3 Top U.S. Stocks to Watch in October

Investors from Canada who are looking for deals might wish to try their luck on U.S. stocks. The S&P/TSX Composite Index, which is headquartered in Canada, has lost just under 15% of its value this year. The S&P 500 index, which is headquartered in the United States, is down a startling 25% year to date.

Don’t get me wrong; many high-quality companies are trading at tremendously good discounts right now on the TSX. But it’s difficult to overlook how many established multi-bagger stocks are being sold off on the American stock market.

This might be a great time to consider your portfolio’s exposure to the United States.

It’s the time to buy U.S. stocks if you’re a long-term investor

Of course, there’s a potential that the stock market’s suffering is still very much ongoing. This selling might go on well past 2023. Or perhaps the stock market is about to bottom out. The fact is short-term market fluctuations are impossible to forecast.

I’d advise concentrating on creating a watch list of businesses you’d be willing to own for a long time rather than trying to time the market. Likely, many of the stocks you select are currently trading at steep discounts.

Three American technology stocks now at the top of my personal watch list are listed below. I already own U.S. stocks in all three firms, but I’ll try to increase them while prices remain low.

Adobe

Adobe’s most recent quarterly results announcement (NASDAQ:ADBE) was overshadowed by a $20 billion purchase. The stock fell about 20% on the day the business released its profits, a sign that the market disapproved of the significant acquisition.

Certainly, acquisition of that size carries substantial risk. The web-based collaborative design platform Figma, which Adobe purchased, is ready for success. Figma has a remarkable 150% net dollar retention rate and is already cash flow positive.

Adobe is clearly past its high-flying growth days, but shares have still doubled the returns of the S&P 500 over the past five years.

It is difficult to pass up the current discount of 60% off all-time highs for a growth stock with a track record of destroying the market.

CrowdStrike

In contrast to many of its IT rivals, CrowdStrike (NASDAQ:CRWD) has so far this year outperformed the general market. 2022 has been a fantastic year for the cybersecurity industry as a whole.

I have a tonne of confidence in cybersecurity over the next many decades. I don’t think the market will experience a decline in demand any time soon.

Although CrowdStrike is still very new to the public market, it has already made a big impression on investors in just three years. Since the company went public in June 2019, the stock has increased by more than 150%.

Block

The stock trading at the biggest discount of the three is the last choice on my list. Furthermore, I’ve added to it more than once this year in a position of mine.

Block (NYSE:SQ) has had a 75% decline in stock price over the last 12 months following a roaring bull run that began after the COVID-19 market crisis. At this time, share prices are roughly where they were at the start of 2020.

The tech stock is still up a market-beating 80% over the previous five years and more than 300% since going public in 2015, despite the significant selloff.

The saying goes that strong, well-positioned companies are the ones that not only survive harsh market periods like this but come out of them even stronger.

And as a fintech leader with a growing international presence, there is no doubt in my mind that Block will be back to outperforming the market’s returns sooner rather than later.

The 3 Top U.S. Stocks to Watch in October appeared first on RichTv.

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See the 5 Stocks
* Returns as of 9/14/22

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