The Pros’ 10 Best S&P 500 Stocks to Buy Now

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After posting losses for many years, LYV became profitable in 2022 and has seen big earnings growth since. Analysts estimate the company will average an annual EPS increase of 41.9% over the next fiscal year and a 7.8% sales increase. Beyond your own personal risk tolerance and how long you plan to invest, strategic investors do significant research into a company before buying its stock. They perform fundamental analysis, which involves looking at the company’s financial statements and considering how economic factors might influence the stock’s future performance. Diamondback Energy (FANG), with a market value of more than $36 billion, is the premier pure-play shale driller in the Southwest’s Permian Basin, according to analysts at The Carson Group, an investment management firm. Diamondback has an exceptionally low cost of production, they note, and generates attractive free cash flow – a key factor for those seeking out the best stocks to buy.

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Alphabet is projecting a 15% increase in its top line this fiscal year and another 15% rise in fiscal 2023. Part of this improvement is because Google’s ad network remains the go-to platform for digital marketing, and we continue to see brisk growth in this category. However, the strong analyst support for this stock proves that analysts who are in the know still have faith in its global operations despite the humanitarian crisis in Ukraine that is disrupting EPAM’s workforce. What’s more, the company is still posting breakneck growth, with Q1 numbers out in may showing an amazing 50% surge in revenue.

The 9 Best Stocks To Buy Now

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These sprints higher tend to be driven by impressive facts that prove MPWR is doing better than many other companies lately. For instance, back in February, the run was sparked by stellar Q4 results that included a 44% surge in revenue, generous margins and a 25% boost to its dividend payment. And in May, Q1 numbers showed margins expanding yet again on a 12% jump in revenue, illustrating that this semiconductor company is not being limited by supply chain challenges that have disrupted other peers in the sector. The airline industry is prone to plenty of financial troubles, with several high-profile bankruptcies over the years. However, Alaska Air is soundly profitable and is plotting a more than 50% YoY surge in revenue as it rebounds from the disruptions of the pandemic and looks to the future. Digging deeper, there’s a lot to like about the outlook of this stock based on recent earnings commentary.

There are plenty of cases to make for why Microsoft is one of the best quantum computing stocks in the market. For one, it has historically rewarded investors with strong returns. Growth stocks may recover when the Fed has achieved its mission to tame inflation and ends rapid interest rate increases. But even then, higher rates could dampen the prospects of growth stocks for years to come. The Federal Reserve is committed to raising interest rates until U.S. inflation begins to cool off. That’s bad news for growth stocks, which suffer in a rising rate environment.

  1. I’ve covered this story for over a decade now, but I’ve been an investing writer for far longer.
  2. Still, the analysts see the stock soaring to a 12- to 18-month price target of $85 a share – more than 80% above its current price.
  3. Then it rallied more than 300% to near its recent all-time high.

Last year, the software provider reported cash and investments worth $130 billion, on top of net operating cash flow of $77 billion. Iqvia Holdings (IQV, $220.50) is the sole healthcare company among the top-rated stocks in the S&P 500 Index. However, it is equal parts a technology company, as it provides advanced analytics and clinical research services to the life sciences industry worldwide, including monitoring of clinical drug trials and central laboratory services.

Chip designs are increasingly complex, and that’s driving demand for Cadence Design Systems’ (CDNS) products, which help companies design and test semiconductors. Customers such as Nvidia (NVDA), Broadcom (AVGO) and Tesla (TSLA) can’t stay away. With that in mind, here are eight of the best stocks to buy now. “A positive inflection in volumes should support low valuation and potentially drive rotation from other consumer staples sub-sectors (Beverages/Household Personal Care) as investors chase underperforming food names,” he says. Kraft Heinz is one of the world’s largest consumer packaged food and beverage companies.

Growth investing is generally considered a more offensive investment style than value investing. Growth stocks have historically performed better during periods when interest rates are low or falling and corporate earnings are growing. Growth stocks are public companies growing their profits, revenue or cash flow at rates well above their competitors and the market at large. Investors choose growth stocks to earn profits from the rapid price appreciation they promise. Having posted several years of modest earnings per share, PODD’s high P/E of 116 shows investors’ bullish sentiment. The company will need high earnings growth to justify its current valuation.

Income-oriented investors will appreciate Diamondback’s juicy 4.6% yield. And the shares trade at just 10.2 times the consensus of analysts’ expected earnings for the next 12 months. The consensus price target for Diamondback’s shares is an average $222.04, which implies a gain of roughly 9% from the energy stock’s recent close. The company has the highest buyback yield on the list at 11%.

The stock is trading below its 52-week high and its all-time 2022 high. LYV’s share price gain has outpaced the S&P 500 over the past decade, averaging 15.9% per year versus 12% per year for the S&P 500. Our editors are committed to bringing you unbiased ratings and information.

It is the parent company of popular brands such as Kraft, Heinz, Oscar Meyer and Maxwell House. Progressive is a leading U.S. auto and motorcycle insurance provider, including commercial auto insurance. Shares of Monolithic Power Systems (MPWR, $455.85) have fared a bit better than the market at large this year, posting an 8% loss year-to-date vs. about 13% for the S&P 500. But it’s important to understand the unique challenges that led to the recent declines – and why the future outlook of EPAM is still bright.

WillScot Mobile provides flexible workspace and storage solutions. The company sells coconut water, coconut oil and other coconut-related products around the world. This is my hand-selected list of top stocks to buy right now. Although the Magnificent 7 stocks have done much of the bull market’s heavy lifting, that hardly means these names are doomed to underperform from here. Indeed, as we’ll see below, three of Wall Street’s top five stocks to buy now hail from the Magnificent 7. Companies from the energy, consumer staples and healthcare sectors are ably represented too.

Bank of America has a “buy” rating and $52 price target for TPR stock. Bank of America has a “buy” rating and $450 price target for ISRG stock. Bank of America has a “buy” rating and $173 price target for GOOGL stock.

Conrad expects steady growth for the remainder of this year and next. Bank of America’s top 10 U.S. ideas list contains both long ideas and short ideas, but the stock recommendations included in this list are the firm’s long ideas only. FIS is a fintech company that is unrelated to Fidelity Investments, a Boston-based brokerage and money management firm, whose parent is Fidelity Management & Research Company. “In our view, the gap between perceived versus real risk should narrow as the Street gains better visibility into the core earnings trajectory, thereby driving a re-rating higher in the stock,” Poonawala says. “TopBuild’s guidance conservatively assumes single-family starts roughly in-line with the current trend (low-to-mid single% YoY in 2024) but we see upside to the starts outlook and expect single-family starts to increase ~9%,” Jadrosich says. “The combined company cash flow should support steady debt paydown and TPR’s experience with reconfiguring distribution at Coach can be applied to Kors,” Hutchinson says.

The company currently has seven ratings, with all being a Buy. These fundamentals make D-Wave a strong favorite for quantum computing stocks right now. Growth investors are often willing to buy stocks with high P/E or P/S ratios based on the expectation that the companies will eventually grow into and beyond their current valuation. Growth stocks tend to be more volatile than the broader market, and investors often sell growth stocks during periods of uncertainty in the market. The company has a “B” financial health rating from Morningstar. PODD’s total return over the past decade averaged 18.5% annually versus 12.1% for the broad market in the form of the S&P 500 Index.

In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more. If the idea is to buy low, then going shopping for stocks when markets are reeling with volatility after setting a series of record highs might not seem all that appealing. But there are always select names set to outperform — and that’s especially true when market leadership is comparatively narrow. The fact that picking stocks is so difficult leads many investors to turn to index funds and exchange-traded funds, which bundle many stocks together.

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