While some publicly traded enterprises left no doubt as to their trajectory, a few others are just now benefiting from a late summer stock surge. Better late than never, though. And while these ideas may technically be eleventh-hour stock picks, underlying circumstances make them rather compelling.
First, seasonality matters. Initially, stocks climbing during the summer might raise suspicion; as to, where were these gains all along. However, this period is also the time when the Wall Street types return from their vacations in the Hamptons. Back on the saddle, these stocks with late summer momentum may yet rise higher. Second, many of these ideas have been overlooked, meaning that they could be less likely to lead to bag-holding incidents. To be sure, no one can guarantee that. Still, for many investors, it’s a better proposition than deliberately acquiring well-overheated securities.
On that note, below are some of the stocks that could see a late summer stock surge.
Late Summer Stock Surge: Sirius XM (SIRI)
I’m not going to sugarcoat it. For investors interested in securities benefiting from a late summer stock surge, Sirius XM (NASDAQ:SIRI) is one of the riskiest among the most speculative ideas. Throughout the post-pandemic new normal, Sirius struggled to adapt to the shifting currents, losing paid promotional customers along the way. Part of the problem, I suspect, stems from the work-from-home narrative.
However, said narrative appears to be changing. Companies have started to broadcast more aggressive rhetoric regarding their return-to-office mandates. Plus, with mass layoffs rising, now isn’t the time to stick out for the wrong reasons. Subsequently, I anticipate a return to relatively normal conditions in the workplace, which should benefit SIRI. Thus, the cynical framework makes it one of the stocks climbing in summer.
I’m not just saying that to fit a pre-defined SEO phrase. Rather, SIRI gained more than 8% of equity value in the trailing five sessions that ended Aug. 31. Again, it’s risky but as a contrarian idea, it’s kind of sexy if you ask me.
Scotts Miracle-Gro (SMG)
Headquartered in Marysville, Ohio, Scotts Miracle-Gro (NYSE:SMG) manufactures and sells consumer lawn, garden, and pest control products. In addition, it provides soilless indoor gardening equipment. On a fundamental level, it’s possible that Scotts could rise on a delayed effect thanks to the post-pandemic housing boom. With so many new homeowners on the roster, people will need to take care of their lawns.
However, I say “delayed” because inflationary forces pushed many buyers to the limit. Now, after a year or so of acclimatization, homeowners may be ready to start sprucing up their properties again. That’s a key reason to consider SMG for its late summer stock surge. In the trailing five sessions, SMG gained a bit over 9% of market value.
Interestingly, over the past six months, SMG stumbled more than 31%. Therefore, if you like the concept of eleventh-hour stock picks, Scotts might have room to run. Even better, analysts peg SMG as a consensus moderate buy. Their average price target lands at $63.40, implying 12% upside.
Late Summer Stock Surge: Sprout Social (SPT)
A lesser-known enterprise, Sprout Social (NASDAQ:SPT) is a powerful solution for social media management, per its website. Featuring an all-in-one social media management platform, Sprout unlocks the full potential of the underlying industry to transform broad brand improvements. Given the importance of a strong digital presence, Sprout could be an interesting idea for a late summer stock surge.
To be sure, SPT doesn’t offer the most confident profile. Since the beginning of this year, shares slipped almost 8%. In the past one-year period, they dipped 7%, translating to a lack of recent mobility. However, in the past five sessions, SPT returned stakeholders 15% of value.
On a financial note, Sprout features some metrics pointing to stability, most notably a cash-to-debt ratio of 8.99x. However, with companies scaling down their expenses, Sprout also faces an addressable market risk. Nevertheless, Wall Street analysts peg SPT as a consensus strong buy. Their average price target comes in at $61.13, implying over 14% upside potential.
Aspira Women’s Health (AWH)
Based in Austin, Texas, Aspira Women’s Health (NASDAQ:AWH) focuses on transforming women’s gynecologic health, particularly ovarian cancer. According to its website, Aspira targets the discovery, development, and commercialization of innovative testing options for women. This directive encompasses all women, regardless of menopausal status. Also, the company states that healthcare providers have ordered 80,000 of its OvaSuite tests.
A feel-good proposition, Aspira – like many other promising biomedical plays – suffered significant market weakness. In the trailing one-year period, AWH fell more than 42%. In the trailing five years, it’s down over 49%. However, it’s one of the securities experiencing a late summer stock surge. In the past five sessions, AWH returned nearly 35% of its equity value.
For full disclosure, investors will be mostly speculating on the underlying narrative. Per investment data aggregator Gurufocus, Aspira suffers from six red flags, including a deeply negative Altman Z-Score that indicates severe distress. That said, Alliance Global Partners’ Ben Haynor believes in AWH, pegging it as a moderate buy with a $5.60 price target. This implies nearly 23% upside potential.
Late Summer Stock Surge: Duos Technologies (DUOT)
Technically speaking, Duos Technologies (NASDAQ:DUOT) might not immediately come to mind as a security benefitting from a late summer stock surge. Based in Jacksonville, Florida, Duos focuses on a wide range of sophisticated machine vision and artificial intelligence solutions. One major area of contribution is in railcar inspections. Through Duos’ automation and streamlining protocol, institutional clients can reduce dwell time and increase system velocity.
Despite the strong performance so far in 2023, DUOT still qualifies for stocks with late summer momentum. In the trailing month, DUOT slipped more than 18%. However, in the past five days, it’s attempting to regain its footing, shooting up over 15%. With companies seeking efficiency improvements in a trying economy, DUOT could be interesting.
However, it’s one of the riskiest plays for end of summer stock gains. Please note that Duos only carries a market capitalization of less than $39 million. Still, the last word goes to analysts, who peg DUOT as a moderate buy. As well, their average price target stands at $9.25, implying over 73% upside potential.
Intuitive Machines (LUNR)
Before you note that Intuitive Machines (NASDAQ:LUNR) lost more than 8% of market value on the Aug. 31 session, against an overall framework, LUNR represents a public security benefitting from a late summer stock surge. Specifically, in the trailing five sessions, LUNR gained 22% despite Thursday’s less-than-impressive outing.
To be sure, those wagering on Intuitive must accept severe volatility risks. Coming to life via a reverse merger with a special purpose acquisition company (SPAC), skepticism has clouded LUNR. Although the lunar lander enterprise aligns with the extremely relevant space economy, SPACs don’t have a great reputation these days. Due to their dilutive effect from the issuance of warrants, the overall performance has been poor.
Still, the hope is that Intuitive can eventually tap into the space economy, which might grow into a $1 trillion industry by 2030, per McKinsey & Company. Enticingly, analysts peg LUNR as a consensus moderate buy with a $14 price target. That implies a slightly over 194% upside potential.
Boxlight (BOXL)
Headquartered in Duluth, Georgia, Boxlight (NASDAQ:BOXL) is an education technology (edtech) specialist. Through various platforms such as interactive displays and other digital innovations, Boxlight aims to bolster science, technology, engineering, and math (STEM) curriculums. There’s zero question that BOXL is a speculative idea for securities benefitting from a late summer stock surge. But look past its $20 million market cap and you’ll see its fundamental pertinence.
Specifically, evidence points to U.S. students falling behind in STEM education. Against international testing scores, the U.S. ranked 13th in mathematics and 31st in science. That might fly if you’re a smaller nation. However, we’re talking about the greatest country on earth. We need to do better and Boxlight aims to provide a viable solution.
In the past five sessions, BOXL gained just over 17% of its equity value. That makes it one of the top eleventh-hour stock picks. Of course, you’ll have to overlook its one-year loss of almost 55%. Nevertheless, analysts peg BOXL as a unanimous strong buy with a $7.50 price target, implying nearly 222% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
