indicating that they would like to add it to their portfolios. The key to identifying breakout stocks is to zero in on those on the verge of a breakout or those that have just broken above resistance.
Has the Stock Confirmed a Genuine Breakout?
The primary risk associated with such a strategy is that the decision to buy an apparent breakout candidate has been incorrectly timed. When a stock moves above the resistance level, it should be a highly prized commodity for traders. However, whether such a breakout is genuine is another matter altogether.
For a bona fide breakout, the stock’s earlier resistance barrier should become its new support level. This only happens if the established trading channel is tested by observing long-term price trends. The strength of the support and resistance levels can be ascertained only through such a study. Despite the risk of misidentification, correctly identifying such stocks can yield considerable returns, even at a price that may not seem attractive at first glance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are the top three stocks:
First Advantage
First Advantage offers global employment background screening, digital identity, and verification services to businesses around the world. First Advantage has a Zacks Rank #2. FA’s expected earnings growth rate for the current year is 18.3%.
Bioventus
Bioventus develops medical devices for pain relief and musculoskeletal care worldwide. Bioventus has a Zacks Rank #2. Bioventus’ expected earnings growth rate for the current year is 14.7%.
Ooma
Ooma provides communication solutions for businesses and consumers across North America. Ooma has a Zacks Rank #2. OOMA’s expected earnings growth rate for the current year is 24%.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2947343/3-top-breakout-stocks-to-snap-up-for-big-upside-in-july-2026
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Ooma, Inc. (OOMA) : Free Stock Analysis Report
Bioventus Inc. (BVS) : Free Stock Analysis Report
First Advantage Corporation (FA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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