The month of August brought about a rollercoaster of emotions for investors as stock markets experienced a significant amount of volatility. With lackluster jobs data in July sparking fears of a looming recession, the global market saw a sell-off which resulted in the Dow Jones Industrial Average dropping over 1,000 points in one day. This marked the biggest daily loss for the blue-chip index since September 2020, reflecting the uncertainty and fear present in the market during this time.
Despite the volatility and fear in the market, there were a few stocks that stood out as leaders in the Dow Jones Industrial Average for the month of August. Walmart, the retail giant, led the pack with significant gains both month-to-date and year-to-date. With shares up around 12.5% for the month and 47% for the year, Walmart’s performance has been impressive. Analysts remain bullish on the stock, with the average price target implying a 6.6% upside ahead.
McDonald’s also made its mark in August as the third-best Dow leader for the month. With shares up nearly 9% month-to-date, the fast-food chain has been performing well. Wolfe Research recently reiterated McDonald’s at peer perform, citing the company’s nostalgia marketing efforts as a positive driver for consumer engagement. The release of collectible cups based on iconic McDonald’s memorabilia has resonated with consumers and helped improve brand perception.
Healthcare stock Merck showed the most significant upside potential among the Dow leaders in August. With a trading level that implies a 19.5% increase to its average price target, Merck has garnered the highest percentage of buy ratings on the list at 71.4%. The stock’s performance in August has been notable, up 4.7% for the month and over 8% for the year.
While most of the Dow leaders in August had positive outlooks and strong performances, there were two outliers in the group: Coca-Cola and International Business Machines (IBM). These two stocks were the only ones with a bearish outlook, as their average price targets implied a downside of 1.2%. Despite this, both Coca-Cola and IBM still showed positive gains for the month, with Coca-Cola up more than 8% and IBM up 5.2% month-to-date.
The top performers in the Dow Jones Industrial Average for the month of August have showcased resilience and strength in the face of market volatility. With notable gains, bullish sentiment from analysts, and strategic marketing efforts driving consumer engagement, these stocks have proven to be worth watching in the ever-changing landscape of the stock market.