Published - September 1rst, 2023 @ 4:20 PM (GMT+2 )
As the financial market continually transforms, investors are perennially on the hunt for the next lucrative venture. Growth stocks frequently emerge as enticing investment prospects, offering substantial potential for substantial long-term yields. In this piece, we'll delve into several standout growth stocks to monitor in September 2023 and beyond, and discuss their potential merits for inclusion in your investment portfolio.
Salesforce
Salesforce Inc (NYSE:CRM) has been a focal point for investors following its impressive Q2 2024 earnings report. The company's stock is currently priced at $223.25, with a market cap of $217.33B. Despite a slight dip of 0.51% over the last month, the stock has surged by 45.11% YoY and 65.30% YTD.
The Q2 report revealed an EPS of $2.12, beating estimates by 11.6% and marking a 78.2% YoY increase. Revenue also exceeded expectations, reaching $8.6 billion, an 11% growth compared to Q2 2023.
Analysts have responded positively, with Evercore ISI Group raising their price target from $240 to $275. Operating margins have also improved significantly, hitting 31.6% against estimates of 28.3%.
Salesforce's future looks promising with projected Q3 EPS between $2.05 and $2.06 and revenue ranging from $8.7 billion to $8.72 billion.
Given these strong financials and positive analyst outlook, Salesforce stands as a compelling investment option for September 2023.
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Caterpillar Inc
Caterpillar Inc. (NYSE:CAT), a leading force in the industrial and construction machinery sector, has been consistently outperforming market expectations. With a current stock price of $285.57 and a market cap of $145.56B, Caterpillar is a stock to watch.
The company recently reported an impressive Q2 2023 earnings per share of $5.55, surpassing consensus estimates by $0.98. This strong performance is backed by a substantial revenue growth of 21.4% YoY, generating $17.30 billion in the recent quarter.
The stock has gained 56.61% YoY and 19.61% YTD, despite a slight dip of about 1.00% in the past month. Caterpillar also boasts a robust backlog of $30.7 billion, positioning it well for future growth2. The company has been receiving positive ratings from analysts, with an average price target of $280.647.
Caterpillar's financial strength is further highlighted by its return on equity of 55.93% and a net margin of 12.91%1. The company's board approved an 8% hike in its quarterly dividend, marking 29 straight years of higher dividends.
For investors eyeing long-term growth and stability, Caterpillar Inc. offers a compelling investment opportunity this September.
Axcelis Technologies
Axcelis Technologies Inc. (NASDAQ:ACLS), a semiconductor leader for over 40 years, is making waves in the artificial intelligence (AI) sector. With a current market cap of $6.35 billion and a stock price of $193.58, the company is well-positioned for growth. Over the past year, the stock has surged by an impressive 202.94%, and YTD gains stand at 146.19%.
The company specializes in ion implantation technology, a critical component in semiconductor fabrication. This technology has led Axcelis to beat earnings expectations, with Q2 revenue reaching $274 million, a 23.9% YoY increase. Net income for the same period was $61.6 million, marking a 39.4% YoY growth.
Institutional investors are bullish on ACLS. Hedge funds like Bank Julius Baer & Co. Ltd Zurich have significantly increased their stakes, and the stock has received a price target increase of 34.27% to $218.03.
Axcelis Technologies is not just a semiconductor company, it's a strategic investment for those looking to capitalize on the AI boom. With strong financials and a robust market position, ACLS is a stock to watch in September 2023.
Southwestern Energy
Southwestern Energy Co (NYSE:SWN) is a stock to watch this September, with a current price of $6.82 and a market cap of $7.51B. The stock has seen a 5.81% increase over the last month and a YTD growth of 24.09%, despite a 5.60% decline since last year.
Recent SEC filings reveal significant institutional interest. Rhumbline Advisers, for instance, owns about 0.29% of the company, valued at $15.7M. Vanguard Group and State Street Corp have also increased their holdings, emphasizing the stock's investment potential.
Analysts have mixed views, but the consensus price target stands at $7.20. The company reported a Q2 EPS of $0.09, beating estimates, and a revenue of $1.27B. With a focus on unconventional natural gas and oil reservoirs, Southwestern Energy is a resilient player in the volatile energy sector.
Theravance Biopharma
Theravance Biopharma Inc. (NASDAQ:TBPH) is a stock to watch this September, especially for those interested in the biopharmaceutical sector. With a current market cap of $502.78M and a stock price of $9.52, the company has shown resilience despite a slight dip of 3.74% over the last month. Year-to-date, the stock has gained 13.22%.
Institutional investors are showing increased interest in Theravance. Barclays PLC recently increased its holdings by 54.9%, owning approximately 0.06% of the company worth $397,000. The firm is also set to participate in the upcoming H.C. Wainwright 25th Annual Global Investment Conference, signaling potential strategic announcements.
The company focuses on organ-selective medicines and has an FDA-approved inhalation solution, YUPELRI, for the maintenance treatment of chronic obstructive pulmonary disease (COPD). Its late-stage investigational drug, Ampreloxetine, is in development for treating neurogenic orthostatic hypotension and shows promise.
Given its innovative pipeline and institutional backing, Theravance Biopharma is a stock worth considering for your portfolio this September.
Conclusion
The stocks highlighted in the article—Salesforce, Caterpillar, Axcelis Technologies, Southwestern Energy, and Theravance Biopharma—represent a cross-section of sectors that are currently showing promise and resilience. Salesforce's robust Q2 performance and optimistic future projections make it a standout in the tech sector. Caterpillar's consistent outperformance and strong backlog position it as a reliable bet in the industrial sector.
Axcelis Technologies offers a unique investment opportunity, especially for those looking to capitalize on the booming AI and semiconductor markets. Southwestern Energy, despite its volatility, has shown resilience and offers a unique play in the energy sector. Lastly, Theravance Biopharma, with its focus on specialized medicines, presents an opportunity in the biopharmaceutical sector.
Each of these companies has shown strong financials, positive analyst ratings, and promising future projections, making them compelling investment options. Whether you are an investor looking for short-term gains, long-term stability, or sectoral diversification, these stocks offer a well-rounded portfolio choice for September 2023.
The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.
