With the S&P 500 turning positive in 2025 after a rocky 15% dip in April, investors are eyeing the market’s second-fastest recovery in modern history. But uncertainty around tariffs, earnings growth, and valuations leaves many wondering: Is now the time to invest? The answer is yes—if you choose wisely.

Timing the market is tricky, but staying in the market with undervalued, high-potential stocks can yield strong returns. In this guide, we dive into five of the best stocks to consider for your portfolio in June 2025, blending growth and dividend opportunities across diverse sectors. From tech giants to energy stalwarts, these picks offer compelling value and upside potential.

Why Invest in Stocks Now?

Despite market volatility, 2025 presents opportunities for savvy investors. The S&P 500’s recovery signals resilience, but concerns about tariffs and earnings growth keep valuations in check. A 2024 report by JPMorgan noted that stocks with strong fundamentals and attractive valuations tend to outperform during uncertain periods.

By focusing on companies with solid earnings, growth potential, or reliable dividends, you can build a portfolio that thrives in any market. Below, we explore five stocks that stand out for June 2025, based on their valuations, performance, and analyst sentiment.

Disclaimer: The following insights are for informational purposes only and not financial advice. Always consult a financial advisor before investing.

1. Marvell Technology (MRVL): A Semiconductor Bargain

Marvell Technology, a leader in semiconductor solutions, is a compelling growth stock trading at a discount. Despite beating Q1 2025 earnings expectations with $1.9 billion in revenue (up 64% year-over-year) and 62 cents per share (above the 61-cent forecast), the stock dropped 5% post-earnings due to concerns over slower orders from hyperscalers like Amazon and Microsoft, who are developing their own chips.

Why Buy Marvell Now?

• Undervalued Metrics: With a forward P/E of 22.8 (below its 5-year average of 29.5) and a PEG ratio of 0.4, Marvell is priced for growth. Analysts project 50% annual earnings growth over the next few years.
• Market Position: Marvell’s chips power data centers and AI infrastructure, sectors with long-term demand. The temporary slowdown from hyperscalers is a short-term headwind, not a structural flaw.
• Analyst Optimism: Rated a strong buy with a $94 price target, implying 50% upside from current levels.

Example: A tech investor who bought Marvell at its 52-week low in early 2025 saw a 20% gain by May, highlighting the stock’s recovery potential when market sentiment shifts.

2. Alphabet (GOOGL): The AI-Powered Tech Giant

Alphabet, the parent of Google, remains the best-valued among the Magnificent Seven, despite a 10% year-to-date decline. Its recent 15% surge over three weeks reflects growing momentum in AI and autonomous driving, particularly through its Waymo robo-taxi division.

Why Alphabet Stands Out

• AI Integration: Alphabet’s Gemini 2.5, with 400 million monthly active users, is enhancing its search engine, countering fears of search revenue weakness. A 2025 Forbes report noted AI-driven search improvements could boost ad revenue by 12% annually.
• Valuation: A forward P/E of 18 (below its 5-year average of 22.2) and a PEG ratio of 1.2 make Alphabet a bargain for its 14% multi-year growth rate.
• Analyst Outlook: Rated a strong buy with a $198 price target, suggesting 16% upside.

Case Study: An investor holding Alphabet since mid-2024 benefited from its AI conference announcements, which sparked a rally, proving the stock’s resilience despite market skepticism.

3. Energy Transfer (ET): A Dividend Powerhouse

For dividend investors, Energy Transfer, a midstream energy company, offers a high-yield opportunity. With a 7.4% dividend yield, it’s ideal for income-focused portfolios, though its 5-year dividend growth is modest due to its high payout.

Key Reasons to Invest

• Natural Gas Rebound: Natural gas prices have climbed 33% to $3.50, boosting Energy Transfer’s outlook. Seasonality data shows strong performance for ET in June and July over the past decade.
• Valuation: A forward P/E of 12.5 and EV/EBITDA of 8.7 signal undervaluation. Analysts rate it a strong buy with a $23 price target, implying 31% upside plus dividends.
• Stability: As a midstream operator, Energy Transfer’s revenue from transporting oil and gas is less tied to commodity price swings.

Pro Tip: Reinvesting ET’s dividends can compound returns, making it a favorite for retirees seeking passive income.

4. Johnson & Johnson (JNJ): A Dividend King

Johnson & Johnson, a healthcare giant, is navigating a talc-related lawsuit overhang but continues to perform strongly. Up 7% year-to-date, it’s outpacing the S&P 500, with a recent earnings beat reinforcing its stability.

Why JNJ Is a Safe Bet

• Dividend Reliability: As a Dividend King, JNJ has raised its dividend for over 60 years, offering a 3.4% yield and 5.4% 5-year growth rate.
• Valuation: A forward P/E of 14.5 (below its 5-year average of 15.8) and EV/EBITDA of 11.5 make it one of the cheapest healthcare stocks.
• Growth Potential: Analysts rate it a moderate buy with a $170 price target, suggesting 10% upside. Resolution of the talc lawsuit could further boost shares.

Example: A healthcare investor added JNJ in early 2025, capitalizing on its breakout above a three-year downtrend, and now enjoys both dividend income and share price gains.

5. NextEra Energy (NEE): The Clean Energy Leader

NextEra Energy, a utility and clean energy company, combines growth, dividends, and resilience. Despite a 10% dip after a proposed tax bill threatened clean energy credits, its diversified business model ensures stability.

Why NextEra Is a Must-Buy

• Dividend Strength: A 3.3% yield, 10.4% 5-year dividend growth, and nearly 30 years as a Dividend Aristocrat make it a reliable income stock.
• Valuation: A forward P/E of 18.8 (below its 5-year average of 24.2) and EV/EBITDA of 17.8 signal value. Analysts rate it a moderate buy with an $83 price target, implying 17% upside.
• Diversification: While solar and wind are key, NextEra’s core utility business generates stable earnings, cushioning against policy risks.

Insight: A 2025 Bloomberg report highlighted NextEra’s ability to maintain profitability despite clean energy policy shifts, making it a safer bet than pure-play renewables like Sunrun.

FAQ

Is now a good time to invest in stocks for June 2025?
Yes, with the S&P 500 recovering and select stocks trading at attractive valuations, June 2025 offers opportunities for long-term investors.

Why is Marvell Technology undervalued?
Marvell’s forward P/E of 22.8 is below its 5-year average, and its 50% projected earnings growth makes it a bargain despite short-term hyperscaler slowdowns.

Which stock offers the highest dividend yield?
Energy Transfer (ET) provides a 7.4% dividend yield, ideal for income-focused investors, though its dividend growth is modest.

How does Alphabet benefit from AI?
Alphabet’s Gemini 2.5 enhances its search engine, used by 400 million monthly active users, potentially boosting ad revenue by 12% annually.

Is NextEra Energy safe despite clean energy policy risks?
Yes, NextEra’s core utility business ensures stability, and its diversified model mitigates risks from potential clean energy tax credit changes.

Summary

June 2025 is a prime time to invest in undervalued stocks with strong fundamentals. Marvell Technology offers semiconductor growth at a discount, Alphabet leverages AI for long-term gains, Energy Transfer delivers high-yield dividends, Johnson & Johnson provides healthcare stability, and NextEra Energy blends clean energy growth with utility reliability.

Each stock, backed by attractive valuations and analyst optimism, caters to different investor goals—growth, income, or both. By focusing on time in the market rather than timing it, you can capitalize on these opportunities. Always consult a financial advisor to align these picks with your portfolio.

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