7 Hot Growth Stocks to Buy in September

Based on the market’s recent performance, you may think now isn’t the time to increase exposure to hot growth stocks. After all, aren’t rising interest rates and the growing likelihood of a recession bad news for growth?

Yes and no. On one hand, there are plenty of high-fliers from the 2020/2021 bull market that will likely continue to face challenges in the near term. Some of them, due to their poor fundamentals, face murky prospects in the long term.

But while that’s the case for many growth plays, it’s not the case for all of them. Top-rated names in this category could begin to recover much sooner than current sentiment suggests. In addition, there are several picks you may not associate with the term “growth stock,” yet could be just that as they are the beneficiaries of some powerful trends.

With this, consider it high time to pick up these seven hot growth stocks this September. After the recent market pullback, each has fallen to a favorable entry price.

Apple (AAPL)

As the largest stock by market cap, you may think Apple’s (NASDAQ:AAPL) days of high growth are behind it. With its outstanding shares worth nearly $2.6 trillion, admittedly it’ll take a lot to move the needle.

Fortunately, though, there are several big growth catalysts in play. In the short term, new product launches could help to reaccelerate growth. And I’m not just talking about the rumored upcoming launch of the iPhone 14. I’m also talking about the launch of a new Apple Watch model, plus the debut of its augmented and mixed reality headset.

In the long run, the company could “level up,” and so too could AAPL stock, if it brings a self-driving electric vehicle to market in a few years’ time.

After pulling back over the past two weeks, September may be the perfect time to enter/add to a position in AAPL stock.

AAPL stock earns a B rating in my Portfolio Grader.

Albemarle (ALB)

Albemarle (NYSE:ALB) is a good example of what I meant when I said not all the stocks on this list may immediately be thought of as growth plays. So, what makes this specialty chemicals company a hot growth stock?

Its high exposure to the proliferation of EVs. Albemarle is a leading provider of lithium used to build EV batteries. Unlike other commodities, which spiked earlier this year due to Russia’s invasion of Ukraine only to sink due to recession fears, lithium prices have held onto their supply shock gains.

Albemarle is cashing in big time. Analysts are expecting a 124% year-over-year jump in 2022 revenue and 404% YOY earnings growth. Best of all, while ALB stock is up 17% so far this year, it continues to trade at a relatively low forward earnings multiple of 14.2x.

ALB stock earns a B rating in my Portfolio Grader.

Devon Energy (DVN)

Oil and gas company Devon Energy (NYSE:DVN) is another good example of how when I say “hot growth stock,” I’m not just talking about names in sectors like big tech or clean energy. Carbon-free energy may be the future, but for the time being, fossil fuels reign supreme.

Couple that with this year’s oil and gas supply challenges, and it’s no surprise this stock has been crushing it over the past 12 months. While major indices have sunk, DVN stock surged 134%. Don’t assume, however, that you’ve missed the boat if you’ve yet to add it to your portfolio.

Despite concerns about the impact of a recession on demand, analysts continue to anticipate crude oil prices will remain elevated over the next few years. This points to continued strong earnings and big dividend payouts from Devon.

DVN stock earns an A rating in my Portfolio Grader.

NextEra Energy (NEE)

Among the “green wave” hot growth stocks, NextEra Energy (NYSE:NEE) is definitely one of the most interesting. It’s part old-school utility company (it owns Florida Power & Light) and part clean energy provider. As a result, NEE stock offers investors the best of both worlds.

If you are looking for steady income from an investment, this stock has you covered. It currently pays out $1.70 per year in dividends for a 1.9% forward yield. Not only that, but with 26 years of consecutive dividend growth, it’s a bona fide Dividend Aristocrat.

If you’re looking for high-growth potential, NextEra has you covered, as well. The move to energy sources like solar and wind, possibly accelerated by the Inflation Reduction Act, will help to drive continued earnings growth. This, in turn, will enable the stock to grow its valuation over time.

NEE stock earns a B rating in my Portfolio Grader.

ON Semiconductor (ON)

Lately, strong demand from end users like the auto industry has resulted in big growth for ON Semiconductor (NASDAQ:ON). As I recently discussed, when the chipmaker last reported earnings, it handily beat estimates. Revenue and earnings were up substantially from the prior year’s quarter, at 25% and 143%, respectively.

Earnings are expected to decline next year, which is why the stock trades at a fairly low forward valuation of 14.1x earnings. However, it’s possible investors are overestimating how much industrial chip demand will fall during an economic downturn.

The CHIPS and Science Act, which was signed into law in early August, bodes well for the company. This piece of legislation provides billions in subsidies to help domestic chipmakers increase their production capacity. Already in the midst of expanding its manufacturing capabilities, ON Semiconductor is well-positioned to benefit from this bill.

ON stock earns an A rating in my Portfolio Grader.

Sociedad Quimica y Minera de Chile (SQM)

Like Albemarle, Sociedad Quimica Y Minera de Chile (NYSE:SQM) is another old-school name that’s become a high-growth stock thanks to the lithium boom. However, this basic materials giant has also benefited from a second recent trend — the big jump in fertilizer prices.

The run-up in fertilizer prices due to the Russia/Ukraine conflict has resulted in a tremendous jump in revenue and earnings. For 2022, Sociedad Quimica Y Minera de Chile is expected to see revenue growth of 216% and earnings growth of 469% to $11.66 per share.

Of course, a lot of this growth has already been factored into SQM’s stock price. Shares are up 103% year to date. Even so, trading at 7.3x forward earnings and sporting a 10.6% dividend yield, there’s a lot of value (and growth potential) left in this stock.

SQM stock earns an A rating in my Portfolio Grader.

Tesla (TSLA)

Up over 1,000% in the past five years and sporting a market cap of $870 billion, skeptics may believe all the growth potential is already priced into Tesla (NASDAQ:TSLA), and then some.

Yet, there is a path for TSLA stock to not only hold onto its gains from recent years but to hit new highs. How? First, the EV revolution isn’t going away. In fact, thanks to the expansion of EV tax credits, U.S. motorists could switch over even sooner than previously expected.

Second, the launch of new models (like the Cybertruck) and the release of new innovations can enable Tesla shares to reach the next level. As InvestorPlace’s Samuel O’Brient reported on Aug. 29, the company’s fully self-driving vehicles could soon hit the roads. Far from peaking, Tesla is another one of the hot growth stocks to buy in September.

TSLA stock earns a B rating in my Portfolio Grader.

On the date of publication, Louis Navellier has a position in DVN, ON and SQM. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

On the date of publication, the InvestorPlace Research staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.