This August will surely be an interesting time for the stock market. While the market historically has one of its weakest months in August, there’s some indication that A-rated stocks could indeed be set up for quite the rally this year.

According to some new research that indicates a fascinating trend.

First, let’s look at this historical perspective. Over the last decade, August has been the third-worst month for the S&P 500, which averages just a 0.1% gain in August. And over the last 20 years, the S&P 500 actually averages a 0.1% loss in the eighth month of the year.

But then factor in an event that happens only every four years – the U.S. presidential elections.

According to Dow Jones research, the S&P 500 actually does quite well in the August before a presidential election, growing 1.3% on average. That’s the fifth-best month for the index in a year during a presidential election – so while it’s not off-the-charts good, it’s better than average.

Even better, the tech-heavy Nasdaq composite performs even better in August of presidential election years, growing 3.2% on average.

So, while you may have the impulse to sit this month out, historically speaking there’s plenty of opportunity to succeed this month. You just have to know where to look. And I’ll always lean on the Portfolio Grader and A-rated stocks.

Here are seven to consider this month.

Nvidia (NVDA)

I’m an unapologetic bull when it comes to Nvidia (NASDAQ:NVDA) stock, which has been one of the most dynamic stocks on the market because of its important role in creating the most sought-after graphics processing units that power generative artificial intelligence applications.

Nvidia rose from a company with a market capitalization of $470 billion just two years ago to one with a cap of $2.6 trillion. And that’s after the company lost nearly $500 billion in the last few weeks on some tech stock bearishness.

But you have to remember that Nvidia showed 262% year-over-year revenue growth in the first quarter of fiscal 2025, and I expect another great quarter when it reports earnings later this month. And if you’re worried that Nvidia shares are down 6% over the last months – just stop.

Yes, Big Tech companies are working on making their own AI chips. But if nothing else that just means that growth deceleration risk is already well priced in when you consider Nvidia’s valuation. At least, when you consider NVDA’s current valuation.

Even if Nvidia trends lower before its scheduled Aug. 28 earnings report, consider this an opportunity to buy an A-rated stock at a discount. Nvidia continues to carry an “A” rating in the Portfolio Grader.

Super Micro Computer (SMCI)

Super Micro Computer (NASDAQ:SMCI) is a top semiconductor stock as well, but of a different flavor. While Nvidia creates the GPUs, Supermicro builds the custom server architecture that is critical to allowing multiple GPUs to work together. And that’s important when using massive amounts of processing power to run large language model programs.

Supermicro is also reportedly providing and assembling half the AI-supercomputer racks that xAI, the artificial intelligence startup run by Elon Musk, is creating to develop an AI chatbot to compete with ChatGPT.

The company reported sales of $3.85 billion in the third quarter of fiscal 2024, up from $1.28 billion a year ago. Net income of $402 million was up from $86 million a year ago.

While shares are down below $700 – the lowest they’ve been in six months because of temporary weakness in tech stocks – Supermicro continues to capitalize on surging demand. I’m expecting it to deliver another year of solid returns by the time the sun sets on this calendar year.

SMCI stock gets an “A” rating in the Portfolio Grader.

Walmart (WMT)

Walmart (NYSE:WMT) is more than just the biggest retailer on the planet. The Arkansas-based company is a true powerhouse that is a safe haven for investors as customers continue to look for ways to escape higher food prices.

Walmart has over 10,800 locations, covering every U.S. state and over 20 countries. Its e-commerce business is becoming formidable as well, with 22% growth in U.S. sales in the first quarter, and 21% global e-commerce sales growth. Overall, Walmart grew its revenue by 6% overall in the quarter.

Walmart keeps prices low because of its size – it creates enough in-house products that it can force name-brand companies to lower their prices as well to compete, and shoppers reap the benefits.

Walmart stock is up 32% so far this year and I’m anticipating another strong quarter. It gets an “A” rating in the Portfolio Grader.

Costco Wholesale Corporation (COST)

Costco Wholesale Corporation (NASDAQ:COST) is another low-cost retailer, but it does it a little differently than Walmart. Costco operates 900 warehouse stores that offer everything from food to clothing and appliances.

The company’s $60 membership program encourages customer loyalty and provides a source of income. In the third quarter of fiscal 2024, membership fees were $1.12 billion, making up a huge percentage of the company’s $1.68 billion in net income.

On top of that Costco is increasing the fee by $5 annually for basic memberships and $10 annually for executive memberships. That will keep Costco’s profits rolling in.

Sales in June were up 5.3%, with U.S. sales (up 5.6%) and Canada sales (up 5.2%) leading the way.

COST stock is up 24% this year and gets an “A” rating in the Portfolio Grader.

Dell Technologies (DELL)

I think Dell Technologies (NYSE:DELL) has a world of potential. The company is best known for making computers, laptops and mobile devices, but it’s leaning in hard on AI by operating a large server business that allows companies to upgrade their hardware to run AI applications.

Dell is building and selling servers that include Nvidia’s H100 GPU and Blackwell-generation chips. Its backlog of orders for AI servers increased 30% during the first quarter of fiscal 2025 to $3.8 billion, and AI server sales rose 42% to $5.5 billion.

Dell saw its client solutions business grow by 3% to $12 billion, and I’m expecting that number to increase as Dell gains momentum in the AI space.

DELL stock is up 41% this year and gets an “A” rating in the Portfolio Grader.

UBS (UBS)

UBS (NYSE:UBS) is a Swiss bank that offers an array of financial services in 50 countries. While it’s perhaps best known for global wealth management, UBS also provides personal banking, corporate banking and asset management.

A year ago it acquired Credit Suisse Group, and by building on that expertise its now working on its first-ever ESG debt swap, which is a deal that allows a country to exchange existing debt with cheaper loans with savings that are tied to environmental protection.

UBS is working with other firms to raise money for a $300 million debt swap for Barbados.

Earnings for the first quarter included revenue of $12.7 billion, up from $8.7 billion a year ago. Profits were $1.7 billion and 52 cents per share versus $1.02 billion and 32 cents per share a year ago.

UBS shows strong growth, although the stock price remains roughly even so far this year. It still gets an “A” rating in the Portfolio Grader.

AT&T (T)

If you need proof that it’s possible to recover from even an awful mistake, then remember AT&T (NYSE:T). Just two years ago, the company was reeling after was forced to cut its dividend in half while spinning off WarnerMedia into a company now operating at Warner Bros. Discovery (NASDAQ:WBD).

It was the first time in 35 years that AT&T cut its vaunted dividend, but it was a necessary step for the company to emerge from the WarnerMedia mess and start paying off a mountain of debt.

Now it’s 2024 and AT&T is recovering nicely. The dividend is solid at more than 5.5%. The balance sheet is better, as debt of $128.7 billion is an improvement from $157.6 billion at the start of 2022.

And AT&T is seeing strong growth in its wireless business, which reported 593,000 net additions in the first quarter. Roughly 419,000 of those were retail postpaid phone additions. In the broadband segment, total fiber net additions were up 239,000.

I think AT&T is well on its way, and the stock price shows it – up 16% this year. T stock gets an “A” rating in the Portfolio Grader.

On the date of publication, Louis Navellier had [short/long] position(s) in NVDA, SCMI and COST. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article had long positions in NVDA and SCMI. The InvestorPlace Research Staff member did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.