Phil Rogers

June Pick: Zoom Video Communications (NASDAQ:ZM)

Zoom shares were the star stock of the pandemic, trading up from $100 in February 2020 to over $550 in October 2020. Clearly, with lockdowns gone and Covid-19 pressures easing, the stock has naturally retraced most of these gains. However, the stock is down almost 70% over the past year, and it now at levels where no ‘pandemic premium’ is assigned.

We think that this now represents a fair value to enter long positions. The conferencing service will still be extensively needed in the work hybrid situation we are in. Further, Zoom Whiteboard and Zoom Events are new initiatives showing that the business isn’t stagnating with the original product offering.

The main risk we see is increased competition, with other large players investing heavily in their video conferencing solutions and embedding it within programmes, such as Microsoft Teams. However, the customer base that Zoom have built up over the pandemic should provide an invaluable edge in this space.

Jesse Williamson

June Pick: RiceBran (NASDAQ:RIBT)

For my June pick, I am going with a stock that I recently wrote about, RiceBran. I usually go for smaller caps which provide much higher rewards but are accompanied with larger risks. RIBT broke above the $0.76 resistance I spoke about, but failed to hold above, now sitting at $0.71.

RiceBran Technologies provides nutritional and functional ingredients that come from rice and grains. The company processes these grain products with extended shelf-life and higher nutrition in mind.

The world food crisis is continuing to lead headlines. Food prices continue to rise, which will only increase the value of RIBT. This adds a strong catalyst behind this months swing, which is a factor I love to have when searching for stocks. I think the price of this penny stock can go above $1 and June may be the month that sees this happen.

Robert Henrik

June Pick: Chevron (NYSE:CVX)

Chevron Corporation, the American multinational energy company, has had a strong year so far with the stock price increasing 50% since Jan. The global energy crisis and supply chain issues are expected to continue for the foreseeable future, so we expect the upward price trend to remain intact.

Financials – CVX released very strong Q1 earnings, as Revenues hit ~$52 billion, up 68% from the previous quarter, and Net Income hit ~$7 billion. The financial outperformance will feed through to shareholders, as the company recently announced it will carry out at a record share repurchase of $10 billion worth of stock by the end of 2022. Shareholders will also benefit from a current Dividend Yield of ~3.5%.

Analyst Recommendations – the institutional crowd also continues to be positive on CVX, as the latest Bloomberg survey of Equity Research Analysts showed that 97% have issued either a “BUY” or “HOLD” rating on the stock, with only 3% recommending “SELL”.

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