As the stock market enters September, a weak month due to the sector and profit rotation, known as the “September Effect,” investment opportunities remain plenty, especially with a much anticipated Federal Reserve interest rate cut on September 18. This cut could kickstart an interest rate-cutting cycle and bring elevated gains to the stock market.
Considering these factors, Finbold decided to analyze the stock market for ample opportunities, with companies whose stocks are rated as a “strong buy” and which will continue to perform despite a potential setback this month.
Dell (NYSE: DELL)
Showcasing an impressive performance throughout 2024, which saw Dell (NYSE: DELL) stock add over 54% to its valuation, September started in the same tone.
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Dell shares recorded a 3.16% gain over the past five trading days and 4.33% progress in the latest trading session, closing at $115.54.
Managing to successfully restructure and aim the focus toward the artificial intelligence (AI) server market proved highly profitable for Dell as it recorded a substantial growth in its servers revenue, with $3.1 billion worth of servers delivered in Q2 and approximately $3.8 billion worth of server deliveries scheduled.
Furthermore, its PC gaming sector looks set for additional profit as the industry slowly recovers from the previous setbacks.
Wall Street analysts recognize Dell’s potential, assigning a “strong buy” rating based on 16 examinations. Of these, 14 recommended a “buy,” while two opted for a “hold,” with no “sell” opinions.
The average price target is $147.46, representing a potential 27.63% upside from the current price levels.
Walmart (NYSE: WMT)
Retail store giant Walmart (NYSE: WMT) is another stock that has showcased consistent growth over the previous year and 45.44% progress so far in 2024.
For Walmart, September started positively, as it added 1.75% in the past five trading days, while the latest session shows an advance of 1.06% on September 2, setting WMT share price at $77.23 at the close.
Walmart quickly recognized the potential of technology in the retail sector and successfully integrated its e-commerce and physical store sectors, allowing it to strengthen its profit streams.
Further innovations such as Sam’s Club, e-commerce, AI-powered product search, and advertising contribute significantly to Walmart’s revenue; last year alone, advertising brought in $3.4 billion in revenue.
In addition, Walmart is automatizing its U.S. supply chain to increase efficiency and decrease costs.
Analysts at Wall Street recognize Walmart’s constant drive to innovate, reduce costs, and increase profits, and assign WMT stock a “strong buy” rating based on 30 analyst opinions. Of these, 27 advised a “buy,” while 3 recommended a “hold,” with none opting for a “sell.”
The average price target, at $74.11, represents a downside of 4.04% from the latest closing price, which might be a good sign for investors and a call for analysts to readjust their price targets.
Considering their robust fundamentals, previous stock performance, and growth outlooks, Dell and Walmart stocks seem prepared to withstand the negative effect of September on the market and continue this year’s strong performance until December 31.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
