Top 4 best Stocks to Buy In October 2023

The month of September is behind us and it's pretty safe to say that the month actually lived up to its billing as the worst month for the stock market whether it was due to higher interest rates a looming government shutdown or maybe a potential recession on the horizon 

whatever the case may be September was not a fun month for stocks during the month here's a look at the major averages and how they performed you can see the S P 500 fell roughly five percent

the Dow Jones was down three and a half percent or so and the NASDAQ was down roughly seven percent so far and we still have a few days left as you already know the technology sector makes up a good chunk of the NASDAQ and the technology sector as a whole if we're looking at the xlk ETF which is a select sector spider ETF focused on technology it's so far in the month of September is

down eight percent on its own so far 2023 has been an incredible year for the stock market however valuation were starting to look a little bit high so although it was September which is historically a very poor month for stocks the pullback was probably necessary and healthy all at the same time regardless stocks look much more intriguing than they did just a month ago so with that being said today we're going

to take a look at four of the best stocks to buy in the month of October 2023. now this isn't just calling the bottom of these particular stocks but all four of them are trading at intriguing valuations especially for long-term minded investors.

hey everyone im here back for another article as always I'm a CPA and not a financial advisor so please perform your own due diligence and before we begin let me take a quick moment taking a look at four of the best stocks to buy in the month of October now this first one might surprise a lot of you because it's actually not a dividend stock and I know we cover dividend stocks primarily but this one here used to be a dividend stock and it is Boeing Company stock ticker 

Boeing stock

1. Boeing

Boeing company is one of the largest industrial companies in the US today operating primarily as an aerospace and defense company they currently have a market cap of 118 billion dollars and over the past 12 months shares have climbed 53 percent but still well off their all-time highs which came in around 450 

dollars back in 2019. Boeing has also been a bit more volatile than normal as we just saw the stock up 53 over the past 12 months but year to date the stock is flat and over the past two months Shares are down 20 percent over the past few years Boeing has gone through a lot they sought tragic unfortunate accidents that happened overseas that really resulted in 

their 737 Maxes being grounded and not being able to record revenues and record those sales for a number of months but just when they started to see demand start to creep up in their backlog yet again fill up Boeing more recently then stated that they anticipated their 737 full year deliveries we're likely to come in at the low end of their guidance which again spooked investors

in the month of September this all sounds like a short-term issue for the company I always like to search for those companies that their stock has pulled back all due to short-term issues and the company still even with these delays reaffirmed their free cash flow guidance for FY 25 and 26 of generating 10 billion dollars of free cash flow so if you're someone that's willing to deal with the volatility right now valuation looks

great but and if you trust management and their execution there 10 billion could end up leading to once again Boeing being a dividend payer another reason to be bullish on shares of Boeing is due to their valuation analysts are calling for 2024 EPS of five dollars flat and 2025 EPS of nine dollars and four cents per share which equates to a forward earnings multiple of 39 times in 2024 and 21.5 times in 2025. so again it's a comeback story for a company that

operates in a duopoly with the likes of Airbus analysts are also high on the stock as they have a 12-month average price target of 254 dollars for the stock implying 30 percent of upside from current levels I may look into some cash secured puts as a way to play and maybe enter into a position for Boeing in the near future October stock.
Coca-Cola stock

2. Coca-Cola

Coca cola Company stock ticker KO so we're getting back to dividend stocks here and as you know Coca-Cola is the largest Beverage Company in the world today as they currently have a market cap of 244 billion dollars but shares of ko have hit a rough patch dating Back To Late July of 2023 to which the stock has fallen 11 which

essentially has wiped out all the gains for the past 12 months alone as you're already likely aware the Coca-Cola company is a global company as they sell their products all over the planet and they operate and compete very closely with the likes of PepsiCo or Pepsi the thing that's

unique about Pepsi is they also offer a snack component to their portfolio so I'd be interested to hear based on taste and based on stock are you a Coke person or are you a Pepsi person looking at the dividend the Coca-Cola company is known as a dividend King as they have hiked their dividend for more than 50 consecutive years in fact Kos hiked their dividend for more than 60 consecutive years which is a testament to the consistency of the 

company the shares currently yield a dividend of three and a quarter percent but the payout ratio is on the higher end of the range so the dividend doesn't have much room to keep growing at a fast pace that's all based on their five-year dividend growth rate Which is less than four

percent right now during much of 2023 investors have focused really on that risk on asset those higher growth type companies those higher volatility type companies and that has left in the dust many of these defensive names like Coca-Cola however that hasn't changed the fundamentals and the operations that are going on at the company because they've actually been performing quite well Management 

has done a nice job over the past few years lessening the amount of skus and focusing more on the high margin and best-selling products which has been a benefit to the company and will continue to be a benefit moving forward for years shares of Coca-Cola 

tend to trade at a premium and it's not a company that grows their revenues or their EPS all that fast but it's really owned by a lot of investors for 2024 analysts are estimating EPS of 2.83 cents per share which equates to seven percent EPS growth and that equates to a forward price to earnings multiple of 19.7 times which is quite low for shares of ko for 

comparable purposes shares of ko have traded at 24 times over the past decade with the stock pulling back and correcting over the past few months shares of ko look quite intriguing at 

these levels and analysts tend to agree as they have a 12-month average price target of roughly 70 dollars implying 25 percent upside from current levels October stock


3. McDonald's

Corporation stock ticker MCD again this is another American iconic company and they operate as a consumer discretionary obvious within the restaurant industry McDonald's currently has a market cap of 195 billion dollars and over the past 12 months the stock is up 11 and in 2023 though Shares are flat as we have

seen a pullback more recently McDonald's might seem like a weird company to have on a list of the four top stocks to buy in the month of October given the fact that a lot of weakness is expected in the broader restaurant sector after all high inflation is still here gas prices are surging and student loan repayments are starting back up which all makes for Less discretionary spending on things like eating out however the way I see it I believe McDonald's is going to be just fine due the fact that they've 

been making Investments for multiple years now in the digitalization side of their restaurant chains and the other thing is is if if consumers are struggling you're going to see them trade down in value that's going to benefit instead of going out to eat at a sit-down restaurant maybe instead you go to the likes of a McDonald's McDonald's is also been in the news lately as they recently hiked their royalty fee from four percent to five percent beginning in January 1 

2024 but this new hike only impacts new store locations but it is the first hike in roughly 30 years although McDonald's is well known for their Big Mac and their fries they operate actually more closely aligned with a real estate company because a lot the large majority of their store locations are operated by third-party franchisees McDonald's is also on the cusp of becoming a dividend King just like Coca-Cola 

which we just looked at as they have hiked their dividend for 47 consecutive years the company currently has a 2.3 percent dividend yield that has been growing at a five-year kegger of 8.5 percent so nearly double that of Coca-Cola analysts are looking for McDonald's to generate EPS of 12.40 per share in 2024 which equates to an earnings multiple of 21.3 times this.

compares favorably to the company's 10-year average of nearly 25 times analysts also have a 12-month price target of 333 dollars per share on shares of McDonald's implying 26 upside from current levels now moving on to our final stock on our list today October stock


4. Prologis Inc

Stock ticker pld for those of you unaware prologis is a real estate investment trust actually an industrial Reit the company currently has a market cap of 105 billion dollars and over the past 12 months the stock has climbed nine percent however more recently

over the past month which hasn't been friendly to the Reit sector pld shares have fallen 10 over that time span pld is a great way to play e-commerce and the growth of e-commerce right now e-commerce sales account for roughly 15 percent of total retail sales however that penetration is

expected to grow year in and year out over the next five years plus although commercial real estate is a sector that has been under siege with a lot of concerns around it industrial is not one of of those sectors I'm all that concerned about when you compare an office rate to an industrial Reit it's night and day on what I'm concerned about and what I'm not concerned about Bank

of America analysts are also high on the industrial sector as they pointed to pld's forecast to keep vacancy rates expected to be around five percent combined though with a decline of new Supply coming online of 35 percent next year both very positive things and beneficial for prologis analysts are forecasting affo of 4.71 cents per share in 2024 which equates to an affo multiple of 23.6 times which 

compares favorably to their 10-year average of 27 and a half times analysts are also very high in the stock as they have an average 12-month price target of a hundred and forty five dollars which implies 30 upside from current levels there we just looked at four potential stocks to consider buying in the month of October three of these companies are dividend paying stocks with prologis McDonald's and Coca-Cola and 

the fourth being Boeing is a former dividend stock all of these companies right now are trading at Great valuations and analysts have high hopes for them moving forward over the next year plus if you're a long-term investor I would take a good hard look do your due 
diligence in all four of these companies.

Hey Guys.! My Name is Salim Choudhary

Post a Comment

Previous Post Next Post