Summer is about to start winding down and the kids will soon be setting off to start the new school year. But, whilst August is historically a bit of a rocky month for investors, we have three top stocks that could help keep your portfolio in the green.
Ford (NYSE: F), AMD (NASDAQ: AMD), and Etsy (NASDAQ: ETSY) might not seem like they have much in common, being from three completely different industries, but, they are all performing exceptionally well and have bags of growth in their respective industries.
So, without further ado, here are the three top stocks to buy this August.
As an automaker, Ford has had more than 110 years of experience in the industry. But now, with the EV craze becoming a future goal for all car-makers and consumers alike, Ford has thrown down the gauntlet to the rest of the EV world.
For Ford’s own electric vehicle production, the company seems to have struck gold with its latest electric pick-up. The F-150 Lightning comes in a range of styles from work to luxury trucks; it can even double as a backup generator for your home. Within 10 days of the announcement, more than 100’000 trucks were reserved. The vehicle is set for release in 2022. This is all part of its massive EV ambitions over the coming decade. The company plans on investing $30 billion into developing electric versions of its most iconic products while estimating that 40% of all Ford cars sold will be electric by 2030. If these ambitions are met, it would make Ford a force to reckon with in the EV space.
It has also carried out a $2.5 billion round of investments alongside tech giant, Amazon (NASDAQ: AMZN). This funding round is primarily being raised for Rivian, a popular EV start-up known for its pick-up truck and its ‘adventure’ truck. Investment in this company will keep Ford up-to-date with all new innovations in the EV scene.
As for financials, Ford is doing exceptionally well. In Q1 the company let investors know that its production line would be severely impacted by the chip shortage, yet Q2 has surpassed expectations bringing in revenue of $26 billion, up 38% year-over-year (YoY). Ford has managed to capitalize on the strong demand that has increased this year despite the ongoing chip shortages.
Ford’s share price is currently up 61% year-to-date (YTD) and is likely to keep growing over the next few months as it pushes further into the EV world.
Advanced Micro Devices is a popular chip-maker. Competing with both Nvidia and Intel, it has some extremely tough competition. However, the company has recently announced the availability of its spatial upscaling solution feature which will appeal to many consumers who still use older CPUs and GPUs. AMD’s market share has lagged behind the other two companies in the past, but this new announcement could entice customers over from its rivals. Indeed, AMD is currently outperforming Intel in one key battleground as many customers are switching to AMD for their workstation CPU needs.
Financially, AMD has made good gains over the last year. It brought in $3.85 billion in revenue in its most recent quarter, up 99% YoY, and up 12% from the previous quarter. Although normally AMD keeps quiet about data center earnings, they divulged that this quarter saw 20% of its revenue come from data center sales. Earnings per share came in at $0.58, up from $0.13 in the same quarter last year, an increase of 346%.
AMD’s share price is up 19% YTD, although it has seen some dips, it is on track to grow over the next few months.
Etsy was everyone’s favorite lockdown company, and whilst it benefitted hugely from the sheer amount of masks that were bought on its platform, investors have been worried this year as lockdowns eased. Q1 exceeded analysts’ predictions with earnings of $1 on revenue of $550 million. But, the stock fell after its earnings release due to its guidance for growth in gross merchandise sales. Etsy stated that it expected this growth to slow to between 5% – 15% for Q2.
But the company has good news, having recently just completed its highly anticipated acquisitions of Depop, a popular Gen-Z community digital marketplace, as well as Elo7, a Brazilian handmade items marketplace. Etsy forked out $1.6 billion in cash for Depop and $217 million for Elo7.
These acquisitions will broaden the Etsy brand, giving it further insight into how different generations and different communities behave when online shopping. Etsy has been a stock to watch for a good few years by this point, therefore, it might be time to add it to your portfolio.
Etsy’s share price is up 11% YTD, it has seen a bit of volatility, but with its recent acquisitions, the stock should continue with the high growth we have seen over the last few years.
Worried about all these different companies and not sure who to invest in? Don’t panic, because MyWallSt’s got you covered with our shortlist of market-beating stocks, so you too can build long-term wealth. Simply click here for free access today.
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.
Contributing Writer at MyWallSt
Poppy’s favorite stock is Nvidia as she loves innovation and this stock has bags of it. Nvidia invented the GPU in 1999 and even today its immersive graphics give life to the gaming world. Poppy is also inspired by Nvidia’s ability to imagine and create positive change for the world, with its AI technology fuelling new developments in the automotive industry, the medical industry, as well as powering data centers around the world.