The first week of September trading has not been the best for investors. When tracking the last five days of performance, the NASDAQ Composite Index is down -1.19%, the Dow Jones Industrial Average is down -0.57%, and the S&P 500 is down -0.28%.
This is to be expected for September, as the month is traditionally a low performer, due to seasonal factors like the College Year beginning, and families returning from summer vacations with investments low on the priority list. Some private investors also use September as a “sell” month, offloading profitable stocks ahead of the new year.
You might not be able to beat the slight downturn during the month, but you could invest in stocks that had momentum throughout August. These are 3 stocks that could continue their rise after the September lull.
Costco Wholesale Corp. (NASDAQ: COST)
Costco has displayed impressive growth throughout 2018 and shares in the company have also managed to stay up in the opening days of September. This shows a resilience that is usually limited to the largest cap stocks.
Costco’s core business is membership shopping for consumers and small businesses. Revenue is derived from memberships as well as goods sold, making for a highly profitable business model. Despite online retail rising in popularity, Costco has not suffered. This is due to its low-cost and all-under-one-roof model. The company offers convenience as well as competitive prices.
Investor confidence is high this week, thanks to continued growth for the company. Revenue has increased consistently for the last five years running. At the end of FY17, the company raised total sales revenue by 8.68%, the highest in five years. Gross income also reached its peak at the same time.
Future growth is expected as Costco expands heavily in overseas markets. A new $78M investment in an Australian facility will give Costco access to a market of over 20 Million consumers by March 2019. Growth and historical performance make this stock extremely appealing towards the end of this year.
- 1 Year Price Growth: 95%
- YTD Price Growth: 59%
- 3 Month Sock Price Growth: 31%
Cronos Group Inc. (NASDAQ: CRON)
The cannabis market is expanding as decriminalization and full legalization movements are growing around the world. Medical cannabis products have been legalized in many jurisdictions.
Cronos group is currently the highest performer amongst the handful of publicly traded companies that are involved in the legal cannabis market. Growth this year has been phenomenal, and more is expected. On the 17th of October 2018, Canada will become the first country in North America to fully legalize cannabis, and Cronos’ existing market presence in the country should allow for more rapid growth.
Cronos grew revenue by 594.18% in their last full fiscal year. With more potential markets emerging, this growth is nowhere near its peak potential. Stock prices today are still affordable, representing an opportunity for investors wanting to get in early on a completely new market.
- 1 Year Price Growth: 35%
- YTD Price Growth: 08%
- 3 Month Sock Price Growth: 53%
Monster Beverage Corp. (NASDAQ: MNST)
Energy drink company Monster Beverage Corp. is continuing to grow its market position with products aimed at adolescents and a young-adult audience. Monster is currently one of the most recognizable brands in the beverage industry, thanks to massive marketing exposure through motor racing, traditional sports, and action sports.
Revenue has increased for five years running, as has gross income and profit margin. At the end of FY17, Monster reported revenue of $3.37B, with gross income of $2.14B. The company is still in its FY18 cycle, but there’s already good news for investors, with the company just completing its first $1B revenue quarter. FY18 will be another record year if revenue stays up.
Monster had only slight momentum through August, but growth for the last quarter was strong. Low cost and high potential make this stock worth a closer look.
- 1 Year Price Growth: 03%
- YTD Price Growth: -2.91%
- 3 Month Sock Price Growth: 32%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.