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Despite its reputation for market crashes, October is often a good month for investors. Historically, it marks the end of September’s seasonal weakness and the start of the stronger November–April period. While volatility can spike, October has frequently set the stage for year-end rallies, making it a smart time to consider new Stocks and Shares ISA additions.
But what companies should investors be looking at this October? Here are some of my ideas for consideration.
Micron Technology
Micron Technology (NASDAQ:MU) is a leading player in memory and storage solutions, and its fortunes are closely tied to the semiconductor cycle. The stock currently trades on a forward price-to-earnings of under 20, which looks appealing given forecasts for strong earnings growth over the coming years.
Demand for AI-driven data centres and high-bandwidth memory is helping drive Micron’s recovery after a difficult period of oversupply. While net debt sits at $7.6bn, the balance sheet remains manageable relative to future cash flow prospects.
Risks include the inherent cyclicality of memory markets and potential trade tensions, but Micron looks well placed to benefit from structural growth in AI and cloud computing. This makes it an attractive ISA candidate for long-term investors.
Pinterest offers exposure to the digital advertising sector but with less volatility than many rivals. Monthly active users hit 578m in Q2, with Gen Z now the fastest-growing cohort. Monetisation is improving through AI-powered ad tools and AI is also supporting efficiency drives within the company.
Trading at under 20 times forward earnings, the stock isn’t cheap but offers long-term growth potential. Investors should note that rising costs could weigh on margins. Despite positive price action in the past six months, analysts still suggests it’s undervalued by around 25%.
Jet2
Jet2 (LSE:JET2) shares have really pulled back over the past month. The stock surged from its lows after Trump’s Liberation Day, but investors have been spoked by late booking patterns.
For airlines like Jet2, the timing of customer bookings is critical: strong forward bookings provide visibility on revenue and help manage costs, while a surge in last-minute bookings can signal uncertainty in demand.
Late booking trends can also make it harder to optimise pricing and capacity, increasing operational risk. For investors, understanding these patterns is essential, as they can materially affect quarterly results and the stock’s short-term performance, even if the long-term fundamentals remain intact.
However, I believe the sell-off is well and truly overdone. The stock is now trading at 6.6 times forward earnings while offering steady earnings growth — according to forecasts — and has a fortress-like balance sheet.
The company currently has £2bn in net cash — including customer deposits — but only has a market cap of £2.7bn. The forward enterprise value-to-EBITDA ratio now sits at 0.83 — which is incredibly low compared to its peer group.
This story originally appeared on Motley Fool
