Welcome to Extreme Investor Network, where we provide valuable insights and analysis to help you navigate the world of investing. Today, we are discussing a handful of stocks that are poised to outperform in the current market climate, despite the traditionally turbulent months of September and October.
Historically, September has been a challenging month for the S & P 500, with an average loss of 0.7% dating back to 1950. However, despite the negative sentiment, stocks have shown resilience in the face of seasonal headwinds. The recent rate cut by the Federal Reserve has helped boost the market, with the S & P 500 up around 1.5% this week and over 1% for the month of September.
Looking ahead to October, known for major drawdowns, it’s essential for investors to identify stocks that can weather the storm. Evercore ISI has screened for companies that exhibit strong momentum, bullish sentiment, and robust buyback activity. These stocks, with market capitalization over $2 billion and share prices above $5, have the potential to outperform in the current environment.
One standout company that made Evercore ISI’s screen is AppLovin, a mobile tech company that has seen a 209% increase in 2024. With UBS recently upgrading the stock to a buy rating, citing promising revenue growth and potential opportunities in gaming and e-commerce, AppLovin is positioned for further growth. Despite some analysts forecasting a downside, BTIG has set a price target of $150, the highest among those polled by FactSet.
Another company to watch is Robinhood, the financial trading platform that has surged 80% this year. Barclays recently upgraded Robinhood to equal weight, citing a maturing business model and potential catalysts for growth. With a $1 billion share repurchase program announced earlier this year, Robinhood has the potential to reward investors.
Additionally, Sprouts Farmers Market, an organics-focused grocery retailer, has been highlighted by Evercore ISI as a potential outperformer. With shares up 118% year to date, Sprouts may benefit from the trend towards healthier eating habits. Analysts at Evercore ISI have upgraded the stock to outperform, with a price target of $125, the highest on the Street.
While these stocks have shown strong performance and potential for growth, it’s important to conduct thorough research and consider your investment goals before making any decisions. Stay tuned to Extreme Investor Network for more insights and analysis to help you make informed investment choices in a dynamic market environment.