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3 Top Stocks to Buy in October Despite Market Fears

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The stock market closed out September and the third quarter on a downbeat note, but there are still opportunities for investors who can handle volatility and potential near-term selling. In this article, we explore three highly-ranked Zacks stocks that have strong potential for growth: Textron (TXT), NXP Semiconductors (NXPI), and Construction Partners (ROAD).

Market Analysis

The S&P 500 appears to be oversold at the moment, potentially reaching levels last seen when the market bottomed in Q3 2022. However, earnings revisions are improving and the S&P 500 is projected to experience growth in Q4 and in the coming years. Additionally, the Federal Reserve is nearing the end of its rate hiking efforts, which is positive for the market.

Textron (TXT)

Textron operates in the aerospace-defense industry and has commercial segments as well. The company posted an impressive quarter over the summer and is projected to see revenue growth of 8% this year and 6% next year. With its current valuation and strong performance, Textron is a top stock to consider.

NXP Semiconductors (NXPI)

NXP Semiconductors is a leading chip maker with exposure to various industries, including automotive, industrial, IoT, and more. The company is expected to return to top and bottom line growth next year and is currently trading at a discount compared to its industry and sector peers. NXP Semiconductors also offers a dividend yield of 2.1%.

Construction Partners (ROAD)

Construction Partners specializes in road construction and maintenance across several states. The company has experienced strong growth and is projected to see sales growth of 20% this year. With increased focus on infrastructure spending, Construction Partners is well-positioned for further growth.

Conclusion

Despite the market’s recent downturn, there are still opportunities for investors. Textron, NXP Semiconductors, and Construction Partners are three top stocks that offer potential for growth in October and beyond.

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