If I had a spare $5,000 to invest in ASX 200 shares in August, these would be my top picks.

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ResMed Inc (ASX: RMD)
The sleep disorder treatment company's shares have started rebounding after huge losses were shed over the past year. In May, the company posted a softer-than-expected third-quarter update, but overall, ResMed's revenue has continued to grow at a healthy pace, and its margins have continued expanding. The company has also generated strong free cash flow. I think the ASX 200 healthcare share is now oversold and below fair value.
Market Index data shows brokers are divided between buy and hold ratings on ResMed shares. But the $88.21 average target price now implies a huge 205% upside at the time of writing.
Meteoric Resources Ltd (ASX: MEI)
Meteoric Resources is an Australian mineral exploration and development company focused on rare earth elements. The company's Caldeira Rare Earths project is one of the largest and highest-grade ionic clay rare earth deposits outside China and management thinks it has the potential to become one of the world's lowest-cost producers. The company recently announced that a definitive feasibility study (DFS) would be completed on the project "in the near term". It also announced that drilling at the project had led to a 246% increase in the mineral resource at Caldeira, to 128 million tonnes.
Brokers think the shares are trading for cheap right now, with potential for huge upside ahead. Market Index data shows all brokers have a buy rating on the ASX shares. The 37 cent target price implies a potential 113% upside at the time of writing.
Xero Ltd (ASX: XRO)
The ASX 200 tech share has been beaten down over the past year after concerns about the company's valuation and earnings outlook. Xero was caught up in a sector-wide sell-off late last year and in early 2026 as investors rotated away from tech stocks amid concerns about AI competition. The shares managed to rebound in late July, but they still look like they're trading for cheap.
The company benefits from an incredibly sticky subscription base and high customer retention rates. This means its revenue is relatively predictable. As a relatively small market player, it also has a lot of growth potential.
Market Index data shows the majority of analysts have a buy rating on the shares. They tip an upside of around 106% to an average target price of $139.26, at the time of writing.
Mesoblast Ltd (ASX: MSB)
Mesoblast is an Australian clinical-stage ASX biotech share that develops and commercialises allogeneic cellular medicines to treat complex diseases. Some products are already in use, and other cell therapies are in the late stages of clinical trials. Its share price has tumbled this year, most likely due to investor caution around clinical timelines and profit-taking after last year's rally. But its products are gaining traction and the business is well-funded. I think there is plenty of growth potential ahead.
Market Index data shows brokers are bullish. They all agree on a buy rating for the biotech shares. The $3.49 target price implies a potential 70% upside at the time of writing.
Virgin Australia Holdings Ltd (ASX: VGN)
Virgin Australia shares fell to an all-time low of just $2.16 in early May but have since rebounded around 32%. The ASX airline share has struggled with headwinds from conflict in the Middle East and rising fuel prices this year. But it now looks like investors are slowly rotating back into airlines and travel companies after reports of robust travel demand. The company recently confirmed its FY26 guidance, which has helped boost investor confidence.
Market Index data shows that the majority of brokers are also bullish and rate the shares as a buy. They tip a potential upside of 23% to an average $3.48 target price over the next 12 months, at the time of writing.