With the United States economy demonstrating strong performance recently, Federal Reserve officials are considering to double their 2023 growth projections. Economic data has consistently exceeded analysts’ and economists’ expectations, prompting the unofficial estimate from the Atlanta Federal Reserve to suggest a 5.6% annualized expansion in Q3 2023. Furthermore, the new projections, set to be released after the September 19 to 20 policy meeting, are expected to indicate a range of 1.8% to 2% growth. This will lower unemployment rate predictions. With all of this in mind, you should consider the 3 best stocks to buy now.
This optimistic outlook for the economy is seen as a positive signal for increased confidence in investing in the stock market. With the Federal Reserve projecting robust growth and lower unemployment rates, investors should consider buying these stocks in September. These stocks have unparalleled long-term growth catalysts long term to supply strong returns in any portfolio.
Novo Nordisk (NVO)
Novo Nordisk (NYSE:NVO) is a Danish pharmaceutical company centered around curing chronic diseases such as obesity. Yahoo! Finance reports four analysts predicting a one-year price range on NVO stock to be between $160.00 and $235.00. This is with a mean of $201.00.
The pharmaceutical industry is expected to be valued at $864 billion by 2030 from a 7.6% CAGR. This growth stems from innovations in drug development, as modeling software is utilized for insights into the manufacturing process. This results in increased output and lowered operational expenditures. A rising demand for chronic disease management treatments and therapies created increased investment in this industry.
Novo boasts strong financials,with Q2 2023 revenue of $54.4 billion growing at a 31.5% 1-year CAGR. Novo also has a net profit margin of 35.7% growing 10.8% YoY. Lastly, management demonstrates strong competency in cash and short-term investments of $36.4 billion growing 17.4% YoY. There is also total assets of $280.7 billion increasing by 28.7% YoY.
Through recent acquisitions in the obesity treatment market, Novo has positioned itself for future growth. In August, the company acquired Embark Biotech, a company researching new obesity treatments, for $16 million. Novo will have direct access to innovation from research in obesity treatment in both companies. Additionally, Novo fully acquired Inversago Pharma for $1.1 billion in the same month. Through this acquistion, Novo will develop an obesity treatment targeting the CB-1 receptor. These acquisitions set Novo Nordisk up to lead the obesity treatment market with innovative therapies. Thus, the company will set the company further to be the first to market with a CB-1 receptor treatment as it is not yet approved by drug administrations.
NVO is a must-buy stock for September because of its strong financials, obesity treatment acquisitions and more mentioned above.
Amazon.com Incorporated (AMZN)
Amazon.com Incorporated (NASDAQ:AMZN) is an online retailer and web service provider. Amazon Prime is an on-demand streaming service with thousands of shows and films for consumers worldwide.
Amazon’s stock is up 64.43% YTD at $138.12 and 46 analysts project a 12-month median to high price of $175 to $230 or an upside of 26.7% and 66.5%, respectively.
The global e-commerce market was valued at $16.6 trillion in 2022. It is expected to grow at a 27.38% CAGR from 2022-2028 to $70.9 trillion by 2028. Rapid urbanization, internet penetration and the increased use of smartphones with laptops are key catalysts to the growth experienced in this market.
To outperform its competition, Amazon offers a seamless and rapid service experience. Amazon enables customers to purchase a wide variety of items in record time. Additionally, Amazon has expanded its product offerings through acquisitions such as Whole Foods Market. Furthermore, the company has a strong presence in various industries. Amazon owns notable companies such as Ring and Audible, which further solidifies its dominance. Moreover, Amazon is the world’s largest cloud computing company. This grants it unparalleled access to vast amounts of data that can be leveraged for innovation, product development and enhanced productivity. These all are long-term catalysts for growth and sustained financial success.
Due to Amazon’s ever-going dominant grasp over the market, AMZN stock is a worthwhile stock to purchase into your portfolio.
Planet Fitness (PLNT)
Planet Fitness (NYSE:PLNT) is an American franchisor and operator of fitness centers. The company has around 2,400 clubs, and is widely recognized as one of the largest fitness club franchises by its sheer number of members and locations.
Despite PLNT stock being down 23.01%, Planet Fitness’ recent quarterly financials are astonishing. Revenue of $268.47 million grew 27.93% YoY which beat analyst expectations by 13.69%, and diluted EPS of $0.48 grew 84.62%. This further beat analyst expectations by 19.00%. Currently, net income is $41.14 million increased by 84.12% YoY, showing Planet Fitness’s ability and long-term potential growth in its financials.
Additionally, Yahoo Finance reports 17 analysts having a mean 12-month price target of ALKT stock to reach $78.59, with the range spanning from $54.00 to as high as $100.00.
U.S. Consumer Discretionary Sector Analysis reports that the Consumer Discretionary industry’s earrings are forecasted to grow by 24% annually. The report also stated that earnings for companies in the Consumer Discretionary industry have grown 30% per year over the last three years, signaling that Planet Fitness is adequately positioned to grow.
There has been a significant increase in the adoption of fitness activities among all consumers worldwide. PLNT stock is no different, and this company especially has unique incentives and geographic locations set up to dominate its industry.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
