5 Hot Stocks to Buy Now: June's Top Picks With Upside Ahead

A new month is here and while some investors are slowing down, Marketbeat analyst Thomas Hughes has a list of five stocks that he is buying this June. Thomas, this is one of our favorite series on the channel where you give us a list of your top five buys every month before the new month starts. And I'm excited about this list today. You've got some of your favorite stocks on this list, but you've also got some new ones. So, we're going to get into your five stock picks for June in just a second, but I first want to talk about some of the market moves you're watching for the month of June. What are you expecting to pop up that could move the market some uh in the month ahead? >> We're still watching the accelerating data center buildout. So uh the news I'm looking for right now includes anything from any of the hyperscalers, any of the AI infrastructure companies. That just points to affirming the current spend but also increasing the future spend outlook. And in terms of the stocks on this list, these are all smaller companies. They're kind of adjacent to the central AI plays but very well positioned either with the emergent technology or some new twist on technology uh to where with this acceleration with the eminence of their commercializing technologies that we're really looking for some some big revenue growth surges to profitability and then corresponding stock price increases. >> All right. So that's the theme heading into June and I think that's the theme we're going to see in several of the different stocks that you have for us on your June buy list. What is the first name that you were looking at as a buy in June? >> That's Aluma. Um Aluma is a semiconductor company. They're not involved with the GPU so much, but with the um the connectivity of servers and clusters and data centers. Uh their two claims to fame are photonic technology, but also the manufacturing processes that can unlock the power of photonix. Uh right now the company um is emerging. is on the brink of commercialization and the catalyst that we're looking for in June is going to be the potential announcement of its first OEM contract. So, right now the company is making some small sales but has no major OEM contract. When we get that, that'll be a really big affirmation of the technology and the future outlook and that should really get the stock price uh to start moving higher. Now, this is part of that photonix and optics sector that has seen explosive growth in the market the last couple of months or so, but this one seems like one of the newer names in this sector. It's not been out in the market for that long. >> It is a recent IPO and the stock price action is being driven uh not only by its technology, but by the the progression of its capacity for commercialization. The company's been making new deals, expanding its manufacturing capacity, securing its supply chain in preparation for that first OEM contract. when it gets it, it'll be able to follow through very quickly and begin delivering product. What's critical about these products though is that instead of attaching the um the compound semiconductor material in this like extra step, the wafers are being made so that the photonic compound is being applied directly to the base semiconductor substrate. So, it's almost coming out as uh like one chip that's got two different sides. And so these these these new base substrates are able to fit into the traditional manufacturing processes like a standard semiconductor because compound semiconductors require much more complex manufacturing processes. It really speeds up and reduces the cost of of creating these photonics. So, so once they reach commercialization, we really should be able to see the company expanding and ramping its its revenue and its growth very quickly because it does really provide a lot of um advantages for data centers and for the hyperscalers. >> Yeah, I think analysts are seeing a lot of exactly what you just said. They're they're setting those price targets pretty high because they're putting a lot of potential growth on this company. But let's talk about those analyst expectations on such a a new still very small company. Is it normal to see the amount of analyst coverage and the the expectations that analysts are putting on this type of company? >> Well, the amount of coverage is kind of a testament to the strength of the technology. So, right now we've got four. That's not really all that much, but for such a small and emergent company, it shows a fairly strong amount of conviction. We've got, you know, multiple analysts looking at this thing as as a as a a realistic play. So, again, right now, we're looking for these OEM contracts to start showing up to affirm that outlook. and and once we get that that could be a trigger not only for analysts but also for institutional buying and the institutions are already buying the stock too. They're providing support for this market. Um it really looks to me like all of the the buy side the sellside forces are coming together waiting for this news to come out and it's really just a matter of time for for when it does. >> Let's talk about the the risk factor. I think everybody on a newer company that's getting a lot of attention, the sector is getting a lot of attention in general worries about buying into a small company like this of are we getting in on the hype phase of this company and could we see it come down after this or are you getting in now on an early phase an early growth phase where if those catalysts come out this summer or in the next month as you're expecting Thomas that this is just the beginning of what could be a really big run for a stock like this. What's your take on what the future could look like? Well, there is some hype in the stock price right now because we are expecting such big things from the company. But the technology is confirmed. We know what works. We know that they can make it. It's just a matter of, you know, securing those contracts, you know, getting the the technology affirmed and getting it onto the market. Um, if for some reason that the hyperscalers decide that they want to use some other solution, uh, this trade could be dead in the water. But the way it looks right now, um, it really it's just a matter of time. The stars are coming into alignment. They're currently in talks with many hyperscalers and OEMs, you know, for future contracts. So, I am expecting to see one uh emerge pretty soon. >> This is an interesting name for the first on your vile list this June. Let's get on to the second stock on your list. >> That's AirJul Technologies. Now, this company is absolutely critical for AI even though it is not itself strictly AI. AirJul makes um water harvesting and cooling technology uh that uses um sorbent materials versus electrical processes. So what it does is it can reduce humidity, create water and reduce heat which are all very critical for AI and data centers um construction. One we need to reduce humidity so that these expensive GPUs don't rust and corrode. uh we need to create water for the water cooling systems and we need to reduce the heat because they create so much heat. So ultimately airduel technologies is critical because it not only enables data centers to function but will also um increase their lifespan. Lifespan is going to be a really big deal over the long term because the GPUs and the AI infrastructure is on all the time. It's running at massive high power. It wears out faster than traditional equipment. So, we're going to need every advantage we can get over time to keep those things running as optimally and for as long as possible. >> This one is a really interesting one. You're starting out the the June buy list with two kind of smaller up and cominging names. This one seems like there's still a pretty long runway ahead. We saw the stock looking at the chart spike up really high uh several months ago and it's been on a little bit of a downtrend. It's gaining steam again, but if you look at what analysts have to say, they believe there's still a ton of upside for this stock. So let's look at some of those details for this one. >> Well, right. So what's happening right now is this is another company on the cusp of commercialization. Technology has been proven. Uh they're doing some deployments right now with some partners to kind of prove the technology at scale and prove its effectiveness for for hyperscalers and for data centers. And we're expecting the roll out of commercial product late this year. Uh so when that happens, we should see revenue spike and profitability follow soon afterwards. So, that's a lot of positive sentiment for this very early pre-revenue company. I do want to address the potential risks associated with it, too. Right now, looking at short interest, there's not nearly as much short interest on this one as the first stock, the Aluma stock that you mentioned on the list. That one had a higher one. This one's still less than 10% short interest. I think the thing I want to highlight as a potential risk is that earnings number that came out. It does appear to me that they are doing a lot of spend right now to get this up and going and to get to that commercialization phase. any concern about the amount of spend happening for this company, Thomas? >> Well, every company spends money and it's in its, you know, it's commercialization phase. Spending right now is is expected. Um, and as I said, we're waiting for, you know, commercialization later this year. And so, all all these near-term concerns will be put to rest. So, again, it's just a matter of time, but I think that revenue will start ramping really quickly once they start selling product. Right now the forecast are looking at quadrupled digit growth accelerating for the next couple of years. So the company will you know next year produce you know maybe almost a million dollars in revenue but over the next few years it's going to be growing at a quadrupled digit pace reaching profitability within the first few years. Uh so to me that's all that's all you know very bullish for the market. >> Well let's talk about where this stands competitively with what it has to offer in this whole AI buildout story. How does it stand out from other companies also seeing explosive growth right now? Also offering similar things and getting lots of these contracts with some of these hyperscalers. >> Right now, AirJuel is a standout with its technology. Um the the traditional means of removing moisture and cooling data centers, relies on uh you know compressed gases and electricity. Um it's far more um expensive to operate, has a shorter lifespan for operation. Uh certainly you know costs the hyperscalers more to operate. So, I think AirJules technology is something that they will they will all be, you know, you know, clamoring to get once it's available. >> Yeah, those cooling companies are certainly in high demand right now, but will they still be in high demand if Elon's data centers in space become a real thing? If you are one of those investors who's been captivated by this $1.75 trillion SpaceX IPO, you don't want to miss this report. This economist actually sat down face tof face with Elon and shares the four key opportunities he took away from that meeting on SpaceX and Elon's future. These are four names that you want to get into before the SpaceX IPO. So, time is limited on this. You can scan the QR code or click the link in the description to get a special offer for that list just for our market beat viewers today. All right, Thomas, let's move on to the third stock on your list from two maybe newer names for some investors to a third name that many of our regular viewers are quite familiar with. Thomas, >> right? That's Emprius Technologies. The most recent earnings report showed strength, but it was kind of as expected. It resulted in a sell the news event. That dip triggered a really robust response from the market. We surged 30% in one week uh confirming support at some critical levels showing that this market has really elevated itself from a a previous channel to a higher channel and that's really driven by its outlook for revenue growth. It's in production with next generation batteries. These batteries provide smaller size, lower weight with higher energy density which um increases range and payload for many applications. The last results showed acceleration. The current results are expected to show acceleration and we're really seeing this all in the stock price action right now. Um I think AMX has a really long robust trajectory ahead of it simply because of how early it is in its production ramp. Um ultimately I see these batteries or this battery technology replacing all batteries on the planet because it really provides that much utility. The AMPX story is one that is going to continue to produce results for for many many years into the future. And Thomas, you've been talking about AMPX since it was around four or $5. And we've talked about this many months now when AMX was on a pullback before it saw the big increase seen over the last few months. And I looked on my Bridget Spies watch list thinking I must have added it sometime from now and in November when I started this watch list. And it's not on my watch list and I am regretting it today. If you follow along with our content, you know that I add one stock per video that we talk about just to help track uh how some of the stocks we talk about on this channel move over time. And I cannot believe that I have never added AMX to that watch list. It would be doing quite well today. If you want to check out that watch list for yourself, scan the QR code or click the link in the description so that you can check out Bridges for yourself and see how some of the other stocks we talk about on this channel are doing. But Thomas, let's move on to talking a little bit more about AMX and its future growth potential from here. >> Oh, I think this stock has such an incredibly long runway for growth that you could buy it on on any price movement and still make money. But that being said, you know, investors and traders want to be smart with their moves. So, you're going to want to wait for some price weakness or price pullback to get in. That might simply be a consolidation that might move to the side. Uh but that at least gives you a chance to see the market kind of being stable for a minute to get you some confidence to to make that move based on this most recent action. We really can't expect um too many big corrections and for them to last very long. When you see those price dips, you're probably going to want to take advantage of them. >> Yeah, I know every time that you talk about AMPX and recommend it, you're talking about that long-term growth story, talking about the actual product and the technology they have that could revolutionize this whole battery sector. And so that's the case you normally make for it, too. But I want to look at some of the other numbers behind this stock and that one that stands out is institutional ownership is still very weak for AMX. Why do you think that is? Why do you think given the potential we're not seeing the institutions interested in this name yet? >> Well, right. So institutional interest is still very low and that's not uncommon for an early phase unprofitable company. Uh but AMPX is on a track to where it will be profitable fairly soon and that is also reflected in the institutional trends. So if you look and see ownership is pretty low but they've been accumulating at an aggressive pace at almost 6 to1 and that pace uh peaked in the last year but it sustained in the first half of this year and it's remained very strong in the first part of Q2. They're buying at almost 4:1 uh which is a very strong you know tailwind and support for this market and you can see that in the price action. So when price action dips institutions buy that eats up the available shares and the share price moves higher. I think however what's also in play right now is um the short sellers might be getting out of the market. There was a recent short report that made some pretty alarming claims about the company but the price action suggests that those claims may be unfounded and uh the rebound since then um certainly shows that the market doesn't believe them. Yeah, volatility is the name of the game with these pre-revenue uh early stage companies, which really the three first names that we've started with all kind of fit that bill of expect some volatility, expect some market corrections at different times, but also really interesting names that a lot of our viewers like to get in on before they see that commercial growth and all of the institutional investors potentially getting into these names in the future. So, another great name to look at. If you haven't looked at AMPX yet, after hearing from Thomas time and time again, now might be a time to take a look at the stock and see if you believe in the company as much as Thomas. Let's move on to that fourth stock on your list today, Thomas. >> Yeah, that's Zcaler. Uh Zcaler recently reported earnings. It gave the market a cause for alarm. Stock price tanked and I think that this is a buying opportunity. This is a contrarian play. Cause for the stock price implosion was increased spend and the impact on future earnings outlook. But that's offset by robust revenue growth, robust client growth, deepening penetration and an outlook for increasing revenue growth uh based on an improving backlog and robust demand for AI services. To me, this is another, you know, poster child story for the AI flywheel. When you spend money, you increase demand and that increases revenue. So, I think that, you know, Zcaler has a a near-term headwind and that it's spending some money to support the AI outlook, but that spend will support AI revenue and earnings growth over time. Uh, to me, this is absolutely a buying opportunity. >> Yeah, it is a pretty big pullback in a name that was just starting to gain back traction. This is another name we've talked about a bit recently. as I get on this momentum that the the software stocks are finally starting to see the Zcaler, you know, big dip and big pullback that we just saw the last couple of days. Was it all in response to the earnings report and some of the numbers that came out there or anything else leading to this dip that would have you concerned long term? >> The SAS um AI apocalypse, you know, fears kind of set the stage for the post release price dip. Zcaler stock is down significantly from its highs that were set last year driven by that, you know, AI apocalypse fears. But what the results show is what we've been saying all along is that, you know, AI is not disrupting tech stocks in the way that people were thinking it was. Like the AI company is not going to all of a sudden take over all these services that you've been getting from somebody else. Those third-party operators like Zcaler are incorporating AI into their platforms and that's driving results for them. Right now, Zcaler's performance is is pretty strong. Its outlook is strong. Its profitability is still good even with the increased spending. Um, I think the long-term outlook for this company has only improved. >> Any concern on the price targets that we're starting to see from analysts where they're saying Zcaler is an outperform, but they are lowering those price targets. Do you think that's a reflection of what kind of earnings uh Zcaler is going to have or is it a reflection of how these analysts are expecting the market to price Zcaler over the next year? >> All right. So the analysts are resetting their targets. Uh but this market has overreacted and it continues to overreact. Uh the lowest target for Zcaler is 145. The price today is at 130. So we've got some upside just with that. Consensus forecast 65%. What I see happening is later this summer uh the company kind of confirms that AI spend equals AI revenue. The market will reverse course. we'll start seeing some more um more positive analyst revisions reinvigorate belief and that consensus estimate and we'll see a rebound start to form. >> Yeah, with this contrarian pick that you have on this list today, it's a good time to talk about uh the number of cases that we've seen in the market just in the last few months since the start of the year that when investors tend to buy at the low, we've seen that turnaround case. AMPX is another story. It was down on a a big downtrend just a few months ago when we saw that one come back in a really big way. I think with software stocks more investors are more cautious on buying this dip in software because the turnaround is not happening as quickly. Oftentimes we see these these big pullbacks and then we start to see the turnaround quicker. We're now almost halfway through the year, almost to that halfway point, and we still haven't seen a massive turnaround for software stocks, even though there there was that slight turnaround just in the last few weeks. So, what do you think about that timeline on how long it could take for these software names like Zcaler to actually recover? >> Well, after such a big price correction, it will take some time for the market to regain um a support base and to establish confidence in the future. But I think that will happen over the the next few quarters is that we'll continue to see strengthen the results that will help uh bolster market sentiment and help to accelerate the rebound. >> All right. So, we've had some speculative plays. We've had a a contrarian view. What is this last stock you have on your June buy list? Where are we going next? >> Yes. So, my fifth stock is Everspin Technologies. Uh this isn't a new company or a new technology, but it is a technology with an emerging use case. So, Everspin makes m RAM memory which is another kind of random access memory different than DAM or SRAMM but it provides a lot of advantages because it provides um the speed of the RAM memory but also the persistence of flash which makes it really useful for a lot of applications including consumer wearables, defense and aerospace. It's also really um resistant to radiation which makes it also you know useful for a lot of defense and aerospace applications. Right now the company is is in a a product ramp where it's starting to expand its its capacity and expand its its ability to produce memory components. And what we're looking for is accelerating demand over the coming years. Stock price has been up a lot this year. Uh some say that it's because of a tie into the HBM memory market. Uh but I don't think that's the case so much. This company is not really exposed to the data center industry. It's not going to be making memory products for for GPUs or for data centers so much as it will be for the IoT for the application of physical AI you know all those products that require um AI to function at the data center but are actually applying the AI like at the edge. Um so one of the other things that ever spin the MRAM technology provides uh for these products is the ability to retain the memory without electricity. So this is a magnetbased memory product. So the power goes out uh the memory stays uh which is really really really critical for a lot of applications. >> Yeah, this is an interesting stock chart for sure. What stood out to me was of course the massive growth it's seen. This went up 150% in the last month but it has pulled back too. was up even higher than that at one point. I know you you already mentioned a little bit about what could be behind some of those movements for the stock. I'd more like to hear does that scare you at all about getting in as a buy right now given how much growth it's had and and the volatility it seemed to. >> Well, right. So, I see this market starting to target the long-term outlook. While the data center is driving the AI story today, it's going to be the application that drives the story long term. the application is totally going to be in physical AI, robots, vehicles, consumer wearables, all kinds of products that are out there doing the things that AI wants it to do. And so in the stock chart, what I see is is a strengthening market. This is a market that's been asleep for a very long time and it's woken up this past year. It did spike up and it set a top. So there's going to be resistance in the 40 to$48 range. Uh but that price pullback is also showing some nice support at the $28 range which is well elevated above previous highs showing support at a nice level within this uptrend that's forming. I would expect to see the support base continue to build around that level and then for you know the rally to continue and extend to uh potentially to new highs if not later this year then over time as the technology becomes affirmed and becomes more ubiquitous across products. Now, let's talk about the one of the biggest catalysts for that massive spike that we saw and that was a really impressive earnings report. You look at that earnings beat it had at the end of April and the the big spike that we saw really coincides well with that great earnings report of finally getting the market's attention essentially showing that there is some proof in their product and what they have to offer. I know they have another earnings report coming up at the end of next month. So, we're still a couple of months out from that. Any thoughts on what could happen with that other earnings report? Will we continue to see momentum build expecting another huge beat or will we see a drop off and a potential another surge if we depending on what comes out in that earnings? >> I think what we're going to see is a steadily growing revenue and accelerating growth story here. So physical AI application of AI is is very very early in its in its roll out. So the company has some traction now. It's only going to improve over time as more applications are made and the IoT adoption becomes more widespread. Yeah, that physical AI story is absolutely one of the biggest growth stories that we've seen. We've got lots of videos out on that recently. If you haven't seen this one, it's a really great list. It's been one of our most popular videos and it's all about physical AI and the impacts it could have in the market. Take a look at this full