3 mandatory actions for the month of August

This week, the stock market is experiencing a major revival as investors shake off mounting uncertainties. While this jump was noteworthy, it is not very likely to last.

Valuations in the technology sector are still high and it will only take one negative news for the market to retest previous lows. Many economists said the Federal Reserve is not yet “behind the curve.” However, recent economic data has proven otherwise, and this is not the first time the Fed has been wrong.

There are serious cracks in the job market that are being overlooked and the consumer is swimming in shallow waters. In addition, tensions are rising in the Middle East, which poses real risks. A further escalation in the 2024 presidential election will spell bad news for the market. Investors should consider these three companies to weather the storm and strategically position their portfolios for future volatility.

Let’s discover the top three stocks to buy in August as volatility persists into 2024.

Waste Management (WM)

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Waste management (NYSE:Wm) is the first company on the list of top stocks to buy in August. The company performs well in times of uncertainty, and its strong outlook for 2024 provides an additional level of stability.

Waste Management is one of the largest environmental services companies in the world. It primarily provides waste collection, disposal and recycling services in North America. In addition, the company has grown primarily through acquisitions and strategic investments in renewable energy. It recently announced the acquisition of Stericycle, a leading US medical waste company, for $7.2 billion. The company expects the acquisition to be accretive to cash flow sometime in the second quarter of FY25.

In its latest quarterly results, revenue rose 5.5% annually to $5.4 billion. In addition, Adjusted EBITDA increased 10% to $1.62 billion, with Adjusted EBITDA margin reaching a record 30%. Management’s continued strong execution makes WM stock an excellent pick following market volatility in 2024.

Parker-Hannifin (PH)

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PARKER HANNIFIN, (NYSE:pH) is the second company with significant long-term growth potential. Its diversified portfolio of technology products and critical components for the aerospace, automotive and industrial sectors makes it well positioned to outperform.

Parker-Hannifin is an industrial stock you may never have heard of before. However, its products are essential for powering countless applications, from aircraft to automobiles. It will benefit from increased government spending from policies such as the Inflation Relief Act. The company’s products power a wide range of clean energy technologies, including solar, wind, hydrogen and energy storage.

Moreover, investors cannot overlook the robust earnings, EBITDA and free cash flow profile. In FY24, revenue rose 5% YoY to $19.93 billion. Adjusted segment margin rose 200 basis points to 24.9%, with adjusted earnings per share up 18% to $25.44. The icing on the cake was free cash flow, which hit a record $3 billion, putting the company on track to meet its 2029 financial goals.

Goldman Sachs (GS)

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Goldman Sachs (NYSE:GS) is the third and final company that will do exceptionally well in the coming years. After extremely difficult operating years in 2022 and 2023, Goldman Sachs looks set for a huge comeback.

Goldman Sachs is a major investment banking giant with an incredible track record of returning shareholder value. Although the company is cyclical, it has emerged stronger from every major financial crisis of the past few decades. The growing dividend is also a sign of confidence in management’s ability to navigate difficult macroeconomic conditions.

Additionally, its valuation is still attractive despite shares rising 27% annually. Goldman Sachs trades at 14 times forward earnings, and its investment banking and wealth management divisions are booming in 2024. Deal flow in the IPO market has rebounded substantially since the market suffered from inflation and higher interest rates in 2022. With net earnings up 150% in the second quarter, GS remains one of the best stocks to buy now.

As of the date of publication, Terel Miles did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publishing Guide.

At the time of publication, the responsible editor had (either directly or indirectly) no position in the securities mentioned in this article.