3 most promising stocks to buy in August

stocks to buy

Many investors are now interested in finding out what’s in store for the market, considering a number of mega-cap tech companies have announced their financial results. In order to prepare for any situation that may occur, investors should start compiling a list of promising stocks to buy in August.

The buying opportunities to take advantage of will be scarce as they usually are in summer, but that doesn’t imply you can’t find attractive buys. We’ve compiled a quick summary of the most purchase-worthy stocks for August, based on the sectors of the market that stand out right now. Read on to find out more.

1. Steel Dynamics

Steel stocks, which had a great start to the year and may see a further boom in August. Steel Dynamics (NASDAQ:STLD) has good credentials with regards to financial soundness and diverse product line, and the potential favorable news on the infrastructure bill championed by US President Joe Biden will further raise expectations associated with the company.

A sustained economic recovery and any government infrastructure investment that comes from the bill is likely to help Steel Dynamics, one of the country’s biggest steel manufacturers and metal recyclers, which relies significantly on construction clients for revenue generation.

With a potential shift from tech equities to cyclical companies, the stock may hit new highs in August, after having recently recovering all of the key short-term moving averages

Automotive and heavy equipment production are two sectors that are rebounding after a difficult year caused by the pandemic. Steel Dynamics has exposure to both.  The firm reported record net sales of $4.5 billion in Q2 2021, coupled with record steel and fabrication shipments, indicating strong steel demand right now.

2. Lennar Corporation

Lennar Corporation is unquestionably one of the most well-known brands in the home building industry, and it seems to be poised for the next phase of growth. With operations in 21 states, it is one of the biggest publicly listed US homebuilders.

In order to become an out-and-out homebuilder and financial services firm, the company stated in Q1 that it will spin off non-core elements of its business. In June 2021, Lennar posted impressive Q2 earnings of $831.4 million, which represented a 61 percent increase from last year. The company’s large backlog of 24,741 properties, showing an increase of 56% YoY in June, should further entice investors.

3. Advanced Micro Devices

AMD (NASDAQ:AMD) specializes in microprocessors and graphics semiconductors for computers as well as other commercial/consumer markets. For the first time, this stock surpassed the $100 per share barrier, indicating even greater gains ahead in August. Investors should be interested in AMD’s CPU data centre growth, where it is outpacing competitor Intel.

Xilinx (NASDAQ:XLNX), the leading supplier of adaptive computing solutions, is likely to be acquired later this year by AMD. With this acquisition, AMD’s total addressable market (TAM) would grow up to $110 billion. The transaction would also have a favorable impact on AMD’s gross margins, net income, and free cash flow.

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