10 Best Stocks to Invest in August 2022
Stocks are fundamentally investments in the ownership of a corporation. An investor (the stockholder) owns part of a company. Stocks can be divided into two types: common stocks and preferred stocks.
Shares with designated rights and preferences that set them apart from other common shares are known as preferred shares. Preferred stocks entitle the holder to either a fixed dividend or to have their claim on the assets surrendered first when bankruptcy occurs.
There is no one best stock to invest in for all periods, so knowing your time horizon and risk tolerance before investing is important. Diversifying your investment portfolio can also help mitigate risk by integrating different asset classes.
The general rule is to invest in a stock when you are willing to accept the higher level of risk involved.
To understand the differences between some common stocks, we will go over them briefly.
1 – The First-Mover Advantage
The first company to start doing a new service will have a competitive advantage. So watch for companies with a clear market advantage. This can be due to their product or brand, ability to appeal to a large customer base, or access to powerful resources like government grants. And it all starts with being first in the market, so always watch for those companies in more markets than they are competitors at that moment.
2 – The Market Leader
Companies that are the dominant leaders in their markets tend to be big, stable, and less risky. They also tend to provide higher current income and are more predictable in terms of earnings.
3 – Sector Trading
This is where you buy a stock that is historically performing better than the rest of the market relative to its sector. The disadvantage is that it performs relatively better, not necessarily better than other stocks within that same sector or individual stocks from opposing sectors.
4 – Buy Low
There is a simple saying in investing: buy low, sell high. This is the general premise of successful investing. You want to purchase stocks out of favor and currently performing poorly, with the intent of selling them when they rebound to their potential.
Nowadays, people are always looking for the best stocks to invest in. Most of the time, they go through tons of articles and research before deciding. No wonder it’s so hard to keep track of all the websites with this type of information!
But don’t worry, we know how busy you are! Luckily for you, we have made a list just for that. Here are ten stocks you should invest in August 2022:
10 Best Stocks You should Invest in August 2022
Apple Incorporated (AAPL)
It is best known as Apple Computer, is an American multinational corporation headquartered in Cupertino, California, that designs and sells consumer electronics, computer software, and personal computers. Apple was founded by Steve Jobs and is currently a subsidiary of the Apple Inc. company. The company’s products include:
- The iPhone smartphone (also known as the iPhone SE).
- iPad tablet.
- Mac Pro workstation.
- Apple Watch smartwatch.
- iCloud online service.
The company’s second-largest division is the iTunes Store download store. Users can download iOS apps and software, listen to music, view movie trailers, and purchase music, television shows, and computer programs. It is also the second-largest Internet music provider.
Alphabet Inc (GOOGL)
An American multinational conglomerate was created on October 2, 2015. The company is the parent of Google and several other companies previously owned by it. Since the company’s inception, its stock price has climbed from around $650 to over $800 a share.
Alphabet makes money mostly on advertising through AdWords, an internet-based advertising service that places advertising near the list of search results on Google’s search engine, and through AdSense, which places advertising on the websites of its Google’s Network members, such as YouTube.
It is an American corporation that manages payment systems and the technology that enables financial transactions. In addition, it provides services for payment processing and related technology, such as online and mobile commerce, e-commerce, Internet payments, fraud control, and data security. The organization became a publicly-traded company in 1969 under the leadership of its founder Charles Henry “Charlie” Schmitt.
NVIDIA Corporation (NVDA)
NVIDIA is an American company that designs graphics processing units (GPUs), system on a chip (SoC) technologies for the computing industry, system software for mobile devices, and end-user computing applications based on the Android platform.
Amazon.com, Inc. (AMZN)
Amazon is an American online retailer with headquarters in Seattle, Washington, United States. It is the world’s largest Internet-based shopping service provider by revenue. It ships its products to customers worldwide through its retail websites: www.amazon.com, www.amazon.co.uk, and other websites named Amazon by Amazon Listing Pages (ALP).
It also offers services for businesses to sell their products on its website. Individuals who create sales listings on Amazon.com are usually considered vendors or sellers. They may be either an individual operating a small-scale e-commerce site or a large company that uses Amazon as a third-party vendor. The company also sells its electronic device, the Kindle e-book reader. In addition, it is an online retailer of software downloads, music and videos, and cloud computing services directly to customers.
Paramount Pictures Corporation (PANL)
An American film studio with production facilities and offices in Los Angeles, United States. It is the parent company of Paramount Pictures, Paramount Animation, Paramount Television, and other subsidiaries.
Paramount controls the American film studio specializing in Westerns, and some of its releases are considered among the most popular movies worldwide. In addition, it produces or distributes around 100 theatrical features a year as well as other television programs. It also owns one of America’s oldest movie theaters – Radio City Music Hall in New York City.
Paramount Pictures Corporation (PANL) provides television channels.
In December 2013, it was announced that the company intended to purchase DreamWorks Animation for US$3 billion. In January 2014, Paramount sold its 50% stake in DreamWorks Animation for US$1.6 billion to other investors.
The Paramount Theater (originally named the Strand Theater) is a historic movie palace on Broadway at West 54th Street in Midtown Manhattan, New York City. The venue presents motion pictures, hosts live entertainment events (such as concerts and stage shows), and has been described as the “theater of choice for the stars.”
Netflix, Inc. (NFLX)
Founded in 1997 by Reed Hastings and Marc Randolph. Based on Netflix’s website, provides members with unlimited streaming of TV series, films, and documentaries via internet subscription for a monthly fee. The company has about 125 million subscribers worldwide as of January 2018.
S&P 500 Index (SPX)
It is the stock market index of 500 large-cap American companies. It is one of the most widely followed equity indices in the world. The S&P 500 Index is an American stock market index tracking the performance of 500 large US companies that have common shares listed on the NYSE or NASDAQ. The S&P 500 is widely considered one of the most important and influential indices in global finance, along with other leading indices such as the FTSE 100 in the United Kingdom and DAX in Germany.
The total value of a company’s stocks included in the S&P500 Index, which represents about 80% of US equity market capitalization (as of March 2018), grew from $0.811 trillion to $5.9 trillion between June 30, 2017, and June 30, 2018 – an increase of 36%.
Since 1926 the S&P 500 has risen by an average of 1.5% per year, and from September 2018 to August 2019, it rose by 11%, with most growth occurring in the first half of 2019.
The index was launched on March 29, 1957, with ten constituents. Since then, it has been regularly adjusted to take stock splits and spinoffs into account. As a result, the S&P 500 is generally regarded as the best representation of the American equity market. It has been called “the benchmark against which all other stock market indices are measured.”
A list of S&P 500 companies with their current market capitalization as of September 2018 is (1) Apple Inc., (2) Alphabet Inc., (3) Microsoft Corp., (4) Google parent Alphabet Inc., (5) Amazon.com, Inc., (6) Boeing Co.
Microsoft Corporation (MSFT)
Microsoft is the largest software maker in the world. Its best-known software products are the Microsoft Windows line of operating systems, Microsoft Office office suite, and Internet Explorer and Bing search engines. Its flagship hardware products are the Xbox game consoles and the Microsoft Surface tablet lineup. As of 2010, it was the world’s largest software maker by revenue.
Microsoft is a leading manufacturer of Personal Computers (PC) and related software, services, and entertainment. Microsoft is best known for its Windows family of operating systems, the Microsoft Office suite of productivity software applications, the Internet Explorer, and the MSN web portal.
Microsoft Corporation is set to release earnings on July 31 after market close. The company has witnessed accelerated growth from cloud-computing services, such as its Office 365 service. In addition to this, Satya Nadella’s efforts to focus more on mobile devices have been fruitful. Aside from these positives, the company also offers investors a solid dividend yield of 2.26 percent at current price levels.
There is a potential for growth from the rising cloud computing segment and the company’s transition to devices, such as its Surface tablet. Moreover, Microsoft has a high P/E ratio of 30.6 and a P/S ratio of 4.3, while its price-to-book ratio stands at 7.3
Exxon Mobil Corporation (XOM)
Exxon is a multinational corporation primarily involved in exploring and producing oil and natural gas. One of the world’s largest corporations by revenue. 8th on the Fortune Global 500 list as of 2016 with $486 billion in revenue for 2015.
Exxon Mobil Corporation (XOM) is a multinational corporation primarily involved in exploring and producing oil and natural gas. One of the world’s largest corporations by revenue. 8th on the Fortune Global 500 list as of 2016 with $486 billion in revenue for 2015.
Exxon Mobil stock was at a record high following the big plunge for Exxon Mobil at the beginning of March. There is a great possibility that the market will turn bullish on ExxonMobil stocks due to the bullish trends hitting other oil stocks recently. Current production is at 4.2 million barrels per day. The company has further plans to ramp up that number to 4.5 – 5 million barrels per day by 2020. The company also hopes to increase global refining capacity by about 20% to support its crude oil exports through the Exxon Mobil stock.
The revenue for XOM was around $486 billion in 2015, which is close to 50% more than the second-biggest oil company on the Fortune Global 500 list (Chevron Corporation). This is because of the recent rise in oil prices and the subsequent increase in crude oil production. As a result, XOM has regularly made it to the Fortune Global 500 list and was ranked 7th globally as of 2016, with $486 billion in revenue for 2015. The company also made it to #12 on the Forbes Global 2000 list for 2014, with $396 billion.
It is one of the oil companies that was involved in campaigns to bring sanctions against Iran back into place until Donald Trump announced that he would remove them from his list of Iran’s human rights violations.