Every month, we ask our freelance writers to share their top US stocks with investors — here’s what they would like to buy for June!
[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]
Alphabet
What it does: Alphabet is an American multinational conglomerate. It is the parent company of Google along with other subsidiaries that include YouTube, Android, and Waymo.
By John Choong: Those who wrote off Alphabet (NASDAQ:GOOGL) stock when it tumbled below $90 earlier this year must be feeling a deep sense of regret as the shares had recently hit a one-year high. As such, investors may want to think twice now before turning bearish on the Google-owned company.
After a stellar set of Q1 results, Sundar Pichai and his team released further improvements and new offerings to the firm’s current set of AI tools. And with most of Alphabet’s more sophisticated technology still packed in its war chest, there’s still plenty of upside to be realised. NVIDIA’s massive return to prominence after rising over 200% in under a year shows how blue-chip stocks can witness massive growth too.
Pair the above with Alphabet stock’s rather lucrative multiples, which are trading close to decade lows, and I cement my buy case.
John Choong has positions in Alphabet.
Apple
What it does: Apple is the largest consumer technology company in the world, best known for its iPhones, iPads, and Macs.
By Matt Cook. Apple (NASDAQ:AAPL) has been a mainstay of my investing strategy for some time now.
However, June is a month that I’ve been specifically waiting for. Apple will be hosting its yearly Worldwide Developers Conference (WWDC) from June 5-9.
To open the event, Tim Cook will present the keynote on June 5, where he is expected to reveal Apple’s virtual/artificial reality headset.
As I’m invested for the long haul, the reveal of the AR/VR headset in June could well define my growth for the next decade — just as the iPhone has defined Apple’s growth since 2007.
It’s my belief that these headsets could represent the future of nearly all computing needs. It has the potential to replace smartphones, tablets, and computers.
I’ll be watching closely to see what Apple unveils. If it goes as well as I expect, I’ll be buying more shares than normal in June.
Matt Cook owns shares in Apple.
Norfolk Southern
What it does: Norfolk Southern owns and operates rail infrastructure, including more than 20,000 miles of track across the Eastern US.
By Stephen Wright. I think the best thing for investors to do is to go where the opportunities are, whether that’s in the UK or elsewhere. And I’ve got my eye on a US stock right out of the Warren Buffett playbook.
The stock is Norfolk Southern (NYSE:NSC), one of the two major railroads operating in the east of the USA. The company has a 30% operating margin, reasonable debt, and trades at a pricet-to-earnings ratio of 16.
Railroad companies are famously difficult to disrupt, which is why Buffett likes them so much. Usually, though, they trade at prices that reflect this stability.
Norfolk Southern is currently dealing with the fallout from a derailment earlier this year, though. This presents a risk and this is why the share price is down.
I think this is likely to be a short-term headwind and the underlying fundamentals for the business look pretty good, though. I’d look to take advantage and buy the stock today.
Stephen Wright does not own shares in Norfolk Southern.
Visa
What it does: Visa is an electronic payments company that operates in more than 200 countries worldwide.
By Edward Sheldon, CFA. Visa (NYSE: V) was recently described as the ‘perfect stock to own’ today by a well-known investor — Joe Terranova, senior managing director and chief market strategist for Virtus Investment Partners — and I tend to agree with this view.
One reason I’m bullish on the company at present is that it’s benefitting from the ongoing recovery in global travel. In the first quarter of 2023, for example, cross-border volume growth was up 24% year on year.
Another is that it offers a natural hedge against inflation. As prices rise, so do its revenues, as it takes a small slice of every transaction on its network.
A third reason I’m bullish is that Visa is having a lot of success with business-to-business payments. Over the last six months, it has signed up roughly 30 banks across 20 countries for its payments services.
On the downside, the stock is trading at a premium to the US market. This adds risk. I’m comfortable with the higher-than-average valuation, however, as this is a high-quality company with fantastic long-term growth prospects.
Edward Sheldon owns shares in Visa
