5 Top US Stocks to Buy in October 2023

October 4, 2023

After a turbulent September with major sell-offs and external pressures impacting the market, investors are on the lookout for stable and promising opportunities.

This article identifies five top US stocks poised for growth in October 2023.

1. NVIDIA Corp

NVIDIA Corporation (NASDAQ: NVDA) is a renowned technology company, globally recognised for its Graphics Processing Unit (GPU) products, which enhance graphics on computers, and are fundamental in gaming, data centers, and automotive market segments.

Three Reasons to Invest:

  • Exceptional Performance: NVDA showcased impressive earnings with a revenue of US$13.5B in Q2 2023, significantly exceeding estimates, propelled by growth in Data Center, Gaming, and ProViz sectors.
  • Sustained Growth Prospects: With new products on the rise and the extension of Data Center visibility into 2024, NVDA’s revenue momentum of more than 50% growth is anticipated to persist through H1 2024.
  • Tap on generative AI trend: NVDA presents a lucrative investment opportunity, considering the ongoing generative AI trend and minimal impact from potential risks.

2. Intel Corporation

Intel Corporation (NASDAQ: INTC) is a global technology company that produces semiconductor chips, microprocessors, and other devices for computing and communication.

Three Reasons to Invest:

AI and Innovation Front-runner: Intel’s intensive focus on AI and a slew of product launches during its Innovation Week signify its pioneering stance in technology, promising significant growth and market potential.

Empowering Developers: Committed to fostering innovation, Intel equips developers with state-of-the-art tools, creating a robust ecosystem and ensuring technological advancement.

Resilient and Forward-Thinking: Despite near-term challenges, Intel’s consistent execution, breakthroughs in manufacturing, and clear future vision position it as a compelling investment opportunity with a promising long-term outlook.

3. Walt Disney

The Walt Disney Company (NYSE: DIS), a multifaceted media giant, is adapting to the evolving entertainment landscape, with a growing presence in the streaming sector and a diverse portfolio of intellectual property.

Three Reasons to Invest:

  • Streaming and IP Strength: Disney’s powerful streaming services, Disney+ and Hulu, and unmatched intellectual property, including Marvel and Star Wars, position it for sustained success in the digital era.
  • Parks and Experiences Resurgence: The notable recovery and continued growth of Disney’s Parks, Experiences, and Products business signal a promising revenue stream.
  • Attractive Valuation: With substantial growth prospects and its stock at a compelling valuation, Disney offers an attractive entry point for long-term investors.

4. Diamondback Energy

Diamondback Energy, Inc.  (NASDAQ: FANG), a notable player in exploration and production, demonstrates a positive trajectory with its prudent financial approach and growing production amidst increasing commodity prices.

Three Reasons to Invest:

  • Strategic Financial Management: With a reduction in capital expenditures and an increase in production guidance, Diamondback is optimising its financial strategy for sustained growth.
  • Enhanced Cash Flow & Shareholder Returns: Forecasts show a rise in 2024 free cash flow yield to 13%, and the company’s commitment to returning 75% of FCF to shareholders underpins excellent shareholder value.
  • Benefiting from Oil Price Surge: With Brent Crude Oil recently trading above US$95/bbl, Diamondback stands to gain significantly due to its strategic positioning and optimised production, offering a promising investment opportunity as it capitalises on the uptrend in oil prices.

5. ARKO Corp

ARKO Corp. (NASDAQ: ARKO), a Fortune 500 entity, manages a vast network of convenience stores and fuel wholesalers across the US.

With a diverse product lineup from prepared foods to beverages and a rewarding loyalty program, ARKO operates in retail, wholesale, GPM Petroleum, and fleet fueling segments, ensuring a widespread market presence.

Three Reasons to Invest:

  • Strong Financial Performance: ARKO’s Q2 2023 adjusted EBITDA surpassed estimates and grew 9% year-on-year (yoy) to US$86 million.
  • Growth Potential: The company is in the early stages of a multi-year growth trajectory with strategies like M&A, expansion of wholesale partnerships, and in-store initiatives to grow market share.
  • Attractive Valuation: Trading at approximately 6x its 2023 EBITDA estimate, ARKO presents a valuable investment opportunity.

Final Thoughts

Navigating through a landscape marked by market volatility and external pressures, these five US stocks emerge as robust investment opportunities this October.

However, it is crucial for investors to consider the inherent risks involved and conduct thorough research to align investments with their risk tolerance and financial goals.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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