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Buy 5 Large-Cap Growth Stocks for September on Rate Cut Expectations
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Wall Street is currently riding on high expectations of the beginning of the interest rate cut regime by the Fed in the September FOMC meeting scheduled next week. The existing range of 5.25-5.5% marks a 23-year high level. If the Fed initiates a rate cut, it will be the first one since March 2020, at the onset of COVID-19.
The CME FedWatch tool currently shows a 100% probability of a 25-basis point interest rate cut in September. For November, market participants estimate a 100% probability that the total (year-to-date) rate cut will be 50 basis points and a 94.4% probability that the total rate cut will be 75 basis points. Likewise for December, market participants estimate a 100% probability that the total rate cut will be 75 basis points and a 79.7% probability that the total rate cut will be 1% in 2024.
At this stage, investment in growth stocks should be fruitful. Five such stocks are — Ubiquiti Inc. (UI - Free Report) , Spotify Technology S.A. (SPOT - Free Report) , DocuSign Inc. (DOCU - Free Report) , Vertiv Holdings Co. (VRT - Free Report) and Universal Health Services Inc. (UHS - Free Report) .
These stocks have strong growth potential for the rest of 2024. These stocks have seen positive earnings estimate revisions in the past 60 days. Each of our picks sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth investors are primarily focused on stocks with aggressive earnings or revenue growth, which should propel their stock prices higher in the future. A rate cut will be beneficial for corporates as it will reduce the cost of production. Moreover, businesses will get access to cheap credits.
5 Large-Cap Growth Stocks to Buy
Ubiquiti Inc.
Ubiquiti’s excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. UI’s operating model is backed by a rapidly growing and highly engaged community of service providers, distributors, value-added resellers, systems integrators and corporate IT professionals (referred to as the Ubiquiti Community).
Ubiquiti boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, UI is committed to reducing its operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community.
Earnings Estimate Revisions for UI Stock on the Rise
Ubiquiti has an expected revenue and earnings growth rate of 11.9% and 22.2%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for current-quarter, current-year and next-year earnings has improved over the past seven days.
Image Source: Zacks Investment Research
Spotify Technology S.A.
Spotify Technology provides audio streaming services worldwide. SPOT operates through two segments - Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers.
The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its subscribers on their computers, tablets, and compatible mobile devices. SPOT also offers sales, distribution and marketing, contract research and development, and customer support services.
Impressive Earnings Estimate Revisions for SPOT Shares
Spotify Technology has an expected revenue and earnings growth rate of 19.4% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings has improved over the past 60 days.
Image Source: Zacks Investment Research
DocuSign Inc.
DocuSign’s top line has been significantly benefiting from continued customer demand for eSignature, its anchor product. Despite this rising demand, the market for eSignature remains largely untapped. This keeps DOCU in a position to expand eSignature around the world. DOCU remains focused on continuously acquiring customers, improving its offerings and expanding internationally.
Robust Earnings Estimate Revisions of DOCU Stock
DocuSign has an expected revenue and earnings growth rate of 6.6% and 15.1%, respectively, for the current year (ending January 2025). The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings has improved over the past seven days.
Image Source: Zacks Investment Research
Vertiv Holdings Co.
Veritiv designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. VRT offers hardware, software, analytics and ongoing services.
VRT Shares See Strong Earnings Estimate Revisions
VRT has an expected revenue and earnings growth rate of 12.8% and 45.8%, respectively, for the current year. The Zacks Consensus Estimate for current-quarter, current-year and next-year earnings has improved over the past 60 days.
Image Source: Zacks Investment Research
Universal Health Services Inc.
Universal Health’s Acute Care and Behavioral Health segments have been pivotal in driving top-line growth, fueled by expansions in licensed bed capacity. UHS anticipates positive impacts on its Acute Care unit from Medicaid supplemental programs.
Strategic buyouts have played a significant role in augmenting its growth trajectory by broadening its portfolio of facilities. UHS maintains a robust liquidity position, enabling it to pursue growth initiatives and distribute capital through buybacks and dividends.
Universal Health Services has an expected revenue and earnings growth rate of 9.8% and 51%, respectively, for the current year. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings has improved over the past 60 days.
Image Source: Zacks Investment Research
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Buy 5 Large-Cap Growth Stocks for September on Rate Cut Expectations
Wall Street is currently riding on high expectations of the beginning of the interest rate cut regime by the Fed in the September FOMC meeting scheduled next week. The existing range of 5.25-5.5% marks a 23-year high level. If the Fed initiates a rate cut, it will be the first one since March 2020, at the onset of COVID-19.
The CME FedWatch tool currently shows a 100% probability of a 25-basis point interest rate cut in September. For November, market participants estimate a 100% probability that the total (year-to-date) rate cut will be 50 basis points and a 94.4% probability that the total rate cut will be 75 basis points. Likewise for December, market participants estimate a 100% probability that the total rate cut will be 75 basis points and a 79.7% probability that the total rate cut will be 1% in 2024.
At this stage, investment in growth stocks should be fruitful. Five such stocks are — Ubiquiti Inc. (UI - Free Report) , Spotify Technology S.A. (SPOT - Free Report) , DocuSign Inc. (DOCU - Free Report) , Vertiv Holdings Co. (VRT - Free Report) and Universal Health Services Inc. (UHS - Free Report) .
These stocks have strong growth potential for the rest of 2024. These stocks have seen positive earnings estimate revisions in the past 60 days. Each of our picks sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth investors are primarily focused on stocks with aggressive earnings or revenue growth, which should propel their stock prices higher in the future. A rate cut will be beneficial for corporates as it will reduce the cost of production. Moreover, businesses will get access to cheap credits.
5 Large-Cap Growth Stocks to Buy
Ubiquiti Inc.
Ubiquiti’s excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. UI’s operating model is backed by a rapidly growing and highly engaged community of service providers, distributors, value-added resellers, systems integrators and corporate IT professionals (referred to as the Ubiquiti Community).
Ubiquiti boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, UI is committed to reducing its operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community.
Earnings Estimate Revisions for UI Stock on the Rise
Ubiquiti has an expected revenue and earnings growth rate of 11.9% and 22.2%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for current-quarter, current-year and next-year earnings has improved over the past seven days.
Image Source: Zacks Investment Research
Spotify Technology S.A.
Spotify Technology provides audio streaming services worldwide. SPOT operates through two segments - Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers.
The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its subscribers on their computers, tablets, and compatible mobile devices. SPOT also offers sales, distribution and marketing, contract research and development, and customer support services.
Impressive Earnings Estimate Revisions for SPOT Shares
Spotify Technology has an expected revenue and earnings growth rate of 19.4% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings has improved over the past 60 days.
Image Source: Zacks Investment Research
DocuSign Inc.
DocuSign’s top line has been significantly benefiting from continued customer demand for eSignature, its anchor product. Despite this rising demand, the market for eSignature remains largely untapped. This keeps DOCU in a position to expand eSignature around the world. DOCU remains focused on continuously acquiring customers, improving its offerings and expanding internationally.
Robust Earnings Estimate Revisions of DOCU Stock
DocuSign has an expected revenue and earnings growth rate of 6.6% and 15.1%, respectively, for the current year (ending January 2025). The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings has improved over the past seven days.
Image Source: Zacks Investment Research
Vertiv Holdings Co.
Veritiv designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. VRT offers hardware, software, analytics and ongoing services.
VRT Shares See Strong Earnings Estimate Revisions
VRT has an expected revenue and earnings growth rate of 12.8% and 45.8%, respectively, for the current year. The Zacks Consensus Estimate for current-quarter, current-year and next-year earnings has improved over the past 60 days.
Image Source: Zacks Investment Research
Universal Health Services Inc.
Universal Health’s Acute Care and Behavioral Health segments have been pivotal in driving top-line growth, fueled by expansions in licensed bed capacity. UHS anticipates positive impacts on its Acute Care unit from Medicaid supplemental programs.
Strategic buyouts have played a significant role in augmenting its growth trajectory by broadening its portfolio of facilities. UHS maintains a robust liquidity position, enabling it to pursue growth initiatives and distribute capital through buybacks and dividends.
UHS Shares Witness Solid Earnings Estimate Revisions
Universal Health Services has an expected revenue and earnings growth rate of 9.8% and 51%, respectively, for the current year. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings has improved over the past 60 days.
Image Source: Zacks Investment Research