In the current financial market environment, it is tough to answer the question of what are the best stocks to buy now if the expectation is that the share prices will rise from day one.
The Federal Reserve raised interest rates by 0.25 percentage points from 5.25% to 5.50% in July 2023 to fight inflation. With 11 interest rate increases in just a little over a year, the current rate is the highest since March 2001.
It is evident that the market rally we saw since the financial crisis in 2008 is over, and all investments made now will demand a lot of patience from the investor until they pay out. The time of instant profits is over for now.
Still, every crisis and market downturn is an opportunity. Moreover, the future has shown that every market dip led to new all-time highs and that stock market investments, on average, outperformed most alternative investments.
It is essential to focus on the companies that have been convincing for a long time with impressive balance sheets, solid profits, favorable forecasts and a decent company outlook. The following sample portfolio contains some of the best mega-cap and high-growth stocks, ETFs and IPOs.
The following tools have been used for analysis:
- TrendSpider – Best for technical analysis
- Seeking Alpha Premium – Best for stock market research
- StockRover – Best for fundamental data analysis
Top 10 Best Stocks to Buy Now
Please note that investing in the best stock to buy now does not mean that it is a good idea to invest the entire capital all at once. The opposite is true. Even the best stocks to buy now unfold the best performance in the long term with a minimum investment horizon of 10 years. The cost-averaging effect can be used to cumulate a stock portfolio over a longer time frame at a reasonable average cost basis.
Fractional shares are great for smaller portfolios where investors can invest some spare change month by month or quarter by quarter. It is also crucial to keep a close eye on the company fundamentals and earnings announcements over time. Once company fundamentals change in an unfavorable direction, it is an option to sell a position.
For the first time in over a decade, we saw various interest rate hikes since 2022, from 0.13% to currently 5%-5.25%. Unfortunately, that means the stock market is likely to underperform compared to the past ten years. Therefore it is even more important to be cautious with any investment activities.
1. Amazon (NASD:AMZN)
Amazon belongs to the long-term growth stocks, and their e-commerce platform business results are outstanding. In addition, Amazon’s cloud services have become a major source of income, and there are many potentials to grow further in this area. More and more SAAS products are released and run on Amazon’s cloud infrastructure.
Amazon is among the best stocks to buy in the best virtual reality stocks category due to its cloud technology and IT potential. Since 2008, institutions and private investors have used every significant pullback in price as a buying opportunity.
Amazon is listed on the Nasdaq and is part of the S&P 500 with a market capitalization of $1,151,01B. The price per share rose from its lows in December 2011 of $8.35 to its all-time high of $188.65 in July 2021.
AMZN tested support at $81.43 in January 2023 and formed a bottom. Then prices bounced back to make its first higher low on the monthly chart in March 2023. The resistance level is now $114, then $146.57. Major support remains around $81.
The 5-Year EPS Growth Estimate is currently negative, and the mean consensus target price of analysis estimates is $183.78. Seasonality indicates that November and March are the best-performing months, while January and February are the laggards.
2. Apple Inc (NASD:AAPL)
Apple is the unbeaten leader of billion-market cap companies with a current market cap of 2,732.86B. In September, Apple introduced the brand new iPhone 14 and iPhone 14 Plus, with a new dual-camera system and the best battery life on iPhone.
In October 2022, Apple Music surpassed 100 million songs. With the new Apple Watch Ultra, more features to the luxury watch segment were announced. Like other stocks, also Apple is not at its all-time high, but the extent of consolidation is less pronounced than for other shares.
AAPL is trading at $172.57, coming closer to its main resistance at the all-time high at $182.94. The current upmove since the lows of January 2023 was in one move on the monthly chart, and it is likely that we see a pullback in that direction before the stock makes its final decision about the direction. Main support is at $124.17.
The 5-Year EPS Growth Estimate is currently at 8.0%, and the mean consensus target price of analysis estimates is $183.78. The 25-year seasonality indicates that the months of July and October perform the best, while June and September perform the worst.
3. Alphabet Inc. (NASD:GOOG)
Alphabet is a billion-market cap stock with a market cap of 1,494.43B. Alphabet offers a multitude of internet-related services and software solutions. Google is the leading search engine worldwide, but also cloud computing, streaming entertainment, apps, and the mobile operating system Android are part of the services and solutions offered by Alphabet.
The main revenue stream of Alphabet is the advertising income from Google Ads and Google AdSense. Whenever a user clicks on an advertisement, Google makes money. Google services count for over 90% of revenue. In July 2022, Alphabet did a 20:1 stock split to make the stock price more attractive to retail investors.
Google Cloud counts for less than 10% of Alphabet’s revenue and has its main rivals in Microsoft (MSFT) and Amazon (AMZN).
Since there is no real alternative to Google search, Alphabet is an evergrowing company with steady growth potential. Still, even with excellent growth and profitability, Alphabet pointed out that they will likely never pay dividends to their shareholders. So instead, they invest in further growth.
GOOG is trading at $117.92, with resistance at $123.26 and major support at that latest low of $83.45. There was a small higher low on the monthly chart at the beginning of 2023, which is a bullish sign.
The 5-Year EPS Growth Estimate is currently at 17.6%, and the mean consensus target price of analysis estimates is $117.92. The 25-year seasonality indicates that the months of October and December perform the best, while February and May perform the worst on average.
4. Procter & Gamble (NYSE:PG)
The Procter & Gamble Company pays a dividend of $3.76 per share, has a market cap of $363.89B and a moderate price P/E of 27.1. The company fundamentals of the consumer products manufacturer are solid, and they increased dividends for 64 consecutive years.
In addition, Procter & Gambles’ business is entirely independent of the current state of the economy since they sell products that people always need and consume. Other high-dividend stocks may pay higher dividends per share right now, but the company convinces of solid and steady business and earnings growth for the business and dividends in the long term.
PG tested support around $122 and meanwhile formed a higher low and higher high in the monthly time frame. The next major resistance level is at the all-time-highs around $165.35.
The 5-Year EPS Growth Estimate is currently at 5.4%, and the mean consensus target price of analysis estimates is $155.96. The dividend yield is currently at 2.4%. The 25-year seasonality indicates that July and December are the best-performing months, while January and March are the laggards.
5. NVIDIA (NASD:NVDA)
Nvidia has a stunning growth rate and recently announced to build their own CPUs. The company also launched the NVIDIA Maxine cloud-AI video streaming platform last year. Since the invention of the GPU in 1999, Nvidia’s grew fundamentally due to the PC gaming market.
Bitcoin miners heavily invested in GPUs, and the overall business development boosted the price per share from $8 to $346.47. With the CPU announcement, it seems to be only a matter of time until Nvidia provides an all-in-one solution for gamers. Still, the Bitcoin boom got stopped by the end of 2021.
With energy prices at extremely high levels, mining Bitcoin is less profitable, and the demand from miners for more and more GPUs has diminished.
In addition, Nvidia announced that the new RTX 40 GPU generation could not be entirely used for mining purposes. The first comparison to the RTX 30 series shows that there might not be the GPU performance boost most gamers were looking for.
NVDA broke major support levels but found support at $123.47 in October 2022 and is now trading at $283.40. The major support and resistance levels are far away from each other. Support is at $12.47, while the major resistance is at $346.47.
The 5-Year EPS Growth Estimate is currently at 21.2%, and the mean consensus target price of analysis estimates is $283.40. The dividend yield is currently at 0.1%. The 25-year seasonality indicates that August and November are the best-performing months, while June and July are the laggards.
6. Shopify (NYSE:SHOP)
With Shopify, you don’t need to know anything about website design or programming because it’s all done with an app that is easy to use and has templates for almost any type of store. Shopify was one of the best-performing stocks during the lockdown when the price per share hit its all-time high of $176.29, with a P/E ratio above 500. While Shopify had to prove that the earnings would grow significantly in the future, the price per share reflected the euphoria in this sector.
Currently, there is not much left of the euphoria, and the P/E ratio is back in the negative zone with an EPS of -1.51. Still, Shopify is the market leader in the segment, and the internet is here to stay. So, Shopify can potentially get some upside momentum in the longer term.
SHOP currently broke support at around $28 and established support at $23.63 in October 2022. In March 2023, SHOP formed a higher low, and in May 2023, a higher high, which is bullish. There is no major resistance level up until $176.29, and support is now around $23.
The 5-Year EPS Growth Estimate is currently at -57.6%, and the mean consensus target price of analysis estimates is $60.10, with more and more estimates weighting the rating at neutral instead of bullish. The 25-year seasonality indicates that April and November are the best-performing months, while October and December are the laggards.
7. Berkshire Hathaway (NYSE:BRK.B)
Berkshire Hathaway was founded in 1955 by Warren Buffet and is located in Omaha, Nebraska. Warren Buffet is not always right with his investment decisions, but overall he is, and the price per share of class B shares shows strong growth with minimal drawdowns in the past 10 years. Berkshire Hathaway is an interesting alternative to classical mutual funds.
You can buy a stock without any management fees and better returns compared to the market average. It is a good stock to invest in by using cost leverage effects. Instead of one high upfront investment, a monthly investment rate can be used. One thing to note is that the price per share is $322.49, and that is not necessarily optimal for monthly investments. But it is still better than investing in Class A shares of the company BRK-A currently priced at $491,182.5 per share.
BRK-B formed a higher low in March 2023 and a higher high in April 2023. The major support levels are $292.42 and $259.85. Overhead resistance is at $362.10.
The 5-Year EPS Growth Estimate is currently at 23.3%, and the mean consensus target price of analysis estimates is currently unavailable. The 25-year seasonality indicates that November and December are the best-performing months, while May and June are the laggards.
8. Coinbase (NASD:COIN)
The Coinbase IPO announcement caused a global boom in bitcoin investments and pushed the price per bitcoin to its high of $64,863.10 on April 14, 2021. Coinbase decided for a direct listing on Nasdaq and started trading on April 14, 2021, at a price per share of $381, which went as high as $429.54 on that day to close at $328.28.
Since that day, neither Bitcoin nor Coinbase saw their all-time highs again. Nonetheless, Coinbase is the leading cryptocurrency platform with outstanding business growth potential and a market cap of $14.16B. Still, the potential primarily depends on the further development in cryptocurrencies and the income based on commissions. Coinbase is a high-risk investment.
It’s noteworthy to mention that Elon Musk decided to invest a major part of Tesla’s balance sheet into Bitcoin, MicroStrategy started paying the board of directors in Bitcoin, and more and more crypto-financial products were released to the public. It seems that we are just at the beginning of a major crypto-investment trend, and even if it doesn’t look right now, we may see Bitcoin double its price in the near future to over $100,000.
COIN is trading at $57.34. A break of the current all-time lows at $31.83 to the downside could speed up selling pressure, requiring patience until the stock returns to an uptrend. COIN formed a lower high in March 2023, which could either end up in a new all-time low or inverted head-and-shoulder pattern. A break of $87.63 to the upside would be bullish, while a break of the all-time low would be bearish.
The 5-Year EPS Growth Estimate is currently not available, and the mean consensus target price of analysis estimates is $57.34. Various analysts stepped in and rated COIN with sell. That confirms that COIN is a highly speculative investment.
9. Ericsson (NASD:ERIC)
Ericsson is the 5G technology leader and belongs to the best 5G stocks you can buy. The company is a multinational telecommunications equipment and services corporation that was founded in 1876. The P/E ratio is 10.28, and the EPS is $0.50. The market value is currently at 17.62B, and with a stock price of $5.17, we are near the 10 year low of $4.83.
The main potential of this stock arises mainly from the business associated with the expansion of the 5G network, while patent fights recently had an impact on the earnings results.
ERIC is trading at $5.17, with a 10-year low and major support at $4.83. A break of the all-time lows at $4.83 opens more downside momentum potential. But to the upside, ERIC has room to $6.82, then $7.81 and $9.80.
The 5-Year EPS Growth Estimate is currently at -9.9%, and the mean consensus target price of analysis estimates is $6.13. ERIC has excellent Price/Cash Flow and Price / FCF ratings. The 25-year seasonality indicates that the months of January and February perform the best, while July and December perform the worst.
10. Starlink (IPO)
Starlink is the satellite-based internet initiative by Elon Musk. The idea of the project is to provide internet access via satellites worldwide at an affordable price. Like other projects led by Elon Musk, be it SpaceX or Tesla – Starlink is based on his vision to make something happen that everyone else says is impossible.
Starlink is the favorite potential IPO in the near future of a privately held company. Starlink easily beats the potential of TikTok, or Instagram.
Conclusion About the Best Stocks to Buy Now
Not long ago, the market was at all-time highs, and many companies had a price-earnings ratio of over 80. The housing market was at its highs, and the interest rates were at their lows. From a long-term perspective, we would most likely see a significant market consolidation or even a sharp downturn within the next 5 years. A change in the interest rate policy could move the needle here, is what I wrote in 2021. and that’s precisely what happened.
The FED announces higher and higher interest rates to fight inflation. We are at a point where it is unclear if we will end up in a recession, if the inflation risk will go away, or if the energy crisis will make things even harder. Therefore, currently is not the time to invest big money in the stock market by hoping that we are at its lows right now. Instead, old investment rules become more important again. It is crucial to think about cost averaging effects and the power of long-term investments.
In the long term, there are no real alternatives to Wall Street. But there are plenty of choices, and diversification is key when adding new stocks to the brokerage account. Based on media reports, many people used the stimulus bill to invest but also to pay bills. No one was speaking about a potential stock market crash, but the best stock market movies show that crazy things can happen.
The housing market involves another major risk. Right now, there is not much media appearance about a housing market crash, but if interest rates go even higher (and right now it looks like this), it will be more difficult to house buyers to pay their mortgage rates, which could end up in selling more shares of their portfolios and less available money to be invested in the stock market. The cycle could end up in heavy money outflow and a real stock market crash.
Still, like the downturn came all of a sudden, we could overnight see a stabilization of the economy with steadily climbing markets again. No one knows, not you, not me, not a self-claimed stock market guru. That’s why it is important to diversify and use the cost averaging effect, focusing on good stocks to buy.
Protecting your money should always be the number one priority, and cash in your account is good when the markets retrace. An all-in investment by flooding a brokerage account with all types of stocks just to be invested is most likely an unfavorable decision in the mid-term.
Please note that this list is not investment advice. I strongly recommend you analyze any potential investment on your own before buying and selling shares of stock. There is always a risk associated with investing, and the higher the profit potential, the higher the risk. Stock picking services can help find the right stocks to invest in regularly with constantly updated company values, results, and analysis.
The charts, technical analysis, fundamentals, and the table below reflect the data as of May 12, 2023.
|Mean Consensus Target Price By Analysts
|Apple Inc (AAPL)
|Alphabet Inc (GOOG)
|Procter & Gamble (PG)
|Berkshire Hathaway (BRK.B)
|Coinbase Global (COIN)
|Telefonaktie bolaget L M (ERIC)
Stock Market Data 101
Stock trading can be challenging for beginners and new investors. There are quite a few important aspects when it comes to stock market analysis. It ranges from how the data is analyzed by tools and interpreting the numbers to analyze the product development content measurement.
Data analysis of stocks is important for every investor. You need to know how the stock market works to succeed. The tools that investors use include best long-term stocks, best dividend stocks and more. You would choose these because they require less work than other types while still providing good potential returns. Analysts use dozens of datasets to build an opinion, and data is an important factor for the privately processed due diligence process.
A companies product is crucial for data analysis. The best stock is usually determined by the product and not just revenue. You need the experience to understand the products and their profit potential. Audience insights and detailed information about a companies product and access to financial key figures help to determine the potential. Reading news, keeping an eye on the net income of companies per product and checking their social media channels for most recent statements helps to understand the business better.
Content measurement is something that is important to look at when you are trying to measure the best stocks. The content must be high quality and engaging for it to have a positive impact on potential investors. It’s also important that this type of content should not just focus on one topic but instead cover as many topics as possible.
How to pick stocks?
Investing in the stock market requires extensive research of company fundamentals. But even if you have read the best stock trading books and best swing trading books to learn the best investing and swing trading strategies, you may still wonder how can investors receive compounding returns making the right investment decisions.
There are two popular ways when it comes to the answer to the question of how to pick stocks. One is that the investor does all the research independently, taking full responsibility for the whole process. Alternatively, there are a couple of stock picking services out there that take care of the selection process and investors often directly buy and sell based on such recommendations.
When is the best time within a day to buy stocks?
You may have wondered if there is a best time of day to buy stocks. Actually, for long term investing, the specific time of day is not that important, while buying and selling at specific times can be beneficial for day traders.
How to find undervalued stocks?
It needs extensive experience to find undervalued stocks by using free tools for media stock research because the most powerful stock analysis research filters are often behind a paywall.
How to buy the best stocks?
The best stock trading apps and low-commission brokers are essential to buying the right stocks at a reasonable price and as low as possible commissions. Long-term investors chose a zero-commission broker with excellent financials and long-term business stability. Day traders focus on fast executions and excellent trading tools.
What apps can I use to track portfolio performance?
Broker integrated tools help you to track one portfolio and the overall stock market performance easily. In contrast, the best stock tracking app goes a step further and allows you to monitor multiple portfolios.
How many stocks should I buy?
The guide on how many stocks I should buy explains various position sizing concepts, the importance of diversification and market risk. There are also some ways on how to get free stocks, but they are typically worth about $10 each.
How to buy IPO stock?
Companies can either do their IPO using a big bank and brokerage firm or go with a direct listing. Both methods can result in IPO underpricing.
What are the largest stock exchanges in the world?
The largest stock exchanges in the world are the New York stock exchange, Nasdaq stock exchange and Japan Exchange Group.
What types of stock splits exist?
There are two types of stock splits. The regular stock split where you receive a defined multiple number of stocks in exchange for one stock in your portfolio, while the price per share gets reduced by the same multiplier. If you hold 10 shares with $10 each and the stock split is 1:2, you have 20 stocks with a price per share of $5 on the day when the stock split is exercised. Prices typically increase once such stock splits happened, as we saw with Apple and Tesla.
There is also a reverse stock split. So what is a reverse stock split? It is the opposite. The price per share is often that low that companies want to attract more investors pushing the price per share again above a meaningful level. If you hold 1,000 shares with $0.10 each, and a stock split of 100:1 happens, the next day, you have only 10 stocks worth $10 each.