4 Best Stocks to Buy Now That Will Make You Rich

Uranium stocks

“After a strong rally in September, Uranium stocks finally caught the attention of retail investors this week,”. He believes that an increase in call volumes for stocks in the space is a sign that “speculative retail investors are chasing the momentum.”

He stated that the majority of his purchases were concentrated in the Global X Uranium ETF and Cameco Corporation.

Uranium futures hit $44.90 per pound on Wednesday, the highest level since December 2012, bringing the year-to-date gain to 44%. In contrast to other commodities such as oil, which trade throughout the day, the CME only updates uranium prices once per day.

Investors are returning to space as countries around the world announce emission-cutting targets. “There is an unequivocal consensus that nuclear energy is required to meet ambitious climate change targets,” Bank of America said in a recent note to clients, before adding that nuclear power remains controversial due to safety concerns.

Another driver of the price increase is market tightness, which has been exacerbated since Sprott Asset Management began aggressively purchasing the physical asset in July.

The company said Tuesday that its fund saw record trading volume and added 1.25 million pounds of physical uranium to its holdings.

Sprott’s purchases, according to Bank of America, were “unprecedented,” totaling what utilities would have used over the course of one to three years.

“The stage has been set for a tighter market,” wrote Riya Kotecha and her team of analysts. Miners have reduced activity, causing the uranium market to fall into deficit by 2028, according to Kotecha.

Another fund that tracks the sector, the NorthShore Global Uranium Mining ETF, gained 10% on Wednesday, bringing its weekly gain to 16%. The fund is up 56.7 percent in September. The fund’s value has more than doubled by 2021.

Toro Energy, Bannerman Energy, and Uranium Royalty are the fund’s top gainers this week, despite the fact that each company has a market capitalization of less than $500 million.

CGN Mining, which has a market cap of $1.1 billion and has gained more than 40% this week, is one of the larger names.

According to RBC, social media excitement about uranium has been present for several months and continues to be elevated when compared to historical standards.

“We believe increased social media attention on uranium may be contributing to this year’s rise in uranium equity valuations and should be considered by investors evaluating the sector,” the firm wrote in a recent client note.

The firm also raised its price target on NexGen to $7 per share, which is slightly lower than where the stock traded on Wednesday.

RBC, like Bank of America, expects the market to run a slight deficit through the mid-2020s.

Meanwhile, the firm cautioned that uranium’s price action could be influenced by a positive feedback loop. Investors can participate in the trade via the Sprott vehicle, which raises spot prices, causing more interest, and so on.

UBS best stocks list

In a note to investors dated September 9, UBS published its “Back to School Convictions Calls.” “We asked our equity research analysts for their top conviction ideas to navigate the market and stay ahead of the curve,” the note stated, and its buy-rated stock picks cover themes such as the economic reopening, as well as megatrends such as digital and e-commerce.

Airbus is one of the bank’s favorite reopening plays, with UBS analysts praising how it handled the coronavirus crisis by cutting costs. They also like its “robust product portfolio” and believe airlines will upgrade to more carbon-efficient models. In the transportation sector, Eiffage, a French infrastructure operator, is rated buy by analysts, who anticipate an increase in freeway traffic in 2022.

According to UBS, hotel operator and Premier Inn owner Whitbread is likely to outperform UK peers and recover more quickly in the hospitality sector. “We see opportunities from consumers switching from weaker competitors to Premier Inn,” the analysts said.

According to UBS, as people renovate their homes during the pandemic, security company Assa Abloy is likely to benefit, and the renovation trend is expected to continue.

Meanwhile, AstraZeneca, the maker of the Covid-19 vaccine, has “best in class” research and development productivity, according to UBS, but it does not have a “patent cliff” problem, in which drug patents expire and the market opens up to generic pharmaceutical companies.

Stocks based on megatrends

Smurfit Kappa, a producer of cardboard packaging, is expected to benefit from a shift in demand from plastics to paper, according to UBS. “We are intrigued by the combination of growth, a resilient business model, positive price/margin/earnings momentum into 2022, and valuation support,” said the analysts.

The stock is part of UBS’ megatrends theme, which includes the so-called “energy transition,” as well as a shift to e-commerce and new materials. EDP is included because of its growing wind and solar capacity, and analysts expect its earnings per share to increase by 22% in 2022.

Top picks from HSBC

In a research note titled “Buckets of ideas,” HSBC selected 18 favorable U.K. stocks.

“A great deal is changing, from working practices to shopping habits, labor supply, new technologies, the importance and impact on profit of ESG [environmental, social, and governance] issues, and the effects of the ‘great wealth transfer.’ “All of these will have an impact on corporate profits and stock prices in the coming years,” HSBC analysts led by Matthew Lloyd wrote in a note published on September 8.

HSBC’s picks for “sustainable growth” include used-car website Auto Trader, which has “considerable scope to grow” with new revenue from financing and part-exchange, and footwear brand Dr Martens, which performed “extremely well” during the pandemic. “We like the stock because of its growth potential and profitability profile,” said the analysts.

HSBC also rates online fashion retailer Boohoo as a buy, citing its new focus on sustainability and supply chain compliance following a 2020 factory-worker scandal, as well as its better-than-expected second-quarter trading. The bank also chose Pets at Home, which saw an increase in sales as people purchased animals during the pandemic. “Some astute strategic moves and investments support Pets at Home’s ability to capitalize on the growth opportunity,” the analysts wrote.

Its picks for “cyclical growth,” or stocks that tend to follow economic cycles, include heat treatment company Bodycote, which is expected to benefit from growth in electric vehicles, and recruitment firms PageGroup and SThree, which are both expected to be more profitable due to digital processes, according to the bank.

Europe outperforms the United States.

“Continental Europe remains our key overweight,” Credit Suisse analysts said in a research note published on September 8, preferring the region over the United States and Japan. Analysts led by Andrew Garthwaite prefer Europe because of its “easier” fiscal policy, fewer wage issues, and “attractive” stock valuations.

Chemicals firm BASF, building materials firm Holcim, energy company Schneider Electric, and chemical distribution firm Brenntag are among its “Top of the Crop” European ideas. Credit Suisse, like UBS, chose Smurfit Kappa.

Credit Suisse chose Diageo as a drinks company because spirits are becoming more popular than other beverages, and EssilorLuxottica as an eyewear company because of its expanding margins.

“Using IMF [International Monetary Fund] figures, Europe faces the least risk of fiscal tightening than any other region, with fiscal tightening as a percentage of GDP accounting for nearly one-quarter of the fiscal tightening experienced by the United States. Furthermore, the winding down of furlough schemes actually boosts pay (as most of the schemes paid up to around 80% of in-work pay),” the bank said.

The new iPhone’s battery could be a winner

On Tuesday, Apple unveiled the new iPhone 13 series, as well as other updated products. Many consider the new iPhone to be a minor upgrade over the iPhone 12, but UBS analyst David Vogt stated in a note to clients on Tuesday evening that improvements to the phone’s battery could bring in more customers.

“We believe that the improved battery life of the series will be a key differentiator and driver of demand in the future.” Apple redesigned the device’s layout in the 13 Pro/Max versions to accommodate a larger battery. Furthermore, the efficiency of iOS15 and the new A15 bionic chip, according to the company, could drive a 1.5-2.5 hourly increase per charge,” the note stated.

According to a recent survey, 80 percent of customers ranked battery life as the most important factor in purchasing a new phone.

“When combined with the elimination of the 12 Pro/Max from Apple’s lineup, we believe improved battery life will drive consumer adoption of the 13 series,” the note stated.

Despite the product announcement, Apple’s stock fell nearly 1% on Tuesday as part of a broader market sell-off.