June 2021 is likely to be different to many previous trading years, as the modern world has witnessed events and factors the likes of which have never been experienced before, due to the global coronavirus pandemic.
Traditionally, the summer months have lower volumes of stock trading, as it’s typically the time that market participants take time off and go on holiday. However, as a result of the pandemic, international travel is still limited, and it looks as if holidays abroad are unlikely to go ahead this year for stock traders.
What’s more, the trading process has advanced so much in recent times, that investors no longer need to be physically present in stock exchanges or financial centres in order to execute their transactions. Therefore, the traditional seasonal slowdown in the stock market is dissipating, and this means June is no exception when it comes to the bullish trend that the market has seen in previous months.
If you’re looking to invest in the stock market, here’s our guide to the top stocks to buy this month.
Disney (DIS)
A juggernaut amongst the top, largest companies in the world, it comes as no surprise that Disney (DIS) is one of the stocks that is popular amongst traders this month. Despite the recent effects of the pandemic, investing in DIS stocks will sit comfortably in your portfolio as part of a long-term trading strategy.
Due to national lockdowns, the traditional aspects of the business, such as its theme parks and cruises, had to close and stop. These experiences previously accounted for more than 35% of annual revenue for the company, therefore it understandably suffered as a result, as these units could not profit in the same way as pre-pandemic levels. However, as of April 2021, Disney announced the reopening of its original Disneyland, alongside its California Adventure Park. With a successful vaccination programme in the US, and the lifting of some restrictions, the return of these aspects of Disney is expected to see the company recover over the coming year, and its market results should improve.
With this is mind, DIS stocks are looking to be a worthy investment, as are currently undervalued and likely to rise as the company recovers and economies improve. This is paired with the growth of its streaming service, Disney+ — which has gone from strength to strength during the pandemic, and seems to be a focus for investment by the business.
Disney has always been a leading content creator, and its streaming service has proven to be just as successful, and is the driving force behind the strong gains of DIS stock over the last couple of years since its introduction. If the growth and success of Disney+ is set to continue, and the company sees the benefits of reopening its attractions, the expected $6.50 in earnings per share (EPS) in the coming years would equate to net earnings of around $12 billion. The revenue and earnings of the company is also expected to rise, providing investors with a potential profit of more than 15% if timed correctly.
Appian (APPN)
Stock traders of the technology sector may be used to the growing and developing nature of the companies involved. These stocks tend to experience volatile price swings, but can also lead to potential profits if taking a buy-and-hold approach. Appian (APPN) stocks are part of the tech sector, and fit into the category for this type of strategy, with the ability to deliver significant returns alongside the risk it poses.
Based in Virginia, US and founded in 1999, Appian is a cloud computing and enterprise software company, which provides a service for building and creating applications. This is a fast-growing necessity for businesses, and Appian’s software development platform is easy and user-friendly.
Despite its declining stock performance in recent months, the nature of the business could see APPN stock value rise in the future, and so is suited for the more patient of investors. Revenue of the company rose by 13% in the last quarter to reach $88.9 million, but its focus has recently turned to a subscription-style plan. The revenue from this aspect of the business rose by 26% compared to the previous year, to reach $63.8 million.
As the demand for the type of software that Appian provides is set to significantly increase over the next decade, and the company is likely to expand, APPN stock may well be a long-term worthy investment to add to your portfolio.
