5 stocks to watch in June

Important information - the value of investments and the income from them, can go down as well as up, so you may get back less than you invest.

There are a few things investors will be watching out for. One is artificial intelligence. Among Halma’s customer base is a hyperscaler – a very large internet infrastructure company. Demand from this client has been strong as it has needed equipment for data centres. It was responsible for almost a fifth of group revenue in the first half of 2026, up from 14% in 2025.²

In many ways, this is good news: Halma is benefitting from the AI megatrend. However, it brings concentration risk too. If this customer moved to a different supplier, sales could tumble.

Another thing to note is valuation. Halma trades on a forward price/earnings ratio of 35 times. The average valuation of a FTSE 100 company is 13 times and Halma’s own 10-year average sits at 30 times.³ The premium reflects Halma’s excellent track record and its confident outlook. However, if sentiment shifts, the lofty rating could suffer.

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Chemring

Half-year results: 2 June

The defence sector’s blistering rally has stalled this year. German defence giant Rheinmetall is down by a fifth since January, while Italy’s Leonardo SpA appears to have plateaued. Further down the food chain, however, plenty of progress is still being made.

Chemring is a FTSE 250 company that makes most of its money from defence customers. It has two divisions: sensors & information, and countermeasures & energetics. Most of the recent excitement has centred around ‘energetics’ - another word for explosives and propellants. Orders have surged as Europe has scrambled to re-arm, and Chemring has been investing heavily in Norway, the US and Scotland to increase its manufacturing power.

Chemring is set to report interim results on 2 June. Profits are due to be in line with expectations and chief executive Michael Ord said the company remains “well positioned to benefit from rising defence spending across NATO and allied nations”.⁴

There are a couple of flies in the ointment for shareholders. In a February trading update, Chemring mentioned that 2026 had got off to a slightly slow start due to “operational disruption” in its factory in Tennessee. It reassured investors that the issue had been largely resolved, but problems in the Tennessee factory did knock profits back in 2024.⁵

The smaller sensors & information business also remains a headache for investors. Recent trading has been mixed, and there have been hold-ups to key UK government orders. Chemring’s results next month should tell us more.

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Berkeley Group Holdings

Full-year results: Wednesday 24 June

It is a tough time to be a housebuilder. For a while, things were picking up. Mortgage rates were falling, consumer confidence was cautiously improving, and the government had set ambitious targets for new homes. Conflict in the Middle East has undone this progress, however.

The closure of the Strait of Hormuz has caused energy prices to surge, reviving fears about inflation. This has had a knock-on effect on the housing market: the new backdrop means interest rate cuts are deemed less likely, which has pushed up mortgage rates and dampened demand.

FTSE 100 housebuilder Berkeley Group Holdings - which is due to publish annual results on 24 June - lamented this “deterioration” in its latest trading update.

Berkeley occupies an unusual spot in the housing sector. It focuses on redeveloping large brownfield sites - land that had previously been used for industrial or commercial purposes - in London and the south-east. It is the only big UK developer to do this. It sells its homes for an average of £657,000 (more than most of its rivals) and has a reputation for high quality builds.⁶

In different economic conditions, this would be a unique selling point. At the moment, however, it presents challenges. The London market is under pressure and redeveloping brownfield sites is an expensive business when everyone is cutting costs.

Berkeley Group surprised the market in April when it published a major strategy review. It announced plans to stop buying new land, saying prices are ‘overheated’ and it is unable to make an adequate return. It also cut its profit guidance for the next four years to £1.4bn.⁷ Investors previously expected profits of about £2bn.

Berkeley’s upcoming results shouldn’t contain too many surprises. The company said it was still on track to achieve profits of £450m for the 12 months to April 2026. However, investors have their eyes firmly fixed on the years ahead and will be weighing up whether current share price weakness presents an opportunity.

Berkeley is expected to fall out of the FTSE 100 in a June reshuffle, alongside property platform Rightmove and packaging manufacturer Mondi.

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Wizz Air

Full-year results: Thursday 11 June

Wizz Air has hit some turbulence. In 2024 and 2025, issues with its Airbus engines sparked two profit warnings, with 60 of its planes grounded at one point. 2026 brought a fresh challenge: conflict in the Middle East. This has caused the cost of jet fuel to surge and stoked concerns about fuel shortages.

In March, Wizz Air reacted to the new environment by cutting its profit forecasts for 2026. It previously expected net profits to range from -€25m to €25m, but said figures were likely to fall below this. Since then, there has been some good news. Wizz Air now expects to break even and may even report a “slightly positive” net profit for the year. ⁸

It flagged “strong demand trends” for the summer period and said it had hedged about 70% of its summer fuel needs at $720 per metric tonne. The spot price for jet fuel was $1,350 in May, so Wizz appears to have cushioned itself against the worst of the summer energy shock.

Some analysts remain sceptical, however. Investment bank Panmure Liberum warned that Wizz Air has a lot of debt. At the third quarter mark, the company’s leverage ratio - which compares its net debt to its profits - was 4 times. This compares to 1.4 times for an average FTSE 250 company.

“In our view, high leverage and low (currently negative) profit margins are an unappealing combination in the face of an uncertain outlook for demand and fuel costs,” Panmure Liberum concluded.⁹

However, others will be drawn to Wizz Air’s lowly valuation and hope that it can overcome its temporary challenges.

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B&M European Value Retail

Full-year results: Wednesday 3 June

June is a busy month for retailers, with Tesco, WH Smith, AO World and Moonpig all set to publish updates. B&M European Value Retail will lead the pack, however, with full-year results due on 3 June.

The discount retailer lowered its profit guidance in January and now expects to post cash profits of between £440m and £475m for the 12 months to March 2026.¹⁰ This compares with profit of £620m last year. Organic growth has proved hard to come by lately, and the company is focused on lowering prices and clearing old stock. Fresh worries about inflation have also knocked confidence.

Of all the UK’s retailers, B&M tends to split opinion more than any other. Some investors fear discounters like B&M are too cyclical and vulnerable to pressure from rivals. Others are more optimistic, arguing it is possible to achieve huge scale and decent profit margins.

“With its new Back to B&M Basics plan, the group aims to boost its retail execution over a 12- to 18-month horizon, which should put it back on track to achieve sustained like-for-like growth and restore [profit] margins,” analysts at Kepler Cheuvreux concluded.¹¹

Its valuation has certainly taken a battering. It currently trades on a forward price/earnings ratio of under 9 times versus a five-year average of 13 times.

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Source:

¹ Morningstar Equity Analyst Report Report, 16 May 2026
² Halma half year results, 2025/26
³ Kepler Cheuvreux Equity Research, 11 May 2026
^4,5 Chemring AGM update, 20 February 2026
⁶ Morningstar Equity Analyst Report, 9 April 2026
⁷ Berkeley Group, 1 April 2026
⁸ Wizz Air Holdings, 4 March 2026
⁹ Panmure Liberum, 13 May 2026
¹⁰ B&M European Value Retail, 22 January 2026
¹¹ Kepler Cheuvreux Equity Research, 2 April 2026