September has arrived, as well as its notoriety for being the worst month for the stock market. In fact, the Dow (NYSEARCA: DIA) has fallen 1% on average every September since its creation in 1897. Yet, funny things can happen in presidential election years and the market actually tends to rise in September. In particular, during the years where a sitting president runs for re-election the Dow has risen an average of 10% since 1952.
Although we can pretty much write 2020 off as an abnormal year for both daily life and Wall Street, the presidential election could provide a focal point for the uncertainty-hating stock market. With the upward trends that we have been seeing lately, plus current POTUS Trump running for re-election, that potential for another 10% increase could again be realized this year. In order to take advantage of this, or even just to keep your portfolio moving in a strange month, here are 3 top growth stocks for September.
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I included this in my ‘top stocks to invest in for June’, however, PayPal (NASDAQ: PYPL) is again the perfect addition for September — it’s an all-round growth stock. For its most recent quarter, it saw a 25% increase year-over-year for its net revenue at $5.6 billion. Under the hood, it also performs well with an average 21% growth in its earnings over the last 3 years as well as 17% average sales growth for the same period.
PayPal is the industry leader when it comes to digital payments. It has strong competitors such as Square and StoneCo, but neither comes close to the widespread presence that PayPal possesses. Operating in over 25 currencies and 200 different markets, PayPal is positioned as a global company that will benefit as more and more countries switch to digital payment methods.
The pandemic also presented this digital payment company to roll out its QR code payment option. Marketed as a new contactless way to pay, it also means that smaller businesses will not have to buy extra hardware — all they need to do is print out a personal QR code to scan. Already a popular way to pay in Asia, this simple and cheap method might be a great way to encourage retention levels of smaller businesses.
Salesforce (NYSE: CRM) has an entire plethora of services which can encompass the lifecycle of a customer. In addition, it possesses an incredible 99.89% retention rate, $5.06 billion in net operating cash flow and it has carved out a competitive moat which it utilizes for its growing accessible market. This growth has seen it added to the Dow Jones index in recent weeks.
This company is a (Sales)force to be reckoned with… sorry! But it does have some impressive numbers. It has a sales growth rate of 27% over the last 3 years and an earnings growth rate of more than 200% for the same period.
This customer relationship management company has definitely given investors much to mull over in the past few years with its large and numerous acquisitions. Yet, including its 2019 acquisition of Tableau Software, Salesforce’s revenue for Q2 was $5.15 billion; that is an increase of 29% year over year. This stock is growing rapidly and its acquisitions are only serving to increase its accessible markets which now include ecommerce and marketing amongst others.
A favourite stock for many, and now with its 4-to-1 stock split, more investment opportunities are available for the every-day investor. Though this split has no effect on the company’s market value, the lower price will encourage more retail investors to get in on the action, and as we’ve already seen, send the stock price higher again. Therefore, September would be an ideal time to invest in Apple (NASDAQ: AAPL).
Apple’s $2 trillion success is based on many factors, but predominantly its iPhone sales have been a major driver. Although the release date of the new iPhone 12 could have been pushed back by a few weeks, the new phone will have 5G capabilities. Apple will be joining the likes of Samsung in the 5G phone arena thus will continue to grow by riding the 5G wave.
As for its other products Apple has seen revenue increases on both its wearables and subscription services. For the quarter ended in June, Apple saw a 17% jump in its wearables and accessories sales as well as a 15% subscription services revenue, with earnings rising 18% for this same quarter. With a lot in the pipeline, Apple’s growth won’t slow any time soon.
MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in companies mentioned above. Read our full disclosure policy here.
Contributing Writer at MyWallSt
Poppy likes companies that go the extra mile. Her favorite stock is Amazon because she is fond of its innovation, variety, and creative solutions to sustainability.