As the calendar flips to September, investors find themselves at a crossroads, wondering whether the age-old phenomenon known as the “September effect” will hold true this year. This historical trend often sees stocks underperforming in September compared to other months. However, investors are divided between optimism and pessimism as they approach the month. In this article, we will explore three growth stocks to buy that present compelling opportunities for investors looking to navigate the September market volatility.
Investing with Caution and Confidence:
Optimistic investors are seeking refuge in quality companies with a proven track record of generating robust revenue and earnings. While some may view September as a month to exit stocks and seek safety in alternative asset classes, others see it as an opportune time to explore equities from reputable companies. These stalwarts can offer prudent investors a safe haven, insulated from the turbulence that may grip the broader economy.
1. Potential of American Express (AXP:NYE)
Amid the uncertainty of the current credit card debt landscape, American Express (AXP:NYE) stands out. For over a year, the specter of rising consumer credit card debt has loomed large. Government regulators are now pressuring credit card issuers to reduce late fees significantly, potentially as low as $8, from their current range of $31 to $40.
Regulatory Readiness & Strategic Edge:
American Express, however, appears well-prepared to navigate this regulatory challenge. Many of its card offerings allow consumers to carry balances, a crucial feature in these times. Furthermore, the company caters to premium consumers with higher incomes, reducing its reliance on late fees as a revenue source.
Bottom Line Results:
In its recent earnings report for July, American Express posted mixed results but exceeded expectations on the bottom line while raising its forward guidance.
Analysts Ratings:
The average analyst rating for AXP is Hold. Stock Target Advisor’s analysts are Neutral, which is based on 7 positive signals and 8 negative signals. At the last closing, American Express Company’s stock price was USD 158.00. American Express Company’s stock price has changed by -1.35% over the past week, -4.48% over the past month, and +6.33% over the last year.
AXP Stock Forecast:
The average analyst price target for AXP stock is USD 172.00 with an upside potential of 8.86% making it an impressive growth stock to buy This value spans as high as USD 203 and as low as USD 125 for September 2024.
2. Amgen, Inc. (AMGN:NSD)
Amgen (AMGN:NSD) has experienced a roller coaster ride over the past year, with AMGN stock declining significantly from its 52-week high. This decline continued after the Federal Trade Commission (FTC) granted approval for the company’s $27.8 billion acquisition of Horizon Therapeutics Public Limited Company (HZNP:NSD).
AMGN’s Growth Amidst FTC Uncertainty:
Uncertainty surrounding the FTC’s decision weighed heavily on AMGN stock, with more put options than call options in recent trades, indicating a potential further downside. However, it’s important to note that despite these challenges AMGN is a promising growth stock to buy as it is expected to boost its earnings by 8% over the next year.
HSBC’s Bullish Stance:
On September 6, HSBC raised its price target for AMGN stock to $320, marking a substantial 25% increase over the current consensus price target. This upward revision underscores Amgen’s potential as an attractive option for growth stocks to buy, even in the face of recent turbulence.”
AMGN Stock Forecast:
The average price target for AMGN stock is USD 262.00 with an upside potential of 5.22%. This value spans as high as USD 365 and as low as USD 200 for September 2024.
Analysts Outlook on AMGN Stock:
The analyst rating for AMGN stock is Buy. STA analysts are Slightly Bullish which is based on 10 positive and 5 negative signals. The stock price of Amgen was USD 249.01 at the most recent closing. This price has fluctuated by -3.44% over the previous week, +2.36% over the previous month, and +2.80% over the previous year.
3. Apple, Inc. (AAPL:NSD)
Apple (AAPL:NSD) has gained about 4.5% in the past month, although it remains below its late July and early August highs. The company’s upcoming product launch event on September 12 is generating excitement among consumers and investors alike, primarily centered around the iPhone 15.
Apple’s Expansion:
While iPhone sales continue to be a vital part of Apple’s revenue, the company’s Wearables and Services business is on a steady growth trajectory. Notably, Apple TV, commanding a 6% share of the streaming market, provides a compelling streaming service priced at just $6.99 per month. Additionally, Apple is actively diversifying into live sports broadcasting, making it an intriguing option for those seeking growth stocks to buy.
AAPL Stock Forecast:
The average target price for Apple for the next 12 months is predicted to be USD 194.92 based on projections from 31 analysts. This indicates a 6.56% expected gain. This value ranges from USD 120 in September 2024 to USD 240 at its extreme.
Current State of AAPL Stock:
Apple Inc. holds an average analyst rating of “Strong Buy.” Stock Target Advisor’s analysts are “Bullish,” determined by 13 positive signals and 5 negative signals. At the latest closing, Apple’s stock price stood at USD 182.91.
Conclusion:
Navigating the September market requires a careful balance of caution and optimism. While historical trends may suggest market volatility, opportunities abound for investors who delve into quality stocks from established companies. American Express, Amgen, and Apple each offer unique growth prospects in September, catering to different investment strategies. Hence, they become a potential growth stock to buy. It remains crucial for investors to conduct thorough research and stay informed about market dynamics before making any investment decisions.
