Top 5 US Stocks To Buy In November 2024

These 5 stocks are our top Pro Picks for this month, taken from S&P 500-listed companies that have garnered high InvestingPro health ratings (benchmarked against more than 100 financial factors and indicators from companies in the same sector), as well as from among those trading well under our proprietary fair value estimates (based on 5 overlaid investing models) and analyst assessments.

All of these names have earned InvestingPro health scores of well above 3.00, which for the last 7 years has indicated outperformance vs. the S&P 500. A score this high points to a mix of first-rate financials: excellent earnings, cash flow, and growth vs. peers in its sector.

Importantly, all of these stocks are also currently undervalued per InvestingPro’s fair value calculations and favored by Wall Street analysts polled by InvestingPro. They’re also sitting with a current potential upside of more than 20%. So if you’re eager to bulk up your portfolio, these overlooked powerhouse plays are all worth serious consideration.

• InvestingPro health score: 3.97 / 5.00
• InvestingPro average fair value: $46.34 / 37.1% upside
• Fair value confidence: Medium
• Industry: Healthcare / Pharmaceuticals

Harmony Biosciences Holdings, Inc. (HRMY) stands out as a compelling investment opportunity in the biopharmaceutical sector for November 2024. Specializing in innovative therapies for rare neurological disorders, Harmony has made significant strides, backed by a robust development pipeline and promising product lineup. As of the end of October 2024, Harmony Biosciences has a market capitalization of approximately $1.9 billion, demonstrating its robust position as a mid-cap firm in the competitive biotech domain.

The company currently does not pay a dividend, choosing instead to allocate its profits towards research and development efforts aimed at expanding its market offerings and driving sustained growth. Harmony’s P/E ratio is reported at 15.7, which is above industry norms in relation to its closest peers, but still holds potential for upside (analysts anticipate roughly a 37.1% potential upside) due to anticipated product launches and expanding market reach.

Harmony maintains a prudent approach to debt management, providing the flexibility needed to support its strategic expansions, including partnerships and potential new acquisitions in the sector. Investors should note that while the biotech industry can be volatile, Harmony’s focus on unique therapeutic areas provides it with a defensive edge.

Overall, Harmony Biosciences offers a promising opportunity for investors seeking exposure to the biotech field, particularly those interested in companies with strong growth trajectories and strategic initiatives aimed at addressing unmet medical needs.

• InvestingPro health score: 3.48 / 5.00
• InvestingPro average fair value: $53.13 / 22.6% upside
• Fair value confidence: High
• Industry: Energy / Oil, Gas & Consumable Fuels

International Seaways (INSW) returns as a stock pick for November 2024. As of the latest quarter, the company boasts a market capitalization of around $2.15 billion, marking it as a notable player in the energy transportation industry. International Seaways specializes in transporting crude oil and petroleum products, leveraging a diversified and modern fleet to capitalize on global energy demand.

The company pays a quarterly dividend of $0.12 per share, providing investors with steady income alongside potential capital appreciation. With a P/E ratio of 4.1, International Seaways appears relatively undervalued compared to industry peers, hinting at potential upside, especially if energy markets remain robust.

International Seaways maintains a prudent debt strategy, evidenced by a debt-to-equity ratio of 0.45, which supports its operational flexibility and expansion initiatives. Investors considering this stock should be aware of the inherent volatility associated with shipping rates and global economic shifts, which can impact performance.

Despite these fluctuations, International Seaways’ strategic positioning and disciplined financial management enhance its appeal. The company is well-positioned to benefit from favorable market conditions, making it a compelling choice for investors seeking exposure to a dynamic sector with the potential for both income and growth.

• InvestingPro health score: 3.27 / 5.00
• InvestingPro average fair value: $2,171.13 / 19.2% upside
• Fair value confidence: Medium
• Industry: Financials / Insurance

White Mountains Insurance Group (WTM) presents a solid investment opportunity as we head into November 2024, especially for investors seeking stability in the financial sector. With a market capitalization of roughly $4.61 billion as of the end of October, White Mountains is a significant player in the insurance industry. Notably, the company has focused on strategic investment and acquisition activities that bolster its diversified portfolio within insurance and related industries.

While White Mountains’ dividend is only 0.1%, it has nevertheless been consistent with its payments for more thn 30 years, and this also shows the business instead prioritizes strategic growth, reinvesting earnings to enhance shareholder value through a range of acquisitions and ventures. This approach is underscored by the company’s P/E ratio of 9.5, suggesting it may be undervalued compared to its peers in the insurance sector, potentially providing an attractive upside for investors who believe in its long-term strategy.

Debt is well-managed, with White Mountains maintaining a prudent balance sheet that supports its investment endeavors without compromising financial stability. Potential investors should take into account that while the insurance sector can provide consistent returns, White Mountains’ focus on acquisitions means there can be inherent volatility related to these business changes.

Overall, White Mountains Insurance Group offers a compelling opportunity for investors looking to diversify their portfolios with a stable yet strategically progressive company in the insurance sector.

• InvestingPro health score: 3.29 / 5.00
• InvestingPro average fair value: $118.16 / 47.6% upside
• Fair value confidence: High
• Industry: Marine Transportation

Danaos Corp (DAC) stands out as a noteworthy stock pick for November 2024, particularly for investors interested in the maritime shipping sector. As of the close of October, Danaos boasts a market capitalization of approximately $1.5 billion, positioning it as a significant player in the container shipping industry. The company has earned recognition for its expansive fleet and strategic partnerships, allowing it to capitalize on global trade dynamics.

Danaos offers an attractive dividend yield, currently at 3.9%, providing an added incentive for income-focused investors. The company maintains a P/E ratio of 2.7, suggesting that the stock is undervalued relative to its earnings, offering a promising upside of more than 45% for those looking to capitalize on market inefficiencies.

In terms of financial health, Danaos manages its debt prudently, with a focus on refinancing its liabilities to maintain operational flexibility and fund future growth. Investors should be conscious, however, of the inherent volatility in the shipping industry, driven by fluctuating freight rates and global economic conditions.

Overall, Danaos Corp presents a compelling investment opportunity, combining a strong dividend with growth potential in the dynamic shipping industry. Its ability to adapt to market changes and its strategic positioning in the global trade landscape underscore its appeal to investors seeking both stability and growth prospects.

• InvestingPro health score: 3.08 / 5.00
• InvestingPro average fair value: $187.94 / 22.8% upside
• Fair value confidence: Medium
• Industry: Consumer Discretionary / Household Durables

As our last stock pick for November, MI Homes (MHO) presents an opportunity for investors looking to tap into the housing sector. MI Homes, a prominent player in the homebuilding industry, boasts a market capitalization of approximately $4.2 billion, marking it as a significant mid-cap company in its field. The company’s specialization in building quality, high-value homes in key markets across the US has made it a formidable contender in the real estate market.

MI Homes does not currently distribute a dividend, instead channeling its earnings into growth initiatives and strategic land acquisitions, which can offer appealing upside potential for investors seeking capital appreciation. The stock has a P/E ratio of 7.9, showing its undervalued compared to industry peers (at a sector benchmark of 10.5), which could be an enticing factor for value-focused investors.

When evaluating MI Homes, it’s important to consider the company’s leverage. With a debt-to-equity ratio of 0.5, MI Homes maintains a conservative debt profile, providing it with financial flexibility to navigate market dynamics and fluctuations in housing demand.

Investors should also recognize the inherent volatility of the real estate sector, influenced by interest rate shifts and economic cycles. However, despite a 1-year Beta of 2.23, MI Homes’ robust backlog and strategic positioning within its operational regions underscore its potential for long-term growth.

Overall, MI Homes could represent a rewarding investment choice, fueled by its disciplined operational approach and commitment to delivering shareholder value.

If you’re looking for more great opportunities, here is a list of our top stock picks for previous months during 2024.