In terms of money, that means anyone who’s been drip-feeding £500 each month into a low-cost index tracker during this time has gone on to build an impressive £141,000 portfolio!

But with US stocks now trading near record highs, is the index still worth considering today? And how much money could investors make over the next decade?

10-year forecast for the S&P 500

The analyst team at Goldman Sachs has been carefully scrutinising the current condition of the US stock market. And while it remains bullish overall for the economy, it thinks the S&P 500 could prove less explosive in the coming years.

Goldman’s top strategists are predicting some robust GDP growth, laying the foundation for widespread revenue growth. And with companies investing heavily in digitalisation, automation, and new AI-driven efficiencies, the team expects profit margins to simultaneously improve.

The problem is, most of these expected benefits are already baked in to today’s valuations. And while there are some exceptions, the price-to-earnings ratio of the S&P 500 as a whole now stands at 29.4 – almost double its long-term historical average.

As such, the forecast annualised returns from the S&P 500 over the next decade are only 7.7%. That’s still significant. But it means that investors drip-feeding £500 a month into index funds may ‘only’ end up with £89,960.

Aiming for larger returns

Despite this, Goldman has highlighted several S&P 500 stocks that nonetheless still outperform. And the list includes ServiceNow (NYSE:NOW).

Despite strong financials, fears of AI disruption have dragged ServiceNow shares down close to 50% over the last 12 months. Yet if Goldman’s thesis is correct, the stock could potentially surge back from $105 to $216.

As a quick introduction, ServiceNow provides cloud-based enterprise software that enables businesses to automate and connect their workflows across IT, HR, customer service, cybersecurity, and all other critical departments.

But to combat the potential threat of longer-term AI disruption, the company has unveiled its own suite of AI tools and agents that will automatically handle any routine work, escalating only complex issues to humans, and taking automation to the next level.

Combining this with solid fundamentals, earnings that are beating expectations, and a much more reasonable valuation, a buying opportunity may have just emerged.

What to watch

While Service Now shares are certainly a lot cheaper, they’re still on the richly priced side. If the company can deliver on the promises made for its new AI agents, then future potential rapid growth does indeed make today’s valuation attractive.

But it’s important to recognise that ServiceNow isn’t the only player in this space. And there’s some stiff competition aiming to deliver similar tools that could disrupt it before it has time to adapt.

If the company can’t evolve into an AI-driven ecosystem, customers may start leaving it behind. In other words, there’s a lot of execution risk attached to this business. But as Goldman’s analysts have highlighted, if management delivers, the rewards could be substantial.

That’s why I think this S&P 500 stock deserves a closer look. And it’s not the only one that’s on my radar today.

The post Investing £500 a month in the S&P 500 for 10 years builds a portfolio worth… appeared first on The Motley Fool UK.

Here, I’m going to highlight three software stocks that JP Morgan highlighted in its research note as Buys. Are they worth considering today?

Microsoft

Let’s start with mega-cap Microsoft (NASDAQ: MSFT). It has fallen to $400 after trading near $550 in late 2025.

I like this pick. To my mind, this company is one of the safer picks in software.

Why? Because it’s a really diversified business.

Not only is it a key player in business productivity software, but it’s also a global leader in cloud computing and video gaming.

Additionally, it’s a massive player in AI itself. Because it has a large stake in ChatGPT owner OpenAI.

Of course, there are risks. One big one is that a lot of its expected cloud growth is tied to OpenAI (customer concentration risk).

With the stock now trading on a forward-looking price-to-earnings (P/E) ratio of 21 (using next year’s earnings forecast) though, I’m bullish. I plan to buy more shares for my own portfolio soon and believe it’s worth a look.

ServiceNow

Next up is ServiceNow (NYSE: NOW). It has fallen from $200 to $100.

This is another good call, in my view. While this company isn’t very well known, it’s a really important player in the corporate world.

Today, it provides crucial operating software for a vast range of large companies (85% of the Fortune 500). From Apple to GSK, everyone is using its software.

In simple terms, it handles all the behind-the-scenes work. Think IT incidents, employee requests, and security cases.

Given how embedded its solutions are within large multinational companies, I doubt this company is going to be replaced by AI. Ultimately, I expect AI agents to work on top of its software.

A risk is pricing. Looking ahead, the group may have to adjust its pricing model as companies automate their operations and lay off staff.

I expect it to continue growing though. And with the P/E ratio now in the low 20s, I think it’s worth considering.

Zscaler

Finally, we have Zscaler (NASDAQ: ZS), a small, but fast-growing cybersecurity company. Its share price has fallen from $330 to $165 – a decline of about 50%.

Cybersecurity strikes me as an area of software that should be relatively immune to AI disruption. Because this is a really specialised field and I don’t think that companies will be able to simply ‘vibe code’ their own cybersecurity applications.

To my mind, it wouldn’t be worth the risk. Get it wrong and the company could potentially be out of business if hit by a major attack.

Of course, while this company has been able to generate prolific growth in recent years (five-year revenue growth of 520%), there are no guarantees that this will continue. This is a dynamic industry and threats are likely to evolve over time.

Any slowdown could hit the share price. Because the stock is priced for strong growth.

I’m bullish, however, and plan to buy more shares for my own portfolio in the weeks ahead. In my view, it’s worth a closer look.

The post The 2026 software apocalypse: 3 stocks down 25%+ to consider buying now, according to JP Morgan appeared first on The Motley Fool UK.

Looking for stocks that are oversold? Here are three worth checking out.

The definition of oversold

The technical definition of an oversold stock is one that has a ‘relative strength index’ or RSI of less than 30. The RSI is a technical analysis indicator that measures the magnitude of recent share price movements.

Now, one stock that fits the bill here is Salesforce (NYSE: CRM), which specialises in customer relationship management (CRM) solutions. Down 25% in a month, it currently has an RSI of 25.

Clearly, a lot of investors are worried that AI is going to disrupt this business. But could the fears here be overblown?

Personally, I think there’s a decent chance that Salesforce will continue to do well in the AI era. One reason I’m optimistic is that the company has launched a powerful AI agent service to help businesses automate their operations.

Note that analysts at Guinness Global Investors believe there’s clear evidence that AI momentum is growing. They point to the fact that six of the firm’s top 10 deals in the final quarter of 2025 were exclusively AI deployments.

So, I think this stock is worth a look right now. It’s certainly cheap – the forward-looking price-to-earnings (P/E) ratio is only 15.

Embedded in organisations globally

Another stock with a low RSI is ServiceNow (NYSE: NOW), which specialises in enterprise software. It’s also down about 25% in a month and sports an RSI of 29.

This is a stock I’ve had on my watchlist for a long time. I’ve never bought it though as it’s always been very expensive.

The set-up has changed dramatically recently, however. Today, the stock’s forward-looking P/E ratio is only 25 (falling to 21 using next year’s earnings forecast), so the valuation is now quite attractive.

One thing this company has going for it is that its software is really embedded in large businesses. Replacing it would be time consuming and costly.

Another is that it has launched agentic AI solutions. These should make its offering more valuable.

Of course, we can’t rule out AI disruption here. But on balance, I believe the stock is worth considering for a portfolio today after its huge fall.

Trading at a rock-bottom valuation

Finally, check out FactSet Research Systems (NYSE: FDS), which provides financial data to banks and investment managers. It currently has an RSI of just 19.

This stock is down about 30% in a month. Clearly, a lot of investors believe that FactSet’s offering is going to be less relevant in the AI era.

I’m not convinced the growth story is over, however. Because banks and investment managers aren’t going to blindly trust AI for their data (accuracy is vital).

It’s worth noting that earlier this year, FactSet signed a multi-year agreement with Barclays. This is designed to help Barclays deliver enhanced, data-driven solutions for its global client base.

Now, competition from rivals such as London Stock Exchange Group is a risk with this stock. However, with the P/E ratio now sitting at a very low 12, the risk-reward proposition looks attractive to me – I think it’s worthy of further research.

The post 3 oversold tech stocks in the S&P 500 index that are worth a closer look today appeared first on The Motley Fool UK.

An AI platform for enterprises

Software company ServiceNow (NYSE: NOW) looks set to be a key player in the AI revolution. That’s because it offers a platform designed to help enterprises deploy AI across a range of business areas including IT, human resources, customer relationship management, and risk and security.

Today, this platform is used by 85% of the Fortune 500. So the company’s in a really strong position to offer innovative solutions such as AI agents (which it has already introduced).

Now, this stock currently trades for $853. However, the average analyst price target is $1,146. That translates to potential gains of 34%.

Going back to Palantir, the average price target there is 17% below the current share price.

Thanks to high demand for its AI tools, ServiceNow is currently having a lot of success. In July, for example, it reported Q2 revenue growth of 22.5% and raised its annual revenue guidance.

However, the stock isn’t a Buy for me right now. In my view, it’s just a little bit expensive at its current price-to-earnings (P/E) ratio of 51. That multiple doesn’t leave any room for a mis-step, to my mind. For example, a slowdown in revenue growth could lead to a downward valuation re-rating.

I’m keen to own this stock in the future though. I’m hoping the valuation comes down in the next market pullback and I can snap up the stock at a more favourable price.

Rolling out AI agents

Another software company that looks set to be a major player in the AI boom is Salesforce (NYSE: CRM). Like ServiceNow, it’s recently been rolling out agentic AI solutions (Agentforce), designed to help businesses increase productivity.

I think it’s well positioned to have success here. That’s because its software is used by 150,000 businesses worldwide meaning that it already has relationships with firms and doesn’t need to start the sales process from scratch.

This stock currently trades for $232. However, the average analyst price target is $354. That’s a whopping 53% higher than the current share price. So clearly analysts see a lot of potential here.

I reckon there’s potential too. As a result, I’ve been buying the stock for my portfolio.

Currently, the forward-looking P/E ratio here is only 21. I see a lot of value at that earnings multiple.

I will point out that analysts at Melius Research have warned that AI could hurt software businesses because automation will reduce the number of ‘seats’ they can charge companies for. This is a risk to think about.

I like the risk-reward proposition at current levels however. In my view, this tech stock’s worth considering today.

The post These 2 AI stocks will outperform Palantir over the next year, according to analysts appeared first on The Motley Fool UK.

And for individual stock pickers, the recent volatility has been even worse, with favourites like Tesla, Palantir, and ServiceNow (NYSE:NOW) losing around a third of their market-caps.

The growing uncertainty surrounding trade wars and geopolitical conflicts has investors on edge about the US economy. Specifically, fears are mounting that America could be heading into a recession. And since that would make life far harder for businesses to grow, it’s not exactly a surprise that growth stocks are being sold off in a panic.

However, as we’ve seen multiple times these past five years, crashes and corrections can be exceptionally lucrative. So let’s explore how investors can leverage today’s panic to try and get richer.

A record of recovery

Let’s take a quick glance at ServiceNow. In the 2020 Covid-19 stock market crash, the tech giant saw around 30% of its value wiped out in the space of just over a month. Then, skip ahead to the massive correction investors endured in 2022, the share price tumbled yet again, this time by almost 50%.

However, investors who sought to profit from the chaos and chose to buy at these lower prices are now sitting on pretty enormous returns, even after the recent sell-off. Buying during Covid would have earned a 238% return while snapping up shares at the end of 2022 led to a 120% gain. So with the stock now in freefall once again, is this a screaming buying opportunity?

Understanding the risk and reward

Blindly snapping up a growth stock that’s falling isn’t a winning strategy. In fact, there are plenty of shares that haven’t enjoyed the same rebound ServiceNow has. Instead, investors need to dig deeper to understand the long-term potential of a business and the risks it faces in trying to achieve its goals.

Since we’re already talking about it, let’s use ServiceNow as an example. The company’s core technology is about helping businesses become more efficient and productive through software automation. And a big part of its future growth story is the integration of new AI toolkits.

So far, the results from customers have been pretty encouraging. Now that management’s targeting the customer relationship management (CRM) market, ServiceNow’s preparing to take on industry titans like Salesforce and Workday. Needless to say, if it’s successful, then the group’s current $173bn market-cap could be just the tip of the iceberg.

Of course, success isn’t guaranteed. And if investors are expecting ServiceNow’s competitors to just sit idle while it steals market share, I think they’re going to be sorely disappointed. Even without this competitive threat, as more critical and sensitive customer information flows through its platform, ServiceNow’s likely to become an increasingly attractive target for cybercriminals. A failure to fend off cyber attacks could severely disrupt the firm’s progress.

Personally, with the valuation down so significantly, ServiceNow’s worthy of a closer look. But it’s not the only potential opportunity in the US stock market right now.

The post US stock market correction: a rare chance to get richer! appeared first on The Motley Fool UK.

However, Foolish investors embrace volatility as it often means being able to acquire shares of quality companies at reduced prices.

Here’s a handful of stocks that are catching the eye of some of Fool.co.uk’s contract writers today!

Adobe

What it does: Adobe is a software company with products that are used in the creative and digital marketing industries.

By Stephen Wright. Shares in Adobe (NASDAQ:ADBE) have fallen almost 25% over the last 12 months. And that’s enough for me to start taking an interest in it. 

Huge margins, strong returns on invested capital, and an ongoing share buyback programme have historically attracted a high price-to-earnings (P/E) multiple. But that’s starting to change.

At a forward P/E ratio of 17, it’s in the kind of territory where I’m starting to take a look at it. Tech isn’t my strongest sector, but there might be enough margin of safety at these prices.

Artificial intelligence (AI) could be either a risk or an opportunity. It might power the company to new heights, or it might give the competition a boost.

I’m not quite sure which I think is the more likely outcome just yet. But I’ve added Adobe to my list of shares to take a closer look at.

Stephen Wright does not own shares in Adobe.

Alphabet

What it does: Alphabet is the parent company of internet search giant Google.

By Ben McPoland. I reckon Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) stock looks attractive after a 22% fall since early February. This leaves it trading at just 18 times forward earnings, which is cheaper than both the wider S&P 500 and ‘Magnificent Seven’ peers.

However, the US Justice Department is trying to dismantle Google’s search dominance by making it sell the Chrome browser. While antitrust lawsuits are an occupational hazard for Big Tech, a forced breakup of the group is still a theoretical possibility and adds risk.

For now though, Alphabet continues to be a money-printing machine. Revenue rose 14% last year to $350bn, while operating profit soared 33% to $112bn.

Search advertising remains the cash cow, but Google Cloud and YouTube exited 2024 at a combined annual revenue run rate of $110bn. Its Waymo robotaxi business is now doing over 200,000 paid rides a week, while Google is making advances in artificial intelligence and quantum computing.

Finally, Alphabet just snapped up cybersecurity group Wiz for a cool $32bn (its largest ever acquisition, assuming regulatory approval).

Alphabet has many avenues of growth left. As such, I think it deserves a place on any investor’s radar.

Ben McPoland has no position in any shares mentioned.

Amazon

What it does: Amazon is a US-based technology company with numerous divisions including e-commerce, cloud computing and artificial intelligence.

By Paul Summers. Despite setting a new all-time high in February, it’s been a rough few weeks for US titan Amazon (NASDAQ: AMZN). The broader tech sector sell-off on fears of a recession has clearly pushed some investors to bank some profit. 

There might be worse to come. Consumer sentiment remains fragile and the company has already warned of weaker Q1 sales and higher spending on its artificial intelligence (AI) infrastructure.

All that said, I just can’t see Amazon’s stock cratering given just how diversified this business has become. It remains utterly dominant in online retail and a market leader in cloud computing. And while the frenzy surrounding AI was always destined to moderate at some point, it would be a brave person to say that this investment theme won’t recover its mojo in time.

If the share price does keep falling, I’ll find it hard to resist buying in.

Paul Summers has no position in Amazon.

ServiceNow

What it does: A cloud-based digital workflow automation platform that helps businesses streamline operations and boost efficiency.

By Zaven Boyrazian. With businesses looking to maximise efficiency and bolster profit margins, ServiceNow (NYSE:NOW) has had little trouble attracting customers. The firm offers a varierty of tools to help automate the digital workflow of businesses. And it’s something that’s proving quite popular with over 8,100 clients now relying on its technology – including 85% of the Fortune 500.

Lately, management has been taking things a step further with aggressive investments into AI-powered upgrades like predictive analysis, natural language processing, and virtual agents. Sadly, that also meant the stock got swept up by the AI hype train, making its valuation far too rich.

ServiceNow is not short on competition who are similarly trying to stay ahead of the curve with their own AI investments. And with the company expanding its reach into customer relationship management (CRM), it’ll soon be facing off against industry titans like Salesforce which have far deeper pockets.

Nevertheless, with recent market volatility causing the stock to fall by a third, the temptation to buy is rising.

Zaven Boyrazian does not own shares in any of the companies mentioned.

Super Micro Computer

What it does: Super Micro Computer supplies IT products, including servers and storage systems, to industries including AI.

By Alan Oscroft. Super Micro Computer (NASDAQ:SMCI) has been hit by the big US stock market sell-off. And more that that, we’re looking at a fall of around 60% over the past 12 months.

But I think we could be approaching the end of the big shakeup that saw the stock boom and bust in 2024. An investigation into allegations regarding accounting practices didn’t help. But management sees no need to restate any previous financials, which helps with confidence.

Suspicions have also been aired about supplying Nvidia-powered servers to Malaysia, from where they could end up in China contrary to US export restrictions.

With this going on, what do I like about Super Micro? In short, it’s forecasts and the forward valuations they imply.

Analysts expect earnings to climb steadily in the next few years. And that could push the forward 2025 price-to-earnings (P/E) ratio of 17 down as low as 10.5 in 2026. That looks cheap.

Alan Oscroft has no position in Super Micro Computer.

The post 5 S&P 500 ‘sell-off stocks’ Fools have added to their watchlist appeared first on The Motley Fool UK.

The problem is that such opportunities are unsurprisingly priced at a premium, inviting volatility.

However, volatility can be beneficial in creating new entry points for long-term investors. And one stock that’s started grabbing my attention is ServiceNow (NYSE:NOW). Since the end of January, shares of the digital automation cloud platform have stumbled 20% despite delivering fairly robust earnings.

So with £3k of cash at hand, is this a buying opportunity for my growth portfolio?

Growth versus price

Like many tech giants, shares of ServiceNow have always looked quite expensive. For reference, over the last five years the forward price-to-earnings ratio’s historically sat around 57. And right now, even after the stock lost almost a quarter of its value, this metric still stands at 56.5.

However, this premium valuation isn’t entirely unjustified. Over the last five years, sales have expanded by an annualised rate of 44.7%. And management’s been making aggressive investments into generative artificial intelligence (AI) solutions that seem to be picking up a lot of interest from customers.

In turn, free cash flow generation has remained consistently strong, enabling vast amounts of cash to accumulate on the balance sheet that’s now being deployed through share buyback schemes.

Needless to say, this sounds rather promising. So beyond a lofty valuation, what’s behind the recent surge in concern that sent the stock falling in the wrong direction?

Emerging risks

As usual, there are a lot of factors influencing ServiceNow. The group’s rising exposure to international markets is introducing some unwelcome currency exchange headwinds due to a stronger US dollar. However, a more pressing concern in my mind is the ongoing transition from a subscription-based revenue model to a consumption-based one.

On paper, this transition sounds like a win-win for ServiceNow and customers alike. The initial barriers to entry for client onboarding are reduced. At the same time, revenue for ServiceNow scales alongside customer operations, resulting in higher profit margins.

But, it’s important to remember that deploying this new pricing structure comes with notable execution and operational risk that could put ServiceNow’s market share in jeopardy.

The bottom line

Volatility’s often the price of admission when investing in US technology stocks. And investors who were willing to pay the piper five years ago have since been rewarded with an impressive near-200% return. So can this impressive performance be replicated between now and 2030?

I think the answer to that all depends on how much value management’s able to extract from its AI investments. Suppose these new tools are successful in getting new and existing customers to ramp up spending under its new consumption-based revenue model? In that case, the stock’s upward trajectory could be set to continue. Of course, that’s a big if.

Personally, I want to see a bit more progress before putting any capital to work. But should the stock take another 20% nosedive, then things may start to look far more interesting.

The post I’ve got £3k and I’m on the hunt for cheaper US stocks to buy in March appeared first on The Motley Fool UK.

Rolling out AI agents

One company that I think has huge potential on the AI front is ServiceNow (NYSE: NOW). It’s a software company that enables businesses to automate processes and deliver better experiences to employees and customers.

ServiceNow’s software is already embedded within the corporate world. Currently, the company serves 85% of the Fortune 500.

However, it’s now rolling out some really exciting AI products. An example here is its AI agents. Designed to boost efficiency, these can autonomously perform tasks (across a range of departments). So, they have the potential to significantly reduce costs for firms.

I wouldn’t be surprised if, in a decade’s time, these AI agents are doing a lot of work that is done by humans today (e.g. customer service). Taking a long-term view, I reckon this company has the potential to be a genuine winner in the AI space.

Now, the issue with this stock for me right now is the valuation. Currently, the forward-looking price-to-earnings (P/E) ratio is about 68. That’s a little too high for me. Because it doesn’t leave any room for error (like a short-term slowdown in revenue growth).

I am prepared to pay a high valuation here as the company is growing quickly. This year, analysts expect revenue to climb 20%.

But I’m not prepared to invest at the current valuation. So, I’m going to wait patiently for a pullback in the hope that I can snap up some shares at a lower earnings multiple.

Helping businesses get an edge

Another tech company that appears to have a ton of potential in the AI space is Palantir (NASDAQ: PLTR). It specialises in software that helps organisations use their data to get an edge.

In the past, Palantir has had a lot of success working with government organisations. From the FBI and the CIA to the UK’s NHS, it has won a lot of major contracts.

Now however, the company is moving into the corporate world and it’s having success here too. In Q3 2024, commercial revenues were up 54% year on year.

One product that is driving this success is Palantir’s AIP (Artificial Intelligence Platform) product. This is a powerful platform that enables businesses to rapidly deploy AI.

Now again, it’s the valuation that is the deal-breaker for me here. Currently, Palantir sports a P/E ratio of 159.

I just can’t bring myself to pull the trigger and invest at that price. If the company was to experience some kind of setback like a slowdown in contract wins or a cyberattack, the shares could fall significantly.

I am keen to get a few Palantir shares into my portfolio at some stage, however. I’m hoping an opportunity presents itself in 2025.

The post 2 high-growth AI stocks I’d love to buy in 2025 appeared first on The Motley Fool UK.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Axon

What it does: Produces a range of self-defence technology and weapons for military, law enforcement, and civilians.

By Mark David Hartley. Previously named Taser after its most popular product, Axon (NASDAQ: AXON) rebranded in 2017 and branched out into a range of defensive technologies. These include bodycams, drones and forensic software, all designed with law enforcement and justice in mind. With the political landscape becoming increasingly unstable in the US, defensive technologies are in high demand. Police and military are rapidly adopting ever more advanced technology to deal with both internal and external terror threats. 

Axon is at the forefront of this industry and perfectly positioned to meet the demand. The share price is already up 48% this year and I expect further growth. In its quarterly earnings posted earlier this month, earnings per share (EPS) and revenue beat analyst’s expectations by 18% and 5.4% respectively. But like many US tech stocks, it has a high price-to-earnings (P/E) ratio of 97 and is 7% overvalued based on future cash flow estimates.

Mark David Hartley owns shares in Axon.

Mastercard

What it does: Mastercard is the world’s second-largest payment processor, operating in over 210 countries and territories.

Not only have its revenues compounded for decades but growth shows little sign of slowing. By the end of Q2, Mastercard partners had issued 3.4bn cards featuring the firm’s brands — an increase of about 200m new cards since Q2, 2023.

Further growth opportunities are in Mastercard’s crosshairs. Data and analytics are key focus areas in a world where artificial intelligence will play an increasingly important role. In addition, the company’s boosting its investment in underdeveloped payment markets, like Africa.

The valuation’s a potential risk for further share price growth. With a forward price-to-earnings (P/E) ratio of around 32.7, Mastercard shares are priced for perfection, leaving little room for error.

Nonetheless, Mastercard has long been among the world’s most reliably profitable companies. I think this will remain the case for some time.

Charlie Carman owns shares in Mastercard and Visa. 

Nike

What it does: Nike is the world’s largest supplier of athletic shoes and clothing and a major sporting equipment manufacturer. 

By Paul Summers. Holders of Nike (NYSE:NKE) stock have endured a difficult year so far. As I type, the shares are down over 20% in 2024 alone. 

If that sounds bad, the situation was even worse in June. Back then, the trainer titan said that it expected a drop in quarterly revenue due to competition from increasingly popular brands like On and Hoka. Lower demand in international markets was also blamed and the earnings outlook for 2025 was lowered. This pushed the company’s value down to levels not seen since the early days of the pandemic. 

Since then, we’ve seen something of a post-Olympics bounce. Whether this lasts is another thing entirely.

However, a sustained recovery might be on the cards if Nike can get innovating again. Lowering its prices and reconnecting with wholesale partners, rather than persisting with a direct-to-consumer strategy, could also help. 

Paul Summers has no position in Nike

ServiceNow

What it does: ServiceNow is a leading provider of cloud-based workflow automation and management solutions.

By Harshil Patel. ServiceNow (NYSE:NOW) might not be a household name, but it’s well known by many IT professionals.

Its platform helps organisations to become more efficient. For instance, it can automate routine tasks, and streamline processes across business areas.

ServiceNow benefits from a strong market position, which it has built by offering simple but powerful tools that are easy to use. This results in high customer retention.

One way it plans to remain competitive is to focus on innovation. Its investments in AI and integrations across its platform should help to keep ServiceNow at the forefront of workflow automation technology for some time.

Bear in mind that this stock is not cheap though. With a price to earnings ratio of 50, any short-term challenges could result in a volatile share price.

That said, this business is growing sales and maintaining margins. It’s also well-run and I’d happily add this US stock to my ISA.

Harshil Patel does not own shares in ServiceNow.

Uber Technologies 

What it does: Uber operates the world’s largest ride-hailing network and also offers food delivery.

By Ben McPoland. I recently sold my shares in Nike and I’m planning to redeploy the money into Uber Technologies (NYSE: UBER).

The company’s ongoing double-digit growth is impressive. In Q2, revenue increased 16% year on year to $10.7bn, or 17% on a constant currency basis. Trips grew 21% to 2.8bn, amounting to approximately 30m trips per day on average.

Crucially, profits are really starting to motor higher. The quarter saw free cash flow of $1.7bn, and this year analysts have a net profit of $4.8bn pencilled in. Profits of $9bn+ are forecast for 2026.

Of course, these projections might fall short. And Uber does face some regulatory challenges, meaning it might have to pay drivers more, which is a risk to profits.

However, the company could also end up being one of the biggest beneficiaries of the shift to autonomous vehicles (eventually resulting in less drivers). It’s partnered with industry leaders, including Aurora Innovation, Waymo, Cruise and BYD. Trips taken in self-driving vehicles on Uber’s platform rose sixfold in Q2.

The stock isn’t cheap, but I can see why 45 Wall Street analysts out of 51 currently have it down as a ‘buy’.

Ben McPoland does not have a position in any stocks mentioned.

The post Best US stocks to consider buying in September appeared first on The Motley Fool UK.