In today’s financial market environment, it is difficult to answer the question of what stocks are best to buy now if the expectation is that the stock price will rise from day one.
The Federal Reserve raised interest rates by 0.75 percentage points in September 2022, raising the federal funds rate to a range of 3.0 to 3.25 percent. More rate hikes are likely to follow soon. It is clear that the market rally we have seen since the 2008 financial crisis is over, and all the investments made now will require a lot of patience from investors until they pay. The time for instant earnings is over for now.
However, any market crisis and recession is an opportunity. Moreover, the future has shown that every market crash causes new all-time highs and that stock market investments, on average, outperform most alternative investments.
It is very important to focus on a company that has been convincing for a long time with an impressive balance sheet, solid earnings, favorable forecasts and decent prospects of the company. The following sample portfolio contains some of the best megacaps and high-growth stocks, ETFs, and IPOs.
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Top 10 Stocks to Buy Now
Keep in mind that investing in the best stocks to buy now does not mean that it is a good idea to invest all the capital at once. The opposite is true. Even the best stocks to buy now feature the best long-term returns with a minimum investment horizon of 10 years. The average cost effect can be used to accumulate a stock portfolio over a longer period of time based on reasonable average costs.
Fractional stocks are great for smaller portfolios where investors can invest some additional changes from month to month or quarter to quarter. It is also important to keep an eye on the company’s fundamentals and earnings announcements from time to time. As soon as the fundamentals of the company change in an unprofitable direction, it is an option to sell the position.
For the first time in more than a decade, we’re seeing several rate hikes in 2022 and possibly beyond. Unfortunately, that means the stock market tends to underperform compared to the last ten years. Therefore, it is even more important to be careful with any investment activity.
- Amazon (NASD:AMZN)
Amazon is included in the long-term growth stock, and the business results of its ecommerce platform are amazing. In addition, Amazon’s cloud services have become an important source of revenue, and there is a lot of potential to grow further in this area. More and more SAAS products are being launched and running on Amazon’s cloud infrastructure. Amazon is one of the best stocks to buy in the best VR stock category because of its cloud technology and IT potential. Since 2008, institutions and private investors have used any significant price drop as a buying opportunity.
Amazon is listed on Nasdaq and is part of the S&P 500 with a market cap of 1,185,680 million dollars. Price per share rose from a December 2011 low of $8.35 to an all-time high of $188.65 in July 2021.
AMZN tested support at $100 in July 2022, then recovered to resistance levels at $140 and formed lower highs. $100 is still an important support level, then $65.
The 5-year EPS growth forecast is currently at 33.3%, and the average consensus target price from the analysis forecast is $176.90. Seasonality indicates that November and March are the best-performing months, while January and February are laggard.
- Apple Inc (NASD:AAPL)
Apple is the undefeated leader of billions of dollars of market cap companies with a current market cap of 2,321.08B. In September, Apple introduced the new iPhone 14 and iPhone 14 Plus, with a new dual camera system and the best battery life in the iPhone. As of October 2022, more than 100 million songs are available through Apple Music, and the new Apple Watch Ultra adds more features to the luxury watch segment. Like other stocks, Apple is also not at an all-time high, but its consolidation rate is less pronounced compared to other stocks.
AAPL is trading at $140.09 in the support range between $130 and $141. In August 2022, a lower high was formed at $176.15. Once the short-term support of $138 is broken out, the bearish momentum may accelerate. The next support levels are $100, $80, and less than $60.
The 5-year EPS growth forecast is currently at 9.5%, and the average consensus target price from the analysis forecast is $184.72. The 25-year seasonality shows that July and October perform better, while June and September perform the worst.
- Alfabet Inc (NASD:GOOG)
Alphabet is a billion-dollar market cap stock with a market cap of 1,295.23B. Alphabet offers many Internet-related services and software solutions. Google is the world’s leading search engine, but cloud computing, streaming entertainment, apps, and the Android mobile operating system are also part of the services and solutions offered by Alphabet.
Alphabet’s main source of revenue is ad revenue from Google Ads and Google AdSense. Every time a user clicks on an ad, Google makes money. Google services account for more than 90% of revenue. In July 2022, Alphabet conducted a 20:1 stock split to make the stock price more attractive to retail investors.
Google Cloud accounts for less than 10% of Alphabet’s revenue and has its main rivals in Microsoft and Amazon.
Since there is no real alternative to Google search, Alphabet is an ever-growing company with stable growth potential. However, even with excellent growth and profitability, Alphabet hinted that it may never pay dividends to their shareholders. So, on the contrary, they invest in higher growth.
GOOG is trading below $100 to $98.68 with no significant support below. Based on the length of the downtrend before the August 2022 highs, the potential bearish target zone could be around $72. Here, too, there is some support from 2000. There is real significant support 50% below the current price at the $50 price level.
The 5-year EPS growth forecast is currently at 9.0%, and the average consensus target price from the analysis forecast is $147.82. The 25-year seasonality shows that the months of October and December performed better, while February and May averaged worse performances.
- Procter & Berjudi (NYSE:PG)
Procter & Gamble Company comes straight from the list of the best dividend stocks to buy to the list of the best stocks to buy now. PG pays a dividend of $3.48 per share, has a market cap of $302.20B, EPS $5.8 and a moderate P/E price of 21.42. The fundamentals of consumer product producer companies are strong and dividends have increased for 64 consecutive years.
In addition, the Procter & Gambles business is completely independent of the current state of the economy, as they sell products that people always need and consume. Other high-dividend stocks may pay higher dividends per share at this time, but the company assures solid and stable business growth and earnings for the business and long-term dividends.
PG is currently testing support in the $120-$125 range, but previously formed lower highs in the monthly timeframe. The next major support level is $90.
The 5-year EPS growth forecast is currently at 5.8%, and the average consensus target price from the analysis forecast is $159.36. The dividend yield is currently at 2.9%. The 25-year seasonality shows that July and December are the best-performing months, while January and March are laggards.
- NVIDIA (NASD:NVDA)
Nvidia has an impressive growth rate and recently announced that it will build its own CPU. The company also launched the NVIDIA Maxine cloud video streaming platform last year. Since the invention of GPUs in 1999, Nvidia has grown mainly due to the PC gaming market.
Bitcoin miners invested heavily in GPUs, and overall business development increased the price per share from $8 to $346.47. With the CPU announcement, it seems only a matter of time until Nvidia provides an all-in-one solution for gamers. However, the Bitcoin boom stopped at the end of 2021. With energy prices at a very high level, Bitcoin mining is less profitable, and miners’ demand for more GPUs has declined. In addition, Nvidia announced that the new generation RTX 40 GPUs cannot be fully used for mining purposes. The first comparison with the RTX 30 series suggests that there may not be the GPU performance boost that most gamers are looking for.
NVDA is currently testing support at $120, but previously formed two lower highs in the monthly timeframe. The next major support levels will be $74 and $32 if $120 is broken out.
The 5-year EPS growth forecast is currently at 23.4%, and the average consensus target price from the analysis forecast is $210.07. The dividend yield is currently at 0.1%. The 25-year seasonality shows that August and November are the best-performing months, while June and July are laggards.
- Shopify (NYSE: TOKO)
With Shopify, you don’t need to know anything about website design or programming because everything is done with an app that’s easy to use and has templates for almost any type of store. Shopify was one of the best-performing stocks during the lockdown when its price per share hit an all-time high of $176.29, with a P/E ratio above 500. While Shopify will have to prove that profits will grow significantly in the future, the price per share reflects the euphoria in the sector.
At the moment, there is not much euphoria left, and the P/E ratio returns to the negative zone with an EPS of -1.52. However, Shopify is the market leader in this segment, and the internet will remain. Therefore, Shopify has the potential to gain long-term bullish momentum.
SHOP is currently testing support at $27 and previously formed a lower high on the monthly timeframe at $45.70, which is now resistance. The next major support level is $17 if $27 is broken out.
The 5-year EPS growth forecast is currently at -64.8%, and the average consensus target price of the analysis forecast is $52.41, with more and more forecasts giving the rating weight to neutral rather than bullish. The 25-year seasonality shows that April and November are the best-performing months, while October and December are laggards.
- Berkshire Hathaway (NYSE:BRK. B)
Berkshire Hathaway was founded in 1955 by Warren Buffet and is located in Omaha, Nebraska. Warren Buffet isn’t always right about his investment decisions, but overall he is, and Class B stock prices show strong growth with minimal reductions over the past 10 years. Berkshire Hathaway is an attractive alternative to classic mutual funds.
You can buy stocks without management fees and better returns compared to the market average. It is a good course of action to invest by using the leverage effect of fees. Instead of a high initial investment, the monthly investment level can be used. One thing to keep in mind is that the price per share is $269.04, and that’s not necessarily optimal for a monthly investment. But it’s still better than investing in BRK-A Company Class A stock at the current price of $406,010 per share.
BRK-B formed a lower high on the monthly timeframe at $308.15, which is now resistance. The next major support level is $230, then $160.
The 5-year EPS growth forecast is currently at 23.3%, and the average consensus target price from the analysis forecast is $340.00. The 25-year-old seasonality shows that November and December are the best-performing months, while May and June are laggards.
- Coinbase (NASD:COIN)
The announcement of Coinbase’s IPO caused a global boom in bitcoin investment and pushed the price of bitcoin to a high of $64,863.10 on April 14, 2021. Coinbase decided to list directly on the Nasdaq and began trading on April 14, 2021, with a price per share of $381, which came in at $429.54 that day to close at $328.28.
Since that day, neither Bitcoin nor Coinbase see their all-time highs anymore. Nonetheless, Coinbase is a leading cryptocurrency platform with tremendous business growth potential and a market cap of $14.49 billion. However, its potential depends primarily on the further development of the cryptocurrency and commission-based earnings. Coinbase is a high-risk investment.
It is worth mentioning that Elon Musk decided to invest most of Tesla’s balance sheet in Bitcoin, MicroStrategy began to pay the board of directors in Bitcoin and more and more crypto financial products were being released to the public. It looks like we’re right at the beginning of the major cryptocurrency investment trend, and even if it doesn’t look like it does now, we might see Bitcoin double its price in the near future to over $100,000.
COIN is trading at $67. A break through the current all-time lows at $40.83 lower could accelerate selling pressure, requiring patience until stocks return to an uptrend. COIN has not yet formed a lower high, but after $59.43 was damaged, the lower high was confirmed with the resistance that existed at the time at $116.30. The next important support level is $40.83.
The 5-year EPS growth forecast is currently at -45.1%, and the average consensus target price from the analysis forecast is $117.41. First, analysts step in and assess the COIN with sales. That confirms that COIN is a highly speculative investment.
- Ericsson (NASD:ERIC)
Ericsson is a leader in 5G technology and is among the best 5G stocks you can buy. The company is a multinational telecommunications equipment and services company founded in 1876. The P/E ratio is 9.73, and EPS is $0.63. The current market value stands at $20.63B, and with a stock price of $6.10, we are in the middle between an all-time high and a 10-year low.
The main potential of this action arises mainly from businesses related to the expansion of 5G networks, while the recent patent battle has had an impact on profit outcomes.
COIN is trading at $6.1, with a 10-year low and significant support at $4.83. A break to historical lows at $4.83 opens up more potential bearish momentum. But on the plus side, ERIC has room for $7.81, then $9.8 and $12.78.
The 5-year EPS growth forecast is currently at 9.2%, and the average consensus target price of the analysis forecast is $11. ERIC has excellent price/cash flow and price/FCF ratings. The 25-year seasonality shows that the months of January and February perform better, while July and December have the worst performance.
- Starlink (IPO)
Starlink is Elon Musk’s satellite-based Internet initiative. The idea of the project is to provide Internet access via satellite around the world at an affordable price. Like other projects led by Elon Musk, whether it’s SpaceX or Tesla, Starlink is built on his vision of making things happen that others find impossible.
Starlink is a potential private company’s favorite IPO in the near future. Starlink easily surpasses the potential of TikTok, Instagram, Chick Fil A, Lyft vs Uber or Airbnb.
Conclusion on the best stocks to buy now
Not so long ago, the market was at an all-time high, and many companies had a price-to-earnings ratio of more than 80. The housing market is at its highest, and interest rates are at their lowest. From a long-term perspective, we will most likely see significant market consolidation or even a sharp recession over the next 5 years. A change in interest rate policy could move the needle here, is what I’m writing about in 2021. And that’s exactly what happened.
The Fed announced higher interest rates to combat inflation. We are at a point where it is unclear whether we will end up in a recession, whether the risk of inflation will disappear, or whether the energy crisis will make things more difficult. Therefore, right now is not the time to invest a lot of money in the stock market expecting us to be at the lowest position at the moment. On the contrary, the old investment rules have become more important. It is very important to think about the effect of average costs and the power of long-term investments.
In the long run, there is no real alternative to Wall Street. But there are many options, and diversification is key when adding new shares to a brokerage account. According to media reports, many people use stimulus bills to invest, but also to pay bills. No one talks about the possibility of a stock market crash, but the best stock market movies show that crazy things can happen.
The housing market involves another major risk. Currently, there aren’t many media rumors about the housing market crash, but if interest rates rise higher (and currently look like it), it will be harder for home buyers to pay their mortgage rates, which could ultimately sell more of their portfolio stocks and less money available to invest in the stock market. This cycle could end with sharp outflows of money and a real stock market crash.
However, just when the recession comes suddenly, we could see overnight stabilization of the economy with the market continuing to rise again. No one knows, not you, not me, not a self-proclaimed stock market teacher. That’s why it’s important to diversify and use the average cost effect, focusing on stocks that are good to buy.
Protecting your money should always be the number one priority, and the cash in your account is good when the market pulls down. A comprehensive investment that floods a brokerage account with all kinds of stocks just to invest in may be an unprofitable decision in the medium term.
Please note that this list is not investment advice. I highly recommend that you analyze your own investment potential before buying and selling stocks. There are always risks associated with investing, and the higher the potential profit, the greater the risk. The stock selection service can help you find the right stocks to invest in regularly with the company’s value, results, and analysis constantly updated.
The table below shows the current price per share, the average consensus price target estimated by analysts, and the market capitalization at $M as of October 7, 2022.
|Teletipe||Company||Price||Average consensus target price per analyst||Market capitalization|
|AMZN||Amazon.com||$ 114,56||$ 176,90||1167.09 billion|
|AAPL||Apple Inc||$ 140,09||$ 184,72||2251.35 billion|
|GOOG||Alphabet Inc.||$ 99,57||$ 147,82||1295.23 billion|
|PG||Procter & Gambling||$ 124,27||$ 159,36||296.45 billion|
|NVDA||NVIDIA||$ 120,76||$ 210,07||300.69 billion|
|SHOP||Shopify||$ 27,21||$ 52,41||34.51 billion|
|BRK. B||Berkshire Hathaway||$ 269,04||$ 340,00||595.75 billion|
|COIN||Coinbase Global||$ 67,00||$ 117,41||15.08 billion|
|ERIC||Telefonaktiebolaget L M||$ 6,10||$ 11,00||20.86 billion|
Frequently Asked Questions
How to choose stocks?
Investing in the stock market requires extensive research on the fundamentals of the company. But even if you have read the best stock trading books and the best swing trading books to learn the best investment and swing trading strategies, you may still be wondering how investors can receive compound returns by making the right investment decisions.
There are two popular ways when it comes to the answer to the question of how to choose stocks. One of them is for the investor to conduct all the research independently, taking full responsibility for the whole process. Alternatively, there are some stock selection services that take care of the selection process and investors often buy and sell directly based on those recommendations.
How do I find undervalued stocks?
It takes extensive experience to find undervalued stocks by using free media stock research tools 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 buy the right stocks at the lowest possible price and commission. Long-term investors choose a commission-free broker with excellent finances and long-term trading stability. Day traders focus on fast execution and excellent trading tools.
What apps can I use to track portfolio performance?
The broker’s built-in tools help you track your portfolio and overall stock market performance with ease. Instead, the best stock tracking apps go a step further and allow you to monitor multiple portfolios.
How many shares should I buy?
The guide on how many stocks I should buy explains the various concepts of position size, the importance of diversification, and market risk. There are also several ways to get free shares, but they are usually worth around $10 each.
How do I buy IPO shares?
Companies can conduct their initial public offerings using large banks and brokerage firms or use direct offers. Both methods can result in undercutting IPO. You will find more information in the article on how to buy IPO shares.
What is the largest stock exchange 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 divisions exist?
There are two types of stock divisions. A regular share split in which you receive a specified number of shares in exchange for shares in your portfolio, while the price per share is reduced by the same multiplier. If you own 10 shares with $10 each and the stock split is 1:2, you own 20 shares at a price per share of $5 on the day the stock split is conducted. Prices usually rise after such a stock split occurs, as we saw with Apple and Tesla.
There is also a reverse share distribution. So what is a reverse stock split? Quite the opposite. The price per share is often so low that companies want to attract more investors by pushing the price per share back above significant levels. If you own 1,000 shares with $0.10 each, and a 100:1 stock split occurs, the next day, you only have 10 shares worth $10 each.
Stock Market Data 101
Stock trading can be a challenge for beginners and new investors. There are several important aspects when it comes to stock market analysis. These range from how data is analyzed using tools and number interpretation to analyzing product development content measurements.
Analysis of stock data is important for all investors. You need to know how the stock market works to be successful. The tools investors use include the best long-term stocks, the best dividend stocks, and more. You would choose these because they require less work than other types and at the same time provide good potential returns. Analysts use dozens of data sets to build opinions, and data is an important factor for a privately processed due diligence process.
The company’s products are essential for data analysis. The best stock is usually determined by the product and not just revenue. You need expertise to understand the product and its earning potential. Audience insights and detailed information about the company’s products and access to key financial figures help determine potential. Reading the news, keeping an eye on the company’s net profit by product, and checking their social media channels for the latest statements help to better understand the business.
Content measurement is something important to keep in mind when it comes to measuring the best course of action. Content must be of high quality and attractive so that it has a positive impact on potential investors. It is also important that this type of content does not focus on just one topic, but covers as many topics as possible.