UBS' Top Stock Picks for August

On August 2, 2024, the Dow Jones Industrial Average experienced a significant decline, dropping nearly 500 points amid growing recession fears. This downturn affected other major indexes, including the S&P 500 and the Nasdaq Composite, which also saw substantial losses. Despite the overall market sell-off, UBS has identified several stocks that may be poised for gains as August begins. Among UBS's top picks are companies from the industrials and materials sectors, including Freeport-McMoRan and Norfolk Southern. Notably, Air Products and Chemicals has been highlighted for its strong performance, with shares up approximately 5% this year. UBS emphasizes the company's leadership in the energy transition, particularly its advancements in "blue" and "green" hydrogen projects, which are expected to bolster long-term contracts and mitigate investment risks. Boeing is another industrial name on UBS's preferred list, with analysts noting that the company has overcome several challenges, including legal issues and production improvements. The recent appointment of Robert "Kelly" Ortberg as CEO is anticipated to foster cultural change and enhance accountability within the organization. Following a strong second-quarter performance that exceeded Wall Street expectations, Boeing's shares surged nearly 5%. Additionally, UBS views Meta as an attractive investment, trading at a forward price-to-earnings ratio of 23 times earnings. The stock has seen a remarkable increase of over 40% this year, indicating strong market confidence in the company's future prospects.