AI Stock Picks — August 4, 2026
The 5 AI-selected stock picks for August 4, 2026 from StocksRankings — with full investment thesis, bull case, bear case, and key catalyst for each.
5 AI Stock Picks for August 4, 2026
- AVGO — Broadcom Inc. [Lowest PEG]
Broadcom Inc. is ramping its networking and custom silicon business, which is set to benefit from hyperscaler and AI infrastructure buildouts over the next year. Its $2B in annual buybacks and a 191% EPS growth rate provide both capital return and earnings momentum, supporting forward compounding. The PEG ratio of 0.34 indicates the stock is trading at a steep discount to its growth rate, which is rare for a semiconductor leader with proven execution.
Key risk: A slowdown in hyperscaler infrastructure spending or delayed customer deployments could reduce near-term revenue growth. - AES — AES Corp [Contrarian Value]
AES Corp operates regulated and contracted power generation assets, and its forward earnings growth is driven by a 79.7% increase in projected EPS as shown in forward data. The company benefits from long-term power purchase agreements, which provide recurring revenue and limit commodity price exposure, and its 4.7% dividend yield supports total return. The P/E of 7.8x is well below sector averages, and forward EPS growth of 79.7% signals the market is underpricing the recovery.
Key risk: A regulatory change that reduces allowed returns on equity for utilities could compress margins and limit earnings upside. - ABT — Abbott Laboratories [Lowest PEG]
Abbott Laboratories is expanding its diagnostics and medical device franchises, with new product launches driving incremental revenue in 2026. The company generates $7.378B in free cash flow and has a 2.4% dividend yield, which supports both reinvestment and shareholder returns. The PEG ratio of 0.38 reflects a significant discount to expected growth, making the current entry point attractive for a diversified healthcare leader.
Key risk: A product recall or regulatory setback in a major device line could disrupt growth and pressure margins.
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