Bulls Stay Strong in June as Markets Hold Steady
After a powerful rally from April’s lows, the bulls have managed to hold their ground throughout June. Both the Nasdaq and the S&P 500 remain in a holding pattern, with the next potential catalyst likely coming from second-quarter earnings in mid-July.
Still, with trade progress ongoing, inflation under control, and earnings growth continuing, the market’s bullish backdrop remains intact. This highlights the importance of staying invested and consistently evaluating the best investments for maximum returns in 2025. Even when sentiment is uncertain, staying exposed to the market and identifying the best investments for maximum returns in 2025 can lead to strong long-term performance.
What to Look for in Stocks Right Now
June presents us an excellent opportunity for investors to target stocks with strengthening earnings outlooks and efficient profitability. One key metric to watch: Return on Equity (ROE).
Return on Equity (ROE): A Core Profitability Metric
Return on Equity (ROE) measures how effectively a company turns shareholder equity into profit. It tells you if a company’s leadership is building value or eroding it.
Formula:
ROE = Net Income / Shareholder’s Equity
For example, if a company generates $0.10 in net income for every $1 of shareholder equity, its ROE is 10%.
ROE is useful across all investing styles because it reflects how well management controls costs and creates value. A declining ROE can also signal underlying issues before they show up elsewhere.
Stock Screening Criteria
To find top-performing and efficiently-run companies, here are the criteria used in today’s screen:
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Zacks Rank #1 (Strong Buy): Based on upward earnings estimate revisions, the Zacks Rank #1 has delivered 25%+ average annual returns over 30 years.
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Stock Price ≥ $5: Excludes low-priced, speculative stocks.
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Price/Sales Ratio ≤ 1: Focuses on undervalued stocks with strong revenue relative to price.
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100% Strong Buy Broker Ratings: Includes only companies with full support from analysts.
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ROE ≥ 10%: Screens out firms with below-average profitability.
Featured Stock: Marubeni (MARUY)
One standout from this screen is Marubeni Corporation (MARUY), a Japanese conglomerate engaged in global trade and investment across sectors such as energy, food, chemicals, metals, and infrastructure. It also offers services like finance, logistics, and project development across nearly 70 countries.
Listed OTC in the U.S., Marubeni has surged over 250% in the past 10 years—far outpacing the S&P 500’s 200% and significantly outperforming the broader conglomerate sector, which has remained mostly flat.
Despite hitting all-time highs, MARUY trades at a compelling valuation:
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35% discount to its sector
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11% below recent highs
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Only 10.6X forward earnings
This Return on Equity of 13.5% far exceeds the industry average of 3.13%, and it offers a solid 2.71% dividend yield, making it an attractive option for value-focused investors seeking consistent returns and profit efficiency.
