Top Growth Stocks For October

Largely led by growth stocks, the markets have rallied furiously since the March bottoms were hit. These growth names have been at the forefront of the new COVID world, and have kept our world not only afloat, but growing and transitioning to the new normal. Market sentiment thus far in October has been markedly different from the sentiment during this past September, with the Dow last week posting its best weekly gain since August, while the S&P and Nasdaq posted their best weekly gains since July. The rest of October could largely determine the course of stocks for the rest of 2021. Third quarter earnings announcements begin this week, along with the release of lots of especially important economic data. Investors are also hoping for another stimulus package, and are anxiously anticipating the upcoming Presidential election. COVID is still always a concern as well, and there is a mix of vaccine hope and second wave concerns on the minds of everyone. Our Artificial Intelligence (“AI”) algorithms at Q.ai have identified standout growth stocks via our rating system. We have identified Top U.S. Growth stocks with three rated as Top Buys, three rated as Attractive, three rated as Neutral, and two rated as Unattractive.  

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Top Buys

Our AI systems have identified three Top Buys for this month. 

Take-Two Interactive (TTWO)

Our first Top Buy for the month is Take-Two Interactive. The gaming industry has been booming the last several years, and with more people than ever staying at home nowadays, shows no signs of slowing down. Take-Two Interactive is best known for its GTA, NBA 2K, and Red Dead franchises, and is also at the forefront of competitive esports as it owns 50% of the NBA 2K league. Our AI systems have rated Take-Two Interactive D in Technical, A in Growth, B in Momentum Volatility, and A in Quality Value. The stock closed up 3.4% to $167.14 on volume of 1,785,214 vs its 10-day price average of $163.29 and its 22-day price average of $162.18, and is up 36.91% for the year. Revenue grew by 9.42% in the last fiscal year and grew by 88.51% over the last three fiscal years, Operating Income grew by 11.69% in the last fiscal year and grew by 213.83% over the last three fiscal years, and EPS grew by 10.07% in the last fiscal year and grew by 153.42% over the last three fiscal years. Revenue was $3088.97M in the last fiscal year compared to $1792.89M three years ago, Operating Income was $425.35M in the last fiscal year compared to $151.38M three years ago, EPS was $3.54 in the last fiscal year compared to $1.54 three years ago, and ROE was 17.66% in the last year compared to 13.92% three years ago. The stock is also trading with a Forward 12M P/E of 49.42.

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Williams-Sonoma Inc (WSM)

Williams-Sonoma is our next Top U.S. Growth Stock rated as a Top Buy. The kitchen-wares and home furnishing company has seen an uptick in demand for its products with more people staying at home and cooking rather than going out to restaurants. Our AI systems rated Williams-Sonoma B in Technical, A in Growth, C in Momentum Volatility, and B in Quality Value. The stock closed down 0.47% to $99.7 on volume of 543,292 vs its 10-day price average of $95.96 and its 22-day price average of $92.28, and is up 37.25% for the year. Revenue grew by 1.93% in the last fiscal year, and grew by 13.6% over the last three fiscal years, while Operating Income grew by 22.82% in the last fiscal year and grew by 26.08% over the last three fiscal years, and EPS grew by 15.99% in the last fiscal year and grew by 72.45% over the last three fiscal years. Revenue was $5898.01M in the last fiscal year compared to $5292.36M three years ago, Operating Income was $469.15M in the last fiscal year compared to $457.01M three years ago, EPS was $4.49 in the last fiscal year compared to $3.02 three years ago, and ROE was 29.78% in the last year compared to 21.17% three years ago. Forward 12M Revenue is expected to grow by 0.61% over the next 12 months, and the stock is trading with a Forward 12M P/E of 16.48.

Thermo Fisher Scientific (TMO)     

Thermo Fisher Scientific is our final Top Buy for this month. Thermo Fisher’s services have been in very high demand as they provide a variety of services to healthcare, life science, and other laboratories in academia, government, and industry. Our AI systems rated Thermo Fisher C in Technical, A in Growth, A in Momentum Volatility, and C in Quality Value. The stock closed up 0.43% to $466.72 on volume of 927,214 vs its 10-day price average of $448.3 and its 22-day price average of $437.48, and is  up 43.0% for the year. Revenue grew by 2.76% in the last fiscal year and grew by 25.48% over the last three fiscal years, Operating Income grew by 9.41% in the last fiscal year and grew by 44.74% over the last three fiscal years, and EPS grew by 0.74% in the last fiscal year and grew by 65.18% over the last three fiscal years. Revenue was $25542.0M in the last fiscal year compared to $20918.0M three years ago, Operating Income was $4261.0M in the last fiscal year compared to $3221.0M three years ago, EPS was $9.17 in the last fiscal year compared to $5.59 three years ago, and ROE was 12.91% in the last year compared to 9.49% three years ago. Forward 12M Revenue is expected to grow by 6.25% over the next 12 months, and the stock is trading with a Forward 12M P/E of 27.02.

Attractive

Our AI systems have identified three Attractive rated Top U.S. Growth Stocks for this month.

Amazon.com (AMZN)

Our first Attractive stock is e-commerce mega company Amazon. The e-commerce industry as a whole has been booming in 2020, and Amazon has been at the forefront. With its Prime Day set to begin, they will surely see considerable revenue. Our AI systems rated Amazon C in Technical, A in Growth, B in Momentum Volatility, and C in Quality Value. The stock closed up 4.75% to $3442.93 on volume of 8,364,198 vs its 10-day price average of $3205.49 and its 22-day price average of $3129.55, and is up 81.4% for the year. Revenue grew by 14.71% in the last fiscal year and grew by 80.91% over the last three fiscal years, Operating Income grew by 16.16% in the last fiscal year and grew by 307.5% over the last three fiscal years, and EPS grew by 13.15% in the last fiscal year and grew by 323.36% over the last three fiscal years. Revenue was $280522.0M in the last fiscal year compared to $177866.0M three years ago, Operating Income was $14404.0M in the last fiscal year compared to $4106.0M three years ago, EPS was $23.01 in the last fiscal year compared to $6.15 three years ago, and ROE was 21.94% in the last year compared to 12.91% three years ago. Forward 12M Revenue is expected to grow by 8.04% over the next 12 months, and the stock is trading with a Forward 12M P/E of 98.7.

Zoom Video Communications (ZM)           

Our second Attractive rated stock for this month is arguably the biggest winner of the COVID era- Zoom Video Communications. With its video conferencing platform, and ease of use, Zoom is arguably the most important work at home stock of 2020, and can be credited with keeping both schools and businesses functioning. Our AI systems rated Zoom C in Technical, A in Growth, D in Momentum Volatility, and C in Quality Value. The stock closed down 0.18% to $491.54 on volume of 6,979,462 vs its 10-day price average of $480.76 and its 22-day price average of $462.54, and is up 615.28% for the year. Revenue grew by 116.26% in the last fiscal year and grew by 788.93% over the last three fiscal years, Operating Income grew by 1712.88% in the last fiscal year and grew by -4862.32% over the last three fiscal years, and EPS grew by 770.01% in the last fiscal year and grew by -811.83% over the last three fiscal years. Revenue was $622.66M in the last fiscal year compared to $151.48M three years ago, Operating Income was $12.7M in the last fiscal year compared to $(4.83)M three years ago, EPS was $0.09 in the last fiscal year, compared to $(0.11) three years ago, and ROE was 5.13% in the last year compared to (2.9%) three years ago. Forward 12M Revenue is expected to grow by 19.56% over the next 12 months, and the stock is trading with a Forward 12M P/E of 189.0.

PayPal Holdings (PYPL) 

PayPal Holdings is our final Attractive Top U.S. Growth Stock for this month. The worldwide payment system which serves as a money transfer system and payment processor, has seen considerable growth and demand in 2020. Our AI systems have rated PayPal D in Technical, A in Growth, B in Momentum Volatility, and B in Quality Value. The stock closed up 2.15% to $201.51 on volume of 10,603,250 vs its 10-day price average of $195.53 and its 22-day price average of $189.05, and is up 81.95% for the year. Revenue grew by 8.14% in the last fiscal year and grew by 46.77% over the last three fiscal years, Operating Income grew by 4.44% in the last fiscal year and grew by 32.64% over the last three fiscal years, and EPS grew by 5.28% in the last fiscal year and grew by 48.25% over the last three fiscal years. Revenue was $17772.0M in the last fiscal year compared to $13094.0M three years ago, Operating Income was $2790.0M in the last fiscal year compared to $2197.0M three years ago, EPS was $2.07 in the last fiscal year compared to $1.47 three years ago, and ROE was 15.22% in the last year compared to 11.69% three years ago. Forward 12M Revenue is expected to grow by 9.51% over the next 12 months, and the stock is trading with a Forward 12M P/E of 49.01.

Neutral

Our AI systems have identified three Neutral rated Top U.S. Growth Stocks for this month.

Salesforce Inc (CRM)

Salesforce Inc. is our first Neutral rated Top U.S. Growth Stock for this month. Salesforce has been a crucial software platform for many companies forced to work remotely, and has kept many businesses afloat. With its cloud-based software platform, Salesforce provides customer relationship management services, marketing automation, analytics, and application development. Our AI systems rated Salesforce D in Technical, A in Growth, D in Momentum Volatility, and B in Quality Value. The stock closed up 0.41% to $267.07 on volume of 4,317,010 vs its 10-day price average of $255.5 and its 22-day price average of $249.55, and is up 59.93% for the year. Revenue grew by 13.35% in the last fiscal year and grew by 83.87% over the last three fiscal years, while EPS grew by 1627.19% in the last fiscal year and grew by 428.73% over the last three fiscal years. Revenue was $17098.0M in the last fiscal year compared to $10540.0M three years ago, Operating Income was $503.0M in the last fiscal year compared to $454.0M three years ago, EPS was $0.15 in the last fiscal year compared to $0.49 three years ago, and ROE was 0.51% in the last year compared to 4.03% three years ago. Forward 12M Revenue is expected to grow by 7.73% over the next 12 months, and the stock is trading with a Forward 12M P/E of 80.17.

Roku Inc (ROKU)

Streaming platform Roku Inc. is our next Neutral rated stock for this month. Our AI systems have rated Roku B in Technical, A in Growth, D in Momentum Volatility, and D in Quality Value. The stock closed down 1.01% to $221.68 on volume of 5,775,833 vs its 10-day price average of $206.8 and its 22-day price average of $189.17, and is up 61.69% for the year. Revenue grew by 19.49% in the last fiscal year and grew by 163.08% over the last three fiscal years, while EPS grew by -48.31% over the last three fiscal years. Revenue was $1128.92M in the last fiscal year compared to $512.76M three years ago, Operating Income was $(61.16)M in the last fiscal year compared to $(19.62)M three years ago, EPS was $(0.52) in the last fiscal year compared to $(2.24) three years ago, and ROE was (12.71%) in the last year compared to (69.93%) three years ago. Forward 12M Revenue is also expected to grow by 14.07% over the next 12 months.

Upwork Inc (UPWK)

Upwork Inc is our next Neutral rated stock for this month. With many workers being laid off and the job market slowly recovering, many people have been forced to get creative to find work. Upwork’s platform for both freelancers looking for work and enterprises looking to hire talent, has proven to be extremely serviceable and helpful during the COVID economy. The job market nowadays is difficult to navigate, and Upwork has helped countless people. Our AI systems have rated Upwork C in Technical, A in Growth, C in Momentum Volatility, and D in Quality Value. The stock closed down 0.99% to $20.01 on volume of 1,538,439 vs its 10-day price average of $18.94 and its 22-day price average of $17.09, and is up 90.21% for the year. Revenue grew by 9.47% in the last fiscal year and grew by 62.44% over the last three fiscal years, while EPS grew by -17.92% over the last three fiscal years. Revenue was $300.56M in the last fiscal year compared to $202.55M three years ago, Operating Income was $(18.73)M in the last fiscal year compared to $(3.12)M three years ago, EPS was $(0.15) in the last fiscal year compared to $(0.32) three years ago, and ROE was (6.62%) in the last year compared to (2.91%) three years ago. Forward 12M Revenue is also expected to grow by 6.98% over the next 12 months.

Unattractive

Our AI systems have identified two Unattractive rated Top U.S. Growth Stocks for this month.

Freeport-McMoran (FCX)

Freeport-McMoran is our first Unattractive stock for the month. Freeport-McMoran is a Phoenix based mining and materials company, and has been rated C in Technical, A in Growth, D in Momentum Volatility, and F in Quality Value by our AI systems. The stock closed down 2.44% to $16.81 on volume of 14,085,410 vs its 10-day price average of $16.22 and its 22-day price average of $16.12, and is up 27.35% for the year. Revenue was $14402.0M in the last fiscal year compared to $16403.0M three years ago, Operating Income was $680.0M in the last fiscal year compared to $3933.0M three years ago, EPS was $(0.17) in the last fiscal year compared to $1.25 three years ago, and ROE was (1.09%) in the last year compared to 19.74% three years ago. Forward 12M Revenue is expected to grow by 18.27% over the next 12 months, and the stock is trading with a Forward 12M P/E of 14.93.

PTC Therapeutics Inc (PTCT)

Our final Unattractive Top U.S. Growth Stock for this month is U.S. pharmaceutical company PTC Therapeutics. Our AI systems rated PTC Therapeutics C in Technical, A in Growth, F in Momentum Volatility, and F in Quality Value. The stock closed up 1.43% to $54.58 on volume of 265,748 vs its 10-day price average of $50.56 and its 22-day price average of $48.49, and is up 12.68% for the year. Revenue grew by 1.43% in the last fiscal year and grew by 60.18% over the last three fiscal years, and was $306.98M in the last fiscal year compared to $194.39M three years ago. Operating Income was also $(192.8)M in the last fiscal year compared to $(64.29)M three years ago, EPS was $(4.27) in the last fiscal year compared to $(2.02) three years ago, and ROE was (53.24%) in the last year compared to (57.24%) three years ago. Forward 12M Revenue is expected to grow by 15.54% over the next 12 months.

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