Top Stocks for June 2023
Top U.S. stocks for June include First Solar Inc. (FSLR), Nvidia Corp. (NVDA), and Penumbra Inc. (PEN). The share prices of all have more than doubled in the past year, as the Russell 3000, a capitalization-weighted stock market index used as a benchmark for the entire U.S. stock market, has returned 1%.
Below, we list the top five stocks in each category: value, growth, and momentum. All data below is as of May 26.
Value investing is a factor-based investing strategy that involves picking stocks you believe are trading for less than what they are intrinsically worth, usually measured by the ratio of the stock’s price to one or more fundamental business metrics. A widely accepted value metric is the price-to-earnings (P/E) ratio. Value investors say that if a business is cheap compared with its intrinsic value (as measured by its P/E ratio, in this case), then the stock price may rise faster than others as the price comes back in line with the worth of the company. These are among the stocks with the lowest 12-month trailing P/E ratio.
Source: YCharts
These are the top stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-on-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings per share (EPS) growth.
Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 1,000% were excluded as outliers.
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