23 Best-Performing Stocks of August - Aug 31

The Big Picture

Stocks in technology and energy posted notable strength in August, and MarketWatch’s list of the 23 best-performing stocks highlights a clear shift in momentum for software and cyclical names. Moderna was the month’s standout, identified as the single best performer by a wide margin, and the broader group delivered meaningful median and average gains.

For your portfolio, that means selective exposure to recovering software names and energy names may have added short-term upside, while vigilance is still required given sector and macro risks.

What's Happening

MarketWatch published a ranked list of August winners, showing concentrated strength in energy and technology sectors and a recovery trend in software names. Key numerical takeaways from the month's performance are:

• Top return on the list reached roughly 90%, signaling an outsized winner in Moderna for the month
• At the low end, at least one stock on the list showed a 0% gain, indicating uneven performance even among top-ranked names
• Median return across the 23 stocks was about 14%, a solid monthly move for a broad basket of winners
• Average return for the group sat near 14.1%, suggesting a handful of large winners pulled the mean higher
• By contrast, a broader sector benchmark tracked roughly 5.5% for the period, underscoring how the top 23 outpaced their peers

Those figures matter because they show both concentration and breadth: a small number of names produced outsized gains while the overall sector recovery is still in progress. For investors, that means returns were driven by a mix of headline winners and a wider rotation back into software and energy exposures.

Why It Matters For Your Portfolio

This list offers a shortlist of names and themes that drove August performance, and it helps you identify where momentum is concentrated. Growth investors will note the software recovery and potential upside if sentiment continues to normalize. Income and value-oriented investors may see energy-related strength as a sign to review commodity-linked exposures.

Analyst commentary in market coverage has emphasized selective positioning rather than blanket exposure, and the MarketWatch ranking underscores that leadership can concentrate—Moderna led by a wide margin, while many other winners delivered mid-teens monthly returns.

Risks To Consider

• Concentration Risk: A small number of names, including Moderna, accounted for disproportionate gains. If those leaders reverse, headline returns for the group could fall quickly.
• Macro and Sector Sensitivity: The software recovery is still fragile. A reacceleration of rates or a negative macro surprise could stall momentum and compress valuations.
• Company-Specific Risks: Some non-software names on the list face firm-specific headwinds. For example, developments tied to financial services firms such as Lazard Inc. (LAZ) can trigger stock-specific volatility unrelated to the software recovery.

What To Watch Next

Several near-term items could move these names and the broader themes identified in August:

• Quarterly earnings seasons and company updates, which can confirm whether software fundamentals are improving
• Sector rotation cues from macro data and rate moves, which affect valuation multiples for growth and cyclical stocks
• Company-specific catalysts, including corporate guidance revisions and M&A headlines, which can re-rate individual winners or laggards
• Cash allocation shifts tied to consumer and institutional demand, such as changing rates on high-yield savings and checking products, which can subtly influence liquidity flows

Monitor the sustainability of the software recovery through revenue growth and margin trends in quarterly reports, and watch whether energy strength persists as commodity prices evolve.

The Bottom Line

• August winners were concentrated: the top 23 stocks outpaced a sector benchmark that rose about 5.5%, with the list showing a median return near 14% and an average near 14.1%.
• Moderna stood out as the month’s top performer, rising dramatically relative to peers and accounting for a large share of the group’s gains.
• For investors, the recovery in software is a positive signal, but it calls for selective exposure and monitoring of earnings and macro data rather than broad-market bets.
• Watch for near-term catalysts including earnings, rate moves, and company-specific news; be prepared for volatility if leadership concentrates or unwinds.
• Use valuation and revenue-growth metrics to screen candidates from the list, and track firm-specific risks such as developments at financial firms like Lazard (LAZ).

FAQ

Q: Which sectors led the 23 best-performing stocks of August?

A: Technology and energy were the primary sectors driving the list, with software names showing signs of recovery and energy contributing substantial gains for the month.

Q: How concentrated were the gains among the 23 stocks?

A: Very concentrated. The group’s top return approached 90%, the median was about 14%, and the average roughly 14.1%, meaning a few large winners pushed overall returns higher.

Q: What should investors monitor before adding exposure?

A: Track upcoming earnings, guidance changes, macro data that affects rates and multiples, and company-specific catalysts. Also consider liquidity alternatives and firm-level risks, such as developments at financial firms like Lazard.