3 Hot Growth Stocks That Are Screaming Buys in October

Group 1: Pentair - Pentair's growth prospects are bolstered by the potential improvement in its pool products business due to lower interest rates, with an expected increase in new pool construction from 60,000 to a more natural range of 75,000 to 80,000 pools in the coming years [2] - Approximately 50% of Pentair's pool segment sales come from the aftermarket, indicating that recovering new pool construction and servicing of existing pools will lead to mid-single-digit sales growth and margin expansion [2][4] - The company aims to improve its return on sales from 20.8% in 2023 to 24% by 2026 through transformational initiatives, including targeted pricing and lean management techniques [3] Group 2: United Airlines - The airline industry is characterized by its cyclical nature and challenges in generating profits, with the IATA estimating a return on invested capital of 5.7% in 2024 against a WACC of about 9.1% [5] - North America is expected to contribute $14.8 billion of the $30.5 billion in industry net profit in 2024, with United Airlines projected to generate $3.1 billion in net profit [6] - United Airlines is currently trading at 5.7 times estimated 2024 earnings, indicating it may be undervalued if the industry maintains rational capacity management [6] Group 3: ON Semiconductor - ON Semiconductor's focus on industrial and automotive markets has faced challenges due to high interest rates affecting auto sales and investment in electric vehicles [7][8] - The company's growth potential relies on increasing content sales per vehicle for electric vehicles and investments in EV charging networks and renewable energy [8] - ON Semiconductor plans to invest up to $2 billion in an advanced power semiconductor manufacturing plant in central Europe, positioning itself for future growth as interest rates decline [9]