June is one of the better months for market returns, but historically it’s hardly been a blowout, and that can make finding stocks to buy based on strong technicals a bit of a challenge.
Helpfully, the market had a hot head of steam heading into the month. May is supposed to be a down month for stocks, but sell in May was a mistake this year, as the market gained 2% to notch new all-time highs.
June gains tend to be more muted, but still positive. Since 1928, the S&P 500 has advanced an average of 0.7% this month, according to Yardeni Research. Fortunately, the current updraft in equities means that a large number of stocks have solid technicals ahead of the sleepy summer months.
And stocks with the right technicals and a history of positive June performance should do well in a month that generates only mild gains. Those are the stocks to buy. Happily, a number of stocks from a variety of sectors have the technicals necessary to feel confident about their short-term prospects.
Based on solid technicals and past performance, here are five stocks to buy for June: