The 12 Best Stocks to Buy Now in August (2026)

Parkev Tatevosian, CFA•Aug 5, 2026

Summary

Parkev analyzes the investment landscape of August 2026, noting that the S&P 500 is up 9.5% despite significant volatility caused by expanded conflict in the Middle East and shifting central bank policies. Parkev highlights a curated list of 12 stocks that are trading below their calculated fair values, emphasizing that the current market swings provide entry points for high-quality assets. Parkev also reviews portfolio performance, noting an 8.02% year-to-date return, which narrows the gap with the broader market.

Amazon (AMZN): Parkev calculates a fair value of over $313 per share, while it currently trades around $271. Parkev emphasizes the acceleration of AWS revenue growth to over 35% and expanding operating margins as primary bullish drivers. However, Parkev notes that massive AI capital expenditures are currently resulting in a forecasted negative free cash flow of $15 billion.

Meta Platforms (META): Parkev sets a fair value of $849, significantly higher than the current price of $556. Parkev highlights increasing user engagement and a superior AI budget as competitive advantages over other social media firms. Parkev warns that free cash flow is falling sharply and that global regulatory pressures remain a significant risk factor.

Netflix (NFLX): Parkev identifies a fair value of over $126 and considers anything below $85 to be an excellent entry point. Parkev praises the company's proprietary data-driven content creation skills and the ongoing tailwind of streaming adoption. Parkev notes that competition from short-form video content and investor fear regarding potential acquisitions are the main bearish factors.

Nvidia (NVDA): Parkev calculates a fair value of over $300 per share, with the stock currently trading near $200. Parkev points to the massive $800 billion AI infrastructure spending trend and the competitive advantage provided by CUDA software. Parkev identifies the development of in-house chips by major customers as a long-term threat to Nvidia's market position.

Uber (UBER): Parkev values the stock at approximately $124, citing the strength of its asset-light business model. Parkev argues that high vehicle ownership costs are driving younger consumers toward ride-sharing as a primary transport method. Parkev acknowledges the competitive threat from autonomous vehicle technologies developed by Tesla and Alphabet's Waymo.

Microsoft (MSFT): Parkev estimates a fair value of $490, noting that recent cloud revenue acceleration has improved investor sentiment. Parkev highlights the company's massive $700 billion backlog but warns of counterparty risk due to heavy dependence on OpenAI. Parkev also notes that Microsoft currently lacks a dominant internal frontier model compared to some competitors.

Pinterest (PINS): Parkev sees a fair value of nearly $56, driven by growth in high-value North American users. Parkev explains that AI is significantly improving the platform's content matching and recommendation systems. Parkev expresses concern about Meta's heavy spending in the same space and the impact of trade barriers on advertiser sentiment.

The Trade Desk (TTD): Parkev calculates a fair value of just under $49 and views the 75% price drop following Amazon's entry into the space as an overreaction. Parkev highlights the company's status as a 'buy-side champion' with fewer conflicts of interest than competitors. Parkev notes that Amazon's cutthroat fee structure remains the primary challenge for the company's margins.

Visa (V): Parkev estimates a fair value of $394, relying on the massive network effect of over 4 billion cards in circulation. Parkev argues that merchants are effectively forced to accept Visa despite rising fees due to its ubiquity. Parkev warns of increasing regulatory hostility and the rise of local payment innovators in various international markets.

Adobe (ADBE): Parkev sets a fair value of $367, emphasizing the high switching costs associated with its creative software ecosystem. Parkev believes that while AI disruptors are a threat, Adobe's embedded position in enterprise workflows provides a strong moat. Parkev mentions that the prolonged search for a new CEO has added some uncertainty for investors.

McDonald's (MCD): Parkev calculates a fair value of over $315, pointing to technological innovations like AI-driven drive-thrus and expanded delivery reach. Parkev argues that the company provides unmatched customer value as the lowest-cost burger provider with healthy margins. Parkev notes that GLP-1 weight loss treatments and shifting health preferences are the main long-term headwinds.

Lululemon (LULU): Parkev identifies a fair value above $165, leveraging the company's premium brand equity and industry-leading margins. Parkev states that recent trade barriers and import duties in the U.S. have weighed on profitability. Parkev also notes that a decrease in consumer disposable income may affect the demand for high-end athletic apparel.

Mentioned Stocks

AMZN

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev calculates a fair value of $313. Bullish factors include 35% growth in AWS and increasing operating margins. Bearish factors include $15 billion in negative free cash flow due to high AI capex and reliance on OpenAI/Anthropic.

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