These 3 Stocks Could Be in for a Big November
As we head into the month of November, many investors are trying to digest some of the latest earnings releases from the biggest names in the market and want to determine if an end-of-year rally is on the cards. With markets trading around all-time highs, there are plenty of question marks to consider such as the long-term impacts of inflation, persistent supply chain problems, and a proposed tax on corporate share buybacks. Will stocks continue to climb the wall of worry or could we experience another sharp pullback in the coming weeks?
Only time will tell, but it’s worth mentioning that according to seasonal patterns, the upcoming month is typically a strong one for the stock market. That means investors should continue trying to find strong buying opportunities to take advantage of as we wrap up the year. We’ve put together a list of the top 3 stocks to buy for November to help you identify some of the top companies to target for your portfolio. Keep reading on below to learn more.
Microsoft (NASDAQ: MSFT)
Another quarter and another stellar earnings report from the world’s largest software company. The company continues to see impressive growth in its Microsoft Cloud business, which generated $20.7 billion in revenue for Q1, up 36% year-over-year. Investors should be confident that trends like the digital transformation of enterprises will continue benefitting this area of the company over the long term, as we are likely only in the early innings of the widespread adoption of hybrid cloud services. Other compelling areas of Microsoft's business include successful productivity and business process software like Microsoft Office, the latest Xbox Series X video game system, and digital advertising services.
Microsoft received a bevy of analyst upgrades following the latest earnings report, which could be a strong catalyst for the stock in November. According to MarketBeat’s analyst ratings, the stock has a consensus price target of $341.22 at the time of this writing, which implies plenty of price upside ahead. Microsoft has been one of the best performing mega-cap technology stocks this year, yet the rally might have more gas left in the tank after the company's flawless Q1. Adding shares of this software giant on dips this month could be a recipe for gains.
Enphase Energy (NASDAQ:ENPH)
Next up is Enphase Energy, which is one of the best stocks to consider if you are interested in exposure to the solar energy industry. The company sells and manufactures direct current microinverter systems for solar photovoltaic installations, which is a type of differentiated technology that is known to be more reliable than many competing solar roof panels. Enphase also offers Envoy, which is a monitoring system that helps homeowners to access their solar power generation, storage, and consumption via the internet.
We know that renewable energy sources are a massive opportunity from an investing standpoint, and Enphase is currently seeing strong demand for its products from homeowners that are interested in solar power. The stock could be a very strong performer in November on the back of a great 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 launching a new microinverter called the IQ8, which keeps a solar system functioning if the grid goes down. While the company is dealing with supply chain issues, Enphase’s Q4 guidance points to another record quarter, which tells us that the stock could be in for a photo-finish to 2021.
Goldman Sachs (NYSE:GS)
November could end up delivering breakouts for stocks in the financial sector thanks to rising yields and recent signals from the Federal Reserve that tapering and interest rate hikes are on the horizon. Goldman Sachs is an outstanding option to consider in that area, as its one of the world’s leading investment banking and securities companies. Several factors are working in the company’s favor right now, including a recovering economy and a strong stock market which are driving investment banking revenue.
Q3 revenue for the company increased by 26% year-over-year to $13.61 billion thanks to a big boost in the company’s investment banking segment. It’s also worth noting that Goldman’s consumer and wealth management segment also posted nice gains during the quarter, as revenue increased by 35% year-over-year to $2.02 billion. This is important since a big part of the company’s long-term growth strategy involves focusing on consumer deposits and attracting ultra high-net work clients, which will help the company to diversify its revenue streams. The bottom line here is that Goldman Sachs could be in for a very strong November after delivering an astoundingly profitable quarter, so consider adding shares on dips or if the stock can clear the all-time high of $420.76.
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