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These Were The 2 Best-Performing Stocks in the Dow Jones Industrial Average in June 2025

These Were The 2 Best-Performing Stocks in the Dow Jones Industrial Average in June 2025

Globe and Mail12 hours ago
Key Points
Stocks jumped again last month, buoyed by solid economic data and cooling tensions in the Middle East.
Goldman Sachs got some good news from the Fed's stress test.
Nike surged after its latest earnings report, signaling that its turnaround is underway.
June was another banner month for the stock market as investors reacted to solid economic data, diminishing concerns about the trade war, and an update from the Fed that showed it still planned to cut rates twice this year.
The S&P 500 closed at an all-time high, and while the Dow Jones Industrial Average was short of its peak in December 2024, the blue chip index still finished with solid gains.
The chart below shows how all three major indexes performed last month, finishing with solid gains.
^DJI data by YCharts
As you can see, all three indexes surged late in the month, following the Fed's update and easing tensions in the Middle East. Let's take a look at the two best-perfoming stocks on the Dow Jones Industrial Average to see if any of them are worth buying.
1. Goldman Sachs (Up 17.9%)
There was no single reason why Goldman Sachs (NYSE: GS) soared nearly 18% in June, but the company seemed to benefit from the broad uptrend in the stock market, the improving IPO market, and expectations that the Fed will lower rates later this year.
Additionally, Goldman was a winner from the Fed's stress test as it had the biggest year-over-year improvement in results and could see its stress capital buffer decline by 300 basis points, giving the company more financial flexibility.
Goldman Sachs stock has soared over the last year and a half, meaning expectations are baked in, but if the economy remains healthy, it could gain further.
2. Nike (Up 17.3%)
Nike (NYSE: NKE) stock soared late in the month following a better-than-expected earnings report from the sportswear giant. Though the company is still struggling with headwinds that began under previous management and said tariffs would add $1 billion in costs this year, the stock had fallen far enough that any sign of turnaround was enough to lift investor spirits.
That's what they got last week, as Nike's results were better than expected results and guidance. While the road to recovery could take years, Nike's moves to rebuild wholesale relationships and invest more in new products seem to be paying off. Over the long term, the stock looks like a good bet to be a winner.
Should you invest $1,000 in Nike right now?
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Why AeroVironment Stock Plunged This Week
Why AeroVironment Stock Plunged This Week

Globe and Mail

time40 minutes ago

  • Globe and Mail

Why AeroVironment Stock Plunged This Week

Key Points Dilution fears were raised on news of twin capital-raising moves. The company is floating both fresh stock and convertible senior notes in a public offering. Military drone specialist AeroVironment (NASDAQ: AVAV) has generally done well as a stock lately. But that didn't happen this week, as news of a round of capital-raising dampened investor sentiment on the company. According to data compiled by S&P Global Market Intelligence, AeroVironment stock lost more than 11% of its value over the period. New shares and convertible notes On Monday, AeroVironment announced it would float both a secondary share offering and an issue of convertible senior notes. The following day it set the parameters for the pair. With the former, it's selling just over 3.5 million shares of its common stock in an underwritten public offering at $248 per share. The underwriters of the flotation have been granted a 30-day option to collectively purchase an additional 29,234 shares. As for the convertible senior notes, AeroVironment is issuing $650 million aggregate principal amount at an interest rate of 0%. They are to be convertible at the investor's option under certain conditions and at certain periods. The initial conversion rate is slightly over 3.1 shares per $1,000 principal amount of the notes; the company said this equates to $322.40 per share. AeroVironment said it expected both issues to close on Thursday, July 3, and to net proceeds of around $1.47 billion. The company aims to use a bit more than $965 million to retire debt, with the remainder being directed to "general corporate purposes." These include an increase in manufacturing capacity. Dilution fears Currently, AeroVironment has just under 45.6 million shares outstanding, so if conversion rates are high with the notes, the twin issues could be dilutive. Shareholder dilution is the bane of many of an investor, so it's likely this was the root of their discontent during the week. On a fundamental basis, though, AeroVironment still looks like a good stock to own. The company seems to be doing well satisfying the growing demand for combat drones, as witnessed by its impressive fourth-quarter performance and its growing backlog. I wouldn't be down on the stock only because of its latest capital-raising moves. Should you invest $1,000 in AeroVironment right now? Before you buy stock in AeroVironment, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AeroVironment wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor 's total average return is1,060% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 30, 2025

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