As we approach the close of another month, it’s time to reveal my Top 22 Best Stocks to Buy Now in October (2024) With High Profits Margins . This list has been evolving throughout 2024, and after strong performances, I’ve removed Coca-Cola and Six Flags Entertainment from the list. Along with revealing my top stock picks, I’ll also share how this portfolio has performed so far this year, comparing it to the S&P 500 Index.
A Quick Overview
Before diving into the list, I’d like to thank Motley Fool for sponsoring this post. And i appreciate my team Paddedvibez.com for inspiring these top picks, the top 10 stocks to buy right now. Now, let’s get into the stock picks, split into two batches for easier digestion.
Batch 1: The First 11 Stocks
Here are my first 11 stock recommendations for October:
- Visa (V)
- Alphabet (GOOGL)
- The Walt Disney Company (DIS)
- NVIDIA (NVDA)
- AMD (AMD)
- Chewy (CHWY)
- Target (TGT)
- Nike (NKE)
- Amazon (AMZN)
- Micron Technology (MU)
- eBay (EBAY)
- The Home Depot (HD)
For each of these stocks, I’ve included their forward price-to-earnings (PE) ratios, with Amazon standing out with a forward PE of 31, making it the most expensive stock on this list.
Why Forward PE Ratios Matter
The forward PE ratio is a key factor in my six-step investing framework. Valuation is critical when making investment decisions—whether it’s deciding to buy, hold, or sell a stock. A good business can still be a poor investment if its stock price is overvalued. Forward PE is a comprehensive metric to assess whether a stock is expensive or cheap, helping investors make informed choices.
While some of these stocks have underperformed so far in 2024, others have exceeded expectations. But before we look at their performance, let’s explore the second batch of stocks.
Batch 2: The Next 11 Stocks
The second batch of stock picks includes:
- Snap (SNAP)
- Fiverr International (FVRR)
- Uber Technologies (UBER)
- Salesforce (CRM)
- PayPal (PYPL)
- Meta Platforms (META)
- Zoom Video Communications (ZM)
- Netflix (NFLX)
- Alibaba (BABA)
- UiPath (PATH)
2024 Year-to-Date Performance
Now, let’s take a look at how these stocks have performed so far in 2024. Among the first batch, Nike has been the biggest underperformer, down 17.7%. The company recently replaced its CEO, and despite facing some headwinds, I still view Nike as a top stock to buy. However, a change in leadership is usually a negative factor in my six-step investing framework, which values stability.
On the flip side, NVIDIA has been the best performer, thanks to the rise of AI technology. Another surprising outperformer is eBay, which is up 51% year-to-date. Many doubted eBay’s relevance in the e-commerce space, citing competition from Amazon and Shopify. However, eBay’s asset-light business model, solid profit margins, and cash flow generation make it an attractive investment.
Why Competition Matters
When evaluating stocks, I consider the level of competition within an industry. For example, the EV and auto industries have been devastated by fierce competition, whereas eBay and other e-commerce platforms like Etsy, Amazon, and Shopify have benefited from increasing fees and reduced competition.
Comparing our Portfolio to the S&P 500
Now that we’ve covered my top 22 stocks, let’s compare their performance to the S&P 500. As of September 30th, the S&P 500 is up 21.33%. Our portfolio, which includes returns from Coca-Cola and Six Flags, has returned 20.7% year-to-date. Although slightly underperforming the S&P 500 by 1.16 percentage points, we’re satisfied with this performance, especially since we are all in positive territory.
If we can achieve a 20% return year after year, we would take that deal instantly. Over the long term, our goal is to slightly outperform the S&P 500 while avoiding major disasters, which is a key component of my six-step investing framework.
Conclusion
In conclusion, the 22 stocks I’ve recommended for October have shown solid year-to-date performances, and I expect them to continue delivering strong returns. While some may have underperformed, others have exceeded expectations, making this portfolio a great long-term investment strategy.
Lastly, for those curious about our investing strategy, I’m excited to announce that one of our team member has written a book outlining his six-step framework for evaluating stocks. You can find the link to purchase it in the description below or on our official Paddedvibez.com Telegram. Stay tuned for more updates and stock insights!
This blog post not only breaks down my top 22 stock picks but also offers insights into how to evaluate stocks and build a successful investment portfolio. Happy investing! Join us on Telegram for more updates.
