Top Stock 5 – McDonald's

McDonald's (MCD) has been one of my favorite stocks to talk about lately, since it is the "poster stock" for how a weaker dollar boosts corporate profits in multinational companies with a global footprint.

Just recently, the company reported a tremendous 5% increase in international same-store sales for May, fueled largely by favorable currency exchange rates. As the dollar continues to weaken, we will see even bigger numbers from MCD.

The success of McDonald's McCafe business will help to sustain same-store sales growth until the dollar's weakness shifts exchange rates to the company's favor. MCD also has a high dividend yield, which makes it an attractive investment to investors.

Top Stock 4 – Quest Diagnostics

Top Stock 4 – Quest Diagnostics (DGX)

An aging population and a greater emphasis on preventative care are creating a high-growth opportunity for Quest Diagnostics (DGX). This company is the leading provider of independent diagnostic testing in the U.S. It has built a network of more than 2,000 patient service centers across the country, offering its customers a wide array of routine and specialty laboratory tests and services.

DGX posted a nearly 25% jump in earnings for the first quarter and a significant uptick in sales that beat expectations. These are very solid results in an economic environment where most of Quest's primary customers have decided to perform more diagnostic testing in-house to cut spending.

Quest is poised for another round of great earnings, and now is the time to jump into this stock during the lull before the next quarterly reporting season.

Top 5 Stocks for July

Top Stock 2 – Apollo (APOL)

Apollo Group (APOL) is a point of great debate, but I am sticking to my guns on this one. I take literally a dozen of questions every week about this stock's gyrations, but my answer is always a resounding "buy" for APOL.

You see, Apollo Group is one of those famous "zig zag" stocks that tends to do well on down market days and moves very differently from the overall stock market. This is because Apollo's University of Phoenix is the #1 private education provider in the nation and has seen booming enrollment as more Americans are laid off.

So as jobless claims make Wall Street grumpy, they also boost this stock. And that's the primary reason that I am recommending Apollo Group – because it helps to stabilize your portfolio on down days.

On top of that, the long-term unemployment picture is very grim. Overall unemployment rose by 787,000 in May to 14.5 million, so the unemployment rate rose from 8.9% to 9.4% to the highest rate in 26 years! Since many displaced workers will likely continue go back to school for retraining, I am confident this trend will pay off for Apollo.

Top 5 Stocks for July

Top Stock 1 – AutoZone (AZO)

AutoZone (AZO) is a recession-proof stock, since the company is capitalizing on the fact that Americans are buying fewer new cars and maintaining their old vehicles longer.

As major car companies deal with bankruptcy, this trend will only continue. In its latest quarter, the company's earnings rose 22%, and sales jumped 8%. Growing year-over-year earnings in this dismal environment is a tremendous feat.

The best part is that this company is poised to pick up a huge chunk of market share as Chrysler and General Motors head down the drain. Since the dealer networks and parts businesses of these companies will likely suffer during the process, AZO will quickly fill the void.