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These three stocks could be in the big November
As we head into November, many investors are trying to digest some of the latest earnings releases from the biggest names in the market and want to determine whether or not there’s a year-end rally. With markets trading around all-time highs, there are plenty of question marks to consider such as the long-term effects of inflation, ongoing supply chain problems, and the proposed tax on corporate stock buybacks. Will stocks continue to climb the wall of anxiety or could we see another sharp decline in the coming weeks?
Only time will tell, but it is worth noting that according to seasonal patterns, the upcoming month is usually strong for the stock market. This means that investors should continue to try to find solid buying opportunities to take advantage of as the year closes. We’ve compiled a list of the top 3 stocks to buy for the month of November to help you decide some of the best companies to target in your portfolio. Keep reading below to find out more.
Microsoft (NASDAQ: MSFT)
Another quarter and another excellent earnings report from the world’s largest software company. The company continues to deliver impressive growth in its Microsoft Cloud business, which generated $20.7 billion in revenue for the first quarter, up 36% year over year. Investors should be confident that trends such as enterprise digital transformation will continue to benefit this area of the company in the long run, as we are likely only in the early roles for widespread adoption of hybrid cloud services. Other attractive areas of Microsoft’s business include successful production and business process software such as Microsoft Office, the latest Xbox Series X video game system, and digital advertising services.
Microsoft received a batch of analyst upgrades after its latest earnings report, which could be a strong catalyst for the stock in November. According to MarketBeat analyst ratings, the stock has a target price of $341.22 at the time of writing, which indicates a price hike ahead. Microsoft has been one of the top performing big tech stocks this year, yet there may be more gas left in the tank to rise after the flawless first quarter. Adding shares of this software giant on dips this month may be a recipe for gains.
Enphase Energy (NASDAQ: ENPH)
Next up is Enphase Energy, one of the top stocks to consider if you’re interested in exposure to the solar industry. The company sells and manufactures existing microinverter systems for solar PV installations, a type of differentiated technology known to be more reliable than many competing solar roof panels. Enphase also offers Envoy, a monitoring system that helps homeowners access solar energy generation, storage and consumption online.
We know that renewables are a huge opportunity from an investment standpoint, and Enphase is currently seeing strong demand for their products from homeowners interested in solar energy. The stock could be a very strong performer in November on the back of an impressive earnings report, as the company just posted record revenue of $351.5 million, up 96% year over year. Enphase also recently announced that it is releasing a new small inverter called the IQ8, which keeps the solar system working if the grid goes down. As the company grapples with supply chain issues, Enphase’s fourth-quarter guidance points to another record quarter, which tells us the stock could be on the edge of the picture through 2021.
Goldman Sachs (NYSE: GS)
November could end with the delivery of breakouts to stocks in the financial sector thanks to higher yields and recent signals from the Federal Reserve that tapering and higher interest rates are on the horizon. As one of the world’s leading investment banking and securities firms, Goldman Sachs is a great choice to consider in this field. There are several factors working in the company’s favor at the moment, including a recovering economy and a strong stock market driving investment banking returns.
The company’s third-quarter revenue increased 26% year-over-year to $13.61 billion thanks to a significant boost in the company’s investment banking segment. It’s also worth noting that Goldman’s consumer and wealth management segment also posted healthy gains during the quarter, with revenue increasing 35% year over year to $2.02 billion. This is important because a large part of the company’s long-term growth strategy involves focusing on consumer deposits and attracting ultra-network customers, which will help the company diversify its revenue sources. The bottom line here is that Goldman Sachs could be a very strong November after posting an amazingly profitable quarter, so consider adding stocks on dips or if the stock could break all-time highs at $420.76.
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