The Dow Jones Industrial Average and the S&P 500 both enjoyed modest gains to start the week on Monday, September 11. Meanwhile, the NASDAQ rose over 150 points. Today, I want to veer away from the Canadian market and look to our southern neighbours. In this piece, I will highlight three great U.S. companies that Canadians should feel good about investing in right now. Letâs jump in!
The rise of online dating is vaulting this top U.S. company
Match Group (NASDAQ:MTCH) is the first great U.S. company Iâd look to own shares of in the first half of September 2023. This Dallas-based company provides dating products to a worldwide client base. Shares of Match Group have dipped 3.4% month over month as of close on Monday, September 11. Meanwhile, the stock is still up 6% so far in 2023. Investors can see more of its recent and past performances with the interactive price chart below.
Canadian investors should be eager to get in on the online dating market. Online dating is now statistically the most common way couples meet and form long-term relationships. Grand View Research recently valued the global online dating application market at US$7.93 trillion in 2022. The same report projects that this market will deliver a compound annual growth rate (CAGR) of 7.6% from 2023 through to 2030.
This company released its second-quarter (Q2) fiscal 2023 earnings on August 1. It posted revenue growth of 4% to $830 million. Moreover, the company surged back to profitability and posted net income of $137 million — up from a net loss of $31.9 million in the prior year. Shares of Match Group are trading in more attractive value territory compared to its industry peers. It is still on track for strong earnings growth going forward.
Bet on the fitness craze with this exciting stock
Planet Fitness (NYSE:PLNT) is the second top U.S. company Iâd target today. This Hampton-based company franchises and operates fitness centres under the Planet Fitness brand. Its shares have dropped 5.6% over the past month. The stock has now plunged 25% in the year-to-date period.
Custom Market Insights valued the global health and fitness club market size at US$83.2 billion in 2022 and expected it to reach US$88.5 billion in 2023. Moreover, it forecast that this market will deliver a CAGR of 7.5% from 2022 through to 2030, reaching a valuation of US$125 billion. Planet Fitness was named in the report as a key driver for the U.S. market.
In Q2 2023, Planet Fitness delivered system-wide store sales growth of 8.7%. Meanwhile, total revenue climbed 27% year over year to $286 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were reported at $118 million — up from $89.1 million in the previous year.
This stock is also trading in favourable value territory compared to its competitors.
One more great U.S. company I want to invest in right now
Delta Airlines (NYSE:DAL) is the third and final U.S. company Iâd look to snatch up in the late summer season. North American airliners have stormed back following the brutal challenges that the sector faced during the COVID-19 pandemic. This Atlanta-based company is one of the top airliners in the United States. Its shares have surged 25% so far in 2023.
This company delivered operating revenue of $15.6 billion in Q2 2023 — the highest quarterly revenue recorded in Deltaâs history. Moreover, it posted record operating income of $2.5 billion. Delta Air Lines continues to project strong earnings, as travel demand has soared in North America in 2023. This stock now offers a very attractive price-to-earnings ratio of 8.7. It is not too late to jump on the terrific value offered by this super airline stock.
Before you consider Match Group, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in August 2023… and Match Group wasn’t on the list.
The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 26 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks
* Returns as of 8/16/23
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