The month of August has been riddled with volatility in the stock market. From lackluster jobs data sparking fears of a recession to a global market sell-off causing chaos, investors have been on edge. The Dow Jones Industrial Average experienced its worst day in almost two years, dropping over 1,000 points. However, despite the initial turbulence, the Dow has managed to recover, posting gains of around 1.8% month-to-date as of Friday’s close.

Among the top performers in the Dow for the month of August, Walmart stands out as the leader. The retail giant’s shares have seen a significant increase of around 12.5% month-to-date and an impressive 47% year-to-date. This makes Walmart the best performing consumer staples stock in the S&P 500 this year. Analysts remain bullish on the stock, with the average price target suggesting a further 6.6% upside from the current levels.

McDonald’s follows closely behind Walmart as the third-best performer in the Dow for the month. With shares up nearly 9% month-to-date, the fast-food chain has garnered the attention of investors. The average price target for McDonald’s implies a 3% upside from the current levels. Wolfe Research recently reiterated their rating on the stock, citing the company’s nostalgic marketing efforts as a positive driving force for consumer engagement.

Merck, a healthcare stock, boasts the biggest upside potential among the Dow leaders for the month of August. With a trading level that implies a 19.5% increase to the average price target, Merck has caught the eye of investors. Furthermore, the stock has the highest percentage of buy ratings at 71.4%. Despite a 4.7% increase this month, Merck is up over 8% in 2024.

On the other end of the spectrum, Coca-Cola and International Business Machines (IBM) are the only two Dow leaders that are currently facing a bearish outlook. Their average price targets suggest a downside of 1.2%. Despite this, both Coca-Cola and IBM have seen positive returns for the month, with gains of over 8% and 5.2% month-to-date, respectively.

The top performing stocks in the Dow Jones Industrial Average for the month of August paint a picture of resilience and opportunity in the midst of market volatility. While some stocks have shown remarkable gains and bullish sentiment from analysts, others are facing challenges but still managing to stay afloat. Investors will continue to monitor these stocks closely as they navigate the uncertain waters of the stock market.

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