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 2024 and beyond, and discuss their potential merits for inclusion in your investment portfolio.
Apple. {{ m-tag option="price" ticker="AAPL" currency="USD" }}
Apple is gearing up for the launch of its highly anticipated iPhone 16 at its September 9 event. This new generation of iPhones is expected to include AI-powered features and privacy-focused Apple Intelligence, which are likely to drive consumer interest during the critical holiday sales period.
Financial Performance
Apple’s Q3 2024 financials were solid, with revenue hitting $85.8 billion, driven by gains in iPad and services sectors despite a slight drop in iPhone sales. Apple’s earnings per share (EPS) for the quarter came in at $1.40, outperforming analyst expectations. On a year-over-year basis, Apple’s revenue increased by 5%, and its services revenue jumped by 14%, showing the strength of its subscription-based businesses.
However, Warren Buffett’s Berkshire Hathaway recently trimmed its Apple holdings, reducing its position by nearly 49% in Q2 2024. Despite this, Apple remains Berkshire’s largest holding with over $84 billion in stock. The company continues to be a favorite among long-term investors.
Strategic Moves and Market Sentiment
The upcoming iPhone 16 series is crucial to Apple’s long-term outlook, especially with competition heating up in the premium smartphone market. With AI-integrated Siri, the new model is expected to provide a more seamless experience for users, allowing AI to assist with cross-app functionalities and information retrieval. However, Apple faces challenges beyond product launches, including potential legal battles with Google over search engine partnerships and European regulators tightening their grip on tech companies.
Investment Outlook
Apple shares are currently trading at $222.77, about $14 short of their 52-week high. Analysts have set a buy point at $237.23, indicating a potential upside for the stock. With the new iPhone 16 set to debut and the company's robust services sector showing growth, Apple is well-positioned for a strong end to 2024. Investors should closely watch the September event to assess how well the new iPhone series is received and whether it can fuel holiday season sales.
Volkswagen. {{ m-tag option="price" ticker="VOW3.DE" currency="EUR" }}
Volkswagen is facing significant restructuring as it considers plant closures in Germany for the first time in its history. The company is under immense pressure from Chinese competitors in the electric vehicle (EV) market and is working through a €10 billion cost-cutting plan aimed at improving efficiency and competitiveness.
Financial Performance
Volkswagen's H1 2024 results showed €83.34 billion in revenue, up 4.1% from the previous year. However, its net income fell by 3.54% to €3.27 billion, and its operating margin dropped to 2.3%, far below the company’s target of 6.5%. These numbers highlight Volkswagen’s ongoing struggles in maintaining profitability amid rising costs and sluggish demand in key markets like China, where competition from local EV makers like BYD has intensified.
Strategic Moves and Market Sentiment
Volkswagen’s cost-cutting initiative has drawn resistance from labor unions, particularly in Germany, where thousands of jobs are at risk. IG Metall, one of Germany’s most powerful unions, has voiced strong opposition, raising concerns about the potential impact on jobs and the company’s future. The company’s sluggish response to the EV transition, coupled with increased production costs, means Volkswagen must find ways to stay competitive in a market increasingly dominated by Tesla and BYD.
Investment Outlook
Volkswagen's stock has been trading near its 52-week low of €92.20, making it a potentially attractive buy for long-term investors seeking to capitalize on the company’s restructuring efforts. However, the road ahead is uncertain, and much depends on Volkswagen’s ability to cut costs without disrupting its workforce and navigate the increasingly competitive EV landscape.
Broadcom Inc. {{ m-tag option="price" ticker="AVGO" currency="USD" }}
Broadcom has positioned itself as a leader in the semiconductor and AI infrastructure markets, capitalizing on the growing demand for custom chips and cloud services. The company is set to release its Q3 2024 earnings on September 5, and analysts are predicting strong results, fueled by continued growth in its AI-related revenue streams.
Financial Performance
Broadcom’s revenue for Q3 is expected to reach $12.96 billion, a 46.2% increase year-over-year, with earnings per share anticipated at $1.22. In Q2 2024, Broadcom reported $12.49 billion in revenue, marking a 43% year-over-year rise, driven by the company’s continued expansion in AI and cloud computing. Broadcom has exceeded analyst expectations for 15 consecutive quarters, positioning itself as a consistent performer in the tech sector.
Strategic Moves and Market Sentiment
Broadcom has been a significant player in the AI revolution, thanks in part to partnerships with major companies like Alphabet and Meta Platforms. The company’s custom AI silicon products have seen tremendous demand as organizations increasingly rely on AI-driven data centers. Additionally, Broadcom’s acquisition of VMware has strengthened its cloud offerings, but there are concerns over potential customer churn due to changes in pricing models post-acquisition.
Investment Outlook
Broadcom is currently trading at $153.50, with analysts setting a price target of $192.40, reflecting a potential upside of 29%. With the AI market continuing to grow and Broadcom’s leadership in the space well-established, the stock remains a strong buy for investors seeking exposure to AI-driven growth. However, risks related to the broader tech sector and customer retention following the VMware integration remain factors to monitor.
Adobe Inc. {{ m-tag option="price" ticker="ADBE" currency="USD" }}
Adobe has experienced a 31% surge in stock price over the past three months, thanks to strong demand for its AI-powered creative tools like Adobe Firefly. Analysts expect Adobe to post strong Q3 2024 results, driven by the continued success of its Creative Cloud and Document Cloud offerings.
Financial Performance
Adobe reported $5.31 billion in revenue in Q2 2024, with net income of $1.57 billion. Looking ahead to Q3 2024, analysts expect the company to post $5.37 billion in revenue, representing 9.72% year-over-year growth, with earnings per share projected to reach $4.53, marking a 10.76% increase. For the full year, Adobe is expected to generate $21.45 billion in revenue.
Strategic Moves and Market Sentiment
Adobe’s AI-driven creative tools, especially the Firefly AI model, have garnered significant attention from both professional and casual users. This has strengthened Adobe’s position in the creative software space. Analysts remain bullish, with J.P. Morgan setting a price target of $580, and positive sentiment around Adobe’s continued innovation in AI and cloud-based services.
Investment Outlook
Adobe’s stock is currently trading at $571.04, just short of its 52-week high of $638.25. Despite its higher-than-average P/E ratio of 51.28, Adobe's continued growth in AI and creative cloud tools has supported its premium valuation. As the company releases its Q3 earnings on September 12, investors will be looking closely at how its AI products continue to drive revenue growth.
Oracle Corp. {{ m-tag option="price" ticker="ORCL" currency="USD" }}
Oracle continues to be a leader in cloud computing and AI infrastructure, with analysts predicting strong growth in the upcoming quarters. The company is set to release its Q1 FY2025 earnings on September 9, and analysts are closely watching the company's performance in its cloud and AI segments, which have been driving much of its recent success.
Financial Performance
Oracle is expected to report $1.32 EPS, marking a 10.92% increase year-over-year, with revenue anticipated to reach $13.22 billion, a 6.14% growth from the same quarter last year. For the full year, Oracle is projected to achieve $57.75 billion in revenue, a 9.04% year-over-year increase, while earnings are expected to hit $6.19 per share, up 11.33%. These positive projections reflect the continued demand for Oracle’s cloud services and AI-driven solutions.
Strategic Moves and Market Sentiment
Oracle’s cloud and AI infrastructure business has seen significant momentum, with the company signing new contracts with major players like NVIDIA and Microsoft, further solidifying its leadership in the AI space. Oracle’s cloud growth remains a key focus, with its cloud infrastructure services expected to continue growing at over 50% throughout the fiscal year. The company’s ability to integrate AI-powered data services has positioned it as a critical partner for businesses looking to leverage AI and machine learning for their operations.
Investment Outlook
Oracle’s stock closed at $139.50 on September 3, 2024, reflecting a 1.27% decline during a broader market sell-off. However, the stock has appreciated 10.5% over the past month, outperforming both the S&P 500 and the Computer and Technology sector. Oracle’s forward P/E ratio of 22.84 suggests that the stock is still trading at a relative discount compared to its peers in the tech space, where the industry average is 31.63. With a PEG ratio of 2.07, Oracle remains well-positioned for continued long-term growth, particularly as demand for cloud services and AI infrastructure continues to rise.
Oracle’s growth in the cloud sector, combined with its strong fundamentals and strategic partnerships in the AI space, makes it a top choice for investors looking for long-term growth. Analysts remain optimistic about Oracle’s future, with many expecting the company to maintain its leadership in the enterprise software and cloud markets.
Záver:
As September unfolds, Apple, Volkswagen, Broadcom, Adobe, and Oracle present exciting opportunities for investors. Whether it’s through cutting-edge AI integration, major product launches, or strategic shifts in cloud and EV markets, these five companies are poised to make significant moves in the stock market. As each company prepares to release earnings or make major product announcements, investors should remain vigilant, focusing on both the short-term catalysts and long-term strategies that could impact these stocks.
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.
