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How to Find the Best Top-Ranked Stocks to Buy in June

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Nvidia surged again on Tuesday, as investors buy the AI chip powerhouse based on massive growth and mounting FOMO. The strong showing helped the Nasdaq touch fresh highs to start the week since the market was closed for Memorial Day.

The bulls appear to be in firm control and many anticipate that the S&P 500 and the Nasdaq will keep marching slowly higher throughout the historically low-volume summer months. The current market backdrop likely means investors want to keep buying stocks this summer.

Today we explore how investors can use a Zacks screen to help find some of the best Zacks Rank #1 (Strong Buy) stocks to buy in June and beyond.

Zacks Rank #1 (Strong Buy) stocks outperform the market in both good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time. Therefore, it’s helpful to understand how to apply filters to the Zacks Rank in order to narrow the list down to a more manageable and tradable set of stocks.

Parameters

Clearly, there are only three items on this screen. But together, these three filters can result in some impressive returns.

• Zacks Rank equal to 1

Starting with a Zacks Rank #1 is often a strong jumping off point because it boasts an average annual return of roughly 24.4% per year since 1988.

• % Change (Q1) Est. over 4 Weeks greater than 0

Positive current quarter estimate revisions over the last four weeks.

• % Broker Rating Change over 4 Week equal to Top # 5

Top 5 stocks with the best average broker rating changes over the last four weeks.

This strategy comes loaded with the Research Wizard and is called bt_sow_filtered zacks rank5. It can be found in the SoW (Screen of the Week) folder.

Here is one of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…

SkyWest, Inc. ((SKYW - Free Report) )

SkyWest, Inc. is the holding company for SkyWest Airlines and SkyWest Leasing. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines, and Alaska Airlines. The company helped carry 38.6 million passengers in 2023 via its fleet of nearly 500 aircraft, connecting passengers to 255 destinations throughout North America.

SkyWest posted blowout bottom-line results in the trailing four quarters, including a strong beat-and-raise Q1 FY24 in late April. SkyWest is projected to grow its sales by 15% in 2024 and 10% in 2025 to reach $3.70 billion.

SkyWest is expected to boost its adjusted earnings by 785% this year from $0.77 to $6.81 per share and then add another 17% to the bottom-line next year. SkyWest’s FY24 and FY25 earnings outlook has soared over the past year to help it land a Zacks Rank #1 (Strong Buy).  

Zacks Investment Research
Image Source: Zacks Investment Research

SkyWest shares have soared 140% during the last year and 40% YTD to crush the S&P 500 and the Zacks Transportation sector. SKYW’s recent run is part of a 540% surge during the past decade vs. its sector’s 10% and the benchmark’s 185%.

SKYW has slipped from its recent records and it is attempting to find support at its 50-day moving average. SkyWest stock trades at a 35% discount to its sector at 10.3X forward 12-month earnings.

Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.

Click here to sign up for a free trial to the Research Wizard today.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure


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