As we head into September, certain stocks are showing strong potential despite the recent market turbulence. While stocks rebounded in late August, the start of this month has been choppy for the major indexes. Investors are on edge, bracing for more volatility, but that also creates opportunities. Here are some key names to watch that could see significant upside in the near term.
Fifth Third Bancorp (FITB) – “Benefiting from a Soft Landing”
Fifth Third Bancorp (NASDAQ: FITB) is one of the standout names this September. The stock is up 22% year-to-date, and Wolfe Research sees more upside, with a price target that implies over 16% potential growth. One of the reasons Fifth Third is in such a strong position is its minimal exposure to commercial real estate and its focus on high-quality consumer lending.
The firm expects record net interest income next year, assuming the Federal Reserve implements five 25 basis point rate cuts through the end of 2025. With a 3.3% dividend yield and solid financials, Fifth Third could be a safe bet for investors looking to navigate potential market instability.
Adobe (ADBE) – “Riding the AI Wave”
Though Adobe (NASDAQ: ADBE) is down 3.6% year-to-date, the stock has seen a massive 28% rise in the past three months after beating expectations in its fiscal second-quarter results. Wolfe sees this momentum continuing, with a price target of $685, representing a 19% upside.
What makes Adobe stand out is its dominant position in the creative design and enterprise software markets. As AI continues to reshape industries, Adobe is expected to benefit from faster subscription growth and better monetization, especially considering its vast installed base. This gives Adobe a solid competitive moat, making it a compelling choice for those looking to capitalize on the AI-driven future.
Vertiv (VRT) – “Poised for Strong Earnings Growth”
Vertiv (NYSE: VRT), a digital infrastructure company, has been performing impressively this year, with shares up 56% year-to-date. Wolfe sees even more upside, projecting a 41% gain from current levels. Vertiv has faced challenges from inflationary pressures in recent years, but the company’s strategic pricing response has turned things around. Now, with strong volume leverage and pricing power, Vertiv is poised to achieve over 20% profit margins.
With momentum in its end markets and improved earnings outlook, Vertiv looks like a solid growth opportunity in the tech infrastructure space.
