Top Stock Picks for June Amid Market Uncertainty
June may bring summer festivities, but the overall market remains uncertain. Instead of speculating on short-term market trends, investors should focus on companies with solid long-term investment strategies.
Top Stocks For Your Consideration
Analysts have identified five stocks worth buying this June: Apple (NASDAQ: AAPL), Shopify (NASDAQ: SHOP), Cava Group (NYSE: CAVA), ExxonMobil (NYSE: XOM), and Energy Transfer (NYSE: ET).
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Apple Faces Pricing Challenges
Daniel Foelber (Apple): Apple, currently the second-worst performer in the Dow Jones Industrial Average, has dropped 22% year to date. This decline presents an opportunity for long-term investors.
The main concern is Apple’s ability to manage tariff-related costs, particularly the 25% tariff on smartphones made outside the U.S. Apple primarily assembles iPhones in China, which could impact its profits. Alternatives like relocating production are not feasible due to higher labor costs.
Despite these challenges, upcoming iPhone models, including the iPhone 17, may boost demand with enhanced features. Apple’s Worldwide Developers Conference from June 9 to 13 should offer insights into these advancements.
Historically, Apple has maintained consistent pricing for its base iPhones since 2017, focusing on customer loyalty and service growth. While product growth has been sluggish, its services segment—comprising Apple TV+, Music, and Pay—has thrived.
Although tariffs pose risks, they coincide with a period of innovation at Apple. Long-term investors may find Apple a prudent choice this June.
Shopify’s Market Performance
Demitri Kalogeropoulos (Shopify): Shopify’s stock remains stable, reporting a 27% sales growth in Q1, albeit a slight decline from the previous quarter’s 31% growth. This marks the eighth quarter of over 25% growth.
Merchant solutions revenue rose 29%, reflecting strong value in Shopify’s expanding services amid trade disruptions. Operating income surpassed $203 million, leading to a 15% free cash flow margin, up from 12% last year.
Despite concerns about trade impacts, Shopify forecasts mid-20s percentage growth for 2025, alongside an aggressive outlook for free cash flow. A minor adjustment in profit growth expectations doesn’t overshadow Shopify’s long-term potential.
Growth Opportunities in Cava Group
Anders Bylund (Cava Group): Cava Group’s stock has declined over 40% in the last six months, now trading at 69 times earnings and 9.2 times sales. Despite this, the fast-casual restaurant chain is experiencing rapid growth and profitability, indicating a promising future.
Analysts note Cava’s profitability and margin expansion, supporting its high stock valuation despite recent price declines.
# Cava Stock Surges on Strong Earnings, Faces Market Caution
Cava has received “buy” or “overweight” ratings, with Wall Street’s average target price 44% above its Thursday closing price.
The company consistently exceeds analyst estimates, with a notable surprise in its May first-quarter report. Analysts expected earnings of $0.02 per share and revenue around $281 million. Instead, Cava reported earnings of $0.22 per share and $332 million in revenue.
Typically, such a report would boost Cava’s stock. However, the market reacted negatively after management warned that same-store sales growth may slow in the latter half of 2025 due to an uncertain economy impacting consumer spending. Cava’s premium-priced healthy menu could make it susceptible to shifts in consumer confidence, especially given its high valuation.
While Cava’s stock isn’t considered a bargain right now, it has decreased from its previously high valuation. Investors may view Cava’s combination of healthy growth and rising profits as a long-term investment opportunity.
ExxonMobil Charts Growth Amid Industry Changes
Neha Chamaria (ExxonMobil): Despite growing interest in renewables, ExxonMobil sees potential in the oil and gas sector. Global energy demand is expected to rise, led by developing nations, and the company is focused on reducing its break-even oil price to stay competitive.
ExxonMobil aims to tap into new markets worth $400 billion by 2030 and over $2.3 trillion by 2050 through biofuels, carbon capture, and low-carbon hydrogen.
The company is committed to achieving “more profitable barrels and products” while aggressively cutting costs. Its strategy could result in an additional $20 billion in earnings and $30 billion in operating cash flow by 2030.
ExxonMobil plans to maintain a strong balance sheet and generate significant cash flows, even during downturns, ensuring it can offer a sustainable dividend and opportunistic share buybacks.
It has raised its dividend for 42 consecutive years and more than doubled shareholder returns in the past five years. Currently, the stock is trading approximately 20% off its all-time highs.
Energy Transfer’s Growth Prospects Remain Strong
Keith Speights (Energy Transfer): Energy Transfer LP’s unit price has declined year-to-date, but this downturn provides a buying opportunity.
The limited partnership achieved record interstate natural gas transportation volume in Q1 2025. Crude oil transportation volumes increased by 10% year over year, and natural gas liquid (NGL) transportation rose by 4%.
Energy Transfer is actively pursuing growth, including a new natural gas-powered electric generation facility in Texas and plans for an LNG facility in Louisiana. With a focus on artificial intelligence, it will also provide natural gas to AI data centers.
The ongoing tariffs from the Trump administration are expected to have minimal impact, as all of Energy Transfer’s pipelines are in the U.S. The company has secured most of the steel required for its projects, with management expressing confidence in meeting demand this year.
Regardless of unit price fluctuations, investors can rely on the LP’s generous distributions, currently yielding over 7.3%. The partnership plans to raise distributions by 3% to 5% annually.
Considerations Before Investing in Apple
Before purchasing Apple stock, consider this:
The Motley Fool Stock Advisor team recently identified ten stocks they believe are better investment opportunities, and Apple wasn’t among them. These selections are projected to yield substantial returns in the coming years.
Note: Past performance values are presented for context, showcasing significant growth for previously recommended stocks.
The views expressed herein are those of the author and do not reflect the views of Nasdaq, Inc.
