The month of August has proven to be a rollercoaster ride for stocks, particularly in the Dow Jones Industrial Average. From lackluster jobs data sparking fears of a recession to a global market sell-off, the market has experienced significant turbulence. The Dow even recorded its worst day in almost two years, dropping over 1,000 points and marking the biggest daily loss since September 2022. However, amidst the chaos, certain stocks have managed to lead the way in August.
One standout stock in August has been Walmart, which has seen substantial gains both month-to-date and year-to-date. With shares up around 12.5% in August and 47% for the year, Walmart is currently the best performing consumer staples stock in the S & P 500. Analysts remain bullish on the retailer, with the average price target suggesting a 6.6% upside from the current levels.
McDonald’s Success
Another strong performer in August has been McDonald’s, closely following Walmart in the Dow’s top leaders. With shares up nearly 9% month-to-date, McDonald’s has garnered positive feedback from investors, with 47.4% issuing a buy rating on the stock. Analysts have praised McDonald’s nostalgic marketing efforts, such as the release of collectible cups based on iconic McDonald’s memorabilia from past decades.
Merck has emerged as a top performer in August, with significant upside potential. The stock’s trading level implies a 19.5% increase to its average price target, making it the stock with the highest upside among the Dow leaders. With 71.4% buy ratings, Merck has shown strong performance, rising by 4.7% in August and over 8% in 2024.
While most Dow leaders have shown promise in August, Coca-Cola and International Business Machines (IBM) have faced challenges. Both stocks have a bearish outlook, with average price targets indicating downside. Despite this, Coca-Cola and IBM have still managed to maintain positive growth in August, with Coca-Cola up more than 8% and IBM up 5.2% month-to-date.
August has been a month of uncertainty and volatility for the stock market, particularly the Dow Jones Industrial Average. While certain stocks have managed to outperform expectations and show significant growth, others have faced challenges. Investors will need to carefully assess the current market conditions and individual stock performances to make informed decisions moving forward.