August was another good month for the stock market as the major averages all finished higher for the month. The S&P 500 rose 2.9% for the month, posting its best winning streak since 2017. The Nasdaq Composite gained about 4% for its third positive month and while the Dow lagged, it still added 1.2%. Although some strategists are on the lookout for a correction in September, we tried to find the most promising stocks for this month which could be good options for many portfolios. Let’s see them.
1. Lennar Corporation [LEN]
Sector: Consumer Cyclical
Industry: Residential Construction
Current price: $107.3 | 1 year: +16.5% | 5 years: +79.03%
Lennar Corporation constructs and sells single-family attached and detached homes, as well as buys and sells residential land. The company also provides mortgage financing, title insurance, commercial real estate, investment management, and other financial services.
Fundamental analysis
The company has a market cap of $32.77 billion with an enterprise value of $38.02. Their price to sales ratio is 1.34 and their price to book ratio is 1.71. As of this writing, it is trading at $107.31 with a 52-week high of $110.61 and a 52-week low of $69.41.
LEN’s return on assets of 10.83% is amongst the best of the industry. Their profit margin is 13.83 which is also amongst the best returns in their industry. In addition, LEN outperforms 88% of its industry peers. The Piotroski-F score of LEN is 8.00. This is a very strong score and indicates great health and profitability for LEN.
Technical analysis
2. Advanced Micro Devices [AMD]
Sector: Technology
Industry: Semiconductors
Current price: $110.25 | 1 year: +24.54% | 5 years: +131.95%
Fundamental analysis
The company has a market cap of $134.36 billion with an enterprise value of $131.16 billion. Their price to sales ratio was 10.07 and their price to book ratio is 19.02. As of this writing, it is trading at $110.25 with a 52-week high of $122.49 and a 52-week low of $72.50.
AMD’s return on assets of 32.14% is amongst the best of the industry. Their profit margin is 25.76% which is also amongst the best returns in their industry. In addition, AMD outperforms 84% of its industry peers. The Piotroski-F score of AMD is 7.00. This is a very strong score and indicates great health and profitability for AMD.
Technical analysis
3. Facebook [FB]
Sector: Communication Services
Industry: Media & Services
Current price: $382.3 | 1 year: +18.32% | 5 years: +106.2%
Fundamental analysis
The company has a stunning market cap of $1.8 trillion with an enterprise value of $1.02 trillion. Their price to sales ratio is 10.29 and their price to book ratio is 7.82. It is currently trading at $382 with a 52-week high of $382.7 and a 52-week low $244.13.
FB’s profit margin of 37.18% is amongst the best returns of the industry. FB outperforms 98% of its industry peers. The company’s price/earnings ratio is a bit cheaper than the industry average which is at 38.95. The low PEG Ratio, which compensates the price/earnings for growth, indicates a rather cheap valuation of the company.
Technical analysis
4. Nano Dimension [NNDM]
Sector: Technology
Industry: Computer Hardware
Current price: $6.5 | 1 year: +80% | 5 years: +433.09%
Fundamental analysis
The company has a market cap of $1.66 billion with an enterprise value of $349.69 million. Their price to sales ratio is 411.04 and their price to book ratio is 1.17. At the time of this writing, it is trading at $6.5 with a 52-week high of $17.89 and a 52-week low of $1.31.
Compared to an average industry price book ratio of 3.37, NNDM is valued rather cheaply. On top of this, NNDM is cheaper than 92% of the companies listed in the same industry. NNDM shows a strong growth in earnings per share. In the last year, the EPS has been growing by 76.38%, which is quite impressive. Measured over the past 5 years, NNDM shows a very strong growth in revenue, which has been growing by 60.05% on average per year.
Technical analysis
+1 Digital Turbine [APPS]
Sector: Technology
Industry: Software
Current price: $60.23 | 1 year: +28.3% | 5 years: +184.15%
Fundamental analysis
The company has a market cap of $5.79 billion with an enterprise value of $5.14 billion. It has a price to sales ratio of 12.40 and a price to book ratio of 11.39. At press time, it is trading at $60.23 with a 52-week high of $102.56 and a 52-week low of $20.60.
The low PEG Ratio, which compensates the price/earnings for growth, indicates a rather cheap valuation of the company. APPS’s Profit Margin of 12.68% is amongst the best returns of the industry and they outperform 82% of their industry peers. The industry average profit margin is -9.58%.
Technical analysis
1. Lennar Corporation [LEN]
Sector: Consumer Cyclical
Industry: Residential Construction
Current price: $107.3 | 1 year: +16.5% | 5 years: +79.03%
Lennar Corporation constructs and sells single-family attached and detached homes, as well as buys and sells residential land. The company also provides mortgage financing, title insurance, commercial real estate, investment management, and other financial services.
Fundamental analysis
The company has a market cap of $32.77 billion with an enterprise value of $38.02. Their price to sales ratio is 1.34 and their price to book ratio is 1.71. As of this writing, it is trading at $107.31 with a 52-week high of $110.61 and a 52-week low of $69.41.
LEN’s return on assets of 10.83% is amongst the best of the industry. Their profit margin is 13.83 which is also amongst the best returns in their industry. In addition, LEN outperforms 88% of its industry peers. The Piotroski-F score of LEN is 8.00. This is a very strong score and indicates great health and profitability for LEN.
Technical analysis
- The long- and short-term trends are both positive.
- When comparing the yearly performance of all stocks, we notice that LEN is one of the better performing stocks in the market, outperforming 74% of all stocks. We also observe that the gains produced by LEN over the past year are nicely spread over this period.
- LEN is currently trading near its 52-week high, which is a good sign.
- LEN has an average volume of 1858420. This is a good sign as it is always nice to have a liquid stock.
2. Advanced Micro Devices [AMD]
Sector: Technology
Industry: Semiconductors
Current price: $110.25 | 1 year: +24.54% | 5 years: +131.95%
Fundamental analysis
The company has a market cap of $134.36 billion with an enterprise value of $131.16 billion. Their price to sales ratio was 10.07 and their price to book ratio is 19.02. As of this writing, it is trading at $110.25 with a 52-week high of $122.49 and a 52-week low of $72.50.
AMD’s return on assets of 32.14% is amongst the best of the industry. Their profit margin is 25.76% which is also amongst the best returns in their industry. In addition, AMD outperforms 84% of its industry peers. The Piotroski-F score of AMD is 7.00. This is a very strong score and indicates great health and profitability for AMD.
Technical analysis
- AMD is currently trading in the upper part of its 52-week range. The S&P500 Index however is currently trading near a new high, so AMD is lagging the market slightly.
- AMD has an average volume of $68,238,700. This is a good sign as it is always nice to have a liquid stock.
- When comparing the yearly performance of all stocks, we notice that AMD is one of the better performing stocks in the market, outperforming 79% of all stocks.
- Just like the previous one, the long- and short-term trend are both positive, which is a good sign.
3. Facebook [FB]
Sector: Communication Services
Industry: Media & Services
Current price: $382.3 | 1 year: +18.32% | 5 years: +106.2%
Fundamental analysis
The company has a stunning market cap of $1.8 trillion with an enterprise value of $1.02 trillion. Their price to sales ratio is 10.29 and their price to book ratio is 7.82. It is currently trading at $382 with a 52-week high of $382.7 and a 52-week low $244.13.
FB’s profit margin of 37.18% is amongst the best returns of the industry. FB outperforms 98% of its industry peers. The company’s price/earnings ratio is a bit cheaper than the industry average which is at 38.95. The low PEG Ratio, which compensates the price/earnings for growth, indicates a rather cheap valuation of the company.
Technical analysis
- FB is currently trading near its 52-week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
- In the last month FB has a been trading in the $351.00 – $382.76 range, which is quite wide. It is currently trading near the high of this range.
- FB is part of the Interactive Media & Services industry. There are 72 other stocks in this industry, FB did better than 69% of them.
4. Nano Dimension [NNDM]
Sector: Technology
Industry: Computer Hardware
Current price: $6.5 | 1 year: +80% | 5 years: +433.09%
Fundamental analysis
The company has a market cap of $1.66 billion with an enterprise value of $349.69 million. Their price to sales ratio is 411.04 and their price to book ratio is 1.17. At the time of this writing, it is trading at $6.5 with a 52-week high of $17.89 and a 52-week low of $1.31.
Compared to an average industry price book ratio of 3.37, NNDM is valued rather cheaply. On top of this, NNDM is cheaper than 92% of the companies listed in the same industry. NNDM shows a strong growth in earnings per share. In the last year, the EPS has been growing by 76.38%, which is quite impressive. Measured over the past 5 years, NNDM shows a very strong growth in revenue, which has been growing by 60.05% on average per year.
Technical analysis
- NNDM is part of the Technology Hardware, Storage & Peripherals industry. There are 35 other stocks in this industry. NNDM outperforms 85% of them.
- In the last month NNDM has a been trading in the $5.23 – $6.98 range, which is quite wide. It is currently trading near the high of this range.
- NNDM has an average volume of $9,186,510. This is a good sign as it is always nice to have a liquid stock.
+1 Digital Turbine [APPS]
Sector: Technology
Industry: Software
Current price: $60.23 | 1 year: +28.3% | 5 years: +184.15%
Fundamental analysis
The company has a market cap of $5.79 billion with an enterprise value of $5.14 billion. It has a price to sales ratio of 12.40 and a price to book ratio of 11.39. At press time, it is trading at $60.23 with a 52-week high of $102.56 and a 52-week low of $20.60.
The low PEG Ratio, which compensates the price/earnings for growth, indicates a rather cheap valuation of the company. APPS’s Profit Margin of 12.68% is amongst the best returns of the industry and they outperform 82% of their industry peers. The industry average profit margin is -9.58%.
Technical analysis
- When comparing the yearly performance of all stocks, we notice that APPS is one of the better performing stocks in the market, outperforming 91% of all stocks. We also observe that the gains produced by APPS over the past year are nicely spread over this period.
- APPS is one of the better performing stocks in the software industry, it outperforms 84% of 301 stocks in the same industry.
- Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.
