August proved to be a rollercoaster for many individual stocks, driven by a busy news cycle and second-quarter earnings season.
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Over the past month, many high-flying stocks were brought back to Earth by lackluster financial results and weak guidance. While, at the same time, many previously beaten-down stocks staged impressive rallies. The benchmark S&P 500 index gained 1.39% in August, the fourth consecutive month in which it has risen following April’s brutal, tariff-driven selloff.
Big winners over the past month include Albemarle (ALB), which saw its share price increase 26.8% due to a sharp rise in the price of lithium. Chipmaker Intel (INTC) was another top gainer, climbing 25% after selling a 10% stake to the administration of U.S. President Donald Trump. And veterinary-supply company Idexx Laboratories (IDXX) rose 21% during August after a blockbuster earnings report.
UnitedHealth Group (UNH) saw its share price rise 20% for the month on news that legendary investor Warren Buffett has built a stake in the health insurer.
The Flipside
On the flipside, many stocks were brutalized over the past month due to poor earnings reports, grim outlooks, and souring sentiment among investors. Case in point is The Trade Desk (TTD), whose share price plunged 37% after the ad-tech company’s second-quarter print. Super Micro Computer (SMCI) also got beaten up, falling 28% in August on worse-than-expected earnings.
Cryptocurrency had a topsy-turvy August, with the price of Bitcoin (BTC) climbing to an all-time high of just over $124,000 mid-month only to pull back to $108,600 today. As a result, the stock of crypto exchange Coinbase Global (COIN) fell 19% during the month as investors turned more risk averse when it comes to digital assets.
Is the SPDR S&P 500 ETF Trust a Buy?
The SPDR S&P 500 (SPY) exchange-traded fund currently has a consensus Moderate Buy rating among 504 Wall Street analysts. That rating is based on 416 Buy, 81 Hold, and seven Sell recommendations issued in the last three months. The average SPY price target of $718.37 implies 11.43% upside from current levels.
