Stocks to Buy in September: 3 Picks for Smart Investors

September is a month marked by several significant events that have a direct impact on various sectors of the economy. Students returning to colleges and universities, the resumption of student loan repayments, and the start of the NFL season all contribute to increased demand and economic activity. Investors are eyeing opportunities in the stock market.  In this article, we will explore three promising stocks to buy in September, taking into account the unique factors that make this month a lucrative one for investors.

Uber’s September Surge:

Uber, (UBER:NYE) the nation’s largest rideshare operator, experienced a substantial uptick in rides during September. College and university students, in particular, account for a significant portion of Uber’s September traffic as they return to campuses and frequent local establishments such as stores, bars, and clubs.

Steady Growth and Market Dominance:

Uber has consistently demonstrated growth in its rideshare and food delivery businesses, including Uber Eats. It has managed to outperform its competitors, most notably Lyft Inc. (LYFT:NSD), and has solidified its position in the market. With monthly active platform users reaching 137 million and the company reporting its first operating profit of $326 million in Q2 2023, Uber is on a path to continued success.

UBER Stock Forecast:

The average price target for this stock is USD 55.11 which shows an upside potential of 17.16%. This value ranges as high as USD 75 and as low as USD 38 for September 2024.

Analysts Ratings:

The average analyst rating is Strong Buy for UBER stock. Stock Target Advisor’s analysts are Bearish, which is based on 2 positive signals and 6 negative signals. At the last closing, Uber’s stock price was USD 47.04 and this price has changed by +6.55% over the past week, +4.07% over the past month, and +61.93% over the last year. Strong buy consensus makes this a stock to buy in September.

Charting Uber’s Trajectory:

Analyzing Uber’s stock performance, we observe a compelling pattern in the weekly candlestick chart. The company is forming a potentially significant cup and handle breakout, which could indicate further growth in the near future. Consider adding this stock to your list of “stocks to buy in September”.

SoFi Technologies Inc. Financial Opportunity:

With student loan repayments resuming in September, SoFi Technologies (SOFI:NSD) stands to benefit significantly. The company specializes in providing and aggregating student loans, and as loan payments with interest kick in again, SoFi is poised for substantial revenue growth.

All-in-One Financial Hub:

SoFi has expanded its digital infrastructure to offer comprehensive financial services to students and workers. This includes banking services, loans, and investments, all in one app. Additionally, through partnerships, SoFi provides insurance options, further diversifying its offerings.

SOFI Stock Forecast:

Based on the SOFI stock forecast from 15 analysts, the average analyst target price for SoFi Technologies Inc. is USD 8.39 over the next 12 months. The average analyst rating is “Buy”.

Stock Target Advisor’s own stock analysis of SoFi Technologies Inc. is Bearish, which is based on 2 positive signals and 5 negative signals. At the last closing, SoFi stock price was USD 8.79 and this price has changed by +6.80% over the past week, -7.47% over the past month, and +53.14% over the last year.

DraftKings Inc: NFL Season and Sports Betting

The commencement of the NFL season on September 7, 2023, brings with it a surge in sports betting activities. DraftKings(DKNG:NSD), a prominent player in the online sports betting and gaming industry, is poised to benefit from this seasonal upswing. That is why you should enlist this stock under the category of  “stocks to buy in September”

Competitor Dynamics:

DraftKings’ rival, PENN Entertainment Inc. (NASDAQ: PENN), recently underwent a major rebranding as ESPN BET. This shift may lead to confusion among Barstool Sportsbook customers, potentially driving them towards more established sportsbooks like DraftKings.

DKNG Stock Forecast:

The average price target for DKNG stock is USD30.55 with an upside potential of  3.08%. This value spans as high as USD 44 and as low as USD 17 for September 2024.

Analysts Ratings:

The average analyst rating is “Buy”. Stock Target Advisor’s analysts are Bearish, which is based on 2 positive signals and 6 negative signals. At the last closing, DraftKings stock price was USD 29.64. This price has changed by +5.44% over the past week, -6.62% over the past month, and +91.35% over the last year.

Capitalizing on September’s Potential:

September offers a unique set of circumstances that can be financially rewarding for investors. By considering stocks like Uber Technologies, SoFi Technologies, and DraftKings, investors can position themselves to take advantage of the seasonal tailwinds that occur reliably each September.

As students return to campuses, student loan repayments resume and the NFL season kicks off, these three stocks present compelling opportunities for investors seeking to make the most of September’s financial potential.

Maryam Nasir