4 Stocks I am Looking to BUY in November

Summary

In this video, financial analyst Mark R discusses four high-potential stocks to consider for November 2024. He highlights Alphabet (GOOGL) for its diverse revenue streams, Advanced Micro Devices (AMD) for its growth prospects in the tech sector, Qualcomm (QCOM) for its solid fundamentals despite recent pullbacks, and Target (TGT) for its strategic pricing cuts aimed at regaining market share. Each company is assessed based on financial health, analyst growth projections, and investment recommendations, with a focus on their potential for significant upside as the year closes.

Takeaways

• 😀 The year is ending with potential for strong market performance, particularly following good results in September and October.
• 😀 Upcoming elections typically lead to a robust market finish, adding optimism for the remainder of the year.
• 😀 The video highlights four high-quality stocks to consider for investment in November: Alphabet, AMD, Qualcomm, and Target.
• 😀 Alphabet (GOOGL) has faced recent underperformance compared to peers like Nvidia but has strong fundamentals and a diversified business model.
• 😀 Analysts project Alphabet's revenue to grow by 11% next year, with a forward PE ratio of 19 and a strong buy rating.
• 😀 Advanced Micro Devices (AMD) has seen significant growth but remains overshadowed by Nvidia; it has strong growth prospects due to rising computer sales.
• 😀 Analysts expect AMD's revenue to increase by 28% next year, with a low PEG ratio of 0.6 making it attractive for investors.
• 😀 Qualcomm (QCOM) has faced challenges due to licensing disputes but remains a solid investment with a 60% increase in shares over the past year.
• 😀 Qualcomm's analysts anticipate revenue growth of 9% next year, and it is rated as a moderate buy with a price target indicating 25% upside.
• 😀 Target (TGT) is working to regain market share from Walmart and is implementing price cuts to attract more customers ahead of the holiday season.

Q & A

What are the key months mentioned that historically contribute to a strong market finish?

September and October are highlighted as key months that historically lead to a strong finish in the market.

Which stock is identified as a significant component of the Magnificent 7 and what is its recent performance?

Alphabet Inc. (GOOGL) is identified as a major component of the Magnificent 7, but it has underperformed recently, being the only company in the group that was slightly in the red during a period when the S&P 500 climbed 7%.

What is the current market cap of Alphabet and its expected revenue growth next year?

Alphabet has a market cap of $2.1 trillion, and analysts expect it to generate revenues of $386.3 billion next year, reflecting an 11% growth.

Why are investors skittish about Alphabet's performance?

Investors are concerned about Alphabet's performance due to discussions around generative AI and its potential impact on the business, despite the company also working on its own generative AI technologies.

What key financial ratios indicate Alphabet's financial health?

Alphabet has a quick ratio of 1.9, a current ratio above 2, and a debt-to-equity ratio of 0.09, all of which suggest strong financial health.

What is AMD's market cap and how has its stock performed over the past year?

Advanced Micro Devices (AMD) has a market cap of $259 billion and its stock has climbed 66% over the past year.

What growth potential is forecasted for AMD's revenues and earnings in the coming years?

Analysts forecast that AMD will generate $32.9 billion in revenue next year, reflecting 28% growth, and an EPS of $5.42, indicating 60% growth.

What is Qualcomm's current valuation in terms of forward PE and what factors contributed to its recent stock decline?

Qualcomm's stock trades at a forward PE of 15.1. Its recent 25% decline from previous highs is attributed to a licensing dispute with Arm Holdings.

How does Target Corporation plan to regain market share during the holiday season?

Target plans to regain market share by implementing over 2,000 price cuts in their stores and focusing on enhancing their online sales, which now account for about 20% of total sales.

What is the average 12-month price target for Target and what does it imply?

Analysts have an average 12-month price target of $181 for Target Corporation, which implies nearly a 21% upside from current levels.