As we head into the summer months, one thing remains undeniable: stocks have been significantly stronger in 2023 compared to last year’s rough showing, undoubtedly a welcomed development among investors.

And interestingly enough, two market heavyweights – Exxon Mobil (XOM Quick QuoteXOM - Free Report) and Tesla (TSLA Quick QuoteTSLA - Free Report) – are stealing the spotlight so far in June, both outperforming the S&P 500 handily.

Exxon Mobil

Exxon Mobil shares have found widespread attention over the last year amid elevated energy prices, with the company’s cash-generating abilities being amplified.

The energy titan generated $11.8 billion in free cash flow throughout the latest quarter, reflecting a 9% change from the year-ago period.

Image Source: Zacks Investment Research

Still, it’s worth noting that the company’s growth is expected to taper off, with estimates calling for a 30% pullback in earnings for its current fiscal year (FY23) on 14% lower revenues. This is illustrated in the chart below.

Image Source: Zacks Investment Research

Tesla

We’re all highly familiar with Tesla, the undisputed EV leader and an investor favorite over the last decade. Shares have rebounded in a big way in 2023 so far, up nearly 80% year-to-date and crushing the S&P 500.

Shares have recently reclaimed the 200-day moving average, indicating notable momentum. As shown below, shares have previously struggled to break through this level.

Image Source: Zacks Investment Research

It’s no secret that Tesla shares are pricey, currently trading at a 7.1X forward price-to-sales ratio. Still, investors have had little issue forking up the premium given the company’s strong growth trajectory.

The stock carries a Style Score of “D” for Value.

Image Source: Zacks Investment Research

Bottom Line

Both stocks above have been notably strong in June so far, displaying relative strength and rewarding shareholders handsomely. But can they sustain momentum?