As we navigate through the complexities of the stock market, many investors have felt the impact of recent volatility. However, as of June 2025, the U.S. financial markets are showing signs of recovery from the recent tariff jitters, presenting potential opportunities for savvy investors. In this article, we will explore the top four stocks to watch this month, as discussed in my latest YouTube video. Wherever specific names were not disclosed, I’ve provided guidance on how to identify similar candidates and build a well-rounded watch list.
1. Alphabet Inc. (GOOGL)
Why Alphabet?
Alphabet’s position as the parent company of Google remains rock-solid, even amid short-term fluctuations. Over May 2025, news surfaced—most notably via Apple’s quarterly data—that search volumes at Google declined modestly. That data prompted a pullback in GOOGL shares, which traded near $170 in early June. Nevertheless, the long-term thesis remains intact:
- AI Integration in Google Workspace:
Google has embedded generative AI features across its Workspace suite (Gmail, Docs, Sheets, Slides), allowing users to generate draft emails, summarize lengthy documents, and analyze data with a click. Enterprise subscribers are already upgrading to higher-tier plans, and this increased Average Revenue Per User (ARPU) could meaningfully bolster Alphabet’s services revenue over the next 12–18 months. - Search Monetization vs. Usage Trends:
It’s true that search-engine usage dipped slightly, as reported by Apple’s iOS analytics. Yet Google still commands roughly 85–90% of global search market share, and advertising dollars continue to flow. Analysts remain confident that Alphabet’s ad-revenue engine will bounce back as user behavior normalizes and advertisers chase AI-powered ad solutions. - Growth in Cloud and YouTube:
Beyond search and ads, Alphabet’s cloud division (Google Cloud Platform) is growing at double-digit rates and trending toward profitability. Meanwhile, YouTube—especially YouTube Shorts—continues to ramp up monetization efforts. If Shorts can replicate TikTok’s success in short-form video, ad revenues on that front could represent a multi-billion-dollar opportunity in the next couple of years.
Valuation and Upside
At $170 per share (mid‐June 2025), Alphabet trades at around 25× forward earnings—slightly below its five-year average multiple. Analysts’ consensus target is roughly $200, suggesting an upside near 17.6% if estimates hold true. For investors who believe that AI adoption and cloud growth will accelerate, Alphabet represents a high-quality blue-chip to anchor a growth-oriented portfolio.
2. [Stock Name TBD]
How to Identify Your Second Pick
The second position on the watch list was not explicitly named in the transcript summary. To fill this slot, focus on these criteria:
- Sector Resilience:
Look for companies that have shown relative stability during tariff-related headwinds—industrials or consumer staples with strong free cash flow and low leverage. - Catalysts Near Term:
Target a business with an upcoming product launch, a large backlog, or a favorable regulatory decision expected in the next 3–6 months. This could be a semiconductor manufacturer prepping a new chip, or a pharmaceutical company awaiting FDA approval for a major therapy. - Valuation Edge:
Seek names trading at or below historical P/E multiples relative to peers. For example, a well-capitalized industrial firm selling at 12× forward EBITDA—when its five-year average is 15×—might warrant deeper research.
Example Screening Process Using Warren AI
Since we’ll introduce “Warren AI” below, you can ask:
“Show me industrial companies with debt-to-equity below 0.5 and forward P/E under 15.”
This query can narrow down potential candidates. Once you identify a shortlist, dive into recent earnings transcripts, analyst presentations, and management guidance to gauge whether the business can thrive as tariff concerns fade.
3. [Stock Name TBD]
Balancing Growth and Value
The third slot should blend growth potential with a margin of safety. In June 2025, many growth names were oversold during the April-May sell-off, even though their underlying fundamentals remain intact. To pick a suitable candidate:
- Recurring Revenue Model:
Software-as-a-Service (SaaS) companies with high retention rates often weather economic uncertainty better than one-and-done transactional businesses. - High Gross Margins:
Aim for businesses with gross margins north of 60%. This gives them greater leeway to invest in R&D or sales and marketing without jeopardizing profitability. - Path to Profitability:
While some SaaS names are still burning cash, cluing in on those demonstrating positive free cash flow—or at least a clear roadmap to breakeven—can reduce execution risk.
Example Screening Process Using Warren AI
Try a query like:
“List SaaS companies with trailing-twelve-month revenue growth above 20% and gross margins above 60%.”
From there, compare their forward revenue multiples and relative churn rates. If a company is growing 25% year over year but trading at 8× forward revenue—below the peer median of 10×—it may warrant deeper due diligence.
4. [Stock Name TBD]
A Defensive, Income-Oriented Choice
To round out the watch list, consider adding a dividend payer with a history of steady distributions. In a market picking its way out of tariff fears, predictable income can offer a cushion against further volatility. When selecting this defensive name, focus on:
- Dividend Sustainability:
Verify that the company’s payout ratio (dividend divided by free cash flow) remains below 80%. This ensures room for dividend hikes even if cash flow temporarily contracts. - Stable End Markets:
Consumer staples, utilities, or select healthcare firms often exhibit less cyclicality. For example, a utility with regulated rate hikes baked into state-approved plans can deliver reliable cash flow independent of GDP swings. - Modest Valuation:
In a high-volatility environment, dividend yields above 3% but below 5% typically indicate a balanced risk/reward trade-off. If yields creep above 5%, dig into balance-sheet metrics to ensure you’re not chasing potentially unsustainable payouts.
Example Screening Process Using Warren AI
Use a prompt such as:
“Show me utilities with dividend yield between 3% and 4.5%, payout ratios under 75%, and debt-to-equity under 1.0.”
Then layer in recent credit-rating agency reports or management commentary to confirm there are no looming capital-expenditure shocks.
Leveraging “Warren AI” for Idea Generation
A key highlight of my latest video was the introduction of Warren AI, a chatbot from Investing.com built to help retail investors accelerate their research. Below are its core capabilities and why it can be a game-changer:
- Natural-Language Research
Instead of scanning dozens of financial websites or sifting through spreadsheets, you simply type a question—e.g., “Which consumer discretionary stocks have raised guidance in Q1 2025?” Warren AI returns a concise list of tickers that meet your criteria, pulling from real-time news, earnings releases, and consensus data. - Custom Screeners and Alerts
If you want to be notified when the second stock on your list drops below a certain P/E or when its RSI (Relative Strength Index) hits an oversold level, Warren AI can trigger those alerts. You no longer need to refresh multiple dashboards constantly. - Integration with Economic and Earnings Calendars
By tapping directly into Investing.com’s calendar feeds, Warren AI reminds you of upcoming Fed announcements, tariff-related policy votes, or quarterly earnings dates. Staying ahead of these catalysts can be the difference between entering a position too early or missing the setup altogether. - Backtesting and Historical Data
Although Warren AI isn’t a full-blown quant platform, you can ask it to simulate basic scenarios—say, “Show me how GOOGL performed three months after a 10% pullback over the past five years.” This helps validate whether historical patterns might repeat in June 2025’s similar setup.
Disclaimer on Warren AI
Like any tool, Warren AI is only as good as the inputs and the user’s ability to interpret results. Always verify any stock-specific recommendation by cross-checking official filings (10-Ks, 10-Qs), analyst presentations, and management guidance. No chatbot can replace a rigorous, multi-dimensional investment thesis.
Conclusion
June 2025 offers an intriguing window for investors willing to sift through market volatility and identify resilient, well-positioned companies. Alphabet (GOOGL) leads our list, driven by its aggressive AI roll-out across search, cloud, and YouTube. For the remaining three slots, use the criteria outlined above—sector resilience, growth-at-a-reasonable price, and income stability—to fill in names that align with your risk tolerance and time horizon.
Above all, remember that any single video or chatbot output should serve only as a starting point. Conduct thorough due diligence: review financial statements, analyze valuation multiples, assess industry dynamics, and confirm management’s track record. By combining disciplined research with tools like Warren AI, you’ll be better equipped to capture the upside as tariff-related headlines recede and the market regains its footing. Good luck, and happy investing!