What Stock Should I Buy Right Now

Last year, all three major indexes touched bear territory. Though they've rebounded from their lows, the market environment remains tough. Interest rates are on the rise. Higher inflation continues to be a concern. And those elements weigh on companies' earnings prospects. All of this probably has you wondering if you really should buy stocks right now.

what stock should i buy right now

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First, a quick refresher on Buffett's investment strategy. He believes in buying quality stocks and holding on for the long term. He aims to snap up these companies for a price that's lower than their intrinsic value, or what they truly are worth. The idea is the market eventually will recognize the quality company's value -- and the stock should rise.

Amazon stock plummeted as rising inflation weighed on the company's costs -- and on its shoppers' wallets. It may take some time for earnings and the stock price to recover. But I'm confident it will. Amazon is a leader in two high-growth markets -- e-commerce and cloud computing -- and the company is taking the necessary cost management steps today to succeed over time.

As for the second part of the Buffett quote: Personal fear is our enemy because in tough times, it will push us to do things we probably shouldn't, like sell a quality company just because it's declining. As Buffett says, you're better off ignoring overpriced stocks and instead holding on to good businesses "for an extended period."

So, considering Buffett's quote and his general investing strategy, it's clear that today is a fine time to invest. Valuations of many quality companies have dropped, offering you great entry points. Even if the stock doesn't rebound right away, that's OK. Like Warren Buffett, you're in this for the long haul. And like Buffett, you may reap rewards down the road too.

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist? MercadoLibre (MELI), Meta Platforms (META), HubSpot (HUBS), PagerDuty (PD) and Palo Alto Networks (PANW) are prime candidates.

The CAN SLIM system offers clear guidelines on what you should be looking for. Invest in stocks with recent quarterly and annual earnings growth of at least 25%. Look for companies that have new, game-changing products and services. Also consider not-yet-profitable companies, often recent IPOs, that are generating tremendous revenue growth.

Once you have found a stock that fits the criteria, it is then time to turn to stock charts to plot a good entry point. You should wait for a stock to form a base, and then buy once it reaches a buy point, ideally in heavy volume. In many cases, a stock reaches a proper buy point when it breaks above the original high on the left side of the base. More information on what a base is, and how charts can be used to win big on the stock market, can be found here.

A key part of the CAN SLIM formula is the M, which stands for market. Most stocks, even the very best, follow the market direction. Invest when the stock market is in a confirmed uptrend and move to cash when the stock market goes into a correction.

A stock market rally that kicked off 2022 soon fell on its face. The market overall has been choppy since then, with bear market rallies often being undercut by painful drawdowns. While the Nasdaq looks healthy, the S&P 500 has fallen under the 50-day moving average amid challenging action sparked by negative action among bank stocks.

Now is a time to prepare for the next stock market uptrend by creating a robust watchlist. Focus on fundamentally strong stocks coming out of sound chart patterns, such as those in the IBD 50. These names will tend to have rising relative strength lines. The stocks below are good candidates.

Now let's look at MercadoLibre stock, Meta stock, HubSpot stock, PagerDuty stock and Palo Alto Networks stock in more detail. An important consideration is that these stocks all boast impressive relative strength.

MELI stock has surged into first place in IBD's competitive Retail-Internet industry group. Other high fliers include China e-commerce giant Pinduoduo (PDD) and Etsy (ETSY).

Lackluster earnings are reflected in an EPS Rating of 48 out of 99. Despite this, growing bullish sentiment is reflected in the fact it is in the top 4% of stocks in terms of price performance over the past 12 months.

Encouragingly, the stock has been getting support at its 21-day exponential moving average and recently found support at the 50-day/10-week line. IBD research has found that big stock market winners tend to find support at the 21-day after a breakout for at least several weeks.

When markets swoon and stock prices drop across the board, smart traders know there are deals to be had. But picking the right stock to buy is tough: How do you decide which ones are poised to bounce back?

Buying the dip is not a simple trading strategy and should be approached cautiously. Done right, you can earn a fat discount on stocks with sound fundamentals and strong prospects. Think of it like buying quality stocks at a discount.

The truth is that many great companies get dinged in short-term market drops but tend to perform very well over time. When you know which metrics of quality to track to uncover cheap stocks to buy, you can pick winners that the market may reward with higher prices after the dip.

We have identified nine cheap stocks to buy that have fallen along with the S&P 500 over the last year and have yet to recover. Each company has a multiyear history of growing earnings per share (EPS) and revenue, and analysts are still expecting similar growth in the years ahead.

Back in 2021, SPWH entered a merger arrangement with Great Outdoors Group, but the deal was called off due to regulatory challenges. The stock price sank as much as 55% over the next year as investors who were expecting the merger sold out. Shares of SPWH remain about 49% below their all-time highs from 2020.

While shares of UMC have gained more than 300% over the last five years, the stock is currently trading 31% below its 2021 all-time high. Over the last decade, UMC has seen multiple declines of 30% to 50%, and the pullbacks ended up being excellent entry points to buy the dip.

Please note that the stocks above were selected by an experienced financial analyst, but they may not be right for your portfolio. Before you decide to purchase any of these stocks, do plenty of research to ensure they are aligned with your financial goals and risk tolerance.

Cory has been a professional trader since 2005, and holds a Chartered Market Technician (CMT) designation. He has been widely published, writing for Technical Analysis of Stock & Commodities magazine, Investopedia, Benzinga, and others. He runs TradeThatSwing.com, has authored several trading courses and books, coaches individual clients, and regularly trades stocks, currencies, and ETFs.

When seeking out the best stocks to buy now, investors will need to be brave and patient in regard to timing, as well as agile as the stock market eventually transitions from bear market to bull market. Go ahead and add resolute to the character traits you'll need this year, because many market strategists say you can't get from one market to the other without going through a recession first.

Given the uncertain, sometimes roiling backdrop for stocks, where should investors look when seeking out the best stocks to buy now? A popular piece of advice among Wall Street strategists now is to resist the bargain-basement appeal of the most beaten-up stocks and focus instead on high-quality shares. "Investors should avoid volatile names and be cautious on both deep-value and unprofitable growth companies," says Koesterich. "Instead, emphasize quality with a focus on earnings consistency and good profitability."

Now may be a good time to tilt toward value-oriented companies and small-cap stocks, both longtime underperformers that are showing signs of new life. Over the past five years, for example, the S&P 500 Value Index (opens in new tab) has returned 6.2% annualized, compared with 9.1% for the S&P 500 Growth Index (opens in new tab). Through early 2023, value has outperformed growth, with a 4.1% return compared to growth's 3.8% gain. "We would stick with value. These cycles last a while," says Ryan Detrick, chief market strategist at money management firm Carson Group (opens in new tab). Sectors typically grouped in the value style include energy, financials, industrials and materials.

So, with all of this in mind, here are 12 of the best stocks to buy now. The names featured here vary by size and industry and are not meant to compose a diversified portfolio. But all, for one reason or another, are well positioned to benefit from a transition to a bull market from a bear market in 2023.

Don't ignore the tenets of diversification and shun tech or the growthier side of the market completely when adjusting your portfolio to include the best stocks to buy now. Instead, take a barbell approach, says Tony DeSpirito, a managing director and portfolio manager at BlackRock (opens in new tab). This will allow you to scoop up value-focused shares at historically attractive relative price-to-earnings ratios (P/Es) and high-growth stocks at valuations that have come down from the stratosphere and are now at normal, if not yet underpriced, levels.

Take Advanced Micro Devices (AMD (opens in new tab), $76.61), a leading semiconductor manufacturer. Analysts have mixed ratings on one of Wall Street's best semiconductor stocks in part because an economic slowdown and negative investor sentiment are near-term obstacles.

Still, analysts on average expect a 27% jump in annual earnings over the next three to five years, according to S&P Global Market Intelligence, ahead of the company's peers, fueled in part by market-share gains for its data-center chips (sales climbed 42% in the most recent quarter compared with the year before). Analyst Vijay Rakesh, at Mizuho Securities USA, rates the semiconductor stock a Buy and recently assigned the shares a 12-month price target of $90. 041b061a72