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6 High-Conviction Stock Picks to Buy for September 2024
When institutional investors are buying stocks, it's generally seen as a positive sign for those picks. This is because institutional investors, with their immense resources and research capabilities, tend to invest unemotionally, and only after thorough due diligence by a team of seasoned, experienced market veterans. These institutions tend to be adept at profitable and strategic stock-picking for the long term, and are unlikely to overreact to temporary bouts of volatility.
To that end, brokerage firm Goldman Sachs (GS) recently compiled a list of stocks that both hedge funds and mutual funds were buying during the second quarter of 2024. Goldman notes that stocks from this overlapping basket of mutual fund and hedge fund picks have beaten the S&P 500 Index ($SPX) in 61% of months since 2013, by 3 percentage points annually.
To add another layer of conviction to their list of eight standout stocks, here are the six names from Goldman's lineup that also have a “Strong Buy” consensus rating from Wall Street analysts.
#1. Visa
Founded in 1958, Visa (V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in over 200 countries and territories. It processes over 200 billion transactions annually and has a global network of over 80 million merchants. Visa's market cap currently stands at $495.13 billion.
Visa's share price is up 3.8% on a YTD basis, and it offers a dividend yield of 0.77%.
Analysts have deemed Visa stock a “Strong Buy,” with a mean target price of $303.84, which denotes an upside potential of roughly 12.2% from current levels. Out of 34 analysts covering the stock, 25 have a “Strong Buy” rating, 4 have a “Moderate Buy” rating, and 5 have a “Hold” rating.
#2. UnitedHealth Group
UnitedHealth Group (UNH) is a behemoth in the healthcare industry, tracing its roots back to Charter Med, founded in 1974. The company operates primarily through two segments: UnitedHealthcare, which focuses on health benefits, including health insurance; and Optum, which offers a range of health services, including pharmacy benefits management.
Commanding a mega market cap of $540.5 billion, UNH stock is up 11.6% on a YTD basis. The stock also offers a dividend yield of 1.43%.
Analysts have an overall rating of “Strong Buy” for UNH stock, with the mean target price of $625.04 indicating an upside potential of roughly 6.4% from current levels. Out of 24 analysts covering the stock, 22 have a “Strong Buy” rating, and 2 have a “Moderate Buy” rating.
#3. Uber
Founded in 2009 and based out of San Francisco, Uber (UBER) offers app-based ride-hailing, food delivery, freight transportation, and micro-mobility options, such as scooters and bikers. It currently commands a market cap of $151.6 billion.
Uber stock is up 17.8% on a YTD basis.
Overall, analysts have a rating of “Strong Buy” for UBER stock, with a mean target price of $85.97. This denotes an upside potential of about 18.5% from current levels. Out of 41 analysts covering the stock, 35 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 3 have a “Hold” rating.
#4. Mastercard
Like its fellow high-conviction payments company Visa, Mastercard (MA) is a global technology company that provides payment processing services to financial institutions. It operates a network that connects card issuers, merchants, and consumers worldwide, enabling transactions to be made securely and efficiently. The company currently commands a market cap of $441.5 billion.
On a YTD basis, Mastercard stock is up 11.4%. Also, the credit card stock offers a dividend yield of 0.56%.
Analysts have deemed MA stock a “Strong Buy,” with a mean target price of $513.69 - which denotes an upside potential of roughly 8.3% from current levels. Out of 36 analysts covering the stock, 31 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, and 3 have a “Hold” rating.
#5. Fiserv
Established in 1984, Fiserv (FI) is a leading global provider of financial services technology and solutions. It offers a comprehensive suite of products and services that enable financial institutions to streamline their operations, enhance customer experiences, and drive growth. Its market cap currently stands at $99.56 billion.
FI stock is up 28.2% on a YTD basis.
Overall, analysts have a consensus rating of “Strong Buy” for the fintech stock, with a mean target price of $180, which denotes an upside potential of about 5.4% from current levels. Out of 35 analysts covering the stock, 25 have a “Strong Buy” rating, 4 have a “Moderate Buy” rating, and 6 have a “Hold” rating.
#6. CRH Plc
Founded in 1970 through a merger, CRH (CRH) is a global building materials company that produces and supplies a wide range of products, including cement, aggregates, concrete, and asphalt. The company serves customers in the construction, infrastructure, and do-it-yourself markets. The company's market cap currently stands at $60.5 billion.
CRH stock is up 26.7% on a YTD basis, and it offers a dividend yield of 1.59%.
Overall, analysts have an average rating of “Strong Buy” for CRH stock, while the mean target price of $97.75 indicates expected upside potential of about 11.7% from current levels. Out of 13 analysts in coverage, 10 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, and 1 has a “Hold” rating.
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
