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3 Investment Opportunities to Capitalize on Before September’s Positive Market Trends

Key Points
Uber will see increased rides and delivery volume as students return to colleges and universities and frequent bars.
SoFi will start receiving student loan repayments and interest as the three-year student loan moratorium comes to an end, requiring loan payments to resume in September 2023.
DraftKings is likely to benefit from the NFL season starting on Sept. 7, 2023, as PENN Entertainment confuses users by ditching Barstool Sports and rebranding to ESPN BET.
5 stocks to consider besides Uber Technologies
It’s that time of year again. Students are returning to classes, and the NFL season is kicking off. This means there will be increased demand for transportation. After a three-year break, student loan repayments with interest will resume. Additionally, football season will bring more bettors as more states continue to approve online sports betting.
These recurring events in September provide investment opportunities for investors who can take advantage of these seasonal trends. Here are three stocks to consider buying ahead of the September tailwinds that occur like clockwork every year.

Uber, the largest rideshare operator in the country, experiences a significant increase in rides when school starts. College and university students account for 15% or more of Uber’s traffic in September. As the fall semester begins, it is common for students to take short rides to stores, bars, and clubs.
Uber has consistently grown in its rideshare and food delivery businesses, such as Uber Eats, and is approaching GAAP profitability. It has outperformed its competitors, especially Lyft Inc. NASDAQ: LYFT, as their shares have moved in opposite directions. Uber has taken market share from Lyft and has widened its moat against any potential new competitors. The number of monthly active platform users has increased by 12% year over year, reaching 137 million.
Achieving Operating Profitability
In the second quarter of 2023, Uber reported its first operating profit of $326 million since its inception. Gross bookings grew by 16% year over year to $33.6 billion. Mobility gross bookings rose by 25% year over year to $16.7 billion, and delivery gross bookings grew by 15% year over year to $15.6 billion in Q2 2023. The company expects gross bookings for Q3 2023 to be between $34 billion and $35 billion, with adjusted EBITDA expected to be between $975 million and $1.025 billion. Analyst ratings and price targets for Uber Technologies can be found on financehubusa.
Weekly Cup and Handle Pattern
UBER’s weekly candlestick chart formed a smaller cup and handle breakout and is now potentially forming a larger one. The cup lip line started after reaching a peak of $48.84 in October 2022 and falling to a low of $19.90 in June 2022. Shares then formed a rounding bottom and broke out through the $40.22 trigger, rising to retest the cup lip line at $48.84 in early August 2023.
Shares have pulled back, possibly forming a potential handle and breakout once they establish a base and bounce. The weekly relative strength oscillator (RSI) is falling towards the 60-band. Support levels for the pullback are $41.75, $40.22 (weekly MSL trigger), $37.07, and $32.81.

After a three-year hiatus, student loan repayments will resume in September, along with the accrual of interest. The resumption of loan payments is expected to have financial implications, potentially leading to a decrease in consumer discretionary spending on items like fashion and dining out as the funds are redirected towards monthly loan payments.
One company that will benefit from the resumption of loan repayments is Social Finance (SoFi) Technologies, a provider and aggregator of student loans. SoFi expects to reach operational profitability by the end of the year, thanks to the resumption of student loan repayments. The company is experiencing rapid growth, and its average user is a college-educated millennial in their 30s with an annual income of $160,000 and an average credit score of 750.
All-in-One Digital Bank and Brokerage
SoFi is a fully digital bank that offers various services through its app, including checking, savings, student, home, auto, and car loans, as well as investing, retirement, and wealth management services. It has also partnered with Lemonade Inc. NASDAQ: LMND to offer home, auto, and pet insurance plans. Analyst ratings and price targets for SoFi Technologies can be found on financehubusa.

Online sports betting and iGaming are gaining momentum as more states approve these sources of tax revenue. With the NFL season starting on Sept. 7, 2023, and more states legalizing sports betting since the last season, DraftKings is poised to experience a significant increase in wagers. On the other hand, PENN Entertainment Inc. NASDAQ: PENN, recently ended its partnership with Barstool Sportsbook and signed a 10-year $1.7 billion deal with The Walt Disney Co. NYSE: DIS-owned ESPN, rebranding as ESPN BET.
While this news initially caused a decline in DraftKings’ stock, the reality is that Penn Entertainment is starting from scratch with its rebranding, despite having authorizations for online sports betting in 16 states. This may lead many Barstool Sports customers to switch to a more established and consistent sportsbook like DraftKings, which has not undergone any identity changes. Trust and confidence in a brand are crucial for gamblers. Analyst ratings and price targets for DraftKings can be found on financehubusa. Before considering Uber Technologies, it’s worth exploring other top-rated stocks that analysts recommend. MarketBeat tracks the recommendations of Wall Street’s best-performing analysts on a daily basis. According to top-rated analysts, there are five stocks that are better buys than Uber Technologies. Get the free report by clicking here.

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