Are these FTSE 100 stocks worth considering in June?

This Fool picks out two FTSE 100 stocks that he wants to investigate further. He thinks they could be worth considering for June.

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FTSE 100 stocks continue to climb as investors pile their money back into the UK stock market after a dire few years. But are these two stocks worth considering for this month?

easyJet

First up is easyJet (LSE: EZJ). After falling 14.2% in May, I’m wondering if now is a chance to add the airline stalwart to my portfolio.

After a dismal May, that now means the stock is down 6.8% in 2024. But now trading on 9.8 times earnings, its shares look like good value for money.

The fall was spearheaded by its half-year results, which were released on 16 May. The business recorded a £350m headline loss before tax last year. That’s an improvement from the £411m loss in 2023. Even so, a 7% drop in share price showed investors weren’t happy.

But could now be a smart time to swoop in and snap up some shares? It won’t be a smooth journey in the months to come. easyJet still faces challenges such as the implications for flights that the Gaza conflict will have.

However, with £146m net cash on its books, a turnaround from the £485m net debt it had in 2023, the business is in a much stronger position.

It also continues to make progress with its holidays business, which posted £31m in profit before tax for the period and saw 42% customer growth year on year.

Consumers are clearly strapped for cash and with interest rate cuts being pushed back, I think its holidays business, which offers cheap package deals, could be primed to succeed over the next few years. This year, the firm expects holidays to deliver more than £170m in profit before tax, over a 40% rise year on year.

JD Sports Fashion

Unlike easyJet, JD Sports Fashion (LSE: JD.) rallied in May, climbing 13.7%. But even with that rise, it’s still down 14.8% year to date.

The stock has been massively out of favour with investors in the past year. Multiple profit warnings have seen its share price struggle. As JD said, it’s currently dealing with “a very challenging market”.

Clearly, the biggest threat to the business in the months to come is sluggish consumer spending. We’ve seen the impact that profit warnings have had on the stock in recent times. So, any negative updates going forward could see the stock plummet.

But in its latest release, management said it’s on track to deliver its full-year guidance for the upcoming year. And with the bigger picture in mind, I’m bullish on the stock for the long run.

Management has ambitious plans to continue with its aggressive expansion plans both in the UK and overseas. Last year, it opened over 200 new stores while it plans to buy Europe-based Courir and US business Hibbett Sports. That will add nearly 1,500 stores to its portfolio.

Today, I think JD shares look cheap. Investors can pick them up trading on 13 times earnings. That’s way lower than its long-term historical average of around 23.

If I had some investable cash, I’d strongly consider adding both easyJet and JD Sports to my portfolio this month.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

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