Best US stocks to buy in September

Every month, we ask our freelance writers to share their top US stocks with investors — here’s what they would like to buy for September!

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Meta Platforms

What it does: Meta Platforms is an American multinational technology conglomerate based in California.

By Dr James Fox. Meta Platforms (NASDAQ:META) shares have surged along with other tech stocks this year. However, Meta stands out as a solid cash-generating business with exceptional margins, and recently shares dipped.

The company formerly known as Facebook has significantly outperformed the IT sector, delivering back-to-back earnings beats over the last quarter. It has cash from operations of $55bn and gross margins of 79%. The company also posted EPS growth of 21%.

Recent optimism has been driven by the launch of Threads, which is now the fastest-growing app ever. It has an estimated 125m users, having been launched on 5 July. Assuming continued growth, the app could generate as much as $3bn in revenue in 2024, according to analysts’ forecasts. The launch of Reels, Llama2, and broader cost-cutting initiatives should power the company forward in the coming years.

However, constant innovation is key in the ever-evolving tech sector as newcomers and AI have the power to change market dynamics. Meanwhile, Reality Labs – the metaverse operation – remains loss-making.

James Fox owns shares in Meta Platforms.

Nike

What it does: Nike is the world’s largest supplier of athletic shoes and sports clothing equipment.   

By Ben McPoland. Nike (NYSE: NKE), the iconic global sportswear brand, has hit a rough patch. In fact, its share price sprinted downhill for 11 consecutive trading days in August, its longest losing streak since the company went public in 1980. The stock is down 40% in two years.

One major concern is the faltering Chinese economy. Around a fifth of the retailer’s profits come from China, so this is a huge potential headwind. Also, its wholesale partner Foot Locker recently reported a poor quarter, suggesting that US consumers may be holding back on buying new footwear.

However, over the long term, Nike should still benefit from the rise of the global middle class and their preference for high-quality goods. Plus, its Converse brand remains extremely popular.

So, I suspect the cyclical struggles this best-in-class retailer is facing will prove temporary. The stock isn’t cheap on a P/E multiple of 30, but Nike has more than $10bn of cash on the balance sheet. I’m inclined to see the stock’s price dip as a buying opportunity.

Ben McPoland owns shares in Nike.  

Rivian Automotive

What it does: Rivian Automotive makes electric pick-up trucks and SUVs at its manufacturing plant in Illinois.

By James Beard. Since 8 August, when Rivian Automotive (NASDAQ:RIVN) announced a smaller loss than expected and raised its annual production target by 4%, its shares price has fallen by nearly 20%. This looks like an excellent buying opportunity for investors considering the stock.

The company is now forecasting sales of 52,000 vehicles in 2023 — Tesla took a year longer to achieve a similar number.

Rivian’s vehicles generally receive good reviews and it’s reducing costs. It also has a big backer — Amazon has a 17% stake. Crucially, its chief executive says the company has sufficient cash to see it through to 2025.

My biggest concern is the impact of Tesla’s much-hyped Cybertruck, which is due imminently. It’s far cheaper than Rivian’s, and its quirky styling is likely to develop a cult following.

But the market for electric vehicles is going to be huge. This means there’s plenty of room for both companies to co-exist alongside one another.

James Beard does not own shares in any of the shares mentioned.