Please ensure Javascript is enabled for purposes of website accessibility

3 Top Large-Cap Stocks to Buy in June

By Adria Cimino – Updated Jun 3, 2020 at 4:25PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With the coronavirus outbreak still weighing on companies, it's time to favor those with long-term drivers of revenue growth.

As the U.S. moves into the next stages of the coronavirus epidemic, some communities are emerging from lockdown and some businesses are reopening. Still, the duration of the current health crisis isn't clear. And protests have erupted across the country following the death of George Floyd at the hands of police in Minneapolis.

Considering this uncertain environment, when looking for stocks to buy in June, I'm not focused on the near term. Instead, I have my eyes on strong future revenue potential.

Here are three large-cap stocks that fit the bill.

Three small boxes with shopping cart images are shown on a computer keyboard.

Image source:Getty Images.


Annual revenue at Target (TGT 0.05%) has been growing since 2017 as the company has ramped up its digital platform and delivery and pickup services. Target increased comparable digital sales for the sixth straight year by more than 25% when it reported a 29% gain for 2019. Order pickup, drive-up, and same-day delivery service Shipt, with growth of more than 90%, represented almost three-quarters of Target's comparable digital sales growth.

Target's strengths in digital and delivery have been buoying business through the coronavirus crisis. First-quarter digital comparable sales soared 141%. Still those gains didn't compensate for coronavirus-related expenses or declines in some product areas. Net earnings were down 63% from the year-earlier period, to $0.56 per share.

Considering the health crisis, the first-quarter report clearly stands apart. People stockpiled and bought different items -- and in different quantities -- than usual. But, importantly, the surge in online shopping for essentials shows shoppers have stayed with Target during the crisis.

More recently, while e-commerce sales continue to surge, other elements indicate business may be returning to normal. Target said it saw a jump in in-store traffic in mid-April, soaring digital growth of 200% to 300% throughout the month, and an increase in sales of discretionary products. In May, sales in all product categories continued to return to usual levels.


Annual revenue growth at Amgen (AMGN 0.29%) has faltered over the past few years as competition and lower prices have hurt sales of older products. But I think Amgen is at a turning point. Revenue in the first quarter was on the upswing thanks to newer products. And new indications for current products, as well as possible product approvals, should drive future growth.

Amgen's total revenue increased 11% to $6.2 billion in the quarter, led by products such as psoriasis drug Otezla and cholesterol drug Repatha. The biotech giant reiterated its full-year revenue forecast of $25 billion to $25.6 billion, representing a gain of as much as 9.4% from last year.

Newly acquired Otezla should become an important source of growth for Amgen. The company expects at least low-double-digit sales growth from the product over the next five years. The drug is already approved for moderate-to-severe plaque psoriasis and two other indications, and following recent positive phase 3 data, Amgen plans on submitting data to the U.S. Food and Drug Administration regarding mild-to-moderate psoriasis.

Amgen is awaiting regulatory news on other therapies later this year. The FDA is expected to issue a decision in November on expanded prescribing information for multiple myeloma drug Kyprolis, and in December the regulatory agency is scheduled to complete its review of Amgen's biosimilar candidate to blockbuster cancer drug Rituxan. The 14 molecules in phase 3 studies -- some for more than one indication -- have the potential to fuel Amgen's sales growth in the coming years.


Revenue at Nike (NKE 0.19%) has been steadily climbing since 2012, but the company's efforts over the past two years on its online platform and direct sales to customers are why I favor it today. When Nike temporarily closed stores across the world as the coronavirus outbreak spread, the digital platform kept the brand connected to customers. Digital sales rose 36% during the most recent quarter, which included those store shutdowns.

That doesn't mean Nike wasn't hurt by the coronavirus. For instance, revenue in China fell 4% after 22 straight quarters of double-digit increases. And Nike said the impact on earnings will continue into its fiscal fourth quarter -- that report is set for June 25. But as I said regarding Target, above, this situation is temporary. Nike's digital strength should continue beyond the recent crisis as it was already going strong prior to that. Nike's digital commerce sales climbed 38% during the quarter preceding the coronavirus outbreak.

In the near term, Nike should benefit as professional sports activities -- halted due to the coronavirus outbreak -- resume. The company is the maker of NFL uniforms and benefits from the advertising opportunity and from fans buying jerseys and other souvenirs.

Some new-product launches may lose a bit of their spark due to postponement of other sporting events. For instance, the Nike Air Zoom AlphaFly Next% launches this month -- without the Tokyo Summer Olympics. But I like the fact that Nike is moving forward rather than putting products on hold. In any case, Nike's constant innovation means we probably can expect a batch of fresh products later in the game.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Nike. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NIKE, Inc. Stock Quote
NIKE, Inc.
$96.24 (0.19%) $0.18
Target Corporation Stock Quote
Target Corporation
$148.79 (0.05%) $0.08
Amgen Inc. Stock Quote
Amgen Inc.
$227.53 (0.29%) $0.66

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.