As we reach the middle of June, you might have noticed that Wall Street’s indices are almost flat, semiconductors and transports have outperformed S&P 500 and Dow Jones Industrial Average, and the opportunities that presented themselves in May will likely flow over to June as well. An estimated 78% of S&P companies have increased their earnings per share. With the first quarter of the earnings season coming to an end, the results have been outstanding with many expectations exceeded.
Regarding EPS growth, information-technology came out on top, with health care and financials coming in at a close second and third. The financial quarter is expected to continue with successful earnings, and hopefully avoid being negatively affected by the goings on in Spain and Italy’s economy. And what with the US economy’s success, here are the stocks you’ll want to get your hands on this month.
The price of oil could be interpreted as too cheap, but the demands from India and China continue to increase. However, China, Russia and the US are all looking to increase production and revenues as oil is trading close to the highest prices in four years. Because of its 4% dividend, ExxonMobil (XOM) is a wise choice. The oil-service companies Schlumberger (SLB) and Halliburton (HAL), which just signed a fracking deal with Saudi Arabia, are also great options for long positions, as they are more reliant on rising production levels than they are on crude prices.
The Federal Reserve stress tests will be revealed on 22 and 28 June, which will allow for more money allocated to dividends and stock-repurchase programs for all companies that pass. The post-2008 Dodd-Frank Wall Street Reform and Consumer Protection Act, which will make boost opportunities for the capital of regional banks, will also decrease the number of firms that are considered too large to experience failure, which in turn will increase regulations. Along with these results, a possible reduction in the Volcker Rule can prevent banks from proprietary trading. These potential improvements open up new possibilities in financial stocks. Positions in Goldman Sachs (GS), JPMorgan Chase (JPM) and Citigroup (C) can prove themselves to be highly beneficial considering the most recent Italian debt disaster.
Between semiconductors and cloud computing, there are ample stocks to enjoy investing in. In terms of semiconductor stocks, the 25% rise in Micron Technology (MU) has made this stock one to start capitalizing upon if you aren’t already. The fact that Micron plans to work with Intel (INTC), as well as the security of Nvidia (NVDA) make these stocks two more essentials to add to the list.
The next big thing in the tech aspect of business is cloud computing. A few must-have stocks in this area are Amazon (AMZN), Microsoft (MSFT), Salesforce (CRM) and Splunk (SPLK), especially with its most recent earnings.
Without overloading you with stocks you should have, an extra beneficial stock to get hold of is China’s version of Netflix, iQIYI (IQ). While it has only been available on America’s Depository Shares for almost two months, the numbers of premium subscribers on IQ has gone from 50.8 million to 61 million in six months. It can act as a fantastic safety net while you focus on your main stocks as it holds endless future potential as it grows.
These stocks are predicted to rise and rise in the following month – and potentially for even longer. Snag a few of these and it will be a great boost for you as a trader and your portfolio. And as the month unfolds, there will surely be more valuable stocks that arise.