Hey Investor,
Our Best Buys for September are here 🎯
Each month, we look for great companies trading at attractive valuations and highlight three stocks that currently stand out to us.
Since December 2024, we’ve shared 63 Best Buys with our paid members.
Our Best Buys have delivered an average return of 22% so far. Several picks have delivered triple-digit returns 🔥
🚀 AMD: picked at $97.35, now +369%
🚀 ASML: picked at $662.63, now +148%
🚀 Alphabet: picked at $168.95, now +103%
We focus on high-quality businesses with strong fundamentals trading at attractive valuations. As Warren Buffett famously said:
“It’s better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
Learn more about how we score stocks on fundamentals in our Fundamental Scoring Framework article.
To keep looking for the best opportunities, we don't pick the same Best Buy two months in a row.
Now let’s dive into our Top 3 Best Buys for September ✨👇
Disclaimer:
The information and opinions provided in this article are for informational and educational purposes only and should not be considered as investment advice. Please consult the general disclaimer for more details.
#3: Broadcom (NASDAQ: AVGO)
Our first Best Buy for September is one of the highest-quality companies in the market today: Broadcom.
This is the first time we’ve included Broadcom in our Best Buys list. The stock is up just 3% YTD and currently trades 28% below its all-time high reached in early June.
Broadcom has become a key player in the AI boom, with its chips and networking solutions helping power the massive buildout of AI infrastructure. After the recent pullback, we believe current levels offer an attractive entry point for long-term investors.
What Happened?
Broadcom shares have been under pressure since reaching an all-time high in early June. The stock had already gained a lot thanks to AI, pushing expectations to very high levels and leaving little room for disappointment.
The latest Q3 FY2026 results were actually very strong. Revenue jumped 86% YoY to $29.59B and adjusted EPS nearly doubled to $3.32. Both came in slightly above expectations. AI was once again the big growth driver. AI chip revenue surged 221% YoY to $16.7B. Broadcom expects this to reach $21.7B in Q4, an incredible 236% increase YoY.
Source: EarningsTime, Broadcom Q3 FY26 Earnings Release
Still, the stock fell after hours as the Q4 outlook came in slightly below Wall Street expectations. Broadcom expects revenue of $34.8B, compared to the $34.97B expected by Wall Street. That would still be an impressive 93% increase YoY. Adjusted EBITDA margin is expected to come in at around 68%.
Broadcom also raised its longer-term AI outlook. The company now expects AI revenue to reach $115B in FY2027 and around $230B in FY2028. That means AI revenue could double again in just one year.
These are incredible growth numbers for a company of Broadcom’s size. The stock has come down significantly, but the business is still performing very well, especially in AI.
Why Broadcom Looks Attractive Now
As we mentioned before, Broadcom is one of the best companies in the world. It has excellent management, a strong moat, a huge and growing market, and impressive growth. Broadcom scores 85 in our Fundamental Scoring Framework, which falls in the 🔵 High Quality category.
But what are you paying for all that quality? At first sight, Broadcom looks quite expensive with a P/E ratio of 45.6. But that number doesn’t tell the full story. Broadcom is growing very fast.
For FY2026, GAAP EPS is expected to reach $9.03, bringing the forward P/E below 40. Looking one year further ahead, GAAP EPS is expected to jump to around $16.50 in FY2027. At the current share price, that brings the forward P/E down to just 21.6.
That looks very attractive for a company growing this fast. Revenue and earnings are expected to grow between 65% and 70% this year and next year, and AI revenue is growing at triple-digit rates.
How many companies can you find with Broadcom’s quality, growth and strong market position at a forward P/E of around 22 based on next year’s earnings? Not many. At the current price, we believe Broadcom offers a very attractive opportunity for long-term investors.
The Future Investors (Vincent & Stefan) currently do not hold a position in Broadcom.
Fundamental Score: 85 🔵 → High Quality
Current Stock Price: $357.16
The next two? Two high-quality businesses with strong competitive positions at very attractive valuations.
📱 One sits at the center of how millions discover and engage with content.
🎯 The other uses AI and data to help businesses reach the right customers.
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