Best shares to buy: 3 stocks I’d snap up in June

Stocks have had a great run recently. However, Edward Sheldon is still seeing plenty of buying opportunities. Here are three shares he’d buy in June.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Arrowings ascending on a chalkboard

Image source: Getty Images.

Stocks have had a great run recently. Currently, many major indexes are near their all-time highs.

I’m still seeing buying opportunities however. I think plenty of stocks have the potential to climb higher. With that in mind, here are three I’d buy now.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Warren Buffett’s top stock

One stock that strikes me as a buy right now is Apple (NASDAQ: AAPL), which is Warren Buffett’s top holding. While the market has climbed this year, Apple’s share price has fallen. I think this weakness has created a buying opportunity. Currently, Apple’s P/E ratio is under 25. That seems very reasonable to me.

I expect Apple to have a strong second half of the year. New iPhones are expected later in the year, which should boost sales. Meanwhile, with many people now working from home on a regular basis, demand for iPads and Macs should remain robust. Last quarter, these two products saw year-on-year growth of 79% and 70% respectively.

But there are risks to the investment case. One is growing regulatory scrutiny. In April, the European Commission said that Apple has abused its dominant position in music distribution.

Overall however, I think the risk/reward proposition here is attractive. It’s worth noting that Wedbush analyst Dan Ives has a price target of $185 – 46% above the current share price.

A reopening play

Another Buffett-owned stock I’d buy right now is Mastercard (NYSE: MA). It’s one of the largest payments companies in the world.

Mastercard is a classic reopening stock. As the world reopens in the months ahead, transactions are going to increase significantly. Mastercard – which profits every time someone uses one of its cards – should benefit. It should also benefit from the return of travel, as cross-border transactions make a large contribution to total revenues.

But Mastercard isn’t just a reopening play. In the long run, it should benefit from the shift from cash to electronic payments. It should also be a beneficiary of the growth of e-commerce.

This stock does have a relatively high valuation. Currently, it’s trading at 35 times next year’s earnings. This valuation adds risk. If growth slows, or the company experiences setbacks, the shares could fall.

I believe MA deserves a premium valuation however. The company is very profitable and it has significant growth potential.

A top UK growth stock 

Finally, turning to the UK market, I’d buy shares in JD Sports Fashion (LSE: JD). It’s a leading retailer of athletic footwear and athleisure clothing that operates globally.

After Covid-19 lockdowns, there are a lot of cashed-up consumers around the world. This is particularly true in the US, where many people have received stimulus cheques. I expect a lot of this cash to flow into discretionary goods, such as trainers and clothing. JD should benefit. This year, analysts expect sales growth of 17%.

This isn’t the only reason I’m bullish on JD Sports Fashion shares. In my view, the company is well-placed to benefit from a number of powerful clothing trends, including the ‘casualisation’ of fashion, and the increasing demand for loungewear.

One risk here is the threat from larger retailers such as Amazon. Another risk is that brands such as Nike and Adidas are increasingly focusing on selling directly to consumers.

I’m comfortable with these risks though. I see plenty of upside from here in the long run.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Edward Sheldon owns shares in Apple, Amazon, Mastercard and JD Sports Fashion. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon, Apple, Mastercard, and Nike and recommends the following options: long January 2022 $1920 calls on Amazon, short March 2023 $130 calls on Apple, short January 2022 $1940 calls on Amazon, and long March 2023 $120 calls on Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

With no cash to invest, here’s how a falling stock market could still help me to get rich

Stephen Wright explains why falling share prices might be good news even for an investor with no cash on the…

Read more »

Business people shaking hands
Investing Articles

Director dealings: Lloyds, IAG, SSE

Director dealings can indicate whether a company's doing well. So, here are this week's director dealings from three of the…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

Why Kingfisher’s DIY empire could mean it’s a recession-proof stock

Kingfisher’s stock has been pummelled in recent months, but historically DIY stores have done well during recessions.

Read more »

Burst your bubble thumbtack and balloon background
Investing Articles

4 recession stocks that I’d buy to protect myself

Jon Smith talks through some of the recession stocks he has on his watchlist, ready to go if the economy…

Read more »

Happy diverse people together in the park
Investing Articles

My Stocks and Shares ISA is in the red… and I’m still smiling

Having not invested through a downturn before, this is the first time I've seen my Stocks and Shares ISA showing…

Read more »

University graduate student diploma piggy bank
Investing Articles

Should I be concerned about the windfall tax for my BP shares?

What does the new UK windfall tax mean for the BP share price? Michelle Freeman digs into the details to…

Read more »

Buffett at the BRK AGM
Investing Articles

What Warren Buffett’s wisdom and investing in stocks will teach you about life

Investing is a journey of self-discovery. So what will stocks and the words of legendary investor Warren Buffett teach you…

Read more »

Smiling senior white man talking through telephone while using laptop at desk.
Investing Articles

5 ‘no-brainer’ income stocks to buy today!

Amid soaring inflation, I'm looking at these income stocks, offering big yields, to grow my portfolio.

Read more »