U.S. stock markets have maintained their northbound journey year to date despite a mixed July. The astonishing bull run of Wall Street, which started in 2023, has continued this year albeit at a slow pace.
At this stage, we have identified five growth stocks that investors should purchase to strengthen their portfolios in August. Growth investors are primarily focused on stocks with aggressive earnings or revenue growth, which should propel prices higher in the future.
The stocks are: Micron Technology Inc. MU, Seagate Technology Holdings plc STX, Comfort Systems USA Inc. FIX, Vertiv Holdings Co. VRT and Celestica Inc. CLS. Each of our picks sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past three months.
Zacks Investment Research
Image Source: Zacks Investment Research
Micron Technology Inc.
Micron has been benefiting tremendously from the enormous application of AI in day-to-day life, which has pushed up the demand for memory chips. The four major hyperscalers raised their AI capital expenditure budget to $750 billion for 2026. This figure is set to cross $1 trillion next year and rise further beyond 2027.
This has resulted in more AI semiconductor sales implying the need for multiple AI memory chips to operate. Flash memory technologies like DRAM and NAND are used in AI chips, enabling them to perform optimally.
This has pushed up the demand for AI-enabled memory chips. In their last earnings reports, all four major hyperscalers highlighted a shortage of memory and storage chips, resulting in soaring prices of these products. As a result, MU benefits significantly.
Micron has meaningful exposure to AI, cloud data centers, industrial IoT and autonomous vehicles, all of which require increasingly advanced memory solutions. As AI adoption accelerates, demand for DRAM and NAND products continues to rise.
MU has invested heavily in next-generation memory technologies, positioning itself to meet the growing performance and efficiency requirements of AI systems. A particularly important growth driver is high-bandwidth memory (“HBM”), which has become essential for advanced AI workloads. Micron Technology’s HBM3E and HBM4 products are seeing exceptionally strong demand because they offer the speed and efficiency required by modern AI systems.
MU’s position in the AI ecosystem continues to strengthen. NVIDIA identified Micron as a key HBM supplier for its GeForce RTX 50 Blackwell GPUs, reinforcing its importance within the AI supply chain. Demand for HBM4 is also benefiting from next-generation AI infrastructure deployments, including NVIDIA’s Vera Rubin platform.
Micron has an expected revenue and earnings growth rate of 91.4% and more than 100% for the next year (ending August 2027). The Zacks Consensus Estimate for next year’s earnings has improved 3.4% in the last 30 days.
Seagate Technology Holdings plc
Seagate is benefiting from a shift in AI workloads from short-lived compute jobs to persistent data reuse. Inference, agentic applications, robotics and autonomous systems all create reasons to retain historical, video and sensor data. That supports a tiered storage model in which cost-efficient hard drives remain central.
STX’s AI workloads expand the need for persistent data. AI systems need context. In agentic applications, key-value cache data can be retained and reused across interactions, reducing the need to recompute information already generated. That dynamic is showing up in demand.
Seagate’s Mozaic 4 platform can support drives of up to 44 terabytes and is ramping with the two largest global cloud service providers. Mozaic 5, a five-plus-terabyte-per-disk platform, is scheduled for qualification shipments in late calendar 2027. STX has also pointed to a 50-terabyte drive as the next step after Mozaic 4.
Seagate has an expected revenue and earnings growth rate of 52.8% and more than 100%, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 21.6% over the last seven days.
Comfort Systems USA Inc.
Comfort Systems operates primarily in the commercial and industrial heating, ventilation and air conditioning (HVAC) markets. The data center boom, driven by AI, cloud computing, and high-performance computing, is fueling demand for specialized HVAC solutions from FIX.
Cooling systems for these facilities should deliver precise and reliable performance, prompting investments in advanced technologies such as liquid cooling and modular units. This segment is becoming a significant growth driver for FIX, offering high-margin growth and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche.
Comfort Systems highlighted continued strength in data center construction, while industrial customers remained the primary growth engine. Management expects faster same-store growth for 2026 and additional modular capacity by late summer 2027.
Backlog as of June 30, 2026, totaled $14.06 billion, increasing 12.9% from $12.45 billion at March 31, 2026, and jumping 73.2% from $8.12 billion reported a year ago. On a same-store basis, backlog climbed to $13.70 billion from $8.12 billion in the year-ago period. FIX guided 2026 same-store revenue growth in the mid- to high-30% range, alongside capital spending of about 5% of revenues.
Comfort Systems has an expected revenue and earnings growth rate of 36.6% and 57.5%, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 5.6% over the last 30 days.
Vertiv Holdings Co.
Vertiv has been benefiting from demand for AI infrastructure, expanding data center complexity and continued investment in capacity and technology. Management emphasized that AI and general compute demand are driving larger and more infrastructure-intensive deployments. VRT’s power, cooling and services portfolio positions it to support next-generation data center expansion.
VRT is focused on evolving power architectures as AI workloads require greater density. The company is developing solutions supporting multiple architectures, including 800-volt DC systems, while continuing to serve traditional AC-based deployments.
Vertiv is working with NVIDIA Corp. (NVDA) and VisionBay AI on AI data center deployments in Taiwan, including power, thermal and services solutions for NVIDIA GB300 systems. VRT said that these projects demonstrate demand for higher-density infrastructure.
Vertiv also emphasized thermal management capabilities, including liquid cooling and closed-loop cooling systems designed to reduce water usage in data center operations. Management said that these solutions expand its differentiation in long-term infrastructure services.
Vertiv has an expected revenue and earnings growth rate of 36.6% and 58.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.6% in the last seven days.
Celestica Inc.
Celestica has been benefiting from massive AI infrastructure spending. AI infrastructure investment continues to underpin demand for enterprise networking, cloud infrastructure, storage systems and high-bandwidth switching products. Expansion of 400G, 800G and emerging 1.6T networking platforms should support future growth.
CLS is also broadening its technology portfolio through product innovation, manufacturing investments and engineering capabilities. The rapidly growing Connectivity & Cloud Solutions business remains the primary earnings engine for CLS as hyperscale customers continue expanding AI infrastructure.
CLS continues investing in engineering expertise, advanced manufacturing capabilities and product innovation to strengthen its position in higher-value markets. Long-standing customer relationships also support participation in complex infrastructure programs that require scale and operational execution. Celestica’s strategy increasingly centers on integrated technology solutions rather than traditional manufacturing alone. That approach positions CLS to pursue emerging opportunities across networking, storage and custom AI platforms while expanding margins over time.
Celestica has an expected revenue and earnings growth rate of 63.4% and 78.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 5.8% in the last seven days.
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