Stock market

Are these FTSE 100 stocks worth considering in June?

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FTSE 100 Stock prices continue to rise as investors put their money back into the UK stock market after a few years. But are these two stocks worth considering this month?

EasyJet

First is EasyJet (LSE: EZJ). After the 14.2% drop in May, I’m wondering if now is the time to add an airline stalwart to my portfolio?

After a disappointing May, that now means the stock is down 6.8% in 2024. But now trading at 9.8 times earnings, its shares look like good value for money.

The fall was led by its half-year results, which were released on May 16. The business recorded a headline pre-tax loss of £350m last year. This is an improvement from a loss of £411m in 2023. Nevertheless, a 7% drop in the share price showed that investors were not happy.

But could now be a smart time to pick up and take some shares? It won’t be a smooth ride in the coming months. EasyJet still faces challenges such as the impact of flights from the Gaza conflict.

However, with £146m of net cash on its books, back from the £485m of net debt it has in 2023, the business is in a very strong position.

It has also continued to make progress with its holidays business, which posted pre-tax profits of £31m for the period and saw customer growth of 42% year-on-year.

With consumers clearly strapped for cash and interest rate cuts pushed back, I think its holiday business, which offers cheap package deals, is primed for success over the next few years. May be. This year, the firm expects the holiday to deliver pre-tax profits of more than £170m, up more than 40% year-on-year.

JD Sports Fashion

Unlike EasyJet, JD Sports Fashion (LSE: JD.) rallied in May, climbing 13.7%. But despite this increase, it is down 14.8 percent year-to-date.

The stock has largely been out of favor with investors over the past year. A number of profit warnings have seen its share price struggle. As JD said, it is currently working with “A very challenging market”.

Clearly, the biggest threat to the business in the coming months is consumer slowdown. We’ve seen the impact that profit warnings have had on stocks in recent days. Hence, any negative update going forward could see the stock fall.

But in its latest release, management said it is on track to provide full-year guidance for the coming year. And with the big picture in mind, I’m happy with the stock for the long term.

Management has ambitious plans to continue its aggressive expansion plans in the UK and abroad. Last year, it opened more than 200 new stores as it plans to buy Europe-based courier and US businesses. Habit Sports. This will add about 1500 stores to its portfolio.

Today, I think JD shares look cheap. Investors can find them trading at 13 times earnings. That’s well below its long-term historical average of around 23.

If I had investable cash, I would strongly consider adding both easyJet and JD Sports to my portfolio this month.


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