In investing, finding the right stocks to buy can be a daunting task. But November 2023 offers a promising landscape for savvy investors. From streaming giants to semiconductor innovators, financial powerhouses to pharmaceutical leaders, and real estate moguls to entertainment behemoths, these seven bargain stocks are shaping the future with their growth strategies.
Here, the article delves into the intriguing strategies behind these stocks. It unveils the unique strengths and opportunities that make them smart investments for the month. These seven stocks are the stars of the show, each with its compelling narrative.
Read more to explore how their strategies, market positioning, and innovations position them for a bright future, making them your smartest buys in November!
Paramount’s (NASDAQ:PARA) streaming segment, Paramount Plus, is a key driver of its growth. In Q3 2023, Paramount Plus surpassed 63 million subscribers, a remarkable achievement. It demonstrates the company’s ability to attract and retain a substantial user base. The streaming service experienced 38% growth in D2C revenue in Q3, reflecting strong demand for its content. This growth is further bolstered by successful price increases, indicating that customers are willing to pay more for the service.
Finally, Paramount’s expansion into the global streaming market is an important part of its growth strategy. The company adapts its approach to suit the unique dynamics of different markets. In major territories like the U.K. and Australia, Paramount operates its streaming platforms, benefiting from cross-promotion and programming with local broadcast networks. Therefore, this approach enhances its presence and monetization.
Extra Space Storage (EXR)
Extra Space Storage’s (NYSE:EXR) ability to maintain high and stable occupancy levels is a fundamental strength that underpins its growth. As of the end of June 2023, the company reported an impressive occupancy rate of 94.5% (Q2 2023), considered robust in the self-storage industry. This high occupancy rate not only indicates strong demand for storage units but also serves as a crucial revenue driver. When occupancy rates are consistently high, it maximizes the revenue potential of each facility. A high occupancy rate means most available storage units are leased, generating higher rental income.
Moreover, the stability of these occupancy levels is noteworthy. While rental volume may have decreased year-over-year, the company effectively minimized vacates. As a result, it is enabling sequential increases in occupancy throughout the quarter. Overall, this stability in occupancy levels represents Extra Space Storage’s operational excellence, customer satisfaction, and efficient retention strategies.
ACM Research (ACMR)
China’s role in the semiconductor industry has grown significantly in recent years. ACM Research (NASDAQ:ACMR) recognized this trend and positioned itself strategically to take advantage of the opportunities in China. After US-China trade restrictions, some analysts predicted a dramatic decline in China’s WFE (Wafer Fabrication Equipment) market. However, ACM Research foresaw a shift towards spending on mature nodes in China and predicted this shift correctly.
Also, the company’s prediction has played out, as China has indeed accelerated its capacity expansion in mature nodes, driven by a substantial gap between its mature node capacity and market consumption. This is supported by continued investments in 28nm, 45nm, and above front-end fab capacity. Additionally, ramping electric vehicle (EV) production in China contributes to China-based investment in power devices and other 28nm and 45nm devices.
Finally, ACM Research’s strategic positioning in China is a significant strength, as it may benefit from China’s intensified efforts to boost its domestic semiconductor capabilities. This includes the expansion of the Lingang Production and R&D center in China, which is expected to begin initial production later this year.
Bank of America (BAC)
Bank of America’s (NYSE:BAC) ability to sustain growth is a core strength that supports its rapid expansion. For the first nine months of the year, the bank reported earnings of $23.4 billion, marking a 15% increase over the previous year. This earnings growth for the first three quarters of the year signifies that Bank of America is not only capable of maintaining profitability but also of expanding its operations.
On the other hand, Bank of America’s organic growth in client acquisition and account openings is another significant strength. The bank has attracted new clients across all its business segments, demonstrating its appeal and ability to expand its customer base.
In the consumer segment, for example, the bank opened over 200K net new checking accounts in the third quarter alone. In the global wealth management segment, the bank added nearly 7K net new relationships to the Merrill and Private Bank franchises. Finally, its advisors opened more than 35K new client bank accounts for the third consecutive quarter. Therefore, this indicates a solid ability to cater to high-net-worth individuals and provide comprehensive financial services.
Amid skepticism, Pfizer’s (NYSE:PFE) trajectory in the coronavirus segment offers hope. With expectations set for Comirnaty and Paxlovid to generate consistent, if modest, profits, the company may find a parallel in the seasonal flu market. This shift promises a potential windfall, given Pfizer’s commanding 65% market share in the first half of the year. Furthermore, Pfizer’s vaccine earnings are bolstering strategic expansions and acquisitions, poised to amplify its revenue by 2030 significantly.
Additionally, the company’s focus on areas like the migraine market with oral CGRPs is a prime example. These therapies can become the first-line treatment for migraines, addressing a significant unmet need in healthcare. Fundamentally, Pfizer’s products have experienced strong uptake and growth in the market. For instance, the Vyndaqel family of products recorded 47% operational growth compared to the third quarter of the previous year.
Overall, strong uptake and growth are key indicators of a company’s growth potential. This positive market response positions Pfizer for continued expansion and increased market share.
Realty Income (O)
The quality of Realty Income’s (NYSE:O) real estate portfolio is a crucial driver of its growth potential. The company’s focus on investing in high-quality properties is evident in its results; with over 13K properties in its diversified real estate portfolio, Realty Income benefits from a broad range of income streams, offering a resilient and stable source of cash flows.
Additionally, a high-quality real estate portfolio provides a solid foundation for growth. This ensures that the company’s revenue streams are not only consistent but also sustainable, reducing the impact of market volatility. Thus, the quality-focused approach supports Realty Income’s capacity for rapid expansion.
Apart from that, Realty Income’s international expansion and geographic diversification represent significant growth opportunities. The company’s ability to close on $416 million of investments with an initial cash lease yield of 7.1% internationally in the second quarter underscores its global reach. The addition of a new geographic vertical in Ireland further diversifies its portfolio. Therefore, international expansion and geographic diversification not only offer new growth avenues but also mitigate risk by reducing dependency on any single market.
Disney’s (NYSE:DIS) pivot to the digital landscape with Disney+ and other streaming platforms is a fundamental strength that sets the company on a growth trajectory. Disney+ was launched in late 2019 and became a significant player in the streaming wars. Within a short period, it gained over 100 million subscribers, surpassing expectations.
Additionally, Disney+ benefits from the extensive Disney IP, offering subscribers access to a vast library of content, including classic animated films, Pixar movies, Marvel superhero stories, Star Wars adventures, and original series. The success of Disney+ demonstrates Disney’s ability to adapt to evolving consumer preferences and capitalize on the shift from traditional television to streaming.
Looking forward, the company’s focus on DTC is evident in its aim to achieve profitability in this segment by the end of fiscal 2024. Overall, this strategic focus on streaming positions Disney for continued growth in the digital entertainment space.
As of this writing, Yiannis Zourmpanos held long positions in PARA, EXR, BAC, PFE, and DIS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.