Stocks to Watch in August

Stocks participate August halfway done second-quarter net play and amid a notable break pinch nan ascendant marketplace trends of nan past twelvemonth and a half.

Tech stocks, led by nan Magnificent Seven, carried nan S&P 500 to grounds highs successful early July earlier a tame ostentation report changed everything. The Mag Seven slipped into a correction later successful nan period arsenic investors sold disconnected tech stocks connected fears of slowing growth, overbought conditions, and unsustainable spending connected artificial intelligence.

Meanwhile, nan small-cap Russell 2000 soared arsenic investors stake connected nan companies that could use astir from liking complaint cuts, nan first of which nan Federal Reserve is widely expected to make successful September.

Below, we look astatine 5 companies pinch events coming up successful August that could beryllium catalysts for large banal moves.

Nvidia

Nvidia (NVDA) will study net precocious successful nan month, and nan results are apt to person implications for nan broader market.

Nvidia has much than a twelvemonth of nan AI roar nether its belt, meaning nan chipmaker’s year-over-year comparisons are group to go much challenging. Top and bottommost statement maturation are some expected to person declined successful nan astir caller 4th to their slowest gait since early 2023, according to statement expert estimates compiled by Visible Alpha. Even so, gross and profit are each forecast to person much than doubled from past year. 

Nvidia’s stock, for illustration its Magnificent Seven peers, has mislaid immoderate of its lustre successful caller weeks amid a rotation retired of large tech stocks into mini caps. That rotation was spurred by a soft ostentation study that boosted condemnation nan Fed will little liking rates soon and, successful turn, return unit disconnected smaller companies pinch floating-rate debt.

The tech sell-off picked up steam past week erstwhile an net study from Alphabet (GOOGL) raised concerns that unreality providers could beryllium overspending connected artificial intelligence. Results from Meta (META) and Microsoft (MSFT) allayed immoderate of those fears this week, but different blowout net study from Nvidia could revive nan narrative, putting much unit connected large tech stocks. On nan different hand, it could respire caller life into nan AI trade.

Walmart

Walmart's (WMT) net will supply insights into nan wellness of user finances. 

Americans, weighed connected by ostentation and elevated liking rates, are prioritizing value, a improvement that has forced retailers to slash prices en masse and fast-food chains to launch worth menus successful bids to clasp customers. 

Walmart has been a uncommon beneficiary of this displacement successful user behavior. The retailer successful May topped first-quarter income and net estimates. The company’s gross has been boosted successful caller quarters by accrued postulation from high-income shoppers emotion nan pinch of higher prices. Persistent ostentation and economical uncertainty person besides driven Americans to dine retired little successful caller quarters, buoying Walmart’s monolithic market business.

Wall Street expects Walmart’s gross maturation slowed successful nan 2nd 4th but remained supra its pre-pandemic average. Earnings are besides forecast to travel successful connected nan higher extremity of earlier guidance.

Home Depot

The 2nd 4th is consistently Home Depot’s (HD) biggest, but nan world’s largest location betterment retailer approaches its upcoming net study successful a precarious position.

Revenue and profit person declined year-over-year successful each of nan past 5 quarters, and Wall Street expects that to beryllium existent of this past 4th arsenic well. Years of elevated ostentation person crimped consumers’ discretionary spending, putting unit connected income of appliances and different big-ticket items. At nan aforesaid time, elevated liking rates person chilled nan U.S. lodging market, starring homeowners to defer renovations and upgrades. 

Realtors and manufacture professionals had hoped this year’s outpouring homebuying play would reawaken nan U.S. lodging market, but that has not materialized. Existing location income declined for a 4th consecutive period successful June while new location income slumped to their lowest level since November. 

But there’s dream connected nan horizon. Mortgage rates person declined successful caller weeks, nudged little by Wall Street’s expanding assurance that nan Federal Reserve will statesman cutting liking rates successful September. Plus, lodging inventory reached its highest level since 2008 successful June, giving homebuyers plentifulness of options erstwhile they do return to nan market. 

Investors and analysts will apt beryllium focusing connected Home Depot’s guidance for grounds that management, for illustration Wall Street, sees nan imaginable for location renewal and trading activity to prime up successful nan 2nd half of nan year.

CrowdStrike Holdings

CrowdStrike (CRWD) enters nan period of August focused connected harm control. 

The cybersecurity institution sparked a world tech outage connected July 19 erstwhile it rolled retired a package update for Windows. The ensuing chaos, which disrupted airlines, banks, and wellness care, is expected to costs nan Fortune 500 more than $5 billion. Delta Airlines (DAL), which estimates its losses from nan fiasco full $500 million, is besides reportedly preparing to sue nan institution and Windows shaper Microsoft for outage-related damages.

CrowdStrike shares plunged much than 11% connected nan time of nan outage and person continued to descent since then.

CrowdStrike is expected to study second-quarter net precocious successful nan month, and Wall Street is forecasting double-digit gross and net growth. However, past quarter’s results could return a backmost spot connected CrowdStrike’s net telephone arsenic analysts attraction connected nan outage and its effect connected early earnings.

Paramount Global

Paramount’s (PARA) controlling shareholder National Amusements successful July yet agreed to a merger pinch David Ellison’s Skydance Media aft months of negotiation. 

The $8 cardinal deal, announced connected July 8, includes a 45-day “go shop” play during which Paramount tin solicit competing offers. The storied Hollywood workplace received respective competing offers during its back-and-forth pinch Skydance. Media mogul Byron Allen successful January offered to bargain nan company’s outstanding shares for more than $14 billion. And successful March backstage equity patient Apollo Management offered $11 billion to get nan company’s movie and tv studio. 

It’s imaginable Paramount’s board and controlling shareholder Shari Redstone conscionable want this process to beryllium complete aft much than half a twelvemonth of acquisition talks. But nan saga has been afloat of twists and turns—including erstwhile Redstone successful June unexpectedly called off what was thought to beryllium a done woody pinch Skydance—and different astonishment could travel successful August.