2 Stocks to Buy in August

As of this point, roughly two-thirds of S&P 500 companies have published their Q2 reports. Thus far, the results have been better than expected. Analysts are projecting average earnings growth of 47.4% for companies in the benchmark index in Q2. If those predictions hold up, this would be the strongest quarterly growth rate in half a decade.

While ostensibly wholly positive, the news is a double-edged sword. Reckless bullishness lends itself to hype, stock prices tend to outpace fundamentals, and sooner or later, a reversion to the mean is due.

That’s not to say that investors should sit tight. While many of the names that have outperformed estimates in Q2 have questionable long-term prospects or already stretched valuations, there are plenty of tickers with rock-solid fundamentals. The only issue is how you can tell the two apart.

Thankfully, today’s retail investor has access to tools that can go a long way in solving this problem. When approaching situations like these, the best place to start is…

AI Factor Stock Strategy

Our proprietary quant system evaluates 4,600 stocks every day using 115 fundamental metrics and factors split across 7 categories. Those insights are combined into a single, user-friendly metric — a stock’s Zen Rating.

Only the stocks that rank in the top 5% for overall fundamentals are given a Zen Rating of A. By focusing only on them, you’ve cut down the number of tickers to consider from 4,600 to 230. And while that’s a great start, you can narrow the search down even further — with the help of one of our exclusive Zen Strategies.

Each strategy is a meticulously constructed portfolio that consists of just 7 stocks. We already mentioned our rating system — what we didn’t mention is that it makes use of artificial intelligence. Our in-house neural network, which is trained on more than 20 years of market data, is primed to pick up on signs that point to future outperformance before they become apparent.

Today, you’ll see 2 stocks from our best-performing strategy. It has an all-time annual return of 49.64%, and it has secured a 34.12% gain since the start of the year, blowing the S&P 500’s 10.44% gain in the same timeframe out of the water. We’re talking, of course, about our AI Factor Stock Strategy.

Quad/Graphics (QUAD)

Our first pick, Quad/Graphics, is a marketing services company that helps brands create and distribute campaigns across print, digital, in-store media, packaging, and other channels. Once primarily a commercial printer, Quad is repositioning itself as a broader, integrated marketing partner. QUAD ranks in the top 1% of the stocks we track, giving it a Zen Rating of A, and it is currently the 7th highest-rated stock on our entire list.

The fundamental profile here is incredibly well balanced. In terms of Value, QUAD ranks in the top 28% of stocks, thanks to a PEG ratio of just 0.48x. With earnings forecast to grow by 32.84% per year, compared to the industry average of just 9.31%, it’s no wonder that it’s also in the top 17% for Growth.

With regard to Financials and Safety, Quad/Graphics shares rank in the top 14% and top 11%, respectively, pointing to a strong, stable outperformer. The business has also beaten or met earnings estimates for 6 quarters running. The standout area, however, is Sentiment, where QUAD ranks in the top 3% of the market, which indicates strong smart money interest.

When it comes to the fundamentals, there really are no weaknesses here. However, the drawback is the possibility of a pullback. QUAD is up by almost 95% on the 1-year chart, and it has surged by 27% since the company’s last earnings call on July 28. With that being said, if you can stomach a few potential speed bumps, the valuation relative to growth prospects, coupled with the rock-solid balance sheet and smart money attention on a ticker that’s hitting its stride is hard to ignore.

Escalade (ESCA)

Our second pick, Escalade, designs and sells sporting and recreational equipment. ESCA ranks in the top 1% of the stocks we track, giving it a Zen Rating of A. At present, this is the highest-rated stock in the B-rated Leisure industry, and our 3rd highest-rated stock overall.

Escalade has something you rarely see — a Component Grade panel that consists solely of A and B ratings. In plain English, that means that the stock ranks within at least the top 20% in every single category.

Let’s just go through a couple of the most impressive ones. When it comes to Growth, the stock ranks in the top 27%. After that, Financials come in at the top 21%. Moving on, in terms of the Value Component Grade rating, ESCA is in the top 8%. Our Artificial Intelligence rating places the stock in the top 5% of everything we track. And last but certainly not least, we have a placement in the top 1% for Sentiment — so the smart money interest is exceptionally strong.

So, why now? Just like our previous pick, Escalade is hitting a stride. The company has beaten estimates for 3 consecutive quarters, the metrics are all pointing in the right direction, and the valuation is still attractive. The last earnings call was on Jul 30, so a move to the upside in the coming days and weeks isn’t out of the question either.

Interested In More Great Stock Picks?

The 2 stocks highlighted above are just a fraction of what you get from our proven AI Factor Stock strategy. 

That’s because each day our system recalibrates — and Zen Strategies members get access to the top 7 artificial intelligence stocks based on 115 different parameters that point to outperformance. 

See all Top 7 AI Factor stocks here >

However, maybe these aren’t what you’re looking to add to your portfolio right now. Perhaps you would like to see all 11 of our market beating strategies including Growth, Value, Momentum or perhaps even Income stocks. 

Each featuring the top 7 stocks.

Each featuring tremendous performance.

We spell it all out in this timely presentation below that lives up to its name:

77 Best Stocks Now! > 

What to Do Next?

• 77 Best Stocks NOW! >
• Options Trading with the Zen Ratings >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.