Your Guide to the Best A-Rated Stocks for October: 7 Companies Worth Watching

The Final Quarter’s Market Opportunity

As we enter the season’s final stretch with 90 days remaining on the calendar, investors are reassessing their positions. Historical data reveals a compelling pattern: since 1950, the S&P 500 has averaged 4.2% returns during the fourth quarter—double the performance of Q1 (2.1%) and Q2 (2%), and substantially higher than Q3’s modest 0.6% return. This seasonal strength presents an opportune moment to identify quality holdings.

A-rated stocks represent the market’s premium selections, identified through comprehensive evaluation metrics including growth trajectory, quarterly performance, dividend consistency, analyst sentiment, momentum indicators and broader market fundamentals. These top-tier securities offer positioning to capitalize on the traditional year-end rally and potentially close 2023 on strong footing.

Seven Stocks Positioned for Performance

Nvidia (NVDA): Artificial Intelligence Dominance

Nvidia stands as a premier blue-chip investment, having surged 200% this year while crossing the $1 trillion market capitalization threshold. The company’s ascent reflects explosive demand for generative AI solutions across the technology sector.

The competitive advantage is striking: Nvidia controls approximately 95% of the AI computing infrastructure market. Industry projections underscore the opportunity—the AI sector, currently valued at $207 billion, is expected to expand to $1.8 trillion by decade’s end.

Financial performance validates the momentum. The company projects $16 billion in Q3 revenues, supported by exceptional profitability metrics: a 70% gross margin and 50% operating margin in the most recent quarter. NVDA maintains its “A” rating within Portfolio Grader assessments.

ePlus Incorporated (PLUS): Enterprise AI Solutions

Information technology services firm ePlus delivers comprehensive solutions spanning cloud infrastructure, data centers, security frameworks, networking systems and artificial intelligence applications. The company’s service portfolio includes hardware provisioning, subscription software, professional services, desktop support, project management and specialized financial offerings.

A strategic partnership with Nvidia positions ePlus at the forefront of AI deployment. The company integrates Nvidia DGX server and workstation systems to facilitate customer data science initiatives and platform operations management.

Fiscal Q1 2024 results (ending June 30) demonstrated robust growth: $574 million in revenue (up 25% year-over-year) and $46 million in operating income (up 40% annually). PLUS stock has appreciated 44% during 2023, earning an “A” rating.

Symbotic (SYM): Warehouse Automation Leadership

If autonomous vehicles represent the transportation revolution, then Symbotic embodies the warehousing transformation. This industrial automation specialist designs sophisticated robotic systems enabling companies to modernize facility management with enhanced efficiency and operational flexibility.

Major retailers, including Walmart, deploy Symbotic technology to streamline operations and maintain competitive pricing advantages. Recent analyst coverage from KeyBanc Capital Markets initiated with an overweight rating, with analyst Ken Newman citing robust growth prospects: “the industrial automation industry remains ripe for increased investment and adoption supported by multiple secular crosscurrents.” The $50 price target suggests 62% upside potential.

Q2 results showed impressive acceleration: $311.84 million in revenue, up 77% from the prior year. SYM has surged 165% year-to-date and carries an “A” rating.

EHang Holdings (EH): Autonomous Aerial Vehicles

Chinese manufacturer EHang Holdings is pioneering autonomous aerial vehicle platforms with significant regulatory validation. China’s Civil Aviation Administration has approved EHang’s Unmanned Aircraft Cloud System for test flights. The company recently delivered five EH216-S aerial electric vehicle units to Shenzhen Boling Holding Group, with options for 95 additional acquisitions.

Beyond aerial vehicles, EHang is advancing next-generation battery technology through collaboration with Shenzhen Inx Technology on solid-state lithium metal battery development for its flying platforms.

Though currently generating modest revenue ($10 million in Q2), the investment thesis centers on transformative potential rather than near-term earnings. EH stock has appreciated 98% this year, securing an “A” rating.

Li Auto (LI): Chinese Electric Vehicle Growth

Li Auto designs, manufactures and distributes intelligent electric vehicles, with lineup including the six-seat Li L9 SUV, the premium Li L8, and the five-seat Li L7 model. The company is experiencing accelerated expansion, with July deliveries reaching 34,134 units (227% year-over-year increase). Through July 31, the company had delivered 173,251 vehicles in 2023.

December will bring the Li Mega’s market debut, projected to capture top-selling status in China’s vehicle segment priced above 500,000 yuan (approximately $70,000). Potential regulatory changes easing foreign investor stake restrictions could unlock additional capital formation and growth acceleration.

Li Auto has climbed 72% in 2023 and maintains “A” rating status.

Energy Products Partners (EPD): Energy Infrastructure Income

Houston-based Energy Products Partners operates as a master limited partnership structure on the New York Stock Exchange, offering a distinctive tax framework that typically generates elevated dividend distributions. Currently, EPD yields 7.4% to investors.

The company operates more than 50,000 pipeline miles facilitating transportation of natural gas liquids, crude oil, natural gas and petrochemical products. Q2 results delivered $1.3 billion in earnings ($0.57 per share), supporting the partnership’s income reliability. EPD carries an “A” rating.

Stellantis (STLA): Automotive Legacy and Electric Transition

Stellantis, formed through 2021’s Fiat Chrysler and PSA Group merger, controls iconic automotive brands including Chrysler, Dodge, Fiat, Jeep, Citroen and Peugeot. Despite recent labor activities involving United Auto Workers strikes, STLA stock has proven resilient.

The company demonstrates superior European positioning compared to Detroit peers. Its portfolio includes the third-ranked electric vehicle (Fiat 500 New) and France’s top-selling EV (Peugeot e-208).

H1 2023 financial results reflected strength: €98.4 billion in revenues (€103.4 billion USD equivalent), up 12% annually, with €14.1 billion operating income (11% increase from 2022). Q1 shipments generated €47.2 billion in revenue, rising 14% year-over-year. STLA has appreciated 32% in 2023 and earns an “A” rating.

Conclusion

The fourth quarter traditionally offers profitable opportunities for equity investors. These seven A-rated stocks represent diverse sectors—technology, industrial automation, clean energy, automotive and infrastructure—each demonstrating fundamental strength and market positioning. Whether pursuing growth, income or sector diversification, these selections warrant consideration for year-end portfolio enhancement.