Market Overview - The S&P 500 experienced a 6% increase in May, marking its best performance since 1990 and the strongest monthly performance since November 2023 [1] - The Nasdaq surged nearly 10% in May, driven by a resurgence in technology stocks, with further gains of 0.7% on Monday and 1% through midday trading on Tuesday [1] Investment Sentiment - The current bullish sentiment is supported by growth in tech earnings and progress in trade negotiations, with investors aiming to break above a key trading range to reach new all-time highs [2] - Zacks Rank 1 (Strong Buy) stocks are highlighted as outperformers in various market conditions, with over 200 stocks currently holding this rank [3] Stock Screening Strategy - A stock screening strategy is proposed, focusing on three key filters to identify high-potential stocks [4] - Zacks Rank equal to 1, which has historically provided an average annual return of approximately 24.4% since 1988 [5] - Positive percentage change in Q1 earnings estimates over the last four weeks [6] - Top 5 stocks with the best average broker rating changes over the last four weeks [7] Featured Stock: OppFi (OPFI) - OppFi is identified as a promising fintech stock, partnering with community banks to provide financial products to underserved middle-income Americans [8] - The company's digital platform utilizes AI-driven underwriting for responsible lending and offers financial education to improve customer financial health [10] - OppFi is projected to grow earnings by 30% this year and 9% next year, with revenue growth of 10% and 4% respectively [11] - The stock has increased by 300% over the past 12 months, significantly outperforming its Business Services sector, and is currently trading 22% below its February peaks [12]
The Best Top-Ranked Stocks to Buy in June