In the past year, investors have enjoyed a historic rally. Since the Covid-19 bear market, stocks have rebounded incredibly. This strong action is indicative of investors’ rising confidence that the economy will recover from its pandemic-induced weakness. Hence, many are screening companies with renewed optimism to find the best stocks to buy for September.
The novel coronavirus remains a concern, though, especially with the rise of the delta variant. However, as vaccinations reach more and more people, the impact of Covid-19 could dampen in the coming months.
The variant has negatively impacted consumer spending in America recently, just when we were anticipating an economic revival. Regardless, the major indexes have shown remarkable strength lately and have bounced back from the recent challenges.
There have been some clear winners and losers; therefore, investors need to look at the right combination of stocks to boost their portfolios. The list below includes the most promising stocks to buy for September and beyond.
- Nike (NYSE:NKE)
- GlaxoSmithKline (NYSE:GSK)
- Pfizer (NYSE:PFE)
- Upstart Holdings (NASDAQ:UPST)
- Airbnb (NASDAQ:ABNB)
- Fastly (NYSE:FSLY)
- Jumia (NYSE:JMIA)
Stocks To Buy: Nike (NKE)
Nike is set to report its first-quarter earnings on September 23. Investors are eagerly awaiting the results after the footwear and sports apparel giant killed it in the previous quarter.
Revenues were up 96% on a year-over-year (YOY) basis, led by a strong increase in digital sales. Moreover, gross margins grew by 140 basis points to 44.8%. On top of that, cash holdings rose by an incredible $4.7 billion. Hence, Nike is back to setting growth records, which should push NKE stock past the $200 mark.
During an earnings call in June, CEO John Donahoe said, “Today we are better positioned to drive sustainable long-term growth than we were before the pandemic.”
Analysts are expecting healthy year-over-year revenue growth of more than 13% for the fiscal year ending in 2022. The outlook implies a fundamentally stronger business than investors had seen as recently as 2019.
NKE stock currently trades for about $168 per share.
GlaxoSmithKline is a consumer products and biopharma giant with a market capitalization of more than $103 billion. Its robust pipeline in both its core business divisions puts it in a unique place in its industry.
Despite the weaknesses during the pandemic, it did well to fortify its balance sheet and limit its expenses. Moreover, it offers an attractive dividend yield of 5.4% with a payout ratio of more than 90%.
Its management believes future growth will be driven by a significant increase in vaccine and specialty medicine sales. It expects sales and adjusted operating profits to rise by 5% and 10%, respectively, between 2021 and 2026.
Additionally, its spin-off will unlock more shareholder value and help boost GSK stock’s price in the future.
GSK stock exchanges hands for about $41 per share.
Stocks to Buy: Pfizer (PFE)
Pfizer has been flying high this month after it received full approval for its Covid 19 vaccine. Moreover, its tick-borne encephalitis vaccine was also green-lit by the FDA, opening up another million-dollar opportunity.
The company boasts one of the deepest and most promising pipelines of drugs and therapeutics, which should continue powering PFE stock in the future.
Pfizer has been doing exceedingly well when it comes to improving its top- and bottom-line results. Its revenue and EBITDA growth on a YOY basis is 59.8% and 85.8%, respectively. Additionally, it possesses one of the strongest dividend portfolios with a forward yield of more than 3.3% and a 70% payout rate.
The stock’s returns are at a substantial 21% for the the past three months and are likely to grow at a vigorous pace in the coming years. Right now, it trades for about $47.
Upstart Holdings (UPST)
Upstart offers a platform that uses machine learning algorithms to make more effective loan-making decisions.
The platform aims to give higher approval rates, fewer defaults and lower loan payments. It is in the early stages of tapping into the massive credit and loan market, positioning it to become one of the top companies in fintech.
So far, the company has been proving its worth with its solid operating results. It recently reported its second-quarter results, where revenues rose to $194 million and beat expectations by more than $36 million.
Additionally, its GAAP and non-GAAP earnings per share comfortably beat estimates by sizeable margins. After its spectacular performance so far, it has bumped its revenue and EBITDA margins for the year. With a prodigious growth runway ahead, expect Upstart Holdings to reach new heights.
UPST stock currently trades around $218 per share.
Stocks to Buy: Airbnb (ABNB)
Travel platform Airbnb is a company with an unmatched business model and significant growth drivers. As travel demand increases, it will be in pole position to benefit from the pent-up demand.
Additionally, it has expanded into a new realm of hospitality that includes an array of options like outdoor, nature and culture activities. Hence, ABNB stock presents itself as one of the best Covid-19 recovery plays.
Airbnb had its strongest quarter to date, boosted by strong booking trends. Revenues in its third quarter were up almost 300% from the prior-year period as losses narrowed to $68 million.
Moreover, its gross booking value of $13.4 billion came in well ahead of the consensus estimates. Looking ahead, the company expects a healthy increase in its adjusted EBITDA margins in the second half of the year. All in all, it looks in great shape to round off the year in style.
Fastly is an edge cloud service provider, an evolving type of Infrastructure as a Service. The technology is being appreciated across the world, as it is operating in more than 25 countries.
The company has been increasing its capacity tremendously in the past year. Additionally, its net expansion rate was 138% in 2020.
In the past five quarters, its revenues have grown by double digits on a year-over-year basis. In its most recent quarter, revenues rose to $85.02 million, 13.9% higher than the prior year.
Network outages and customer delays have impacted its results in the second quarter. However, these concerns are likely to be short-lived; it is expected to grow at elevated levels, making FSLY one of the top stocks to buy for next month.
FSLY shares are currently priced at $44 a piece.
Stocks to Buy: Jumia (JMIA)
Jumia Technologies is an ecommerce giant operating in the African region. It has its operations in 11 countries in the region, with a market that attracts over 600 million people.
With its integrated platform, it has the potential to cement its positioning in the region, which is a growing market for digital sales.
Pandemic disruptions impacted earnings for Jumia in the past year. However, investors should have a long-term perspective about JMIA stock considering its massive growth runway.
If it can maintain a 20% growth rate over the next few years, it is on the path to achieving $1 billion in revenues. The global macro recovery will boost ecommerce sales across Africa, which should help Jumia get back on track.
JMIA stock currently trades for about $20 per share.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.