Every month, we ask our freelance writers to share their top US stocks with investors – here's what they rated best for August!
[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]an apple
What it does: Apple is one of the largest manufacturers of smartphones, tablets, and computers in the world, among other products. It is very popular with iPhone.
Written by Charlie Keough. an apple (NASDAQ: AAPL ) shares have been flying in 2024. So, my top picks for August.
Even after surpassing its five-year high by points this year, I'm still confident that the stock price of the world's most valuable company by market capitalization will continue to rise.
I'm very excited about the additions it could make to the artificial intelligence space. For example, it recently announced that it will integrate OpenAi's ChatGPT on its mobile devices. Since this will only work on the iPhone 15 Pro or newer models, I suspect this will give sales a boost.
I also like the business when it considers its place in the leading market. There are over 2bn active iPhones, iPads, Macs worldwide.
There are risks. Another is that recent data showed the company saw its market share fall to 14% in China in the second quarter. It also had a decline in Chinese sales in the first quarter.
But as a long-term investment, Apple is an incredibly active stock. If I had the cash, I would happily increase my position today.
Charlie Keough is an Apple shareholder.
CrowdStrike
What it does: CrowdStrike is a cybersecurity firm that provides endpoint security, threat intelligence, and cyberattack response services.
Written by Mark David Hartley. US cybersecurity firm CrowdStrike (NASDAQ: CRWD ) may seem like an odd choice right now. Shares fell 24% over the July weekend after the company was blamed for network outages affecting airlines, hospitals and banks. After the disaster, analysts lowered prices and sellers lowered ratings. Now, the company faces lawsuits that could last for years.
Although the saga is far from over, I think the worst loss is worth the price. As stocks start to pull back in the coming months, the current price could be a very attractive entry point. CrowdStrike is a £65bn company – I doubt it will collapse due to one hiccup. Despite the fall, the company remains profitable for now, with earnings per share (EPS) at 54c and dividend yield at 4%. And the current price is undervalued by about 45% based on future cash flow estimates.
Mark Hartley is a shareholder in CrowdStrike
Intuitive Surgical
What it does: Intuitive Surgical is a global leader in the development of robotically assisted surgical devices.
Written by Zaven Boyrazian. Technology is important in many industries, allowing for greater efficiency. However, one area that seems to be flying under the radar is robotic-assisted surgery. 20 years ago, Intuitive Surgical (NASDAQ:ISRG) has become a titan in this space. And now it controls 60% of the global market share.
Today, more than 9,400 of Intuitive Surgical's da Vinci machines are distributed worldwide, with more than 2.2 million procedures performed in 2023 alone. Over the years, these numbers have been rising, as sales, earnings, and free cash flow expanded by double digits. Therefore, it is not surprising that the share price has increased by 150% in the last five years.
Despite this impressive growth, the company has never scratched the surface when it comes to forecasts. Of course, bigger opportunities attract more competition. And Intuitive Surgical may find itself facing rival firms trying to take its market share. But with a ten-year track record of delivering results, it's a risk I'm willing to take.
Zaven Boyrazian is a shareholder in Intuitive Surgical.
Visa
What it does: Visa is a financial technology company that operates one of the largest electronic payment networks.
Written by Edward Sheldon, CFA. Visa (NYSE: V ) shares have pulled back recently and I think they offer a lot of value at current levels.
This is a high-quality, Warren Buffett-type company (Buffett owns shares in it). As the world's largest electronic payment network operator, it has a wide 'economic moat'.
Meanwhile, it is a very profitable business with a long runway ahead. Over the next decade, billions of transactions could switch from cash to card.
Of course, like all businesses, Visa faces risks. The biggest risk I see is regulatory intervention (because it's a leading company).
Taking a long-term view, however, I back this stock to do well. It trades at a forward price-to-earnings (P/E) ratio of about 24 as I write which I think is an attractive valuation for a world-class business with great long-term growth potential.
Edward Sheldon owns Visa stock
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