Narrowing down the right stocks to buy based on multiple metrics is almost impossible without a solid methodology – which is where InvestingPro comes in.
So what are the best stocks to buy now or add to your watchlist? Harmony Biosciences (HRMY), International Seaways Inc (INSW), White Mountain Insurance (WTM), Danaos Corporation (DAC), and KB Home (KBH) have been suggested this month by our InvestingPro AI/Analyst hybrid.
The stock market in October 2024 is buzzing with cautious excitement following a significant rebound in tech and renewable energy stocks. This resurgence, driven by both innovation and supportive regulatory frameworks, has redefined investor sentiment.
Our top stock picks for this month are carefully selected to navigate these trends, continuing to focus on stocks that display strong fundamentals and resilience in the face of fluctuating economic conditions.
Our Stock-Picking Methodology
These 5 stocks are our top Pro Picks for this month, taken from S&P 500-listed companies that have garnered high InvestingPro health ratings (benchmarked against more than 100 financial factors and indicators from companies in the same sector), as well as from among those trading well under our proprietary fair value estimates (based on 5 overlaid investing models) and analyst assessments.
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The term “undervalued stocks” refers to stocks that are trading at a price below their intrinsic value or growth potential. Investors often look for undervalued stocks because, over the long term, the market will likely recognize the company’s true value, leading to a rise in the stock price and providing profit opportunities.
All of these names have earned InvestingPro health scores of well above 3.00, which for the last 7 years has indicated outperformance vs. the S&P 500. A score this high points to a mix of first-rate financials: excellent earnings, cash flow, and growth vs. peers in its sector.
5 Stocks To Consider In October 2024
Top October Stock | InvestingPro Health Score |
---|---|
Harmony Biosciences (HRMY) | 3.89 / 5 |
International Seaways Inc (INSW) | 3.71 / 5 |
White Mountain Insurance (WTM) | 3.13 / 5 |
Danaos Corporation (DAC) | 3.47 / 5 |
KB Home (KBH) | 3.21 / 5 |
Importantly, all of these stocks are also currently undervalued per InvestingPro’s fair value calculations and favored by Wall Street analysts polled by InvestingPro. They’re also sitting with a current potential upside of more than 20%. So if you’re eager to bulk up your portfolio, these overlooked powerhouse plays are all worth serious consideration.
Harmony Biosciences (HRMY):
- InvestingPro health score: 3.89 / 5.00
- InvestingPro average fair value: $46.30 / 24.2% upside
- Fair value confidence: Medium
- Industry: Healthcare / Pharmaceuticals
Harmony Biosciences Holdings (HRMY) is an intriguing stock pick for October 2024, especially for investors seeking opportunities within the niche of neurological therapeutics. As of September 26th, 2024, Harmony Biosciences boasts a market capitalization of roughly $2.11 billion, situating it as a mid-cap contender in the rapidly evolving biotech sector. The company specializes in pioneering treatments for rare neurological diseases, with a notable emphasis on sleep disorders.
Although Harmony Biosciences currently does not distribute a dividend, this allows them to channel profits back into their robust R&D initiatives, poised to propel future innovation and growth. The stock’s P/E ratio stands at 18.4, reflecting a growth-oriented valuation that may indicate potentially attractive upside, particularly when compared to industry norms.
Debt levels are well within manageable thresholds, providing financial flexibility to capitalize on strategic growth opportunities and potential acquisitions. This prudent fiscal management complements their strong revenue streams and progressive expansion strategy. Additionally, Harmony Biosciences recently announced promising clinical results for a new therapeutic application, which could serve as a catalyst for stock appreciation.
Investors should be cognizant of the inherent volatility in the biotech sector, driven by factors like clinical trial outcomes and regulatory approvals. Nonetheless, Harmony Biosciences offers a compelling opportunity marked by a strong developmental pipeline and a commitment to addressing unmet medical needs in the neurological space.
Considering these factors, Harmony Biosciences Holdings presents a balanced risk-reward profile that could yield significant returns for investors willing to navigate the sector’s inherent uncertainties.
International Seaways Inc (INSW):
- InvestingPro health score: 3.71 / 5.00
- InvestingPro average fair value: $60.46 / 19.5% upside
- Fair value confidence: High
- Industry: Energy / Oil, Gas & Consumable Fuels
International Seaways (INSW) returns as a stock pick for October 2024. As of September 26th, 2024, International Seaways boasts a market capitalization of approximately $2.51 billion, making it a significant player within the shipping industry. The company focuses on the global transportation of crude oil and petroleum products, leveraging its modern and diverse fleet of vessels.
International Seaways offers a dividend yield of 11.5%, providing an attractive return to income-focused investors, alongside potential capital appreciation. The stock currently has a P/E ratio of 4.8, suggesting a potentially undervalued status relative to sector peers, which could offer compelling upside in the current market environment.
The company maintains a disciplined approach to financial health, with manageable debt levels that ensure operational stability and flexibility for future growth initiatives. Recent quarterly results have shown robust revenue performance, driven by favorable market conditions and strategic fleet management.
Potential investors should note the inherent volatility in the shipping sector, influenced by fluctuating oil prices and global trade dynamics. However, International Seaways is well-positioned to navigate these challenges, thanks to its strong balance sheet and strategic focus on efficiency.
Overall, International Seaways presents a balanced risk-reward profile, making it a noteworthy consideration for investors aiming to diversify their portfolios with a stable, dividend-paying stock in the maritime industry.
White Mountain Insurance (WTM):
- InvestingPro health score: 3.13 / 5.00
- InvestingPro average fair value: $2,061.77 / 21.0% upside
- Fair value confidence: Medium
- Industry: Financials / Insurance
White Mountains Insurance (WTM) is an enticing stock pick for October 2024, particularly for investors eyeing stability and growth in the insurance sector. As of September 26th, 2024, White Mountains Insurance has a market capitalization of approximately $4.31 billion, positioning it as a robust player within the financial services landscape. The company specializes in acquiring and growing businesses in the property and casualty insurance sector, showcasing a strategic penchant for both organic and acquisitive growth.
White Mountains Insurance offers a dividend yield of 0.1%, therefore largely reinvesting its earnings to fuel expansion and acquisitions. The stock’s P/E ratio is relatively low at 8.9, suggesting it could be an undervalued gem in the insurance industry, thereby potentially providing attractive upside for discerning investors.
The company maintains a rigorous approach to financial stability, with manageable debt levels that ensure operational robustness and strategic flexibility. White Mountains Insurance’s recent quarterly results have been favorable, reporting solid revenue and profit figures, driven by their effective risk management and steady premium growth.
Overall, White Mountains Insurance presents a compelling investment opportunity with significant growth potential and stable financial performance, making it a noteworthy consideration for investors seeking to diversify their holdings in the insurance sector.
Danaos Corp (DAC):
- InvestingPro health score: 3.47 / 5.00
- InvestingPro average fair value: $122.23 / 43.2% upside
- Fair value confidence: High
- Industry: Marine Transportation
Danaos Corporation (DAC) emerges as a noteworthy stock pick for October 2024, particularly for investors exploring opportunities within the maritime transport sector. As of September 26th, 2024, Danaos Corporation boasts a market capitalization of about $1.6 billion, positioning it as a prominent player in the global shipping industry. The company operates a fleet of containerships that are critical for the transportation of goods across international waters.
Danaos Corporation pays an attractive dividend yield of 3.7%, making it an appealing choice for income-focused investors. The stock carries a P/E ratio of 2.9, indicating it’s likely undervalued compared to industry benchmarks, potentially offering significant upside.
Financially, Danaos maintains a prudent balance between debt and assets, enabling it to effectively manage its capital structure. The company’s debt levels are well within manageable limits, providing operational stability and a cushion to navigate industry challenges.
Recent quarterly results highlight strong revenue and profit figures, driven by favorable market conditions and efficient fleet deployment strategies. Potential investors should be aware that the shipping sector can be volatile, influenced by factors such as fluctuations in global trade, freight rates, and fuel prices. Nonetheless, Danaos’s strong fundamentals and strategic fleet management position it well to capture growth opportunities.
KB Home (KBH):
- InvestingPro health score: 3.21 / 5.00
- InvestingPro average fair value: $102.9496.41 / 24.4% upside
- Fair value confidence: Medium
- Industry: Consumer Discretionary / Household Durables
KB Home (KBH) is our final stock pick for October 2024, for investors keen on exploring opportunities within the homebuilding sector. As of September 26th, 2024, KB Home has a market capitalization of approximately $6.06 billion, establishing it as a significant player in the homebuilding industry. The company is widely recognized for its focus on energy-efficient homes, targeting first-time, move-up, and active adult homebuyers across the United States.
KB Home offers a dividend yield of 1.2%, providing a steady income stream amidst potential capital gains. The stock carries a P/E ratio of 9.9, suggesting that it may be undervalued compared to industry counterparts, which could indicate substantial upside potential.
The company’s debt levels are prudent and well-managed, ensuring a solid balance sheet and the financial flexibility needed to navigate cyclical industry conditions. Recent quarterly results reflect robust financial performance, highlighted by strong revenue growth driven by high demand for new homes and strategic land acquisitions.
Potential investors should consider that the homebuilding sector can exhibit volatility, influenced by factors such as interest rate fluctuations and economic cycles. However, KB Home’s strategic focus on energy-efficient homes and diverse geographical footprint position it well to capitalize on long-term industry trends.
Previous Investing Stock Picks for US Markets
If you’re looking for more great opportunities, here is a list of our top stock picks for previous months during 2024.
Remember 📌
The health scores and these stocks’ place on our opportunities list were correct at the time of the original posting month. It’s important for investors to check any updated information, which can be done at the click of a button through InvestingPro.
Previous Top Stocks to Buy
Top September Stocks To Buy | InvestingPro Health Score |
---|---|
Top September Stock | InvestingPro Health Score |
Harmony Biosciences (HRMY) | 3.86 / 5 |
International Seaways Inc (INSW) | 3.60 / 5 |
White Mountain Insurance (WTM) | 3.18 / 5 |
Danaos Corporation (DAC) | 3.35 / 5 |
KB Home (KBH) | 3.23 / 5 |
Top August Stocks To Buy | InvestingPro Health Score |
---|---|
Harmony Biosciences (HRMY) | 3.94 / 5 |
International Seaways Inc (INSW) | 3.73 / 5 |
Meritage Corporation (MTH) | 3.32 / 5 |
Danaos Corporation (DAC) | 3.57 / 5 |
KB Home (KBH) | 3.38 / 5 |
Top July Stocks To Buy | InvestingPro Health Score |
---|---|
Harmony Biosciences (HRMY) | 3.95 / 5 |
International Seaways Inc (INSW) | 3.80 / 5 |
Meritage Corporation (MTH) | 3.10 / 5 |
Danaos Corporation (DAC) | 3.75 / 5 |
KB Home (KBH) | 3.38 / 5 |
Top June Stocks To Buy | InvestingPro Health Score |
---|---|
Tsakos Energy Nav. Ltd (TNP) | 3.33 / 5 |
International Seaways Inc (INSW) | 3.86 / 5 |
Meritage Corporation (MTH) | 3.15 / 5 |
Danaos Corporation (DAC) | 3.87 / 5 |
CVR Partners (UAN) | 3.33 / 5 |
Top March Stocks To Buy | InvestingPro Health Score |
---|---|
Xpel Inc (XPEL) | 3.14 / 5 |
Teekay Tankers (TNK) | 3.71 / 5 |
Simply Good Foods (SMPL) | 3.02 / 5 |
United Therapeutics Corp (UTHR) | 3.72 / 5 |
The Andersons Inc (ANDE) | 3.31 / 5 |
Top January Stocks To Buy | InvestingPro Health Score |
---|---|
Teekay Tankers (TNK) | 3.81 / 5 |
Mueller Industries (MLI) | 3.88 / 5 |
Danaos (DAC) | 3.89 / 5 |
Medifast (MED) | 3.30 / 5 |
Daqo New Energy (DQ) | 3.89 / 5 |
Remember 📌
Past performance does not guarantee future success, and trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.