This month these stocks are showing strong support in June.
Along with earnings updates, these stocks are the ones to watch. Since many are at or near all-time highs, it’s best to wait for a dip in the market.
This month I discuss five stocks for you to consider.
- ASML Holdings (ASML)
- Devon Energy (DVN)
- Franklin Resources (BEN)
- International Game Tech (IGT)
- Roblox (RBLX)
The price for the stocks was recorded on June 14, 2021, prior to the opening of the market.
“The individual investor should act consistently as an investor and not as a speculator.” — Ben Graham
ASML Holdings (ASML)
Company Profile.
ASML Holding N.V. is a Dutch firm that develops, produces, sells, and services semiconductor equipment systems. This company is the only company that produces extreme ultraviolet (EUV) lithography machines. The leading chip makers, Taiwan Semiconductor, Intel, and Samsung, are customers of ASML. ASML operates in Japan, South Korea, Singapore, Taiwan, China, Asia, the Netherlands, Europe, the Middle East, Africa, and the United States. The company was previously known as ASM Lithography Holding N.V. and changed to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is located in Veldhoven, the Netherlands.
Analysis.
The leading chip makers are looking to expand over the next few years which will help ASML’s profit line. Taiwan Semiconductor plans a $100 billion investment during the next three years, and Samsung increased its nine-year planned investment to $151 billion. The next few quarters should be good for ASML. Product sales increased in 2020 and growth accelerated (up 90%) in Q1 beating estimates. Management expects sales up 30% or so this year while analysts see 41%.
52 week high.
$708.09
52 week low.
$336.63
Forward Dividend and Yield.
3.27 (0.47%)
Analysts.
Devon Energy (DVN)
Company Profile.
This independent energy company, Devon Energy Corporation, explores, develops, produces oil, natural gas, and natural gas liquids in the United States. Devon operates approximately 3,942 gross wells. Devon Energy was started in 1971 and headquartered in Oklahoma City, Oklahoma.
Analysis.
Growth is likely to be modest heading into summer (up to 5%), but with expenses cut, cash flow is enormous. In Q1, Devon earned about 59 cents of free cash flow, and it’s paying a chunk of that out (34 cents per share dividend coming in June). If oil stays at $60 per barrel, management believes it could produce cash flow north of $2.70 per share (11% of the current stock price. If oil prices drop, this changes everything. Even with oil prices at $45 or $50, Devon will produce cash flow. Analysts think DVN and its peers have a lot of upside as long as energy prices don’t fall.
52 week high.
$31.99
52 week low.
$7.73
Forward Dividend and Yield.
0.63 (2.14%)
Analysts.
Franklin Resources (BEN)
Company Profile.
Franklin Resources is one of the largest asset managers in the US. with $1.5 trillion in assets under management. This company has a strong franchise and moved into specialized investment products including alternative assets. Franklin has a network of financial professionals to provide clients a customizable investment solution.
Analysis.
One-third of the assets under management are in stocks. Fixed income accounts for 45% and alternatives account for 20%. In recent weeks, the company reported quarterly sales of $2.08 billion which is up 58% from a year ago (Franklin acquired Legg Mason in 2020). Earnings were up 20% or 79 cents per share. Franklin reported that alternative assets of $6.2 billion doubled from the previous quarter. Fixed income increased by 27% from the prior quarter to $53.5 billion. After years of little earnings, analysts see Franklin’s bottom line headed higher (22% this year).
52 week high.
$35.94
52 week low.
$17.97
Forward Dividend and Yield.
1.12 (3.22%)
Analysts.
International Game Tech (IGT)
Company Profile.
International Game Tech operates and provides gaming technology products and services across the globe. It operates in two segments, Global Lottery and Global Gaming. Previously the company was known as GTECH S.p.A. and rebranded to International Game Technology PLC in April 2015. The company was founded in 2014 and located in London.
Analysis.
International Game Tech recently reported Q1 sales and net income that beat expectations by generating more than $1 billion in revenue and 38 cents earnings per share. With physical casinos reopening this helped with high-margin lottery same-store sales of 32% During the pandemic, the company cleaned up its balance sheet and business model, selling off most of its debt-burdened Italy business. Analysts see the company earning 77 cents this year and $1.31 in 2022 which is very conservative. The company cut its debt levels which speculates that the company will begin share buybacks or dividends in the future. About one-third of people in the U.S. and Canada have no access to sports betting at all and legalization is advancing for the vast majority of that group, which should help International Game. They are the casino leader in sports betting tech and partnering with companies for expansion.
52 week high.
$26.43
52 week low.
$7.68
Forward Dividend and Yield.
N/A (N/A)
Analysts.
Roblox Corporation (RBLX)
Company Profile.
Roblox Corporation develops and operates an online entertainment platform which your child may be playing. Roblox serves customers in the United States, Canada, Europe, Asia, and internationally. Roblox Corporation started in 2004 and is located in San Mateo, California.
Analysis.
Roblox is commonly known as a gaming app that kids play or goof around with their own personalized 3D character in a new form of social interaction. Q1 results recently came out, and the numbers were fantastic (revenues were up 140%, cash flow came in at 34 cents per share). Roblox’s unique platform could be the next big thing in gaming. Roblox stock is volatile, but came out in a nice post-IPO in late May and looks like a potential new leader.
52 week high.
$103.87
52 week low.
$60.50
Forward Dividend and Yield.
N/A (N/A)
Analysts.
See these other investment articles.
The seven best dividend stocks for June
Two reasons you should not avoid investing in Peloton
References.
Note: The writer does not own any stocks mentioned in this article.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.