Summer is over and as we begin to role into fall, we decided to come up with a list of best stocks to buy for the month of September. Some of these stocks we cover in our paid research. Others we will discuss in here specifically. September has been generally noted to be a tough month for investors. Thus, we have worked diligently to come up with a list of best stocks to buy for what may be the worst month for investors.
Tariff drama between the US. and its trading partners continues to weigh on investors minds as valuation questions are on the radar after a recent stretch of new highs for major indexes pushed trailing price-earnings ratios over historic norms. Despite growing concerns regarding the current state of US and trade war / discussions versus countries such as Mexico, Canada and China, US markets have done considerably well. This has resulted in a cloud of uncertainty over the markets. It is imperative to note that despite this cloud of uncertainty, stocks are soaring higher.
In August, we saw indexes reach higher as stocks hit all-time highs. For the first time, we saw the Nasdaq composite break through the 8,000 level for the first time. We saw Apple Inc. (AAPL) become the first trillion dollar company, and Amazon Inc. (AMZN) break $2,000 / share and inching closer to becoming the next trillion dollar company.
BEST STOCKS TO BUY IN SEPTEMBER
This list of best stocks to buy in September can be looked at as swing trades or long-term investments. We simply ask our readers to keep these stocks on their watch list. Use times of market weakness to add to these positions. We have worked hard to come up with this list of stocks that we believe will be the best bang for your buck in the second half of the year. Let us begin.
Sientra Inc. (SIEN) – Target for a potential Buyout
Sientra Inc. (SIEN) is a medical aesthetics company that develops and sells medical aesthetics products to plastic surgeons in the United States. Sientra Inc. (SIEN) has two segments, Breast Products and miraDry. If you have been with us for some time you know that we have written extensively on Sientra Inc. (SIEN). In fact, we first alerted the stock when it was trading in the single digits.
If you have not had the chance to read our take on Sientra Inc. (SIEN) please take the time to do so. We believe that this is one of the best stocks to buy in the fall, and might be one of the best stocks to buy right now!
- Sientra Inc. (SIEN): Turn around story near completion
- Sientra Inc. (SIEN): Acquisition around the corner?
- Sientra Inc. (SIEN): Bound for another significant move. Our price target increased.
Sientra Inc. (SIEN) earnings reported a miss on EPS but beating revenue expectations. Loss of $0.73 per share, was $0.04 worse than the Capital IQ Consensus of ($0.69). However, revenues rose 114.6% year/year to $17.6 mln vs the $15.47 mln Capital IQ Consensus. Additionally, Net cash and cash equivalents as of June 30, 2018 were $112.6 million, compared to $16.1 million at the end of the first quarter 2018.
The positive narrative of this company continues and we stick to our previous Price Target highlighted here. We would recommend accumulating shares of Sientra Inc. (SIEN) during any weakness as there is still significant upside for this company.
Stock had its Buy rating reiterated by stock analysts at Stephens in a research report issued to clients and investors on Thursday, August 9th. They presently have a $30.00 target price on the medical instruments supplier’s stock.
Stephens’ price objective points to a potential upside of 25% from the stock’s current price. Several other equities research analysts have also issued reports on the company. Stifel Nicolaus lifted their price target on Sientra Inc. (SIEN) from $21.00 to $25.00 and gave the company a Buy rating in a report on Wednesday, August 8th. Canaccord Genuity lifted their price target on Sientra Inc. (SIEN) from $19.00 to $25.00 and gave the company a Buy rating in a report on Wednesday, August 8th.
We are more constructive on the shares, believing Sientra Inc. (SIEN) is a buyout candidate which could fetch $35-$38 from another medical cosmetics company.
The Home Depot, Inc. (HD) – Tropical storms and Hurricanes increase need to rebuilding
Tropical storm Gordon caused significant damage to the southern portion of Florida and is set to make landfall onto the central US Gulf Coast sometime today. Gordon is set to create storm surges that can reach up to 5 feet and bring more than 8 inches of rain across Alabama, Louisiana and Mississippi.
The Home Depot, Inc. (HD) is an home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers.
There is no doubt that hurricanes and tropical storms will surely increase revenue of Home Depot, Inc. (HD). Unfortunately, Home Depot, Inc. (HD) had a lacklustre performance in the month of August, as the home-improvement retailer gained 1.8%, lagging become the retail-wholesale sector’s gain of 4.95% and S&P 500’s 3.7% in the same time frame. This came despite the impressive earnings beat.
Investors can expect to see strength from the home improvement giant as we approach the next earnings date set in November. Home Depot, Inc. (HD) is expected to report EPS of $2.28, up 23.91% from the prior-year quarter. Meanwhile, the with recent hurricane and the unfortunate, yet expected large amount of property damage, investors can expect increased revenues.
Most analysts expected a deceleration of earnings / revenues for the second half of the year, and may not have modelled for the Tropical storm Gordon, which is why we place it on the list of best stocks to buy in September.
Roku (ROKU) – New age of TV
Roku, Inc. (ROKU) is one of our favourite stocks to buy because it is unique in a way that it operates as a TV streaming platform, in two segments, Player and Platform. Its platform allows users to search, discover, and access approximately 500,000 movies and TV episodes, as well as live sports, music, news, and others. It also provides advertising products, including videos ads, interactive video ads, audience development promotions, and brand sponsorships; and manufactures, sells, and licenses TVs under the Roku TV name.
Roku (ROKU) revenue is split between its two main segments: hardware and platform. The early days of its brand were built on the streaming-video dongles and other gadgets that make up the hardware segment, but executives have said since its initial public offering last year that its platform revenue is where the company’s fattest margins and largest gains lie. Platform eclipsed the company’s hardware sales for the second time, accounting for $90.3 million, compared with gadget sales of $66.5 million.
Roku (ROKU) platform revenue has historically come from ad revenue. The remainder from revenue-sharing agreements for the content and subscriptions purchased via the Roku (ROKU) operating system, while the final 5% is from licensing the tech to other companies. The revenue from the Roku (ROKU) Channel is also bundled into the platform segment.
The company also recently announced it was branching out from streaming gadgets and launched a set of wireless speakers with remote though sales will not appear in the second quarter results.
We have turned positive on the shares and believe the stock can move to the $70-$75 range and is a stock to buy in the month of September. Take any signs of weakness to accumulate shares of Roku (ROKU).
Sarepta Therapeutics Inc. (SRPT): Another frontier of “genomic medicine”
Sarepta Therapeutics Inc. (SRPT) focuses on the discovery and development of RNA-based therapeutics, gene therapy, and other genetic medicine approaches for the treatment of rare neuromuscular diseases. On June 19th we saw shares of Sarepta Therapeutics Inc. (SRPT) soar more than 60% in light of reporting of promising results on from an early-stage study testing its gene therapy in patients with Duchenne muscular dystrophy (DMD). Sarepta Therapeutics Inc. (SRPT) said data from the three-patient study showed an 87 percent mean reduction in serum creatine kinase levels, which is used as a preliminary diagnosis tool for DMD.
Sarepta Therapeutics Inc. (SRPT) has shown to continue to strive towards becoming a global multi-therapeutic rare disease medical therapeutics company. This has been evident in various collaborations by the company such as, Nationwide Children’s Hospital (NCH) in DMD, Myonexus Therapeutics in Limb-girdle muscular dystrophy (LGMD) and now Lacerta Therapeutics in Pompe disease and other CNS-related disorders. Thus, expanding their pipeline to 11 gene therapy programs giving the company a significant upside, and thus one of the best stocks to buy this fall.
We recommend Sarepta Therapeutics Inc. (SRPT) as the best stock to buy in the coming month due to the slew of catalysts in the second half of 2018 leading to first quarter of 2019. These key catalysts are, (1) initiation of the pivotal (cohort C) micro-dystrophin gene therapy study in DMD by end of the year; (2) updated NCH microdystrophin gene therapy data in DMD (n=4) at a 2H medical meeting; (3) dystrophin expression data (per muscle biopsies at week 48 for casimersen with a potential filing in mid-2019; (4) SRP-5051 (PPMO) Phase 1 single-ascending dose study (exon 51) by first quarter of 2019; and (5) key value driver MYO-101 (LGMD 2E program) Phase 1/2 60-day biopsy data in first quarter 2019.
We have a 12-month price target of $200 for Sarepta Therapeutics Inc. (SRPT) making it one of the best stocks to buy in the month of September and definitely one of the best stocks to buy and hold in the coming year.
If you enjoy what you read about Sarepta Therapeutics Inc. (SRPT) read our segment, “New Frontiers of Genomic Medicine” to find out more about what other stocks are on our radar.