July 12, 2024

Brad Marolf

Business & Finance Wonders

3 Top U.S. Stocks to Watch in September

3 Top U.S. Stocks to Watch in September

September may be infamous for stock markets, but some stocks could chart their own paths nonetheless this month regardless of what the broader market does, thanks to big company-specific catalysts ahead. Upcoming earnings reports, game-changing product launches, and eagerly awaited announcements could potentially decide where some stocks are headed next. I bet you wouldn’t want to miss the excitement, so here are three hot top U.S. stocks to watch closely this September. 

This stock may not remain this cheap by month-end

The earnings season is almost behind us, but one industrials heavyweight that’s yet to report quarterly numbers is FedEx (NYSE:FDX). The wait is over on Sept. 21, when the package delivery giant will release numbers for its fiscal 2022 first quarter ended Aug. 31. Any bit of positive news from the company could give FedEx shares a much-needed respite.

FedEx shares have dropped nearly 14% since its last quarterly earnings release in June, despite its numbers trumping Street estimates. FedEx, in fact, ended financial year 2021 with record revenue and net income worth $84 billion and $5.2 billion, respectively.

FedEx’s outlook for fiscal 2022 failed to impress the market, though, as its projected revenue of $90 billion, or roughly 7% growth, pales in comparison to last year’s 20% growth in its top line.

Meanwhile, news of arch rival United Parcel Service (NYSE:UPS) planning to start same-day delivery put further pressure on FedEx shares on fears of increasing competition.

A person concentrating on data on a computer screen.

Image source: Getty Images.

Let’s not forget, though, that FedEx has entered fiscal 2022 on a strong note and is expanding capacity significantly for FedEx Ground to meet surging demand, especially as it enters peak holiday season. As evidence, nearly half the company’s projected capital expenditure of $7.2 billion this fiscal year will go into expansion, while the other half will go to replace its aging FedEx Express fleet. For perspective, FedEx spent only $5.9 billion in capital expenditure last year.

The company is also close to fully integrating the TNT network, ended 2021 with a cash balance of $7.1 billion, and plans to resume share repurchases to return more capital to shareholders. Given the backdrop, FedEx stock looks really cheap right now, and an earnings beat or a guidance upgrade this month is all it needs to rebound. Consensus estimates are calling for 13% growth in revenue and a muted 3% growth in adjusted earnings per share (EPS), so keep an eye out.

The event you’ve all been waiting for is finally here

Apple (NASDAQ:AAPL) shares have headed for the skies in recent weeks, with its market capitalization touching $2.6 trillion as of the time of this writing. Yet, the air’s thick with expectations that the stock could run even higher given the tech giant’s biggest and most-awaited upcoming Keynote event on Sept. 14.

While the launch of the iPhone 13 is near-certain, Apple Watch Series 7 and AirPods 3 could also make a debut. The excitement is really high this time around for several reasons. iPhone sales have shot up in recent quarters, with the flagship product bringing in 54% of Apple’s total sales during the nine months through June 26, 2021. This comes at a time when several exciting rumors around the iPhone 13 have been floating, including satellite telephony capability for use during emergencies.

Apple has also reportedly ordered large quantities of its A15 processor chipsets that are expected to go into its forthcoming models, including the iPhone 13. Apple’s iOS 15 downloads are also expected to start later this month. Security and privacy are big reasons why Apple users stick with the company’s products, so potential game-changing privacy options in its iOS 15 operating system have already garnered a lot of attention.

These rumors and high expectations from its upcoming product launches have already sent Apple shares soaring to all-time highs ahead of the big event. With just days to go, this FAANG stock is definitely one you’d want to watch out for this month. 

Sept. 27 could change this EV stock’s fortune

There’s never a dearth of excitement for investors in electric vehicle (EV) stocks, but if you’re invested in or have been tracking the latest hot EV stock Lucid Group (NASDAQ:LCID) closely, mark Sept. 27 on your calendars.

Shares of Lucid Group, erstwhile Lucid Motors, started trading on the NASDAQ stock exchange on July 26 after merging with special purpose acquisition company Churchill Capital IV. The stock has tanked 28% since. It felt the heat alongside other electric vehicle start-up stocks that fell on high valuations amid fears of decelerating growth in the industry, as production at major automakers is hitting a brick wall thanks to an acute shortage of semiconductor chips. The expiry of a lockup period in end-August that now allows institutional investors to sell their stake in Lucid Group further put pressure on the stock.

None of it, though, matters as much to investors as Lucid Group’s upcoming event called “production preview week.” During a series of events beginning Sept. 27, the luxury EV maker will throw open the doors of its manufacturing plant in Casa Grande, Arizona to a select group of guests, including members of the media.

Visitors will not only get a chance to see how its first luxury sedan, the Lucid Air, is manufactured, but also be able to test-drive it. Now that’s a real kicker, as Lucid Group hasn’t delivered any cars yet, but its claims of the Lucid Air’s long range, fast charging, and low-cost battery pack have garnered a lot of attention from EV enthusiasts.

A Lucid Air car.

Image source: Lucid Group.

Two other factors have piqued investor attention in Lucid Group: Its integrated in-house production process that designs and manufactures everything from battery packs, inverters, and motor and transmission to charging systems and software, and the fact that the company has the former Tesla Model S Chief Engineer at its helm.

As of July, Lucid Group had secured 11,000 paid reservations for the Lucid Air, with its Dream Edition fully booked. It has also already opened eight showrooms, plans to start deliveries this year, and aims to enter the European and Middle East markets late next year.

Needless to say, this month could be one of the biggest ever for Lucid Group as it vies for a ton of media attention which, if positive, should send the EV stock soaring. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.