Top 50 Stocks To Buy
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.
top 50 stocks to buy
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.
Matador Resources (MTDR (opens in new tab), $52.38) is an oil and gas exploration and production company that has risen alongside its fellow energy stocks over the last 12 months. Specifically, MTDR stock is up more than 20% year-over-year.
Even with its impressive growth on the charts, MTDR is one of best values on this list of the best stocks to buy now. Shares are currently trading at just 5.1 times forward earnings, well below Matador's five-year average of 11.2.
Investors seeking out the best stocks to buy now might consider holding for longer than one year: Keith says she sees "significant market-share opportunity" for Workday, and over the next three years, the stock's potential reward outweighs the risk.
Why is Merck (MRK (opens in new tab), $109.16) on this list of the best stocks to buy now? The pharmaceutical giant is known for its high returns over the past decade. Analysts are upbeat toward MRK, too, as evidenced by a consensus rating of Buy. Of the 27 analysts that follow Merck tracked by S&P Global Market Intelligence, 13 say it's a Strong Buy, seven have it a Buy, six call it a Hold and one rates it at Sell.
And for investors seeking out the best defensive stocks, Huynh says MRK's growth is "low risk," and that cancer drug Keytruda and HPV vaccine Gardasil are "well established and less affected in the near term by healthcare reforms under the Inflation Reduction Act (IRA) than peers."
Morgan Stanley (opens in new tab) analyst Matthew Harrison upgraded the stock recently to Overweight, the equivalent of Buy, citing the strength of the company's pipeline and the stock's undervalued price. Amgen shares have gained about 7% over the past 12 months but trade at 13 times 2023 expected earnings, a fraction of the P/E of 70 that's typical for biotech firms. With all this in mind, it's easy to see why AMGN is on this list of the best stocks to buy now.
The IBD 50 highlights today's best growth stocks. And on this page, you'll find timely analysis of selected IBD 50 stocks that are near a buy point or trading in a new buy zone. You'll also find stocks revealing important lessons on buying, selling or on how to read stock charts.
From Alibaba (BABA) and Apple (AAPL) to Netflix (NFLX) and Nvidia (NVDA), virtually all of the best growth stocks typically appear on the IBD 50 in the early stages of a big move.
See the current IBD 50 to find out which leading growth stocks are on the list right now. You can also check the latest IBD Stock Lists Update to track which stocks just came on and off the IBD 50 and other screens.
The strategy behind the IBD 50 is simple. Based on a study of every top-performing stock over the last 130-plus years, IBD has identified the seven traits of winning stocks. The IBD 50 simply highlights today's growth stocks that are most strongly showing those same characteristics.
Weighted Alpha is a measure of how much a stock has risen or fallen over a one-year period. The original research was restricted to large cap stocks, so the corresponding rise in the S&P 500 index was subtracted; however, as there are a number of interesting stocks that do not fit well into any category, and others that fit into more than one category, the results are presented without subtracting any index.
Available only with a Premier Membership, you can opt to receive an end-of-day email of newly ranked stocks to the Top 100 page. A newly ranked stock is one whose previous rank appears as "N/A" on the page.
The list of symbols included on the page is updated every 10 minutes throughout the trading day. However, new stocks are not automatically added to or re-ranked on the page until the site performs its 10-minute update.
In the midst of all of this pain, however, there is likely opportunity. The stocks on this list all trade for under $50 per share, but each has an investment thesis supporting significant potential gains down the road. All are down by double-digit percentages year-to-date, which could offer an attractive entry point for long-term investors.
Another reason why some analysts see a rally is that, historically, midterm elections have been bullish for stocks. On October 22 Dr. Ed Yardeni, president of Yardeni Research, Inc., appeared in an interview on CNBC where he built the bull case for why he sees the market entering a "Santa Claus rally" as we move into year-end. Here are some comments from Dr. Ed Yardeni:
Investing in stocks that trade for under $50 can be a great way to make money in the stock market. These stocks are often overlooked by investors and analysts and can help investors outperform the broad market with a relatively small investment. However, these shares are susceptible to both positive and negative volatility and investors should always bear in mind their risk tolerance. Some of the top stocks to buy now that are currently trading for less than $50 a share include Vale S.A. (NYSE:VALE), Hormel Foods Corporation (NYSE:HRL), and FirstEnergy Corp. (NYSE:FE). These stocks, among others, are discussed in detail in the article below.
To determine the best stocks to buy right now that are trading for less than $50 a share, we screened for quality companies that had leading positions in their respective spaces. We preferred companies with healthy balance sheets and positive market sentiment. Along with each stock, we have mentioned the hedge fund sentiment, analyst ratings, and relevant growth catalysts which make them viable investment options to consider right now. These stocks are ranked according to their popularity among elite hedge funds.
Centrus Energy Corp. (NYSE:LEU) is a leading provider of uranium enrichment services to the U.S. government and commercial nuclear power industry. The company has a long history of successful operations, a strong balance sheet, and an experienced management team. On September 14, Centrus Energy Corp. (NYSE:LEU) announced that it has secured new nuclear fuel sales contracts worth $320 million over the past twelve months. Centrus Energy Corp. (NYSE:LEU) is well-positioned to benefit from the continued growth of the nuclear power industry, both in the United States and around the world and is among the best stocks to buy right now.
Clearwater Paper Corporation (NYSE:CLW) is an American pulp and paper company headquartered in Spokane, Washington. The company operates through three segments: Pulp and Paperboard, Consumer Products, and Forest Products. Clearwater Paper Corporation (NYSE:CLW) is seeing strong demand for its products as companies around the world are looking to reduce their environmental impact. The company is well-positioned to benefit from the growing trend of consumers wanting to buy products that are made from recycled materials and is therefore one of the best stocks to buy right now.
AbCellera Biologics Inc. (NASDAQ:ABCL) is a leading clinical-stage biotechnology company that discovers, develops, and manufactures therapeutic antibodies. The company's platform enables rapid screening of natural immune responses to pathogenic and non-pathogenic proteins. The company has a strong cash position and its shares are currently attractively valued. As of October 21, the stock has a trailing twelve-month PE ratio of 15x and free cash flows of $286.76 million. AbCellera Biologics Inc. (NASDAQ:ABCL) is ranked high among the best stocks to buy now. 041b061a72