In this article, we will look at the 5 stocks that Redditors of WallStreetBets are buying in September. If you want to explore more stocks that Redditors are bullish on in September, you can also take a look at Reddit’s WallStreetBets is Buying These 10 Stocks in September.
5. GitLab Inc. (NASDAQ:GTLB)
Number of Hedge Fund Holders: 36
GitLab Inc. (NASDAQ:GTLB) is a DevOps company that has operations in the United States, Europe, and the Asia Pacific. Redditors are buying GitLab Inc. (NASDAQ:GTLB) in September and see potential in the company to “take off”, after it reported a market-beating quarter on September 6, when it announced earnings for the second quarter of fiscal 2023. The company generated a revenue of $101 million and beat analyst expectations by $6.6 million. GitLab Inc. (NASDAQ:GTLB) reported a loss per share of $0.15 but outperformed Wall Street consensus by $0.08.
On September 7, Needham analyst Mike Cikos revised his price target on GitLab Inc. (NASDAQ:GTLB) to $60 from $70 and reiterated a Buy rating on the shares. The analyst noted that the company reported a strong quarter and showed resilience to the broader economic downturn.
At the close of Q2 2022, 36 hedge funds were long GitLab Inc. (NASDAQ:GTLB) and held stakes worth $718 million in the company. This is compared to 30 positions in the previous quarter with stakes worth $640 million. The hedge fund sentiment for the stock is positive.
As of June 30, HMI Capital is the largest shareholder in GitLab Inc. (NASDAQ:GTLB) and owns over 2.6 million shares of the company. The fund’s stakes are valued at $141.8 million.
Here is what Baron Funds had to say about GitLab Inc. (NASDAQ:GTLB) in its second-quarter 2022 investor letter:
“Shares of GitLab Inc., a leading software tools development platform, outperformed in the quarter after reporting strong quarterly results with 75% year-over-year revenue growth while raising annual guidance to over 58% growth. The results were driven by robust net new customer wins with base customers growing 64% year-over-year while existing customers continue expanding rapidly. We continue to believe GitLab’s easy-to-use and open development platform, combined with its disruptive pricing model, position the company well for continued market share gains.”
4. Cameco Corporation (NYSE:CCJ)
Number of Hedge Fund Holders: 40
Cameco Corporation (NYSE:CCJ) produces and markets uranium. WallStreetBets is bullish on the nuclear energy sector and Cameco Corporation (NYSE:CCJ) and are buying the stock in September, expecting it to “take off”. Shares of Cameco Corporation (NYSE:CCJ) have gained 18.66% over the past month, as of September 11.
On July 27, Cameco Corporation (NYSE:CCJ) announced strong earnings for the second quarter of fiscal 2022. The company reported earnings per share of $0.14 and beat EPS estimates by $0.13. The company’s revenue for the quarter amounted to roughly $435 million, up 52% year over year, and outperformed estimates by $52 million.
Wall Street is bullish on Cameco Corporation (NYSE:CCJ). On August 2, Scotiabank analyst Orest Wowkodaw raised his price target on Cameco Corporation (NYSE:CCJ) to C$44 from C$43 and maintained a buy-side Outperform rating on the shares. On August 17, GLJ Research analyst Gordon Johnson raised his price target on Cameco Corporation (NYSE:CCJ) to C$48.40 from C$37.86 and maintained a Buy rating on the shares.
At the close of Q2 2022, 40 hedge funds were bullish on Cameco Corporation (NYSE:CCJ) and held stakes worth $477 million in the company. Of those, Driehaus Capital was the top shareholder with stakes worth $104.4 million.
Here is what Aristotle Capital Management had to say about Cameco Corporation (NYSE:CCJ) in its first-quarter 2022 investor letter:
“Cameco, the world’s largest publicly traded uranium producer, was a primary contributor for the quarter. After years of stringent operational discipline that included production cuts, inventory reduction and market purchases, the company has reported strengthening market fundamentals, as industry-wide supply concerns continue to abate. The improving conditions can provide Cameco significant leverage to drive higher prices under its market-related contracts. Moreover, the company has obtained 70 million pounds of additional long-term contracts since the beginning of 2021, demonstrating Cameco’s strong position to capture increasing demand. Nevertheless, management has reiterated its commitment to maintaining supply discipline while continuing to invest in operational efficiency through automation, digitization and training. As such, the company expects to see significant improvements in cash flow generation, as it ramps up to its 2024 planned production capacity. We believe Cameco’s disciplined approach and conservative financial management continue to reinforce its long-term position and its ability to return value to shareholders. This was recently demonstrated when Cameco’s board approved a 50% increase to the company’s annual dividend for 2022.”
3. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 48
Altria Group, Inc. (NYSE:MO) is a leading American tobacco company that manufactures and sells smokeable and oral tobacco products, primarily in the United States. The company is most widely known for its Marlboro brand. Redditors on WallStreetBets see Altria Group, Inc. (NYSE:MO) dominating the marijuana market as it expands and gains approval for its cannabis products.
On August 25, Altria Group, Inc. (NYSE:MO) declared a quarterly cash dividend of $0.94 per share, up 4.4% from its prior dividend of $0.90. The dividend is payable on October 11, to shareholders of record on September 15. As of September 11, Altria Group, Inc. (NYSE:MO) is offering a forward dividend yield of 8.29%, which the company supports with free cash flows of $8 billion.
On July 25, Jefferies analyst Owen Bennett revised his price target on Altria Group, Inc. (NYSE:MO) to $54 from $58 and reiterated a Buy rating on the shares.
At the close of Q2 2022, 48 hedge funds were bullish on Altria Group, Inc. (NYSE:MO) and held stakes worth $1.83 billion in the company. This is compared to 47 positions in the previous quarter with stakes worth $1.95 billion. As of June 30, Arrowstreet Capital is the top shareholder in Altria Group, Inc. (NYSE:MO) with stakes worth $370 million.
2. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
WallStreetBets is buying Tesla, Inc. (NASDAQ:TSLA) shares in September as the community thinks it can benefit from the ongoing energy crisis in Europe.
Another thing that caught Redditors’ attention about Tesla, Inc. (NASDAQ:TSLA) in September is the recent announcement made by the company to build a lithium refining facility in Texas. On September 9, CNBC reported that Tesla, Inc. (NASDAQ:TSLA) is planning on building a lithium hydroxide refining facility in Texas to allow for cheaper batteries for its cars. The company is currently evaluating the feasibility of the project and pending approval for tax breaks from Texas.
On September 6, Wolfe Research analyst Rod Lache upgraded Tesla, Inc. (NASDAQ:TSLA) to a buy-side Outperform from Peer Perform and gave a price target of $360 on the stock. The analyst also raised his EPS estimates for the company, to $7.40 from $6.12 for 2023, and to $16 from $12.70 for 2025.
At the close of Q2 2022, 72 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA) and held stakes worth $7.16 billion in the company. As of June 30, ARK Investment Management is the most prominent shareholder in Tesla, Inc. (NASDAQ:TSLA) and owns over 1.4 million shares of the company.
Here is what GMO LLC had to say about Tesla, Inc. (NASDAQ:TSLA) in its first-quarter 2022 investor letter:
“To put the demand growth for clean energy materials into perspective, let’s look at Tesla (NASDAQ:TSLA). At its Battery Day last year, Tesla projected three terawatt hours of lithium-ion battery capacity needed in 2030 for the EVs and storage they expect to produce. To reach this target, Tesla alone would gobble up approximately 75% of the world’s current nickel production and four times the world’s current lithium production. These numbers are astounding enough, but when one considers that EVs currently represent just 15% of global nickel demand and about 45% of lithium demand and that Tesla will likely be producing only a small proportion of the world’s EVs in 2030, the implications are staggering. Clean energy materials companies will make a lot more money in the decades to come than they ever have both because they will be selling a lot more metric tons of material and because there are certain to be shortages where supply can’t keep up with the rapidly growing demand.”
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Redditors are bullish on Apple Inc. (NASDAQ:AAPL) ahead of the company’s launch of the new iPhone 14 series on September 16. The WallStreetBets community is buying Apple Inc. (NASDAQ:AAPL) in September and expects the stock to “go to the moon”. Other than that, Apple Inc. (NASDAQ:AAPL) is one of the stocks to “HODL”, or hold on for dear life, according to Redditors of WallStreetBets.
Wall Street analysts are also bullish on Apple Inc. (NASDAQ:AAPL) ahead of the company’s new product launch. On September 8, Wedbush analyst Daniel Ives reiterated a buy-side Outperform rating and his price target of $220 on the stock. This September, Oppenheimer analyst Martin Yang maintained his $190 price target on Apple Inc. (NASDAQ:AAPL) and reiterated an Outperform rating on the shares. On September 8, Morgan Stanley analyst Erik Woodring raised his fiscal 2023 revenue and EPS estimates by 1% and reiterated a buy-side Overweight rating and his $180 price target on Apple Inc. (NASDAQ:AAPL).
At the end of Q2 2022, 128 hedge funds were long Apple Inc. (NASDAQ:AAPL) with stakes worth $143 billion. Of those, Berkshire Hathaway was the most prominent shareholder in the company with stakes worth $122.3 billion. The investment covers 40.7% of Warren Buffett’s 13F portfolio.
Here is what Alger Capital had to say about Apple Inc. (NASDAQ:AAPL) in its second-quarter 2022 investor letter:
“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”
You can also take a look at 10 Best Penny Stocks Popular on Reddit and 10 New Reddit WallStreetBets Stocks On the Rise.
