As we enter September, market volatility has created both challenges and opportunities for investors. While some sectors have faced steep declines, key companies are positioned for potential upside, making this a great time to revisit certain stocks. Here’s a look at a few that have caught our attention this month, ranging from technology to energy and retail.
Micron Technology (MU) – “Well-Positioned in the AI Arms Race”
Micron Technology (NASDAQ: MU) has seen its stock drop by over 33% in the last three months, but this pullback could create a buying opportunity. Micron is set to benefit from the growing demand for high-bandwidth memory, driven by increased adoption of artificial intelligence (AI) technologies. As more AI applications require advanced memory solutions, Micron is positioned to capture significant market share in this rapidly growing space.
Recent pricing improvements in DRAM and NAND markets are additional tailwinds for Micron. These factors, combined with the company’s strong standing in the AI ecosystem, make it a compelling stock for those seeking exposure to tech with room for growth in 2024 and beyond.
Energy Transfer (ET) – “Strong Free Cash Flow and Attractive Valuation”
Energy Transfer (NYSE: ET) is a top pick in the energy sector due to its strong free cash flow and growth outlook. With shares up over 15% this year, Energy Transfer remains a compelling value play in the energy space. The stock’s 20% upside potential, based on the median price target on Wall Street, further underscores its appeal.
The company’s ability to generate solid cash flow at a discounted valuation, along with favorable market conditions, positions Energy Transfer for continued growth. For those looking to add exposure to energy infrastructure with attractive fundamentals, ET presents a solid opportunity.
Lowe’s (LOW) – “Benefiting from a Recovery in Home Improvement”
Lowe’s (NYSE: LOW) is another stock that looks well-positioned for growth as the home improvement sector begins to recover. While the stock has risen more than 9% this year, there’s potential for more upside as DIY spending stabilizes. With an expected rebound in the housing market and demand for home improvement products, Lowe’s stands to benefit as a leader in the space.
Mizuho analysts see a potential 15% upside for Lowe’s in the coming months, as the company is set to benefit from easing Federal Reserve policies and a recovery in consumer demand for home improvement projects. This makes Lowe’s a stock to watch as we head into the later stages of 2024.
