While the summer months in the market are typically known to be less active, there are still plenty of great opportunities for investors and traders looking to add new positions. We are seeing constructive action in all different areas of the market after a small correction, and even some of the beaten-up growth names are starting to turn the corner. While investors still need to be on the lookout for headline risk related to inflation, the Federal Reserve, and tax raises, the market is certainly set up nicely for June.
We’ve provided a brief overview of the top 3 stocks to buy in June so that you can get a head start on putting together your watch list. Each one of these stocks has a trend or momentum working in its favor, which is why they warrant your consideration. Let’s take a deeper look below.
1. Ulta Beauty
Ulta Beauty (NASDAQ:ULTA) is a great option to consider in June as the company offers investors a way to take advantage of people heading back to shopping malls in wake of the pandemic. As one of the largest beauty retailers in the U.S. and a company that offers specialty retail products such as cosmetics, fragrances, skincare products, hair care products, and salon services, Ulta offers a nice way to gain exposure to a leading business in the consumer discretionary sector. The company has been busy gaining market share during the pandemic and has invested heavily in developing its e-commerce platform, which should reward long-term investors with continued growth.
The company just reported its Q1 earnings that were nothing short of impressive, another great reason to consider adding shares. Ulta reported Q1 net sales of $1.9 billion, a year-over-year increase of 65.2%, thanks to a combination of government stimulus, eased COVID-19 restrictions and improving consumer confidence. The company’s Q1 EPS of $4.10 was more than double what analysts were expecting, and the fact that the company increased its full-year guidance tells us that management expects the momentum to continue for the rest of the year. The stock is close to breaking out after briefly making new all-time highs on Friday, so keep an eye on Ulta at the start of the month.
2. Global-E Online
Global-E Online (NASDAQ:GLBE) went public in early May and offers a new opportunity for investors that want to add e-commerce exposure to their portfolios. Global-E Online has developed a platform that enables and accelerates global, direct-to-consumer cross-border e-commerce growth. The stock has rallied over 30% from the IPO price of $25 per share and could be in for additional upside in June as the company gains more exposure and new investors learn what the company is all about.
It can be quite difficult for business owners to figure out the right way to market and sell their products outside of their home countries, which is a big reason why this company’s platform is intriguing. Just think about dealing with issues like language barriers, currency conversion, and international compliance laws to grasp the value that Global-E Online can provide. It’s also worth mentioning that Shopify (NYSE:SHOP) has taken a 6.5% in the company. While the stock doesn’t have a lot of trading history, accumulating shares of what could be the next big thing in the growth space might be a smart decision in June.
2. AppLovin Corp
Another recent IPO stock that investors should consider adding in June is Applovin (NASDAQ:APP), a mobile application technology company. AppLovin provides software solutions that mobile app developers can use to grow their businesses by automating and optimizing the marketing and monetization of their apps. We know how prevalent mobile devices are in today’s society, and any company that can help to grow the mobile application ecosystem certainly has strong prospects.
AppLovin is delivering attractive top-line growth and reported revenue up 132% year-over-year to $604 million in earnings. It’s also worth noting that the company reported Q1 Adjusted EBITDA of $131 million, up 110% year-over-year and a rarity among high-growth companies that have recently gone public. The stock recently reached new post-IPO highs and has some momentum working in its favor to start the month of June, which is why it’s a great option to consider adding going forward.