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The recent pullback presents the chance to own some of the best stocks at a discount. So, while the Dow and the S&P 500 are both down 2% from their recent highs, it's a good thing. And today, we have three stocks that you won't want to miss out on.
The best part about these stocks? They are technological innovators identified by Money Morning's Tech and Defense Specialist, Michael Robinson. Whether they're in the healthcare industry, electric vehicles, or designing tech to for self-driving cars, these stocks are cutting edge.
Over the next 2.5 years, all three stocks are projected to grow 75% - doubling in earnings per share (EPS) and share price. But you have to act fast. Some of these stocks are already on the move higher. The longer you wait, the more likely it is you'll miss out on this chance opportunity.
So, here are the three best stocks to buy for the fourth quarter and beyond.
Best Stocks to Buy in Q4, No. 3: ShockWave Medical Inc.
Up first, we have a medical innovator with an $8 billion market open to them. ShockWave Medical Inc. (NASDAQ: SWAV) is a company solving the problem of calcium buildup in blood vessels.
Founded back in 2009, the company adapted technology used to safely break up kidney stones for over 30 years to now crack intravenous calcium deposits. Basically, a wire that emits pulses is threaded through the blood vessel instead of the kidneys to break up the calcium deposits. There are other ways of fixing stiffened blood vessels, but they are more difficult and riskier for the patient.
So far in 2021, ShockWave Medical's stock has doubled when compared to the 16% return of the S&P 500. SWAV crushed the benchmark by 531% thanks to the company's improving financials. And sales were up 443% for the most recent quarter.
Money Morning Tech and Defense Specialist Michael Robinson thinks ShockWave Medical is a great example of how these small innovations make tech such a fascinating area to follow.
"It's a very lucrative field of investing," says Michael.
And if ShockWave Medical's EPS continues to grow at its current pace, the share price will double in two years.
Best Stocks to Buy in Q4, No. 2: Ford Motor Co.
Next, we have Ford Motor Co. (NYSE: F). The 118-year-old company is on track to be the first to manufacture a road-ready electric truck. Its Ford F-150 "Lightning" pickup truck is slated for early 2022.
Ford's F-150 has been one of the best-selling American trucks for over 40 years. The company has sold anywhere from 820,000 and to 1.2 million a year since 2005. With Ford already selling a hybrid F-150, customers will go all-electric with little hesitation. The fact that the suggested retail price is cheaper than the gas-powered models will only help sales.
But the Lightning isn't Ford's only foray into the EV market.
Ford also has the Mustang Mach-E, a crossover all-electric sport utility vehicle (SUV), the F-150 hybrid, and the Escape hybrid. And the company's $50 million investment in Redwood Materials, an EV battery recycler, will help with its growing battery supply chain since Redwood uses tech that recovers 95% of the nickel, cobalt, lithium, and copper in dead batteries. This is huge since Ford projects that about 40% of its sales will be EVs by 2030.
Overall, Ford still packs a lot of value and at a steep discount. The company sports a trailing 12-month price/earnings ratio just above 6.5, nearly seven times lower than the average of the stock market and close to three times lower than the U.S. auto industry.
It wouldn't be a shock to see this stock hit $20 per share, if not more, over the next 2.5 years.
Best Stocks to Buy in Q4, No. 1: Nvidia Corp.
Last but not least, we have a chip powerhouse. Nvidia Corp. (NASDAQ: NVDA) is a company with advanced products that are pushing other technologies forward. One of the company's main focuses though is within the autonomous vehicles (AV) space.
AI Startups, an online magazine, listed 38 autonomous vehicle startups across the world. Eight are based in the United States and have raised a combined $21.4 billion. While it's not clear exactly how much money is in this area, Allied Market Research says it will grow 39.4% a year through 2026 for a total worth of $556 billion.
There are several projects, like Walmart Inc.'s (NYSE: WMT), that focus on automating deliveries to streamline the process further. Walmart is working with the AV software startup Argo, a company that's backed by both Ford and Volkswagen AG - two of the largest carmakers in the world.
And Nvidia is there to help refine the entire process.
In fact, Nvidia works closely with both Argo and Ford in the AV field. Its Nvidia DRIVE platform, for example, is supercomputer-on-a-chip made specially for processing data from car sensors, cameras, and radar. The chip's built-in AI analyzes the data and determines where the vehicle is in relation to its surroundings, as well as the safest and most efficient route to take.
Back in June, the stock split 4 to 1 - a move that sent shares higher. Nvidia also reported a 95% earnings increase for the second quarter, beating analyst expectations. Despite that, shares have pulled back from the all-time high of $228 per share.
But that's not bad thing; this is a great opportunity.
According to Michael, Nvidia's earnings are projected to double in just over two years - the share price could gain 60% or more in that time. And while Nvidia has already delivered incredible profits, the chance to profit even more is still there - and at a discount to boot.
We have one more bonus pick for you.
It's a tech stock, one that could be our best play of them all. If you want more winning opportunities, then this is just for you...
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