Morgan Stanley identifies these leading stocks with greater potential for growth in September.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 30 2025
0mins
Should l Buy CMI?
Source: CNBC
Morgan Stanley's Top Stock Picks for September
Perimeter Solutions: Morgan Stanley has identified Perimeter Solutions, a manufacturer of firefighting foam, as a new top pick. Analyst Daniel Kutz highlights the company's attractive growth potential and defensive nature in uncertain economic conditions. The stock's price target has been raised from $17 to $25 per share, reflecting a compelling valuation. Shares have surged 75% this year, with catalysts including potential mergers and increased wildfire activity.
Chewy: The online pet retailer Chewy is also a favored stock, with analyst Nathan Feather expressing confidence ahead of its earnings report on September 10. Chewy's stock has risen 23% this year, and the firm anticipates strong second-quarter earnings driven by improving market trends and underestimated expense upside. Morgan Stanley maintains an "Overweight" rating, citing market share gains and a promising margin inflection.
Nu Holdings: Brazilian digital bank Nu Holdings is projected to have significant growth potential, according to analyst Jorge Kuri. Following a strong earnings report, Kuri notes that the stock is undervalued and could reach a valuation of $100 billion by 2026, up from $62 billion today. Shares have increased by 42% this year, supported by robust unit economics and technological capabilities.
Cummins: The firm believes Cummins can outperform despite market concerns about a demand downturn in heavy-duty trucks. The company's operational improvements and investments in Power Systems are expected to bolster its performance.
Cadence Design Systems: Cadence is recognized for its strong position in chip design and electronic design automation tools. The company benefits from deep customer relationships and a solid balance sheet, positioning it for strong structural growth.
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Analyst Views on CMI
Wall Street analysts forecast CMI stock price to rise
13 Analyst Rating
7 Buy
6 Hold
0 Sell
Moderate Buy
Current: 550.090
Low
540.00
Averages
616.17
High
703.00
Current: 550.090
Low
540.00
Averages
616.17
High
703.00
About CMI
Cummins Inc. is a global power solutions company. The Company’s segments are Components, Engine, Distribution, Power Systems, and Accelera. Components segment designs, manufactures, and supplies products which include axles, drivelines, brakes, and suspension systems. Engine segment manufactures and markets a range of diesel and natural gas-powered engines under the Cummins brand name, for on and off-highway markets. Distribution segment includes sale and support of a range of products and services, including power generation systems, high-horsepower engines, heavy and medium duty engines, and others. Power Systems segment is a power provider, which designs, manufactures and sells engines for industrial applications, prime power generator sets, alternators, and others. Accelera segment designs, manufactures, sells, and supports electrified power systems with components and subsystems, including battery, fuel cell and electric powertrain and hydrogen production technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Additional Legal Suits: Meta is also facing another lawsuit in Los Angeles, accusing it and YouTube of misleading users about app safety, which could further increase the company's legal and compliance pressures.
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- Shareholder Rights Protection: Halper Sadeh LLC is investigating whether Cummins executives breached their fiduciary duties, aiming to provide legal support for long-term shareholders to protect their rights, potentially involving corporate governance reforms and fund recovery.
- Legal Fee Arrangement: The firm commits to handling cases without upfront costs, meaning shareholders are not responsible for legal fees, which reduces the financial burden on shareholders and encourages more to actively defend their rights.
- Importance of Shareholder Participation: Active shareholder involvement can improve company policies and oversight mechanisms, enhancing transparency and accountability, thereby increasing shareholder value and demonstrating the power of collective action.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on securities fraud and corporate misconduct cases, having successfully implemented corporate reforms and recovered millions for defrauded investors, showcasing its expertise in protecting investor rights.
See More
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- Rising Energy Demand: The European Commission estimates that by 2040, at least €1.2 trillion will be needed to meet growing energy demands, with data centers consuming 22% of Ireland's power in 2024, highlighting their pressure on the national grid.
- Policy Changes Impact: The Irish government has eased the moratorium on new data center applications, mandating that new facilities provide dispatchable power or energy storage capacity, which promotes the adoption of microgrids and reflects a reassessment of the AI industry's potential.
- Market Growth Potential: The global microgrid market is projected to reach $29 billion by 2025, with Europe's market expected to grow nearly 10% annually, providing new investment opportunities for companies like AVK and driving technological advancements in the data center sector.
See More
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- Significant Profit Growth: Cummins' power systems segment achieved a 16% revenue increase to $7.5 billion over the past year, pushing EBITDA margins to 22.7%, a 430-basis-point improvement, demonstrating enhanced profitability in a high-demand market.
- Sustained Order Growth: Management projected annual revenue of around $2 billion for the power systems market by 2025, nearly doubling to $3.5 billion by 2026, reflecting a surge in data center demand for reliable energy, further solidifying the company's market position.
- Core Business Challenges: Despite strong performance in power systems and distribution, Cummins' core engine and components businesses saw declines of 7% and 13% last year, respectively, indicating weakness in the heavy- and medium-duty truck market, with revenue expected to be flat to up 5% in 2026.
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