7 A-rated stocks for your August buy list

This August is sure to be an exciting time for the stock market. While the market is historically having one of its weakest months in August, there are some signs that A-rated stocks may indeed be poised for a significant rally this year.

According to new research that points to a fascinating trend.

First, let’s look at this historical perspective. In the last decade, August was the third worst month for S&P 500which averages just 0.1% in August. And over the past 20 years, the S&P 500 actually averages a 0.1% loss in the eighth month of the year.

But then consider an event that happens every four years – the US presidential election.

According to Dow Jones Research, the S&P 500 is actually doing quite well in August ahead of the presidential election, rising 1.3% on average. This is the index’s fifth-best month in a year during a presidential election — so while it’s not great, it’s better than average.

Even better, the tech-heavy Nasdaq Composite performs even better in August of presidential election years, up 3.2% on average.

So while you may have the urge to hang around this month, historically, there’s plenty of opportunity to pull it off this month. You just have to know where to look. And I will always rely on Portfolio Grader and A-rated stocks.

Here are seven to consider this month.

Nvidia (NVDA)

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I’m an unapologetic bull when it comes to Nvidia (NASDAQ:NVDA) stock, which has been one of the most dynamic stocks on the market due to its important role in creating the most sought-after graphics processing units that power generative artificial intelligence applications.

Nvidia has grown from a company with a market cap of $470 billion just two years ago to one with a cap of $2.6 trillion. And that’s after the company has lost nearly $500 billion over the past few weeks due to falling tech stocks.

But you have to remember that Nvidia posted a 262% year-over-year revenue increase in the first quarter of fiscal 2025, and I expect another great quarter when it reports earnings later this month. And if you’re worried that Nvidia stock is down 6% in the last few months, stop.

Yes, Big Tech companies are working on creating their own AI chips. But if nothing else, it just means that the risk of decelerating growth is already well priced when you consider Nvidia’s valuation. At least, when you consider NVDA’s current valuation.

Even if Nvidia trends lower ahead of its scheduled August 28 earnings report, consider this an opportunity to buy an A-rated stock at a discount. Nvidia continues to have an ‘A’ rating in Portfolio Grader.

Super Micro Computer (SMCI)

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Super Micro Computer (NASDAQ:SMCI) is also a top semiconductor stock, but with a different flavor. While Nvidia builds the GPUs, Supermicro builds the custom server architecture that is critical to allowing multiple GPUs to work together. And this is important when you use massive amounts of processing power to run large model language programs.

Supermicro also supplies and assembles half of the AI ​​supercomputer racks that xAIthe artificial intelligence startup led by Elon Musk, is creating to develop an AI chatbot to compete with ChatGPT.

The company reported sales of $3.85 billion in the third quarter of fiscal 2024, up from $1.28 billion a year ago. Net income of $402 million was up from $86 million a year ago.

While the stock fell below $700 — a six-month low on temporary weakness in tech stocks — Supermicro continues to capitalize on growing demand. I expect it to deliver another year of solid returns into the sunset this calendar year.

SMCI shares receive an ‘A’ rating in Portfolio Grader.

Walmart (WMT)

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Walmart (NYSE:WMT) is more than the largest retailer on the planet. The Arkansas-based company is a true powerhouse that is a safe haven for investors as customers continue to look for ways to escape higher food prices.

Walmart has more than 10,800 locations, covering every state in the US and more than 20 countries. Its e-commerce business is also shaping up to be formidable, with US sales up 22% in the first quarter and global e-commerce sales up 21%. Overall, Walmart grew its revenue by 6% overall in the quarter.

Walmart keeps prices low because of its size—it creates enough products in-house that it can force even name-brand companies to lower their prices to compete, and shoppers reap the benefits.

Walmart stock is up 32% this year, and I anticipate another strong quarter. Receives an “A” rating in Portfolio Grader.

Costco Wholesale Corporation (COST)

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Costco Wholesale Corporation (NASDAQ:COST) is another low-cost retailer, but it does it a little differently than Walmart. Costco operates 900 stores that offer everything from groceries to clothing and appliances.

The company’s $60 membership program encourages customer loyalty and provides a source of income. In the third quarter of fiscal 2024, membership fees were $1.12 billion, representing a huge percentage of the company’s $1.68 billion in net income.

Additionally, Costco increases the fee by $5 annually for basic memberships and $10 annually for executive memberships. That will keep Costco’s profits going.

June sales rose 5.3%, with US sales (up 5.6%) and Canadian sales (up 5.2%) leading the way.

COST shares are up 24% this year and receive an ‘A’ rating on Portfolio Grader.

Dell Technologies (DELL)

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I think so Dell Technologies (NYSE:della) has a world of potential. The company is best known for making PCs, laptops and mobile devices, but it leans heavily on AI by operating a large server business that allows companies to upgrade their hardware to run AI applications.

Dell builds and sells servers that include Nvidia’s H100 GPU and Blackwell-generation chips. Backlog for AI servers rose 30% in the first quarter of fiscal 2025 to $3.8 billion, and sales of AI servers increased 42% to $5.5 billion.

Dell saw its customer solutions business grow 3% to $12 billion, and I expect that number to grow as Dell gains momentum in the AI ​​space.

DELL shares are up 41% this year and receive an ‘A’ rating on Portfolio Grader.

UBS (UBS)

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UBS (NYSE:UBS) is a Swiss bank that offers a wide range of financial services in 50 countries. Although perhaps best known for global wealth management, UBS also offers personal banking, corporate banking and asset management.

A year ago, it acquired Credit Suisse Group and, building on that experience, is now working on its first ESG debt swap, which is a deal that allows a country to swap existing debt for cheaper loans with savings linked to environmental protection. .

UBS is working with other firms to raise money for a $300 million debt swap for Barbados.

Earnings for the first quarter included revenue of $12.7 billion, up from $8.7 billion a year ago. Profits were $1.7 billion and 52 cents a share versus $1.02 billion and 32 cents a share a year earlier.

UBS is showing strong growth, although the share price remains roughly flat this year. It still gets an “A” rating in Portfolio Grader.

AT&T

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If you need proof that it is possible to recover from even a terrible mistake, then remember AT&T (NYSE:T). Just two years ago, the company was reeling after being forced to cut its dividend in half while turning WarnerMedia into a company that now operates at The discovery of Warner Bros (NASDAQ:WBD).

It was the first time in 35 years that AT&T cut its vaunted dividend, but it was a necessary step for the company to get out of the WarnerMedia mess and start paying down a mountain of debt.

It’s now 2024 and AT&T is recovering nicely. The dividend is solid at over 5.5%. The balance sheet is better, as debt of $128.7 billion is an improvement from $157.6 billion at the start of 2022.

And AT&T is seeing strong growth in its wireless business, which reported 593,000 net additions in the first quarter. About 419,000 of these were postpaid phone additions. In the broadband segment, total fiber network additions increased by 239,000.

I think AT&T is on its way, and the stock price shows it – up 16% this year. T shares receive an ‘A’ rating in Portfolio Grader.

At the time of publication, Louis Navellier held positions (short/long) in NVDA, SCMI and COST. Louis Navellier had (either directly or indirectly) no other positions in the securities mentioned in this article.

The InvestorPlace research staff member primarily responsible for this article held long positions in NVDA and SCMI. The InvestorPlace research staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

At the time of publication, the responsible editor did not (either directly or indirectly) also hold positions in the securities mentioned in this article.