According to Federal Reserve data, the United States household wealth reached a record high of $154.3 trillion during Q2 2023. This development carries substantial significance for the stock market. It signifies the complete recovery of consumer wealth from recent challenges driven by inflation-induced fluctuations in stock prices and real estate values. Over just three months, household and nonprofit net wealth alone grew by $5.5 trillion, representing an impressive 4% increase. That is particularly advantageous for the stock market because these figures are not adjusted for inflation, suggesting the true overall value is much greater. As wealth accumulates, individuals and organizations are likely to explore investment opportunities, and this influx of capital could foster ongoing growth for many companies. In particular, here are three Nasdaq stocks to buy in September 2023 for long-term growth and returns in your portfolio.
The Trade Desk (TTD)
The Trade Desk (NASDAQ:TTD) is a digital marketing company offering advertisers a platform for efficient and modern advertising. Trade Desk differentiates itself from competitors through diverse advertising formats and a data-driven approach.
The global market for digital advertising was valued at $531 billion as of 2022 and is forecasted to reach $1.5 trillion by 2030 from a 13.9% CAGR during the time period. Consumers increasingly rely on digital devices, e-commerce and social media, which has automated targeting to higher engaged spending on products.
Trade Desk has robust financials, and revenue has steadily grown every year. In 2022 alone, Trade Desk’s revenue of $1.57 billion beat 2021’s $1.19 billion by 31.9%, and 2023 could see $1.73 billion. The company is highly profitable in the long term as a levered free cash flow (FCF) margin of 29.20 outperformed the sector median by 247.53%.
Recently, TTD launched Kokai, introducing a new system for digital advertising creation incorporating artificial intelligence (AI) into media buying for advertisements. This new platform offers advances in user experience, advertising impressions per second and upgrades in measurement and forecasting.
Chief Executive Officer (CEO) Jeff Green even stated, “With Kokai, we are able to help our clients make sense of that data…and help the marketer make the best decisions at every turn.” The deep-learning technology assists advertisers in purchasing the most suitable ad impressions at optimal pricing to reach target audiences at the most opportune moments. Kokai will, in turn, be a long-term success towards The Trade Desk’s ability to gain more market share and stable financials.
Overall, TTD stock is a worthwhile strong buy stock for long-term growth-oriented investors.
Entegris (NASDAQ:ENTG) is an American provider of products and systems that cater to the product cycle and transport critical materials used in the semiconductor device fabrication process.
ENTG is up 48.93% YTD and is worth $95.51. Yahoo! Finance reported that 12 analysts predicted an average target for ENTG stock of $115.50, with expectations spanning from as low as $94.00 to a high of $129.00.
The semiconductor and technology market is rapidly growing to accommodate the technology-driven world. In 2021, the global semiconductor market was valued at $527.88 billion and is anticipated to grow at a 12.2% CAGR to $1,380.79 billion by 2029.
Entegris’ most recent quarter, showed revenue of $901 million, growing by 30.1% year-over-year (YoY) and beating revenue estimates from analysts by 1.60%. Net income of $197.65 million grew by 98.66%, and diluted EPS of $1.31 increased by 79.45%, beating analysts’ expectations by 16.43%.
The company has various initiatives that will strengthen its business for long-term growth. Recently, Entegris successfully acquired CMC Materials and is now the global leader in electronic materials. Entegris now operates in micro-contamination control, specialty chemicals and engineered materials, advanced materials handling and planarization solutions. That strategic diversification mitigates risks associated with market dependencies on Entegris. Furthermore, ENTG now has the ability to cross-sell across product lines for stronger financials in the long term, and this new acquisition fosters innovation and enhances customer trust.
ENTG is a stock worth buying for the long term, as it is now the global leader in electronic materials. The company is rapidly acquiring notable competitors, and finances are faring well.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is an American corporation that creates robotic products designed to improve clinical outcomes of patients on the minimally invasive surgical system — da Vinci.
ISRG stock is up 13.82% YTD and is currently valued at $302.35. Yahoo! Finance reported that 20 analysts predicted a 1-year average price target on ISRG stock of $368.32, with a range spanning from $315.00 to $400.00.
Financials for Intuitive Surgical have been historically strong. In its recent quarter, the company reported revenue of $1.76 billion, increasing by 15.36% YoY, a 36.71% YoY bump in net income of $420.80, and diluted EPS of $1.18, increasing by 38.82%. Additionally, the company’s operating income increased 16% YoY to $463 million, demonstrating how ISRG is highly profitable and has the necessary funds needed for the long term.
The global dental equipment market was valued at $6.28 billion in 2021 and is forecasted to grow at an 8.7% CAGR to $13.31 billion by 2030. A rise in dental disease incidents and the consumer demand for cosmetic dentistry are driving the growth of this industry.
Recently, Versor Investments, a notable investment firm, acquired 1,500 shares of ISRG stock at $383,000. The strategic move reflects the growing confidence in Intuitive Surgical’s performance and its outlook for the medical equipment sector. The company’s ability to attract reputable investment firms such as Versor Investments LP underscores its strong position within the medical equipment sector. That investment bolsters the firm’s financial resilience and signifies the wider sector’s acknowledgment of its pioneering advancements in the industry.
As a frontrunner in the realm of minimally invasive robotic-assisted surgical technology, ISRG’s offerings persist in reshaping the healthcare landscape, facilitating safer and more streamlined surgical interventions.
ISRG is a stock you do not want to miss out on. Its long-term growth catalysts are evident, and notable investment firms such as Versor Investments are investing in this company to help it grow exponentially in the foreseeable future.
On the date of publication, Michael Que did not hold (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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.