BEST STOCKS TO BUY NOW
Looking for the Best Stocks to Buy Now? To help our readers, we have compiled lists of the best stocks to buy now from some of the most reputable stock advisors and newsletter services.
Since there are many different sources and investors have different objectives, there are several lists and links to other sites. We have included lists of the Best Stocks to Buy Now for the following categories:
- Buy and Hold Investors
- Aggressive Investors, and
- Growth and Income Investors.
Remember, no one can predict the stock market perfectly all the time. But we at WallStreetSurvivor.com have pulled together many of the most popular “Best Stocks to Buy Now” lists from the most reputable sources.
Below you will find several lists. We also give our opinions and/or share our experiences for some of them.
————– UPDATED DECEMBER 21, 2019 ————–
It's always best to research stocks carefully before buying them. You should also make sure that they fit your investing objective. If you want to test some of these stock picks, then register for our FREE virtual trading account. When you register, we will give you $100,000 in play money to test your strategies.
BEST STOCKS TO BUY NOW FOR BUY & HOLD STRATEGY
Finding the best stocks to buy now is not easy because no one knows what the future holds. As the owners of WallStreetSurvivor, however, we want to help our users learn how to invest in the stock market and increase their confidence in their ability to manage their own portfolios. To help our users, 5 years ago we began purchasing dozens of the most popular stock newsletters to see if any stock adviser service could really outperform the market consistently. Next, we then set up virtual trading accounts (since that is what WallStreetSurvivor is all about) for each service and virtually traded all of the picks of all of the newsletters.
After our first year (2016), we saw that the Motley Fool Stock Advisor was our top performer.
And the top performer in 2017 was also the Motley Fool Stock Advisor.
And for 2018, the Motley Fool Stock Advisor won again.
While obviously we don't have 2019 results yet, as of December 21, 2019, we can tell you that the 72 stock picks from the Motley Fool over the last 3 years are now up, on average, 88.34%. This breaks down as follows:
- Their 24 picks from 2016 are now up, on average, 127% compared to the SP500's 59% so they have outperformed the market by 68%
- Their 24 picks from 2017 are now up 61% compared to the market's 34% so they have beat the market by 27%
- And their 24 picks from 2018 are up 55% compared to the market's 10% so those picks beat the market by 38%.
- Some of their picks over the lat few years have included
- Shopify (SHOP) which is up 866%
- Match Group (MTCH) which is up 549%
- Paycom (PAYC) which is up 236%
- MasterCard (MA) which is now up 176%
- FTNT which is up 157%
- The Trade Desk (TTD) which is up 260%
- OKTA which is up 302%
In conclusion, if you are looking for the best stocks to buy now for a buy and hold strategy, we recommend the Motley Fool Stock Advisor. This service usually costs $199 a year, but if you click here you can get it for just $19.
The Motley Fool releases a variety of BEST STOCKS TO BUY NOW lists throughout the year. Click here to see their just released TOP 10 STOCKS TO BUY RIGHT NOW. Or, CLICK HERE to get their list of 10 Starter Stocks that their top analysts believe should be the rock-solid foundation of any portfolio.
BEST STOCKS TO BUY NOW FOR AGGRESSIVE STRATEGY
While the Motley Fool's Stock Advisor service is the most popular service with over 600,000 paid subscribers, they have another service that actually outperforms their flagship Stock Advisor service.
The Motley Fool's Rule Breaker service has actually done better than the Fool's Stock Advisor service by a wide margin since January 2016.
Here are some of their 2019 picks and their performance so far:
- January 2019 pick Skechers SKX is up 61% since their recommendation date.
- January 2019 pick NexEra Energy NEE is up 33%
- February 2019 pick GH is up 59%
- March 2019 pick Redfin RDFN is down 3%
- March 2019 pick Roku, ROKU is up 159%
- April 2019 pick Five Below FIVE is down 7%
- April 2019 pick Shockwave Medical SWAV is up 1%
- May 2019 pick Salesforce CRM is up 4%
- May 2019 pick UBER is down 27%
- June 2019 pick NVCR is up 51%
- August picks are up 16%
- Their September picks are up 21 and 3%
- Their October picks are up 22 and 25%
- And their November picks are up 4 and 10%
Since January 2016 the average Rule Breaker stock is up 114% whereas the average return of a Stock Advisor pick is up 81%.
There is just one drawback, however. The Rule Breaker's picks have much more volatility than the Stock Advisor's picks. What I mean is that their are a wide variety of returns on the Rule Breakers picks since 2016 with the top being up 1500% but they also have several picks that have lost over 80%. That being said, though, if you did buy equal amounts of all of the Rule Breakers picks you would do 33% better than the Stock Advisor picks. But if you missed just one or two picks, your portfolio would have really missed out.
Click here to get the Rule Breakers latest picks.
BEST STOCKS TO BUY FOR 2019 from US News & World Report
|COMPANY||Jan 1, 2019 PRICE||Dec 21, 2019 PRICE/CHANGE|
NXP SEMICONDUCTORS N.V.
STITCH FIX INC.
JOHNSON & JOHNSON
BERKSHIRE HATHAWAY INC.
TYPES OF STOCKS TO BUY
Not all stocks are created equal, so finding the best stocks to buy has many answers.
The reality is that there are dozens of investing objectives and ways to evaluate stocks. Some people want stability, some want dividends and income, and some want growth.
There are also dozens of different industry sectors that are used to classify stocks. And each sector has different expected returns and volatility. For example, below are 2 of the most popular ones.
Energy stocks typically have to do with companies that are involved in the oil and gas industry. As you may have guessed, the price of oil is key and has a lot to do with profits in this industry. So, please be aware that stock prices in this industry show high variance. And speculation about the price of oil can lead to great profits or massive losses for investors.
This industry is where banks, funds, exchanges and brokerages are categorized. Most of these companies generate steady returns that mirror the general market sentiment. Also, they tend to pay a dividend. However, they are very sensitive to swings in the interest rates. When things are good, these stocks do well – when things are bad, they can mitigate the damage.
OTHER LISTS OF BEST STOCKS TO BUY
Not sure where to go to find stocks? Check out these sites:
- Motley Fool's top stock picks (GREAT RETURNS, and LOW VOLATILITY)
- Click here to see the Rule Breakers latest picks (BEST RETURNS, but HIGH VOLATILITY).
- See a review of the Best Stocks to Buy Newsletters
- Top 100 stocks at barchart.com
- Best stocks by category at InvestorPlace.com
- OR you can try the Motif Investing option which allows you to invest in customizable baskets of stocks in specific categories or industries.
HOW TO FIND STOCKS TO BUY NOW
For starters, finding out what stocks to buy always involves a discussion about PE ratio. The price to earnings ratio of a company represents how much investors are willing to pay based on a company's profits on a per share basis. To put it simply, imagine a theoretical company that has a share price of $50, with earnings per share of $5. The PE ratio of this company is 10 because the price is 10 times greater than the earnings.
While PE ratio is a versatile measuring tool, it varies by industry and fails to paint a detailed picture of a company's true situation. PE ratio can vary based on the expectations of a company's performance and can vary wildly. Use this to your advantage to swoop in when a company's PE ratio has gone down temporarily, and be wary of stocks with high PE ratios as that necessarily means that prices are going up or profits or going down, or both.
Here's Some Tips to Find Stocks to Buy
Stick to what you know. If you don't understand what a company does, don't buy it. Every stock has an underlying business that is the real indicator of success or failure. If you understand that business, than you will have a greater rate of success.
Beware the bubble. While investors would like to think they are reasonable and make sound investment decisions, this is not always the case. This irrational exuberance can lead to herd behavior where everyone jumps on the bandwagon. Beware the hype and stick to your guns.
Check out Modest Money’s Stock Wizard and use their filters and categories to find the right stock for you.
HOW TO READ STOCKS
The best way to read stocks is through dividend yield. A dividend is when a company pays out a sum of money to its shareholders. Dividends can be irregular, but most of the time they are paid out quarterly. Dividends are often distributed as a portion of the company's profits and are typically a safer investment than non-dividend paying stocks.
The dividend yield is pretty simple: take the dividends per share and divide by the price of that share and there you have it. Dividend yield represents how much cash flow one gets for each dollar they invest. A lot of investors prefer stocks with high dividend yield because they pay out cold hard cash.
Dividend yields can be seen almost as an interest rate earned on an investment. The reason dividend yields are so sought after has to with the fact that a company that pays out a steady stream of dividends is often very profitable. The longer the history of these dividends, the better, and more stable the investment becomes.
HOW TO PICK STOCKS
A popular strategy for how to pick stocks is called value investing. The way it works is that investors look to buy companies with high intrinsic value that are trading at a lower price than they should be. In short, they look for solid undervalued stocks and buy them before the rest of the world realizes and the market corrects itself. When the price finally does go up, the value investor makes a nice return and will usually divest from the company in order to re-balance their portfolio as their stock is now worth a lot more than it was before.
Intrinsic value is a tricky thing to estimate. That's because investors have to estimate what a company is worth and there are no right or wrong answers. The idea is that by using careful evaluation techniques and comparables, a smart investor will be able to figure if companies are undervalued and have a guess as to how much.
One can look at key financial ratios like the PE ratio, but that doesn't tell the whole story. Financial statements are another great way to check in on the health of a potential value stock, but what does that say about growth or other comparable companies. There's a lot of work involved, and that's one way how savvy investors can make money by trading undervalued shares on the stock market.
WHERE TO BUY STOCKS
So you want to buy some stocks, but where do you start? Well, the obvious first thing you will need is to find a stockbroker. Brokers are professionals who are licensed to buy and sell stock from the market on your behalf. As you can probably tell, stockbrokers come in all shapes and sizes depending on your investing needs. They can fill all kinds of different orders and the more expensive ones provide analysis and recommendations.
For the beginner investor, we recommend going for an online or discount broker. That's because they offer the smallest barrier to entry. With online brokers you can start trading without even meeting someone face to face. All you have to do is call or chat to set up your account and within a few clicks you can start trading. There are tutorials to help you get started but it's pretty straight forward for the do it yourself type of person.
Discount brokers are a bit different. They are like online brokers but charge a small fee per transaction. While discount brokers are very similar to online brokers, they do provide a small amount of assistance such as company information and other helpful resources. Investors can start at the lower level with discount and online brokers and upgrade to full-service later on. Be prepared to fork over some cash for a full-service broker who will take the time to meet with you and perfect your investing strategy.
The Motley Fool Stock Advisor ranks as our #1 Best Investment Newsletter for the third year in a row.
Their stock recommendations continue to beat all of the other newsletters that we follow and they maintain a very high accuracy of their picks. Their 24 stock picks from 2018 have outperformed the market by an average of 44% as of October 12, 2019. Read that again. I didn’t say their stock picks are up an average of 44%, I said they have BEAT THE MARKET by 44%.
No other newsletter comes close to that. You may have seen the Motley Fool’ advertisements that their picks are up 367% compared to the market’s 80%. Is The Motley Fool’s Stock Advisor really as good as they claim?
Our results, at least since January 2016, suggest YES. You can now get their next stock picks in real-time for ONLY $19. You will also receive their list of the TOP 10 Stocks to Buy Right Now. This special pricing is for NEW customers only and you must click on this link to get the special price..
P.S. this offer is still backed by their 30-day money back guarantee