Mastering September Stock Picks: Top-Ranked Winners to Buy Now
Discover how to leverage the September stock market pullback by buying top-ranked stocks like AVAH and Palantir. Learn expert screening tactics and avoid common myths to unlock growth opportunities this fall.
Key Takeaways
- September’s market dips offer buying opportunities for strong stocks.
- Zacks Rank #1 stocks have averaged 24.4% annual returns since 1988.
- Aveanna Healthcare (AVAH) shows soaring earnings and growth potential.
- Palantir Technologies leads with a 460% gain over the past year.
- Smart screening filters narrow down over 200 strong stocks to tradable picks.
September often gets a bad rap as the stock market’s troublemaker, historically being the worst-performing month. But savvy investors know that what looks like a curse can be a blessing in disguise. Market pullbacks in September create rare windows to buy top-ranked stocks at attractive prices.
This article dives into how to spot these winners using proven tools like the Zacks Rank #1 screen, which highlights stocks with strong earnings momentum and analyst upgrades. We’ll spotlight standout names like Aveanna Healthcare Holdings (AVAH), a healthcare stock with explosive growth, and Palantir Technologies, a tech giant that has soared 460% in the past year.
By blending data-driven insights with a fresh look at September’s quirks, you’ll learn how to turn market jitters into your advantage. Let’s bust myths, sharpen your stock-picking skills, and uncover actionable strategies for the final months of the year.
Understanding September’s Market Pullback
September has earned a notorious reputation as the stock market’s weakest month. This isn’t just Wall Street gossip—it’s backed by decades of data showing frequent pullbacks. But why does this happen? Factors like tax-loss harvesting, portfolio rebalancing, and the post-summer economic haze often shake investor confidence.
Imagine the market as a rollercoaster that slows down after a thrilling summer climb. The dip can feel unsettling, but it’s also a natural pause—a chance to catch your breath and spot bargains. Smart investors don’t fear September; they see it as a strategic entry point.
This mindset flips the script on the “September curse.” Instead of a month to dread, it becomes a season to scout for quality stocks that temporarily lose favor but have strong fundamentals. The key is knowing which stocks to trust when the market mood sours.
Leveraging Zacks Rank #1 for Stock Picks
Zacks Investment Research offers a powerful tool: the Zacks Rank #1, or “Strong Buy” rating. Think of it as a spotlight on stocks with robust earnings momentum and positive analyst revisions. Since 1988, these stocks have averaged a 24.4% annual return—far outpacing the market.
But here’s the catch: over 200 stocks can hold this rank at any time. That’s like having a treasure map with too many X’s. To find the real gems, investors apply filters—looking for recent positive earnings estimate revisions and top broker rating changes.
This refined approach narrows the list to a manageable set of tradable stocks. It’s like tuning a radio to the clearest signal amid static. Using this strategy, investors can confidently buy into stocks with strong growth signals, even during September’s typical pullbacks.
Spotlight on AVAH: Healthcare’s Rising Star
Aveanna Healthcare Holdings Inc. (AVAH) is a shining example of a Zacks Rank #1 stock primed for growth. Specializing in home healthcare, AVAH serves around 80,000 patients across nearly 40 states, focusing on vulnerable populations like medically fragile children and the elderly.
The company’s sector ranks in the top 22% of over 250 Zacks industries, signaling strong industry tailwinds. AVAH recently crushed its Q2 earnings per share estimates and raised its fiscal 2025 sales outlook from over $2.15 billion to more than $2.3 billion. Adjusted EBITDA guidance jumped from $207 million to over $270 million.
What’s truly eye-popping is AVAH’s projected adjusted EPS growth of 600% this year—from $0.06 to $0.42—followed by another 16% increase next year. Despite a 285% surge over three years, AVAH still trades 34% below its post-IPO highs, offering a compelling entry point. It’s a healthcare stock that’s not just surviving September’s pullback but thriving through it.
Top-Ranked Tech and Energy Stocks to Watch
Beyond healthcare, September’s pullback reveals opportunities in tech and energy sectors. Palantir Technologies (PLTR) stands out as the S&P 500’s top performer in August 2025, boasting a staggering 460% gain over the past year. After a period of overvaluation, PLTR’s recent price pullback brings it closer to fair value, inviting new investors.
Energy giant Devon Energy (DVN) also shines with improved free cash flow driven by increased production and reduced capital expenditures. Meanwhile, tech hardware firms like Seagate Technology (STX) and Western Digital (WDC), along with Newmont Corp. (NEM) and Tapestry (TPR), have delivered year-to-date returns between 65% and 80%, fueled by favorable sector trends.
These stocks illustrate the blend of growth and value plays that savvy investors can target during September’s market dips. The key is balancing enthusiasm with a clear-eyed view of fundamentals and valuation.
Navigating Risks and Building a Winning Strategy
Buying into September’s pullback isn’t a free-for-all. It demands discipline and research. Chasing last month’s winners without checking fundamentals is a common pitfall. Stocks can stay overvalued or falter if growth prospects dim.
A savvy investor blends growth and value, focusing on companies with strong financials, competitive moats, and reasonable valuations. Screening tools like Zacks’ Research Wizard help filter the noise, spotlighting stocks with positive earnings revisions and broker upgrades.
For those wary of single-stock risks, index funds or ETFs offer a diversified alternative, smoothing out volatility and reducing the need for perfect timing. Ultimately, September’s market quirks reward those who combine data-driven insights with patience and a steady hand.
Long Story Short
September’s reputation as a market pitfall is more myth than destiny. While the month often brings volatility, it also offers disciplined investors a chance to scoop up high-quality stocks at discounted prices. Tools like the Zacks Rank #1 filter help cut through the noise, spotlighting companies with strong earnings momentum and positive analyst sentiment. Stocks like Aveanna Healthcare (AVAH), with its 600% projected EPS growth this year, and Palantir Technologies, a standout performer with a 460% gain, exemplify the kind of opportunities waiting during the September pullback. But remember, success demands more than chasing last month’s winners—it requires rigorous research and valuation awareness. For those wary of individual stock risks, diversified index funds remain a steady anchor. Yet, if you’re ready to embrace September’s unique rhythm, armed with smart screening and a focus on fundamentals, you can turn the so-called “September curse” into your portfolio’s secret weapon.