Stocks to Buy in August. Part I.

July 27, 2025

Oceaneering International (OII)

Entry: Unlock

Price target: 29.00-30.00

Second PT: Unlock

Shares of Oceaneering International regained a key trend-line last week after the company reported stronger than expected quarterly earnings. The company is showing strong momentum across its core businesses, reinforcing its position as a critical player in the offshore energy, defense, and robotics markets. And while its core business remains oil and gas, Oceaneering is diversifying aggressively into aerospace, defense, and renewable energy.

The past year marked a turning point in Oceaneering’s project pipeline. Oceaneering secured over $200 million in contracts, including major umbilical (composite cables) projects in the Gulf of Mexico and Black Sea, extending work through 2026. Its Aerospace and Defense segment also landed a record initial contract, signaling long-term growth. With demand for underwater robotics climbing, particularly remotely operated vehicles, Oceaneering stands to gain more market share if they continue landing contracts and expanding their business.

While many undersea robotics companies are still young and pre-profit, Oceaneering stands out because it’s a name that’s been around since 1969. The company’s financials are also impressive, with revenue steadily climbing in recent years, growing 30% from 2022 to 2024. Their bottomline has grown at a faster rate, leaving them at a price to earnings ratio of 12x. At $2.27 billion, OII appears to be undervalued, and future projects may provide even more value to the investors who pay attention to it today.

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Medtronic (MDT)

Entry: Unlock

Price target: 113.00-115.00

Second PT: Unlock

Medtronic is a global medical device leader with four main business segments: cardiovascular, neuroscience, medical-surgical, and diabetes care. It produces advanced implantable devices, surgical instruments, monitors, and diabetes management systems.

The company is well-positioned for steady growth driven by technology and healthcare trends. Recent integration of Nvidia powered artificial intelligence to its arsenal helped boost polyp detection by up to 14%. This GI Genius Intelligent Endoscopy Module was cleared by the FDA and is now commercialized. Medtronic is also implementing AI tech for stroke detection, surgical video intelligence, diabetes management…and more. Its even expanded into intelligent surgical robotics, an area of massive opportunity.

There will be many smaller companies that try to integrate technology with health solutions, but Medtronic has the advantage of already being a reputable name with strong financials. The company averages more than $30 billion in annual revenue and has consistently posted profitability, with 2024’s net income growing 27% to $4.66 billion. Their balance sheet boasts of $91 billion in assets and $43 billion in liabilities, a 2:1 ratio that leaves them with $48 billion in positive equity. The company’s free cash flow is at an impressive $5.18 billion.

The past three years have been a waiting period for MDT investors, with the stock nearly flat since late 2022. This could be because MDT’s revenue has remained stagnant around $30 billion. However projections reflect significant growth in the coming three years, on both revenue and net income. MDT’s three years of non-eventful returns could be a base for an explosive breakout as the company advances its medical solutions and gets back into a revenue growth cycle.