The Best Stocks to Invest in August

Five Stocks Outperforming in 2020

Stocks are starting to cool off a bit as summer is still hot as a few stocks are standing out. This month I recommend taking a look at these five stocks. These stocks are performing very well and have strong potential this year and future years.

Since the March 23 low and the S&P 500 falling 35%, stocks have been on a remarkable climb since then. Investors are figuring out what are some good stocks to add to their portfolio. Below are five stocks that are leaders among the top stocks on Wall Street.

The stock prices listed are from the close of business on August 14, 2020. Prices you see may differ from what I present.

ANGI Homeservices (ANGI)

This stock took a hit in the spring months as other stocks did but the price has quickly rebounded since then. ANGI connects consumers with home service professionals in the United States and internationally over their digital marketplace. This company connects consumers with service professionals for improvement projects, maintenance, and home repair. The resources the company provides are local, pre-screened, and rated by their customers. ANGI also owns and operates Angie’s List which you may have heard of before. IAC, ANGI largest shareholder, sent a letter recently stating the company has soared 27% in May and 34% in June. The stock had declined by 8% and 12% in March and April due to the corona virus. ANGI weathered this storm with their fixed priced platform (no negotiations). The company improved its payment options and it is expected the company will grow even further as a result. The stock price recently dropped this week as the earnings report came out. The company is performing well but the recent revenue in July (7%) was half of the results of May (15%) and June (14%). There could be a sign the company is cooling off a bit. The recent earnings are not bad and it is possible the stock was due for a pullback.

Bill.com (BILL)

This company provides cloud-based software that digitizes and automates financial operations for small and mid-size business back-office operations. Bill.com is an artificial intelligence financial platform and provides cloud-based payment products that allow users to automate account payable and account receivable transactions. The company is bringing thousands of small businesses (2 to 500 employees) into the modern age reducing the paper trail of bills, invoices, and contracts. The efficient platform of Bill.com allows for more modern tools that synch with the accounting and financial systems. There is still a chance a small business could be hit with a virus in some of their online systems. This would allow the business to get more of their systems online. Bill.com is in use in a small percentage of US businesses. The stock hit new highs in May and has seen an up and down movement since then. This stock is a good long term hold.

Invitae (NVTA)

Invitae is a medical genetics company that processes and analyzes DNA samples for its clients and patient in the US, Canada, and internationally. The company provides genetics tests in various clinics for hereditary cancer, cardiology, neurology, metabolic conditions, neurology, pediatrics, metabolic conditions, rare diseases, and prenatal genetic tests. A large number of diseases are hereditary and genetic testing helps the medical field diagnose dangerous ailments. At a single low cost, Invitae offers testing for patients at $250 which id down from thousands the test uses to cost. Over the past six years, the company has an annual growth rate of 170%. Analysts expect a 100% revenue growth rate heading into 2021. Invitae recently acquired ArcherDX which could add a 50% growth in the next three to five years on top of the current growth rate. The genetic testing market is huge and expected to grow to $17 billion by 2025 from $17 billion in 2017. NVTA posted a recent decline from its earnings two weeks ago and the stock price took a small decline but rebounding.

Scotts Miracle-Gro (SMG)

You may have used Scotts Miracle-Gro for your lawn as this company manufactures, markets, and sells this product. The company sells products in the United States as well as internationally. Scotts Miracle-Glo offers lawn products such as grass seed, fertilizers, spreaders, and outdoor cleaners. In addition to lawn products, Scotts provides products to the U.S. cannabis industry under the Hawthrone section of the company. Hawthorne’s sales grew 72% to $303 million in the second quarter. Revenue is expected to grow 55% for the remainder of the year. The rest of the company is doing well as more people are at home and Scott’s raised its outlook (50% earnings growth this year). Scotts also raised their dividend to a special one time $5 per share if you own the stock before August 27. This stock should be a good long term hold. If you decide to buy SMG, I recommend waiting for a pullback in price.

Spotify (SPOT) $251.32

Spotify Technology and its subsidiaries provide audio streaming service in the United States, the United Kingdom, Luxembourg, and internationally. The company operates in two segments, Premium and Ad-supported. The company offers unlimited online and offline streaming service to its catalog of music and podcasts. As of March 2020, the company had 286 million monthly active users and 130 million premium subscribers in 79 countries with 13 new markets in Europe. The big driver today is podcasts as regular podcasts include Kim Kardashian, Michelle Obama, Joe Rogan, and others as well as original content that should attract new users. If you decide to buy SPOT, I would wait for a pullback in the price.

This writer does not own any of these stocks.

Tom Handy is a top Writing, Finance, Investment, and Bitcoin writer on Medium, and the father of two kids. He retired from the Army and sits on several non-profit boards. You can find him on Twitter @tomhandy1.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.

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