The Best Stocks to Invest in June

Five Stocks Outperforming the Market

A new month is here and the stock market continues its run with some stocks outperforming. After the stock market was off to a strong start in February, five weeks of turmoil pushed the stock market down 35% with a low on March 23.

Some stocks are bordering bankruptcy while others are hitting record highs.

Several of these high performing stocks are worth a look and possibly adding them to your portfolio.

If you don’t have a stock brokerage account, you can sign up with Webull. Webull is currently running a promotion for to free stocks. You get one free stock by opening an account and another for making a $100 deposit. You can sign up here. I cover more details on Webull in this article.

These are aren’t your FANG stocks, Facebook, Amazon, Netflix, or Google stocks. All of these companies are making their move in their respective space.

All of these stocks took a dip in the March drop but they have all rebounded nicely. Of these five stocks, one of them is a dividend stock.

In alphabetical order, these five stocks are worthy additions for your review.

Bandwidth (BAND)

$117.13 as of market close June 11, 2020

This quiet stock company has been the power behind other popular companies during the corona virus such as Zoom, Microsoft, Ring Central, and others. This company has possibly been the key connector for these other companies as more bandwidth was getting used as people were working from home and students were using Zoom or Microsoft Teams. The additional number of users required 30% more use and lines required. Bandwidth was able to meet the challenge and doubled capacity for the growth. As a result, revenue increased 29% in the first quarter as earnings hit black. Customer growth increased by 35% and usage reached a 66% increase in March. The company’s balance sheet was impressive as they had a cash position of $429 million and zero debt. Plenty of growth is expected to continue for this company.

BJ’s Wholesale Club (BJ)

$33.82 as of market close June 11, 2020

BJ’s is in several locations primarily in the northeast and you can compare them to a Sam’s or a Costco. The company was doing well over the years but during the corona virus, the company had a great return in the first quarter. This increase in sales is expected to carry on in the near future. Total sales grew 21% and online sales tripled as profits and cash flow increased. Store growth in April grew 23% and customers increased by 40% from a year ago. Management expects the number of members to continue in the following quarter. This is a strong indicator for this business in terms of membership growth and merchandise sales. The growth may continue in future years and has a lot of opportunity. The company has 25,000 members per store compared to 65,000 per store for Costco. If Costco increases the number of stores as well as members, there is a lot of upside for the stock. The company is projected to do well over the next year and as analysts see a 52% increase in the bottom line. The company performed well this year and it’s expected to continue.

Datadogg (DDOG)

$76.05 as of market close June 11, 2020

Datadog is one of two new leaders (the other is Dynatrace) in the application performance management (APM) and infrastructure monitoring space that is seeing a surge this year. DDOG is seeing a nice resurgence from the March drop. The demand is very high for this company as big businesses are relying on new cloud-based apps. Monitoring their performance is a huge task as well as maintain their usage. Datadog is able to solve this problem for IT technicians. The results were overwhelming as revenue grew 80% plus and customer growth was over 30%. Approximately 960 new customers gave Datadog $100,000 per year which was an increase of 89% from 2019. Further adoption may slow due to the virus but demand will remain strong for years to come. DDOG has been an excellent performer and took a small dip in May as stock traders made a profit. It is likely the stock will continue higher in the near future.

PayPal (PPYL)

$153.04 as of market close June 11, 2020

PayPal is a leading digital payment system helping millions of customers and merchants easily and safely buy and sell online and transfer money online with its popular app Venmo. At the end of March, PayPal has over 325 million active accounts and in the first quarter they were engaged in 3.3 billion transactions (up 15%) worth 191 billion (up 18%). As businesses were shut down during the virus initially, the stock is seeing a resurgence as new users of PayPal. In April, the company saw 250,000 new accounts per day (double the accounts from a year ago) as revenue was up (up 20%) and gross merchandise volume (up 22%) increased in a big way. On May 1, PayPal had the largest single-day of transactions ever which was bigger than Black Friday or Cyber Monday last year. PayPal is expected to see continued growth of 12% this year and 23% next year as larger peers Mastercard (down 16%) and Visa (down 7%) see a decline. There is some risk that some of the online users will revert back to the brick and mortar stores but the new PayPal users will still use this digital payment system. PayPal is a solid long term growth company. The stock is on a new uptrend

Wingstop (WING)

$116.47 as of market close June 11, 2020

Wingstop is thriving during the virus as this cookie-cutter restaurant is seeing more people place take out orders for their wings. The company has grown for years and expanded stores (1,413 stores as of March, up 11% from a year ago). Most are located in the US except for 160 stores and franchises. The stores saw similar sales growth (12.2% in the US). In the long term, the company believes they can have 6,000 stores worldwide (3,00 in the US and 3,000 overseas). The virus barely affected the company as the first quarter saw 19% growth and US store sales were up 9.9%. In the first four weeks of the second quarter, sales continued at 33% primarily because their average delivery and take out orders increased from 80% to 100% and digital sales saw a 25% increase. Comparable same-store sales will not keep up but Wingstop has a long term growth story and performing well. As the company grows larger over time, the stock will as well.

I encourage you to read these other articles.

The writer does not own any of these stocks but he is a custodian for his kids’ account where he purchased WING on the stock’s Initial Public Offering (IPO).

Tom Handy is a top Investment and Bitcoin writer on Medium, and father of two kids. He retired from the Army and sits on several non-profit boards. Tom is the top Yelper in his community and a top Google Guide. He’s on several social media channels and you can find him on Twitter @tomhandy1 and Instagram @tomhandy1.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.