Top stock picks for June

Credit: Simon Cunningham

We asked our Foolish writers to nominate some of their favourite stocks to buy this June. Here’s what they came up with.

Ryan Newman: iSentia Group Ltd  (ASX: ISD)

iSentia provides media monitoring services to some of the biggest brands in the world. Basically, it enables companies, governments and other organisations to keep tabs on what is being said about them, when and by whom. This allows companies to build strategies after announcements and quickly implement damage control when need be.

For many businesses in the public eye, this is considered a vital service to have. It’s not overly expensive, either, and will only grow in importance as social media continues to grow. Meanwhile, iSentia’s shares aren’t overly expensive, either. In fact, now could be a great time to load up for the long haul.

Motley Fool contributor Ryan Newman owns shares in iSentia Group.

Tim McArthur: Flight Centre Travel Group Ltd (ASX: FLT)

One company that recently guided the market towards lower earnings expectations was leading travel agency Flight Centre. Its revised profit forecast anticipates a contraction in profit of between 2% and 5%, compared with a previous target for growth between 4% and 8%.

In response to the lower guidance, the market promptly sold Flight Centre’s share price down from over $36 to around $32. While some investors will choose to steer clear of the stock until the outlook for Flight Centre becomes clearer, others will back management and the group’s business model. Its price-to-earnings multiple of less than 13x is arguably compelling.

Tim McArthur does not own any shares in Flight Centre Travel Group Ltd.

James Mickleboro: BT Investment Management Ltd (ASX: BTT)

Shares of BT Investment Management (BTIM) could be in for a big month thanks to the referendum in Britain over its European Union membership. Many believe that a Brexit would cause the depreciation of the British pound and an exit of global investors. This would be bad news for BTIM due to its British-based JO Hambro business producing almost three-quarters of its total revenue. The good news is recent polls are pointing to Britain voting to remain a part of the EU. If this is how the vote transpires, I believe the BTIM share price could rally higher.

Motley Fool contributor James Mickleboro has no financial interest in BT Investment Management Ltd

Alan Edmunds: Capitol Health Ltd (ASX: CAJ)

Possible regulatory changes to Medicare payments have seen Capitol Health’s share price fall over 75% in this financial year. With tax time fast approaching, it may come under further pressure as investors crystalize losses to offset capital gains. I believe this may present an opportunity with the market appearing to have overlooked some positive signs for the second half of the year, which were highlighted in its presentation back in March. The key points were: stabilisation of referral patterns, signs of improvement as initiatives gained traction and the expectation of a stronger second half versus the first half of the financial year.

Motley Fool contributor Alan Edmunds owns shares in Capitol Health.

Edward Vesely: Flight Centre Travel Group Ltd (ASX: FLT)

On a 3-5 year view, Flight Centre looks to be compelling value. A subdued trading update in early May has seen the share price take a hammering. Many of the challenges facing Flight Centre though are, in my view, short term in nature and investors who buy shares today are paying a price-to-earnings ratio of around 13x expected 2015-16 full year earnings. With a fully franked dividend yield of 4.8% too, this is as good a time as any to buy shares.

Motley Fool contributor Edward Vesely owns shares in Flight Centre.

Christopher Georges: iSentia Group Ltd (ASX: ISD)

iSentia is the Asia Pacific’s largest media intelligence and monitoring company. It covers the entire media spectrum and is able to provide valuable information to its clients in real-time using cloud-based technology. iSentia boasts 92 of the top 100 global brands as clients along with a large number of government and private entities. With digital media content growing exponentially, the demand for iSentia’s services is expected to grow steadily and this makes its outlook attractive. The company’s short-term outlook is also positive with FY16 sales and earnings both expected to grow by around 20%.

Motley Fool contributor Christopher Georges owns shares in iSentia Group.

Rachit Dudhwala: Village Roadshow Ltd  (ASX: VRL)

Shares in entertainment conglomerate Village Roadshow have tumbled to multi-year lows without any company specific news to explain the fall. Although management revealed a mediocre set of numbers in the first half, a strengthening U.S. economy, a lower Australian dollar and a long list of blockbuster movies this year should see the group report firmer earnings in the second half.

In the meantime, investors are compensated by Village Roadshow’s robust 5.5% dividend yield (fully-franked) and management’s intention to pay a special dividend next financial year. This should provide support against further downside risk.

Motley Fool contributor Rachit Dudhwala has no financial interest in Village Roadshow.

Mike King: Flight Centre Travel Group Ltd (ASX: FLT)

Investors have hammered Flight Centre after the travel agent disappointed the market recently with net profit before tax expected to be lower than last year by between 2% to 5%. However, as we’ve written previously, the reasons appear to be temporary, although the market believes otherwise and there’s the opportunity for investors. Flight Centre has growing, profitable operations in numerous countries offshore, and is branching out into diversified offerings such as tours and other travel-related services. There’s also the company’s wholesale and corporate operations. On an undemanding trailing P/E of 12.6x, this could be an opportunity for investors.

Motley Fool writer/analyst Mike King owns shares in Flight Centre.

Tom Richardson: Appen Ltd (ASX: APX)

Appen shares have more than tripled in price over the course of the past year after this language and voice recognition technology company nearly tripled FY15 EBITDA to $13.8 million. Its technology allows automated language translations across a variety of platforms used by ecommerce companies, governments and software companies. Partners include Skype, Microsoft and leading automobile manufacturers, while areas like social media are seeing rapid growth. It has scope to keep growing globally and at $2.30 still trades on a reasonable valuation for a red-hot tech stock.

Motley Fool writer/analyst Tom Richardson has no financial interest in Appen Ltd.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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