Some of the greatest performances in history have taken place in June. Patrick Kane’s Stanley Cup game winning goal in OT against the Flyers, Jordan’s “Flu Game” and American Pharoah’s winning the Triple Crown. But with all the fantastic action in the wide world of sports, don’t forget about the big winners in the stock market.

While those who sold in May are set on the sidelines watching the action, others are enjoying watching their stocks breakout to fresh highs. Here I’m searching for hot momentum stocks on the move that I hope can put in some legendary performances during the month of June.

I’m looking for Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks that are breaking through to fresh 52-week highs. But those criteria aren’t enough to cut down the list of acceptable stocks to a select few. When I’m looking for breakout stocks to buy, I want to look for stocks that have exceptional strength relative to the S&P 500 but I also want to find stocks that are more volatile than the overall market.

This added historical volatility of a stock can lead to huge profits when the market looks favorably on a stock. The higher beta stocks have a tendency to do better than the broad indexes inside of a bull market. This is a high stakes sort of trade we’re looking for and as a result, we’re not going to shy away from this volatility.

By screening for these criteria we’ve managed to cut down the stock universe to 10-15 names we can then put under the microscope. My microscope is my trend, trace and trigger method of technical analysis. I look for stocks that are in an uptrend, close to a support level, and coming off a recent “Buy” signal.

Sothebys (BID - Snapshot Report)

Sotheby's Holdings, Inc. is one of the world's second largest auctioneers of fine arts, antiques and collectibles, offering property in collecting categories, among them paintings, jewelry, decorative arts, and books. Sotheby's Holdings, Inc is the parent company of Sotheby's worldwide auction businesses, art-related financing and private sales activities.

Shares of BID have recently broken out to new highs, piercing through resistance at February’s $45.41 level. An encouraging sign is the Commodity Channel Index moving off the zero line back into overbought territory while shares move in a positive direction. The breakout puts the psychological $50 level into play.

Boyd Gaming (BYD - Snapshot Report)

BOYD GAMING CORP. is a multi-jurisdictional gaming company which currently owns or operates ten casino entertainment facilities, is in the process of constructing its eleventh property, acquiring its twelfth property and recently acquired land upon which it intends to construct its thirteenth property. 

BYD shares are butting up against strong topside resistance at the 52 week high here near $15. Volume has been relatively consistent over the last year or so, with a few spikes along the way. This recent push towards the highs began at the end of April. Shares popped above the 21 day moving average and have been there ever since. One reason for caution is an overbought Commodity Channel Index coming down from 200 to 92.27. Given the positively sloped 21 day moving average, a bullish sentiment still prevails.

G-III Apparel (GIII - Snapshot Report)

G-III Apparel Group, Ltd. designs, manufactures, imports & markets an extensive range of leather & non-leather apparel including coats, jackets, pants, skirts & other sportswear items.

Over the course of the last couple of weeks we’ve seen a significant uptick in volume. This served as confirmation of the breakout from previous resistance at $60. It took a lot of positive momentum to get the stock there. After bottoming out with the rest of the market in mid-October GIII stock has risen from $35 to the levels it enjoys today. Along the way, GIII has bounced along the 21 day moving average several times, even dipping below it for a few days on two occasions. Currently the 21 day sits near $58, giving plenty of support for the rally.

Bottom Line

You can find the next top performers by using the Zacks Rank to identify top stocks that have great upside potential. We can cut out a target list of the strongest of these ideas by looking for stocks with high beta at fresh 52-week highs. Here are three great examples of stocks with fantastic upside potential for a great June breakout performance. 

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