Top 5 US Stocks For Q4

The US Stock markets have started the last quarter of the year on the offensive, after September's poor performance, closing in on their record highs. The latest earnings season is also underway, with results so far being encouraging. The current fourth quarter is an interesting one for many US companies as it includes the holiday season, during which consumers tend to spend more and change their day-to-day habits. Below we will explore a series of US companies that will be on our radar over the coming months.

  • Microsoft (MSFT.us)
  • Disney (DIS.us)
  • Lucid Group (LCID.us)
  • Spotify (SPOT.us)
  • Target (TGT.us)

Microsoft (MSFT.us)

  • Microsoft is an American multinational technology company, the creator of the Windows operating system and the Office suite of apps. It's offering though spans to cloud computing, consumer electronics and more.

  • The tech juggernaut has been on a roll recently, as it released Windows 11 this month, unveiled new Surface devices in September and has also been in a buying spree. Perhaps most important however, is the fact that it has managed to stay below the radar of US regulators, in contrast with other tech giants such as Apple and Google that have been coming under increased scrutiny.

  • On Tuesday 26th, it reported better than expected financials results for Q1 FY2022, as Revenue rose to $45.3 billion, most of which was once generated by the ever important Intelligent Cloud segment.

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  • This is an interesting stock to watch as we have entered the last quarter of the year and see how the holiday season will affect demand for its gaming consoles and other consumer electronics.

  • MSFT.us had a good third quarter with gains in excess of 4%, despite September's plunge. It has resurged in October reaching the $310.00 mark and setting new all-time highs in the process.


Past Performance: Past Performance is not an indicator of future results.

Disney (DIS.us)

  • The Walt Disney Company is a leading diversified international family entertainment and media enterprise, which was founded in the 1920s and bears the name of its iconic creator.

  • Its business spans from theme parks and cruises to movie studios and direct-to-consumer video streaming services, with Disney+ having seen meteoric subscriber growth since its launch in late 2019.

  • Disney comes from a blowout quarter, during which its Parks, Experiences & Products (PEP) segment generated profits for the first time since the pandemic began, while paid subscribers for Disney+ surged to 116 million.

  • The company will be reporting its latest Q4 FY2021 results on November 10th and we will be waiting to see if the PEP sector can remain profitable and whether it can get another boost from the upcoming holiday season.

  • Disney+ got 14 total Emmy Awards in September 2021, which was low compared to its 71 nominations and to Netflix's 44 victories.

  • DIS.us has been having a lackluster performance this year despite March's record high (203.22) and is vulnerable to the downside. However last year's fourth quarter was very good and it has the potential to bounce back again, as the holiday season could increase demand for streaming content and visits to its parks - Covid permitting.


Past Performance: Past Performance is not an indicator of future results.

Lucid Group (LCID.us)

  • Lucid is one of the hottest start-ups in the Electric Vehicle (EV) arena that went public in July via a merger with SPAC Churchill Capital. It is Headquartered in California, with its purpose-built factory located in Arizona.

  • It is viewed by many, as the most prominent candidate to threaten Tesla's dominance and on paper at least, it does seem to have a compelling offering.

  • In September, its Air Dream Edition Range model received an official rating of 520 miles of range from the Environmental Protection Agency (EPA), trumping Tesla's figures and becoming the longest-range electric vehicle ever rated by the US agency.

  • However, as of September 28th, Lucid had not actually delivered any cars, but expects to do so by the end of the current month, claiming more than 13,000 reservations. It will be interesting to see if it will be able to abide by this timeline and how fast and steady it can roll its vehicles out.

  • LCID.us had a mixed third quarter and began the current one on the back foot, despite a profitable September. However over the last few days it is pushing higher.


Past Performance: Past Performance is not an indicator of future results.

Spotify (SPOT.us)

  • Spotify is probably the most popular music streaming service in the world and has had a profound impact on how music is accessed and listened to. It was founded in 2006 and became publicly traded in New York three years ago via a Direct Listing.

  • On Wednesday October 27, the company reported a very good third quarter, as its Monthly Active Users (MAUs) rose 19% y/y and 4 % q/q, to 381 million. 172 million of them were Premium Subscribers, 40% of which come from Europe. Revenues also grew - both compared to Q3 2020 and Q2 2021 - coming in at $1.975 billion.

  • Spotify has been focusing on the rising podcast market and in late August, it opened up its paid podcast subscriptions to all US creators with intentions to expand internationally to both more creators and user. At the end of Q3, Spotify had 3.2 million podcasts on the platform - up from 2.9 million at the end of Q2.

  • Furthermore the firm maintained its prior guidance for the fourth quarter, projecting Total MAUs of 400-407 million Total Revenue of €2.54-€2.68 billion.

  • The current year has not been good for SPOT.us so far, having shed more than 15% in the third quarter and set 2021 lows in August ($201.68). During the current month however, it has achieved a solid rebound, as it attempts to leave the $250 mark behind it.


Past Performance: Past Performance is not an indicator of future results.

Target (TGT.us)

  • Target is a general merchandise retailer with more than 1,900 stores across all U.S. states, 46 distribution centers and 350,000+ employees. It is headquartered in Minneapolis, Minnesota, where the first Target store opened in 1962.

  • The company delivered strong Q2 results in August, with a 9.5% y/y Revenue rise (to $25.16 billion). Sales grew across all five core categories (y/y), while Apparel and Food & Beverages saw double digit growth.

  • The latest financial results (for Q3 2021) are expected on November 17, while the current quarter includes the important – for any retailer – holiday season.

  • Its stock performance is very interesting, as TGT.us corrected lower in the third quarter after hitting record highs (267.16) in August. In 2021 overall, it has gone from strength to strength, with a nearly 60% surge during the first nine months.


Past Performance: Past Performance is not an indicator of future results.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

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