SOFI - Best US stocks to buy in February 2024

2024-02-01 05:23:22 ET

US stocks have started the year well with indices like the Dow Jones, Nasdaq 100, and S&P 500 index surging to their all-time high. This rally has been led by technology companies like Juniper Networks, NVIDIA, Netflix, Palo Alto Network, and AMD. This surge will likely continue in February even after the Fed ruled out against a March rate cut. Here are some of the best US stocks to buy this month.

SoFi Technologies

SoFi Technologies (NASDAQ: SOFI) is one of my top picks for February. In just a few years, SoFi has established itself as one of the fastest-growing fintech companies in the US. It has done that by offering services that most young people use such as personal lending, student loan refinancing, investing, and private student loans.

SoFi published strong financial results this week as its business continued doing well. Its revenue jumped by 35% to $2.1 billion while its EBITDA surged to $432 million. Its number of customers grew by 2.3 million to over 11 million. SoFi is also benefiting from the ongoing high-interest rate environment, which has boosted its net interest income (NII) as its total deposits jumped to $18.6 billion.

SoFi stock price jumped after these strong results and then pulled back after a downgrade from Morgan Stanley. Still, I suspect that the shares will continue rising in February as investors focus on its diversified solutions and strong revenue growth.

Alphabet

Alphabet (GOOGL) is another good US stock to buy in February despite the strong post-earnings sell-off. The company published strong financial results on Tuesday. Its revenue continued rising as it solidified its position as the biggest player in the search industry.

Its services revenue surged to $76 billion in the quarter as its search revenue rose by 13%. In all, the company’s annual revenue jumped to $307 billion during the year, making it a global behemoth. As a result, its free cash flow rose to $69 billion, helping the company repurchase stock worth over $62 billion. It has over $111 billion in cash.

Therefore, I believe that the stock sell-off was unwarranted since the company is still fundamentally strong. It has a large market share in all industries in which it operates like search, advertising, payments, AI, and cloud.

Archer-Daniels-Midland

Archer-Daniels-Midland (ADM) stock price had a difficult January after the company started to investigate its financials . Historically, these events tend to be quite difficult, which explains why it is the second-worst-performing company in the S&P 500 index.

ADM stock has crashed by over 35% from its highest point in August last year. Still, I believe that it is a good contrarian buy for February. For one, and most importantly, I suspect that the company’s dividend is still safe even as it reviews its books. The CEO has already assured investors that its books are safe.

Technically, there is a likelihood that buy-the-dip investors will buy the dip and attempt to fill the 16% gap that formed on January 19th.

The post Best US stocks to buy in February 2024 appeared first on Invezz