5 Momentum Picks to Tap Market Rally in June After an Impressive May

Wall Street saw an impressive rally in May after severe volatility in the previous two months. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — were up 3.9%, 6.2% and 9.6%, respectively. The tech-heavy Nasdaq Composite and the broad-market index, the S&P 500, recorded their best months since November 2023.

May’s investor optimism was primarily driven by expectations of a U.S.-China trade deal, the delay by the Trump administration to impose 50% tariffs on the European Union and the ongoing negotiations related to tariff and trade policies with several other major trading partners of the United States.
The Conference Board’s consumer confidence index rebounded in May. Similarly, the University of Michigan’s consumer sentiment index came in better than expected last month. At this stage, it will be prudent to invest in stocks with a favorable Zacks Rank that have momentum in June.

Five such stocks are: CyberArk Software Ltd. CYBR, Kinross Gold Corp. KGC, NatWest Group plc NWG, Ryanair Holdings plc RYAAY and Paylocity Holding Corp. PCTY. Each of the stocks sports a Zacks Rank #1 (Strong Buy) at present and has a Zacks Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks in the past month.

CyberArk Software Ltd.

CyberArk Software is benefiting from the rising demand for cybersecurity and privileged access security solutions due to the long list of data breaches and increasing digital transformation strategies. 

A strong presence across verticals, such as banking, healthcare, government and utilities, is safeguarding CYBR from the adverse effects of softening IT spending. CYBR’s strategic mix shift toward software-as-a-service and subscription-based solutions is driving top-line growth.

CyberArk is gaining customer accounts, which contributes to its revenues. The vast customer base presents the company with an opportunity to upsell products within its installed user base. Furthermore, in the last few quarters, CYBR has been able to close a significant number of seven-figure deals. 

The growing number of large deals in the revenue mix is helpful as it increases deferred revenues and visibility. Moreover, any product refresh brings in additional dollars as every enterprise attempts to keep its threat management infrastructure updated. These factors in turn support CYBR’s top line.

CyberArk Software has an expected revenue and earnings growth rate of 31.9% and 25.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.6% in the last 30 days.

Kinross Gold Corp.

Kinross Gold has a strong production profile and boasts a promising pipeline of exploration and development projects. These projects are expected to boost production and cash flow and deliver significant value. KGC is focusing on organic growth through its Tasiast mine, where the Phase One expansion boosted production capacity, and the Tasiast 24K expansion increased throughput and production. 

KGC’s Manh Choh project at Fort Knox is expected to extend operations and benefit from higher gold prices. The Great Bear project in Ontario also offers a promising long-term opportunity with substantial gold resources. Higher gold prices should also boost KGC’s profitability and drive cash flow generation.

Kinross Gold has an expected revenue and earnings growth rate of 15.3% and 63.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the last seven days.

NatWest Group plc

NatWest Group provides banking and financial products and services to personal, commercial, corporate and institutional customers in the United Kingdom and internationally. NWG operates through the Retail Banking, Private Banking, and Commercial & Institutional segments. 

NWG provides personal and business banking, consumer loans, asset and invoice finances, commercial and residential mortgages, credit cards and financial planning services, as well as life, personal and income protection insurance.

NatWest Group has an expected revenue and earnings growth rate of 20.1% and 17.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.8% over the last 30 days.

Ryanair Holdings plc

Ryanair Holdings provides scheduled-passenger airline services in Ireland, the United Kingdom, Spain, Italy, and internationally. RYAAY’s measures to expand its fleet, to cater to rising travel demand, look encouraging.

RYAAY’s top line continues to benefit from the resurgent travel scenario. The carrier flew more than 200 million passengers in its fiscal year ending March 2025, becoming the first European carrier to do so in a year. RYAAY’s measures to expand its fleet, to cater to the rising travel demand, look encouraging.

RYAAY is also involved in the provision of various ancillary services, such as non-flight scheduled and Internet-related services, as well as in-flight sale of beverages, food, duty-free, and merchandise, and markets car hire, travel insurance, and accommodation services through its website and mobile app. 

Ryanair Holdings has an expected revenue and earnings growth rate of 10.4% and 30.5%, respectively, for the current year (ending March 2025). The Zacks Consensus Estimate for current-year earnings has improved 2% over the last 30 days.

Paylocity Holding Corp.

Paylocity Holding’s third-quarter fiscal 2025 revenues benefited from an innovative product portfolio. PCTY's growth is driven by its comprehensive suite of cloud-based Human Capital Management and payroll software solutions tailored for mid-sized businesses. Solid investment in research and development has led to strong product differentiation, enhancing PCTY’s competitive position in the market. 

PCTY’s recurring revenue model, which provides financial stability and predictability, is driven by high client satisfaction and low churn rates, reflecting its commitment to delivering value to its customers. For fiscal 2025, PCTY projects total revenues between $1.58 billion and $1.585 billion, implying 13% growth from the year-ago quarter’s actual.

Paylocity Holding has an expected revenue and earnings growth rate of 12.9% and 6.7%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the last 30 days.

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This article originally published on Zacks Investment Research (zacks.com).

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