Top Stocks For Smart Investment Choices

September has shown to be tough for the stock market. This article lists ten strong buy stocks, ready to grow. Read on for smart choices.

Key Takeaways

• September is a tough month for stocks, but ten strong buy stocks are picked using a Quant Rating System. This system looks at value, growth, and more.
• Key events like the Federal Open Market Committee meeting affect stock investments. Inflation and presidential elections also impact the market.
• Stocks like Taiwan Semiconductor Manufacturing Company and General Motors show promise for investors. They rank high in their sectors because of good growth and financial health.

Factors Contributing to Market Volatility

Many things can shake the stock market. Events like big elections, inflation worries, and economic news often cause ups and downs in the market.

Historical September Performance

September is a tough month for global stocks. Facts show it’s the worst one for the market. The S&P 500, which tracks 500 large companies in the U.S., only wins 30% of the time in September over ten years.

This means most Septembers end with lower stock values than they started.

Investors need to know this as they plan. If stocks usually drop in September, it might not be the best time to buy big. Instead, waiting or picking safer investments could work better until October comes around.

This pattern impacts financial markets and can change how people invest their money during this month.

The S&P 500 has a track record of falling more often than not in September, making it a critical period for investors to be cautious.

Upcoming Economic Events

Moving on from historical performance, a key event to watch is the Federal Open Market Committee (FOMC) meeting set for September 18, 2024. This meeting will be crucial for investors as decisions made here often affect the stock market.

A significant point of interest is the expected 25 basis point cut in interest rates. With a 71% chance of this happening, it could change how people invest.

This rate cut aims to make borrowing cheaper and could lead to more spending and investment in stocks. For anyone holding or looking to buy US stocks, this event could impact their decisions.

Knowing these details helps investors plan their next move carefully.

Inflation Concerns

After looking at future economic events, it’s clear that inflation worries many. Prices for things like food and gas keep going up. This makes life cost more for people. Investors watch this closely because high inflation can change how valuable stocks are.

If prices rise too much, the money from bonds or dividends might not buy as much as before.

Some fear that if inflation stays high, banks may make interest rates higher to control it. When rates go up, borrowing costs more for people and businesses. This can slow down spending and investment.

High interest can also make stock prices fall because other investments might offer better returns with less risk.

November Presidential Election

The U.S. presidential elections in November can change the stock market. People vote and this can move stocks up or down.

Voter sentiment impacts equity markets during the presidential elections.

Strong Buy Stocks for Potential Buying Opportunities

Investigate the potential of a quant rating system and analytics to reveal ten prominent stocks ready for investment. Delve deeper for intelligent purchasing alternatives.

Utilizing Quant Rating System

The Quant Rating System looks at several key areas: valuation, growth, profitability, earnings power, and relative momentum. Seeking Alpha’s Quant team uses this system to find ten top stocks.

They call these “Strong Buy” stocks because they score high across these categories.

These stocks are chosen because they promise value and growth. This makes them smart choices for investors. The system is precise in picking these opportunities by using numbers and facts from the market.

Analytics Focus

In choosing stocks, the Quant Rating System looks at five key areas: value, growth, how much money a company makes, strength of earnings, and stock movement compared to others. This method helps investors find companies with good potential for price increase.

For a stock to be picked, it must have a market cap above $500 million and its price over $2 dollars.

The selected ten stocks meet these strict criteria proving their strong position for smart investment choices.

Using this system makes investing less risky by picking out stocks that show signs of doing well in the future. It sorts the good from the bad based on solid numbers and facts. Investors can trust this approach for smarter choices in the stock market.

Ten Selected Stocks

Investors often look for stocks that show promise. The ten stocks listed here come with high Quant ratings, making them smart picks across different sectors.

1. Taiwan Semiconductor Manufacturing Company Limited (TSM) leads in chip making. Its tech keeps phones and computers running.
2. General Motors (GM) stands out in the car industry. Electric vehicles push its growth.
3. Green Brick Partners (GRBK) builds homes. More people buying houses boosts its shares.
4. Blue Bird Corporation (BLBD) makes buses. Schools and cities buying more buses help it grow.
5. SkyWest, Inc. (SKYW) flies regional planes. More flights mean more business for them.
6. Synchrony Financial (SYF) deals with credit cards and loans. When people spend more, they profit.
7. Royal Caribbean Cruises Ltd. (RCL) sails ships for vacations. As travel picks up, so do its profits.
8. Powell Industries, Inc. (POWL) makes electrical equipment for industries and utilities.
9. Abercrombie & Fitch, Co. (ANF) sells clothes and accessories, appealing to young shoppers around the world.
   10.Kirby Corporation (KEX) moves goods on waterways, helping trade flow smoothly.

These companies range from tech to travel, showing diverse ways to invest wisely.

Top Stocks for Smart Investment Choices

Smart investment choices lead to strong portfolios. The list here offers promising shares for smart investors.

Taiwan Semiconductor Manufacturing Company Limited (TSM)

Taiwan Semiconductor Manufacturing Company Limited (TSM) stands out in the information technology sector. It ranks third out of 556, showing strong performance. The company has a market value of $742.81 billion.

Over the last year, TSM’s value went up by 81.67%. This growth is impressive.

TSM plans to spend $30-32 billion on new technology for making chips better and faster. They expect their sales to grow by 13.32% soon. Investors see TSM as a smart choice because it keeps growing and investing in its future.

General Motors (GM)

General Motors (GM) stands out in the consumer discretionary sector, ranking first among 502. Its market value is $52.98 billion. GM has shown strong growth, with a 10.77% return last month and 43.63% over the past year.

The company offers a dividend yield of 0.99%. Experts predict its revenue will grow by 4.53% moving forward.

Next up is Green Brick Partners (GRBK), another top pick for investors looking for smart choices in today’s market.

Green Brick Partners (GRBK)

Green Brick Partners (GRBK) stands out in the consumer discretionary sector. The company has seen a 61.97% rise over the past year, making it an attractive pick for investors. With a market cap of $3.30 billion and the lowest debt-to-capital ratio at 17.7% among its peers, it shows strong financial health.

In Q2, Green Brick Partners surprised investors with earnings over $57 million more than expected. This performance puts it in a good spot within its sector, ranked 5 out of 502 according to Quant ratings.

These numbers make GRBK a smart choice for those looking to add value stocks to their investment portfolio.

Blue Bird Corporation (BLBD)

Blue Bird Corporation stands out in the industrials sector with a market value of $1.50 billion. It ranks 10th out of 628, showing strong performance. Since the start of 2024, Blue Bird has returned an impressive 70.14%.

In the third quarter alone, its adjusted EBITDA hit $48 million. This is $19 million more than last year. Analysts are positive about Blue Bird’s future too. They have raised their earnings per share (EPS) forecasts four times in just three months.

SkyWest, Inc. (SKYW)

SkyWest, Inc. stands out in the industrials sector with a market cap of $3.03 billion. It ranks 12th out of 628, showing strong performance. Last year, it returned an impressive 73.32%.

Its second-quarter revenue hit $867 million, growing by 19% from before. Also, its EBITDA went up by 35.24%. This growth makes SkyWest a smart pick for investors looking at the numbers and trends in finance and investment products like mutual funds or exchange-traded funds (ETFs).

Synchrony Financial (SYF)

Synchrony Financial stands strong in the financial sector. Its market value reaches $18.74 billion, putting it 41st out of 680 companies. It impresses with a 51.96% return over the past year.

Deposits from customers grew by 10%, and loan money given out increased by 8%. Also, it offers a forward dividend yield of 2.11%. This shows Synchrony is good for investors looking at banking and lending.

Its success comes from smart handling of money and giving loans carefully. With solid growth in deposits and loans, Synchrony proves it’s on top of its game in the finance world. For those wanting to invest in stocks that deal with mortgages, stakes, or checking accounts, SYF shows promise as a lucrative choice with steady returns and growth potential.

Royal Caribbean Cruises Ltd. (RCL)

Transitioning from Synchrony Financial, Royal Caribbean Cruises Ltd. distinguishes itself in the consumer discretionary sector. It commands a hefty market value of $42.08 billion, highlighting its significant part in the industry.

This year marked a 23.50% surge in returns, and over the previous year, profits escalated to 64.10%. Additionally, it takes pride in a 33.99% margin in earnings before interest, taxes, depreciation, and amortization (EBITDA).

More recently, analysts have demonstrated increasing confidence in RCL, revising their earnings per share (EPS) estimates upward 19 times within a mere three months.

Royal Caribbean doesn’t merely traverse ocean waves; it also stirs ripples in its sector, taking the 14th position out of 502 companies in terms of performance. Given such solid numbers and positive revisions from expert market observers, investors can understand the potential of RCL as a strategic addition to their portfolios, assured of their investment in one of the industry’s prime entities.

Powell Industries, Inc. (POWL)

Powell Industries, Inc. stands out in the industrials sector. Its market cap hits $1.80 billion, ranking 23rd out of 628 in its field this year. The company saw a big leap with its shares jumping 75.80% since January.

In the second quarter, Powell’s revenue soared by 50% compared to last year. They also surprised investors by beating earnings per share estimates by $1.63.

This performance makes Powell Industries a smart pick for investors looking at solid growth numbers and reliable financial health within the industrials space. Their success points to strong management and a good position in the market which can interest those wanting to invest smartly.

Abercrombie & Fitch, Co. (ANF)

Moving from Powell Industries to Abercrombie & Fitch, Co. (ANF) brings us to a different sector: Consumer Discretionary. ANF boasts a market capitalization of $6.69 billion. Over the past year, its return hit 149.55%.

This shows strong growth in the consumer space. The company also reports a gross profit margin of 64.60%, which is quite high. Looking ahead, ANF expects its forward EBITDA growth to be 55.13%.

These numbers suggest that ANF is performing well and could be a smart choice for investors looking at the consumer discretionary sector for opportunities.

Kirby Corporation (KEX)

Kirby Corporation operates in the industrials sector and has a market size of $6.63 billion. This company focuses on marine transportation, showing a revenue increase of 14% from last year.

Its total growth rate for all revenues hit 6.41%. The price to book value stands at 2.01.

This firm’s success reflects well on its smart investment choice status among investors looking into the industrials space. Next, we’ll explore another compelling stock option beyond Kirby Corporation.

Conclusion

Smart investors pick stocks like TSM, GM, and GRBK for growth. These companies show strong numbers and have good potential. Tools like the Quant Rating System help find these top choices.

Investing in them could be a smart move this September. These ten stocks offer a mix of tech, auto, and other industries. They stand out as solid investments during market ups and downs.

FAQs

1. What are some top stocks for smart investment choices?

Top stocks for smart investments often include large, well-established companies such as Apple, AB InBev, and Nike’s.

2. How do index funds factor into making smart investment choices?

Index funds like the S&P 500 Index offer a way to diversify your portfolio and spread risk across many different companies. They follow market trends of indices like Standard & Poor’s 500.

3. Can online brokers provide reliable financial advice on stock investments?

Yes, online brokers can provide valuable financial advice based on technical analysis of factors such as trading volume, intraday movements and moving averages.

4. What role does evaluation play in choosing top stocks for investment?

Evaluation is crucial in investing; it involves analyzing factors like P/E ratio, company acquisitions and policies along with their brands’ interests in the market.

5. Are there any risks associated with investing in individual stocks versus index funds?

Investing in individual stocks like Ambev or Polaris could potentially yield higher returns but also comes with more risk compared to index funds due to lack of diversification.

6. How does Warren Buffett’s approach influence smart investment choices?

Warren Buffett’s approach favors long-term investments over short-term gains which is considered by many as a proven strategy for achieving steady growth in the stock market.