These Are Stocks You Should Watch in June

The stock market experienced significant gains in May, largely driven by easing trade tensions between the U.S. and China, a strong finish to the first-quarter earnings season, and signs that the economy remains on solid footing. The S&P 500 and Nasdaq Composite both posted impressive monthly gains of 6.2% and 9.6%, respectively. However, as June unfolds, the focus is set to shift toward trade policy and potential tariffs that may impact several sectors.

Investors are particularly anxious as President Trump’s “Liberation Day” tariffs are slated to take effect on July 9. The outcome of trade negotiations and the evolving economic landscape will play a crucial role in how stocks perform this month. In light of these factors, here are some key stocks to watch in June.

Apple (AAPL) has been under scrutiny recently, primarily due to tariffs affecting its supply chain and product pricing. However, attention is likely to pivot to the company’s upcoming Worldwide Developer Conference (WWDC) on June 9. Last year’s event introduced Apple Intelligence, the company’s proprietary AI framework. This year, there’s anticipation about a software development kit that enables third-party developers to create applications using Apple Intelligence’s advanced algorithms. Analysts hope that this strategic move will bolster innovation, especially as Apple has faced criticism for the slow rollout of AI capabilities. Despite these challenges, Apple shares have taken a significant hit, losing about 20% in value thus far in 2023.

On the other hand, Tesla (TSLA) has garnered attention as CEO Elon Musk shifts focus from governmental affairs back to the business realm. Tesla plans to roll out its much-anticipated robotaxi service on June 12 in Austin, Texas. This service will serve as a testbed for the company’s full self-driving software. Tesla has endured a challenging year, with shares plummeting more than 50% from their December highs. However, following Musk’s decision to step away from government matters, there has been a slight recovery in Tesla’s stock, which is up 60% from its April lows, though still down about 14% year-to-date.

Nike (NKE) is another stock to keep an eye on this month, as it is set to report its quarterly earnings after the market closes on June 26. Investors are particularly wary of how tariffs have affected the company’s earnings. Analysts have indicated that profits could be squeezed by 4 to 5 percentage points as a direct result of tariff impacts. Although Nike has a diversified supply chain, recent tariffs may significantly affect its profit margins. The company’s stock has also suffered, losing roughly 20% since the beginning of 2023.

In the healthcare sector, UnitedHealth Group (UNH) serves as a cautionary tale, having been the worst-performing stock in the S&P 500 during May, dropping around 25% in value. This decline was triggered by a series of unfortunate events: the abrupt departure of its CEO, the withdrawal of full-year earnings guidance, and inquiries from the Justice Department regarding Medicare fraud. Despite these challenges, analysts still view UnitedHealth as a potential buy, noting the stock’s historical low valuations and a positive price target that suggests significant upside.

Lastly, solar stocks have faced turbulence, suffering considerable losses in May following the House of Representatives’ approval of a tax and spending bill that threatens to eliminate favorable tax credits for solar projects. Stocks like Enphase Energy (ENPH) and SunRun (RUN) experienced sharp downturns, and the overall sentiment towards the solar industry has turned cautious. The fate of these companies may depend on revisions made in the Senate to the proposed legislation in the coming weeks, which could either alleviate some concerns or solidify them.

In conclusion, while May was a month of positive gains for many stocks, June presents new challenges, especially with looming tariffs and evolving market conditions. Stocks like Apple, Tesla, Nike, UnitedHealth, and various solar companies are at the forefront of investors’ attention as they navigate these complexities. Staying informed about these developments will be essential for making educated investment decisions in the weeks ahead.

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