This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

According to our analysis of market returns since 1980, June is not one of the better months for stocks. On average, equity investors in June eke out a 0.4% return for the month, which is better than only the weakest months of February, August, and September. The winning percentage is 63%, higher than only the 3Q summer months. We note that market returns in June have exceeded 5% only four times in the past 37 years: a 5.4% increase in 1999, a 6.9% gain in 2019, and a 6.3% pop in 2023. Last year was pretty good, up 5.0%. Clunkers include 2008 (-8.6%), 2002 (-7.2%), 2010 (-6.1%), and 1991 (-4.8%). June typically is a quiet month for earnings as the second quarter draws to a close, though a few odd-quarter bellwethers such as Oracle and FedEx will release results that are often predictive of the EPS season that will start in July. But don't be surprised if there are fireworks on the economic, interest rate, and inflation fronts. On Friday, the non-farm payrolls report be released and will be watched closely by those looking to gauge the strength of the employment and the consumer segments of the economy. Our forecast is for a solid 125,000 new jobs, up from 115,000 new jobs last month and supportive of economic growth. The Federal Reserve meets for the first time under Chairman Kevin Warsh. The market does not expect the central bank to lower the federal funds rate, but the Fed may signal its intentions for the balance of the year. Inflation data released mid-month should indicate that pricing pressures continue to mount due to the war in Iran and the resultant high oil prices. That said, once the war is over, we expect oil prices to head lower and we do not see inflation as being in a sustained upcycle. At least not yet.

Southern Co. is an electric and gas utility and wholesaler with 9 million customers and over 46,000 megawatts of generating capacity. Southern's 4.6 million regulated electricity customers are primarily located in Mississippi, Alabama, and Georgia. Its gas utilities provide distribution and wholesale gas operations with over 78,000 pipeline miles regulated by the Federal Energy Regulatory Commission. SO serves about 4.4 million state-regulated gas customers with operations in Georgia, Tennessee, Illinois, and Virginia. The company also offers digital wireless and fiber-optic services and operates about 4,000 route miles. In 2025, consolidated operating revenues were $29.6 billion, of which about 17% were from gas operations and about 65% were from retail electric operations. The company's largest utility, Georgia Power, accounted for about 43% of total revenues. SO's fuel mix is about 49% natural gas, 18% coal, 19% nuclear, and 14% renewables. It is working to achieve net-zero greenhouse-gas emissions by 2050, later than peers without coal generation. The company faced rising costs and delays building its latest two nuclear generators - the first U.S. nuclear units built in the last 30 years. Vogtle 3 became operational in July 2023, and Vogtle 4 became fully operational in April 2024. SO shares are a component of the S&P 500. The company's market cap is $109 billion.