In 2021’s rendition of the top three stocks to buy in September, we have a cloud company, an apparel company, and a groceries stock. All three currently look like healthy companies to invest in as we move into September. So, if you feel like giving your portfolio a bit more cloud coverage, or you want to spice it up a notch, then one of these stocks could be your next best investment.
1. Palo Alto Networks.
Based in California, Palo Alto Networks (NYSE: PANW) operates in more than 150 countries, delivering security for growing businesses. Palo Alto offers cloud-focused digital security solutions, including advanced cloud-based firewalls, threat detection and prevention, and network security. This covers the digital front of cloud ecosystems, which is incredibly important in this day and age. The company does face increasing competition in the cybersecurity sector, but, with its current trajectory, investors should not be too worried.
For its most recent earnings, Palo Alto had very encouraging numbers. The company reported an earnings per share (EPS) of $1.60 on revenue of $1.22 billion for the quarter, up 28% year-over-year (YoY). This outstripped estimates of $1.47 EPS on revenue of $1.7 billion. Additionally, the company posted a 34% increase YoY on its billings, coming in at $1.9 billion. This growth was primarily driven by strength in large customer transactions and hard work across the board.
For its fiscal year 2022, the company expects its revenue to grow a further 25% to a total of $5.3 billion. Interestingly enough, last quarter was the first quarter in three years that Palo Alto had not made a new acquisition. This could mean that it is now about to focus on building up its services and focus on overall company growth as its many acquisitions begin to bear fruit.
This athleisure apparel company needs no introduction as one of the most iconic brands around the world. Indeed, despite some production issues, this titan of trainers managed the pandemic particularly well, considering its stock value in March 2020 plummeted to just $62 from all-time highs of $104 the month previous. For the rest of the year, the company had a few wobbles, but overall results were strong. Indeed, 2020’s March drop has not overly impacted the company’s value as Nike (NYSE: NKE) has had a 208% return over the last five years.
In its most recent earnings report, Nike posted revenue of $12.3 billion, which is up 91% in comparison to the same quarter last year and up 21% compared to the same quarter in 2019. For the full year, it also posted revenue of $44.5 billion, up 19% YoY. EPS for the quarter was $0.93 and for the full year was $3.56.
Not soon after its record quarterly report, the company announced plans to open two new specialty concept retail stores in Boston, driving digitally-enhanced in-store traffic. In addition, its digital service, Nike Direct is growing at a fast pace with revenue up 73% to $4.5 billion. This service will give Nike’s margins a much-needed boost as recent years have eroded its profit margins. Although this has been primarily driven by the company’s continuous investment in new technology, investors should keep an eye on its profit margins moving forward.
3. Tyson Foods
Tyson Foods (NYSE: TSN) is one of the biggest chicken producers in the world. But that is not all it does as it has one of the largest ‘protein’ profiles in the food industry, producing beef and pork, as well as its latest venture of plant-based protein products. Indeed, its stock value is up 9% since the beginning of August and this will probably grow more during September.
In its most recent earnings report, Tyson did better than expected. Its total revenue increased 24.6% YoY to $12.48 billion, whilst EPS was $2.05. The company expects the full fiscal year to post revenue between $46 billion and $47 billion. As such, the company has just announced that it plans to build a new $300 million facility to produce its fully cooked products, which include Any’tizer Snacks and Chicken Nuggets snacks.
Unfortunately, the company is currently facing protests over its decision to mandate vaccines for its 140,000 U.S. workers, this could impact production levels in the short term. However, in the long term, the company will move past this controversy and should be able to build off its past few quarters of stability.
Food stocks are great investments, but there are plenty of other great opportunities in MyWallSt’s shortlist of market-beating stocks. Access them by starting your free trial today.
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.