Are These the Best Stocks to Buy in June 2023?

Market Key Takeaways

• E-Mini S&P 500 hit $4,200 three times this year, with retreats after each occurrence.
• Tight trading range since April suggests a struggle against selling pressure.
• Potential support levels at $4,070 and $4,000, with a possibility of reaching them in the next few weeks.

Market Update: S&P500 up 6.48% year to date 

On February 2nd, 2023, the E-Mini S&P 500 tagged $4,200 and then spent the rest of February, and the first half of March, retreating lower. On May 1st, 2023, the S&P 500 tagged $4200 again and retreated sharply but remained above $4,000. Last Friday, May 19th, 2023, we pushed above $4,200 for the third time this year, but the retreat over the last few trading days has been the least aggressive so far this year. 

The trading range that has developed since early April is tight and we are still trading within it. This trading range feels like a slow grind against selling pressure. This range could resolve by continuing to list higher, or a release of buying pressure at this level followed by a sizable correction down. 

In the near term, the next stop down for price action to target is around $4,070 and beyond that we’re looking at $4,000. It’s very possible that we will see a move toward these support levels in the next few weeks. It is also likely that we will remain rangebound somewhere between $4,090 and $4,220, however, the longer that carries on the less likely it is to continue. 

Top 6 Stocks to Watch in June 2023 

1. Nvidia (NVDA)
2. Macy's (M) 
3. Oracle (ORCL)
4. Fedex (FDX)
5. Carnival (CCL)
6. Nike (NKE)

1) Nvidia Corp. (NVDA) 

Nvidia Corp. Corporation is a worldwide leader in visual computing and GPU (Graphic Processing Unit) technology, with a strong presence in AI (Artificial Intelligence), HPC (High Performance Computing), gaming, and VR (Virtual Reality) platforms. Its GPUs, known for their parallel processing capabilities, are driving advancements in industries like robotics and self-driving vehicles. Additionally, they maintain their leadership in the Data Center, professional visualization, and gaming sectors by forging strategic alliances. 

NVDA is currently trading at $383.91, up 158.51% from its opening price of 2023. NVDA reported earnings on May 24th, 2023, and gapped up more than 60 points. Volatility in NVDA is currently high and we are likely to see additional large movements.  

NVDA options markets are tight and liquid. Since NVDA is an expensive product, you will probably want to use a defined risk strategy. For short premium selling strategies, look to July contracts. 

2) Macy's Inc. (M) 

Earnings Date: June 1st, 2023 (Before the open) 

Macy's is a New York-based omnichannel retail organization operating stores, websites, and mobile apps under brands like Macy's, Bloomingdale's, and bluemercury, with a focus on apparel, accessories, cosmetics, and home furnishings. 

M is currently trading at $14.12, down 32.6% from its opening price of 2023. Since M is a relatively cheap product, the opportunity to put on small undefined risk positions presents itself. You can put on a strangle or sell a naked Put/Call and not use too much Buying Power. However, it is important to remember that cheap stock can make big moves quickly. 

Wide defined risk spreads will also work here. You can put on a five-dollar-wide spread, give yourself a good risk ratio, and still stay small. You can place a trade before or after earnings too. Macy’s has reported positive net income for the last five quarters of earnings reports. 

3) Oracle Corp. (ORCL) 

Earnings Date: June 12th, 2023 (Before the open) 

Oracle Corp. is a major provider of enterprise-grade software, including databases, middleware, and applications. They offer cloud solutions through Oracle Cloud, providing a range of services for building and managing different cloud deployment models, along with software and hardware products such as Oracle Database and Oracle Engineered Systems. 

ORCL is currently trading at $103.74, up 25.79% from its opening price of 2023. The last five quarters of earnings reports have been profitable for ORCL. ORCL’s options markets in June and July are tight and liquid. Monthly expirations between June and July are also liquid enough to make plays in as well. 

ORCL is currently liquid enough for most options strategies. For most traders, a defined risk directional or neutral position will play well when setting up. 

4) Fedex Corp. (FDX) 

Earnings Date: June 20th, 2023 (Before the open) 

FedEx is a global company that offers a range of transportation, e-commerce, and business services under its brand, with segments such as FedEx Express, FedEx Ground, and FedEx Freight. FedEx Express specializes in time-definite delivery to over 220 countries and territories. 

FDX is currently trading at $225.78, up 29.36% from its opening price of 2023. FDX has reported positive net income for the last five quarterly earnings reports. The options markets in July’s expiration are tight and liquid and could be used to put on a position going into earnings. The weekly contracts just after FDX’s June earnings report are also liquid enough to make earnings plays. 

FDX is an expensive product to trade, so most traders will want to use defined risk positions going into June’s earnings event. Iron condors or directional credit spreads will set up well. Calendar spreads, selling the front month and buy the back month, also have an opportunity here. 

5) Carnival Corp. (CCL) 

Earnings Date: June 23rd, 2023 (Before the open) 

Carnival Corporation is the largest cruise operator globally, offering leisure travel services across North America, Australia, Europe, and Asia. Its brands include Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, and more, serving nearly half of the world's cruise guests. 

CCL is currently trading at $11.20, up 35.86% from its opening price of 2023. CCL reported negative net income for the last five quarterly earnings reports. The last two reports reported larger negative net income than the previous three. 

The options markets in July’s expiration are tight and liquid and most options strategies will set up well. Even though the IV Rank of CCL is low, the volatility in the monthly contracts is still high. CCL is an inexpensive stock to trade, so undefined risk options strategies could be a consideration for smaller accounts. Otherwise, consider wide credit spreads that give you a high Probability of Profit.  

6) Nike Inc. (NKE) 

Earnings Date: June 26th, 2023 (Before the open) 

NIKE Inc. is the global leader in athletic footwear, apparel, and accessories, with a strong brand portfolio including Nike Pro, Nike Golf, Air Jordan, and more. They offer premium products across categories like running, basketball, and sportswear. 

NKE is currently trading at $107.74, down 9.12% from its opening price of 2023. For the last five quarters Nike has reported positive net income. The options markets in July’s expirations are very tight and liquid. The weekly options just after the earnings date are also liquid enough for earnings strategies. 

Again, most traders will want to consider defined risk strategies due to the size of this product. Iron condors will set up well if you want a neutral position, and directional credit spreads will set up well if you have a directional assumption.