Goldman Sachs, Nike and Nvidia were the best Dow stocks in June, leading the Dow Jones Industrial Average to its 4.3% gain for the month. Historical data shows this month could be even better.
Goldman stock climbed nearly 18% in June, the best performance among the 30 Dow components. The stock broke out of a cup-with-handle base on June 11, and rode investor demand through the end of the month. Today, shares of the investment bank are up 14% from the 620.79 buy point.
The stock had to dig itself out of a 35% hole from February to early April, when President Donald Trump paused most tariffs and the stock market rebounded. The company's April 14 earnings report helped maintain upward momentum. Results topped analysts' expectations, and the bank set a $40 billion stock buyback.
On Monday, Goldman Sachs passed the Federal Reserve's stress test with ease.
For the second quarter, Goldman stock rose nearly 30%. It has a Composite Rating of 90.
Goldman Sachs stock has a 21-day average true range (ATR) of 2.11%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Stocks with lower ATRs tend to make more incremental moves.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
Nike Among Best Dow Stocks
Nike rose nearly 17% in June, although most of the increase came in a single day. Last Friday, shares of the athletic apparel and sneakers company soared 15% in huge volume. Nike beat May-quarter estimates as executives saw headwinds moderating.
A number of analysts raised their price targets on Nike stock, noting that the worst seems to be over for the company. It's a bit of redemption for Nike, a stock that has been trending lower since it peaked in November 2021. Shares are back above a still-falling 200-day moving average.
Nike's Composite Rating is 29. It has an ATR of 2.06%.
For the second quarter, shares rose 12%.
Nvidia One Of Best Dow Stocks
Nvidia came out of a 43% decline this year to make record highs last week. The company mainly responsible for the chips that power artificial-intelligence applications has run up 77% from its April low and added about 17% in June. The stock is near a 153.13 buy point.
Worries over rival AI tools in China, export restrictions to China and high tariffs contributed to a poor first quarter for Nvidia. But the company is reasserting itself as an AI leader, announcing a series of industry partnerships.
In Q2, Nvidia climbed nearly 46%. The stock has an ATR of 2.37% and Composite Rating of 97.
Other Best Dow Stocks
IBM also emerged from a tech-sector slump, although its shares fell no more than 19%. The stock added nearly 14% in June and 18.5% in the second quarter. On June 20, Wedbush analyst Dan Ives said IBM is primed for its next phase of AI growth. Ives increased his price target to 325 from 300 while reiterating an outperform rating.
Today, IBM stock is extended 10% from the 266.45 buy point of a cup base. Its relative strength line is acting well, too. IBM has a Composite Rating of 86 and an ATR of 1.80%.
Caterpillar rose 11.5% in June and almost 18% in Q2. The stock is still 6% below prior highs, but has rallied 47% from its April low. Shares are back above the 200-day and 50-day lines. The construction and mining equipment maker has an 85 Composite Rating and 1.79% ATR.
Tariffs pose a large risk for the industrial company, which has warned it could lose $250 million to $350 million from tariffs in Q2 before any mitigating steps. Despite a weak Q1 report, Caterpillar stuck by its outlook for a slight sales decline in 2025.
Among the worst stocks in the Dow 30, McDonald's lost about 7% and Procter & Gamble 6% in June.
McDonald's, trading below its 50- and 200-day lines, saw customer traffic slip in Q1 amid consumer uncertainty. P&G announced last month it will cut 7,000 nonmanufacturing jobs over the next two years as it looks to streamline operations.
Dow Industrials: July Historically Is Best
In June, the Dow had its best month since January. For the second quarter, the Dow Jones average climbed 5%, making it eight out of the past 11 quarters that it finished higher.
Historically, June is a mediocre month for the Dow industrials. The index averages a 0.3% gain, lagging the S&P and Nasdaq. The Dow has finished the month higher about half the time, according to Dow Jones Market Data.
But July is historically the best month for the Dow, with an average gain of 1.5%, based on data back to 1897. The Dow will now try to stretch a 10-year win streak for the month of July.
