Every month, we ask our freelance writers to share their top US stocks with investors — here’s what they rate highly for November!
[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]
CrowdStrike Holdings
What it does: CrowdStrike operates a cloud-based cybersecurity platform that leverages AI to continuously evolve and defend businesses.
By Zaven Boyrazian. CrowdStrike Holdings (NASDAQ:CRWD) recently found itself in the media spotlight, and not for a good reason. A botched software update triggered a global outage of IT systems that impacted airlines, medical institutions, and even banks.
Unsurprisingly, this disaster resulted in a significant drop in the CrowdStrike share price. Yet even though the bug that triggered the outage has been fixed with new protocols in place to prevent a repeat, the stock still trades almost 20% lower.
To be fair, there is some justification behind investor concern. Delta Airlines is already in the process of filing a lawsuit, and more legal action could be coming down the pipe. However, when looking at the long-term potential, this may ultimately be a short-term hiccup.
After all, this wasn’t a failure of cybersecurity. In fact, the group’s Falcon platform continues to be one of the best in the world based on the results of the latest SC Awards Europe. Considering the group’s explosive growth and trajectory, this looks like a buying opportunity in my eyes, although volatility is expected.
Zaven Boyrazian does not own shares in any of the companies mentioned.
Netflix
What it does: Netflix is an entertainment streaming service that provides on-demand tv shows, movies and documentaries.
By Harshil Patel : Netflix (NASDAQ:NFLX) is a streaming giant that has over 280m paid subscribers in over 190 countries.
It recently experienced a jump in the number of subscribers in Q3 of 2024, adding 5.1m new users. This along with profit for the quarter beat market expectations.
Netflix has an excellent business model that benefits from a network effect. It has reached a scale that keeps subscribers locked in. More investment in new shows creates content, and more content keeps users hooked.
This was evidenced recently when it changed its pricing model to crack down on password sharing. Its ability to raise prices demonstrates pricing power too. This is a key attribute of a high-quality business.
With Amazon, Disney and Apple all offering streaming services, there is ample competition for Netflix to worry about. Also, raising prices is great for its profits, but there will be a limit to what users are prepared to pay. Getting the balance right will be key to maximising its profitability.
Harshil Patel does not own shares in Netflix.
Nu Holdings
What it does: Nu Holdings is the parent company of Nubank, the leading digital bank in Latin America.
By Ben McPoland. A stock I plan to buy in November is Nu Holdings (NYSE: NU). While still largely unknown in the West, Nu is Latin America’s largest branchless bank, offering customers loans, insurance, bill payments, stock investing, and more.
Incredibly, it now has 105m users, despite only operating in three countries (Brazil, Colombia, and Mexico). Over half the adult population of Brazil use the app, and it has added more customers in the past 12 months than the five largest Brazilian incumbents combined.
Of course, as the firm expands its credit portfolio, it opens itself up to an increase in non-preforming loans. This is worth monitoring.
Despite this risk, Nu Holdings looks like a high-quality growth stock. Revenue has soared from $1.7bn in 2021 to a forecast $10.3bn this year. Profits are expected to grow above 50% over the next five years. Its return on equity (ROE) is 28%, one of the highest in the industry.
It’s led by founder-CEO David Vélez, a former partner at venture capital firm Sequoia. With tens of millions still underbanked across Latin America, the growth opportunity appears massive.
Finally, the stock isn’t grossly overvalued. At $14, it’s trading at 23 times forward earnings.
Ben McPoland does not have a position in any stocks mentioned.
