September has been tumultuous for the U.S. stock market, with certain economic indicators displaying signs of weakness. However, amidst the noise, investors seeking stock recommendations can turn to top analysts on Wall Street for guidance. One such pick is Planet Fitness (PLNT), a franchisor and operator of over 2,600 fitness centers. The company recently reported better-than-expected results for the second quarter and reiterated its full-year guidance. Baird analyst Jonathan Komp has continued to show confidence in PLNT by assigning it a buy rating with a price target of $92. This designation comes with a “Bullish Fresh Pick” status, as Komp is optimistic about the company’s initiatives under new leadership and other growth drivers. CEO Colleen Keating aims to fortify the company’s position by improving leadership, enhancing member experience, and boosting marketing efforts. Komp’s bullish thesis is supported by PLNT’s solid consumer value proposition and high-margin franchise model, which are expected to be resilient in a challenging macroeconomic environment. With a strong cash return capacity and multiple growth drivers in the pipeline, PLNT seems well-positioned for sustained growth.
Ross Stores (ROST)
Another favorable stock pick for September is Ross Stores (ROST), an off-price retail chain that has seen positive momentum in the second quarter. The company’s enhanced value offerings have attracted customers, leading to an optimistic outlook. TD Cowen analyst John Kernan reaffirmed a buy rating on ROST and raised the price target to $185 following a strong Q2 performance. Kernan anticipates that the company’s merchandising efforts will drive growth in the second half of the year. Moreover, Ross Stores’ strategies to enhance value offerings and increase the mix of branded merchandise in key categories have contributed to its consistent comparable sales growth. With margin and earnings benefits from merchandising efforts and cost-saving initiatives, ROST is expected to see its operating margin expand in the coming years. Kernan believes that ROST’s valuation discount compared to TJX is undervalued, potentially offering upside for investors in the near term.
SentinelOne (S)
In the cybersecurity sector, SentinelOne (S) has stood out with market-beating results for the second quarter of fiscal 2025. The company reported positive net income and earnings per share on an adjusted basis for the first time, along with raised full-year revenue guidance. Baird analyst Shrenik Kothari reiterated a buy rating on S with a price target of $29, impressed by the company’s strong Q2 performance and substantial growth in annual recurring revenue. Despite a challenging macro environment, SentinelOne has upgraded its full-year outlook, expecting improved net-new ARR in the second half of the year. This enhanced outlook is supported by a stronger pipeline retention and improved win rates, driven by advancements in the company’s go-to-market strategy. Even with challenges from a recent IT outage among competitors, SentinelOne remains resilient with growing interest in its platform from major organizations worldwide. Kothari is optimistic about S’s transition to a new operating model and robust RPO growth, suggesting sustainable demand and potential upside in the future.
September presents several compelling stock picks for investors looking to navigate the markets amid economic uncertainties. Planet Fitness (PLNT), Ross Stores (ROST), and SentinelOne (S) represent promising opportunities in the fitness, retail, and cybersecurity sectors, respectively. These companies have shown resilience, growth potential, and strong leadership, making them attractive investments in the current market environment. Investors are advised to conduct thorough research and seek guidance from financial experts before making any investment decisions.