With the final quarter of the year officially upon us, the best stocks to buy now aren’t what they were at the beginning of 2022. Investors on Wall Street have been confronted with new challenges that will test their patience and understanding. Most notably, the ramifications of stimulating the economy to offset the impact of the pandemic are starting to accumulate. Years of government payouts and supply chain issues have resulted in more inflation than the Fed is willing to accept.
According to the Bureau of Labor Statistics, the Consumer Price Index (an indicator that tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services) has risen more in 2022 than at any point over the last 40 years. Buying power has been diminished, and the Fed has already increased interest rates to combat inflation.
While the impending interest rate hikes aren’t sneaking up on anyone, they are altering the entire investing landscape. In particular, higher borrowing costs have led to an exodus out of high-growth tech companies with little to no revenue. Investors are more inclined to trade speculative earnings for value plays and profitable businesses, as evidenced by the violent drop in the NASDAQ throughout most of the year.
Established companies with legitimate earnings will be more likely to shelter investments from volatility, hence the rotation into value and free cash flowing companies. However, broader market selloffs are starting to look overdone. While the bottom may not be in yet, many promising companies in each of the major indices are now trading well below their 52-week highs. As a result of the disruption, long-term investors may be able to turn some of the casualties of the downturn into the best stocks to buy right now. While value plays will help hedge against volatility in a rising interest rate environment, the latest decline in some of today’s best companies may represent an opportunity to initiate a new position in high-growth equities.
The top 10 best stocks to buy now are directly correlated to the Fed’s decision to increase interest rates and fight inflation. Consequently, the higher-rate environment won’t treat every company similarly. Today’s economy will certainly serve as a catalyst for some companies and an obstacle for many more. Therefore, we have compiled a list of the companies that should benefit from today’s trends and outperform the broader market indices over the next five to 10 years.
Is Now A Good Time To Buy Stocks?
Investors in tune with the market are painfully aware of how volatile Wall Street has been over the last year. Dating back to the fourth quarter of 2021, in fact, almost all of today’s major indices are down considerably. The S&P 500 index, which tracks the performance of 500 of the most prolific companies in the United States, is down about 838 points year-to-date. The Nasdaq Composite index, on the other hand, is down considerably more.
In almost every case, inflation and the looming threat of a recession have tempered forward-looking guidance. The Nasdaq, in particular, has been hit hard because of the tech industry’s growth-oriented dependence on borrowing capital. As the cost of borrowing increases, unprofitable companies have a harder time making money.
The impending inflationary economy will make it more difficult for businesses of all sizes to surpass previous earnings reports, and stock prices are reflecting as much. Shares of just about every equity on the market are down year to date, which begs the question: Is now a good time to buy stocks?
To be clear, there is no right or wrong answer to the question, only conclusions based on individual circumstances. Since it is impossible to predict the future and which way the market will head, investors must first determine their investment strategy and time horizon; then, and only then, will they be able to determine if now is a good time to buy stocks.
Investors with a short-term investment horizon will find today’s market much more difficult to navigate. If for nothing else, volatility looks like it’s here to stay until multiples are compressed, guidance is reigned in, inflation peaks, and the economy staves off a recession, all of which are easier said than done. Wall Street as a whole faces a lot of headwinds after government stimuli flooded the economy and resulted in some of the fastest-paced inflation the U.S. has ever seen. As a result, short-term trading is at the mercy of an incredibly volatile market.
While investors with short-term aspirations will find it difficult to trade in today’s market, those with long-term horizons may find today to be the best time to invest. At the very least, valuations have come in a lot; perhaps too much in some cases. The market tends to overcorrect, both to the upside and downside. As a result, the latest decline in today’s indices may represent a great buying opportunity for patient, long-term investors who build positions in resilient companies.
Some of the best stocks to buy in the past have been the high-growth tech companies that were perfectly comfortable burning money in the moment to realize future growth. If for nothing else, relatively low interest rates, plenty of access to credit, and the advent of global industry made trading current revenues for future growth highly profitable for companies like. For all intents and purposes, cheap and unfettered access to cash helped increase profit margins for savvy capital allocators. Companies like Amazon, for example, whose value was correlated to future cash flows, outperformed on the idea of trading low yields for a brighter future.
Since the turn of the twenty-first century, cheap access to cash has propped up a large portion of the tech sector. However, the Fed’s latest decision to combat inflation in the economy has shifted the tides. Capital is becoming increasingly expensive to borrow and is now hurting the profit margins of unprofitable companies. As a result, the best stocks to buy now, and well into 2023, will most likely be those with clean balance sheets, actual profits, and perhaps even the ability to pay sustainable dividends. Companies with these attributes are not only more insulated from higher interest rates, but they are also much more likely to weather a recession.
Best Stock To Buy This Week (12/01/2022)
One of the best stocks to buy for the remainder of 2022 and even into 2023 may be Atlassian Corporation (NASDAQ: TEAM). Atlassian’s mission is “to help unleash the potential of every team.” In accomplishing their mission, Atlassian provides an entire suite of software tools which facilitate and enable collaboration. Most notably, Jira (Atlassian’s flagship product) is a proprietary software offering designed for engineers to track potential backend issues and promote synergistic solutions. In other words, Jira helps identify potentially website-breaking codes and gives developers the platform to address the problem. Despite its prevalence in the software engineer and developer industry, however, Jira has since expanded to become a more user-friendly platform that just about anyone can operate.
There’s no doubt about it; Jira is Atlassian’s most popular service. However, the company’s subsequent offerings are growing in popularity. Confluence and Trello, in particular, are gaining a lot of traction in the content collaboration and visual project management space. The convergence of Atlassian’s services enables clients of all sizes to simultaneously track analytics, automate menial tasks, collaborate efficiently, interconnect tools, and manage from a central hub.
Not surprisingly, Atlassian’s products were huge beneficiaries of the pandemic and its resulting work-from-home trends. More companies turned to Atlassian at the height of the pandemic in order to continue operating. As a result, the company’s customer base has compounded for the better part of three years, jumping from 159,433 customers at the end of 2020 to 235,575 customers at the end of the latest quarter. Perhaps even more importantly, management expects its customer base to grow to 249,173 by the end of the first quarter in 2023.
While growth is never guaranteed, Atlassian looks entirely capable of living up to its promise, regardless of macroeconomic uncertainty. If for nothing else, the company looks fairly recession resistant because its tools usually turn out to be invaluable to those using them. In other words, customers find Atlassian’s tools so integral to their daily operations that many of them don’t even think of abandoning them when money is tight. Even if a customer did want to scale down or switch to a similar product, switching costs are extremely prohibitive. Atlassian’s products are so embedded in clients’ websites that switching is either too costly, time consuming, or inconvenient.
Atlassian’s suite of products and their ability to embed themselves in client routines has resulted in impressive revenue growth. Revenue has grown at a 32% compound annual growth rate over the last three years. Impressive revenue growth is largely the result of the company’s 83.1% gross margin (on a fiscal-year basis). Net income has been supported by several years of encouraging free cash flow and the balance sheet looks to be in great condition. With more than $500 million in net cash, Atlassian has more than enough money to make up for the debt on its books.
Impressive products, sustained growth, a decent balance sheet, and the advent of the website developer industry have led management to believe Atlassian’s addressable market will increase to about $60 billion in as little as two years. To be clear, Atlassian has only captured about 5.0% of the total addressable market. Therefore, if the company can continue to simply keep doing what it’s doing (maintaining an impressive compound annual growth rate), it should find itself growing its market share in a growing market. It is worth noting, however, that Atlassian’s optionality may allow it to increase its total addressable market even more by adding new products and making smart acquisitions.
Atlassian looks like one of the best stocks to buy now and well into next year. That said, no stock is without risk, and Atlassian isn’t the exception. Perhaps the greatest threat to Atlassian’s bright future is competition from some of the world’s largest companies: Microsoft, Alphabet and ServiceNow. While Atlassian has done fine in the shadows of its competition in the past, it would be irresponsible to ignore outside threats from the likes of Google and Microsoft who have more than enough capital to compete with Atlassian—if they ever choose to directly.
Atlassian does face some outside threats from massive competitors, but its suite of products have become so invaluable to so many customers that it is hard to imagine anything but a bright future. In the event Atlassian is able to expand its offerings (along with its market cap), it could easily become one of the best stocks to buy for 2023 and beyond.
Top 10 Stocks To Buy Right Now
It needs to be made abundantly clear: There is no such thing as “the best stock to invest in.” Stocks for beginners and veterans will vary based on individual needs. Even today’s best stocks to invest in aren’t guaranteed to play out as many predict. Market volatility has a way of humbling even the top 10 stocks to buy right now.
Nonetheless, now is an interesting time for the stock market. Quality companies have been undervalued while unprofitable, new entrants to Wall Street are extremely overvalued; there’s no making sense of a lot of what’s going on. That said, some equities have managed to navigate the market better than the rest of their counterparts.
Again, there’s no such thing as a perfect stock. However, these are the top 10 best stocks to buy now:
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ServiceNow, Inc. (NYSE: NOW)
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Alphabet Inc. (NASDAQ: GOOG)
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Amazon.com, Inc. (NASDAQ: AMZN)
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The Walt Disney Company (NYSE: DIS)
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Palo Alto Networks, Inc. (NASDAQ: PANW)
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The Boeing Company (NYSE: BA)
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Prologis, Inc. (NYSE: PLD)
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Johnson & Johnson (NYSE: JNJ)
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MercadoLibre, Inc. (NASDAQ: MELI)
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Costco Wholesale Corporation (NASDAQ: COST)
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1. ServiceNow, Inc.
One of the best stocks to invest in right now may be ServiceNow. Headquartered in Santa Clara, CA, ServiceNow is a software company that has become synonymous with the transformation of digital workflows for enterprise operations. With its proprietary cloud computing platform, ServiceNow helps companies of all sizes streamline operations, optimize processes, connect data, and accelerate innovation at scale.
In its simplest form, ServiceNow promotes synergy between employees to cut back on inefficiencies and increase production. At its pinnacle, however, ServiceNow can help businesses realize their true potential by optimizing the hard work their employees are already doing. ServiceNow has proven invaluable to the companies that have already enlisted its services, and the network effect it has created suggests the stock may be an invaluable addition to any portfolio.
Perhaps the most convincing argument working in favor of ServiceNow is the secular tailwind lining up at the back of the digital workflow market. The advent of technology has facilitated the adoption of remote work and the pandemic all but confirmed the need for business operations to span multiple locations (even if they are in the same office). Growth in the digital workflow market appears inevitable and lofty, with estimates by Grand View Research placing the industry’s compound annual growth rate at 30.6% through 2028. There isn’t a single company that isn’t at least interested in some of the promises ServiceNow makes: reduce expenses, optimize operations, scale, and support hybrid workers.
ServiceNow’s products are already being used by the majority of today’s S&P 500 companies. Therefore, the company merely needs to maintain its market share to look like one of the best stocks to buy today. However, it’s entirely possible that ServiceNow captures a large share of the hybrid workforce. In the last year alone, subscription revenue has grown about 30.0% on a constant currency basis. In doing so, ServiceNow grew its customers with an average contract value of more than $10 million by 60.0% year over year, up 50.0% from the first quarter.
Recent performance has been admirable, especially in the face of several macroeconomic headwinds. As a result, ServiceNow is profitable by GAAP (generally accepted accounting principles) and non-GAAP valuations. In fact, it’s ServiceNow’s profitability which makes it one of the best stocks to buy for 2022 and 2023. While most cloud-based software is nowhere near profitable, ServiceNow is making money and growing margins. The company’s profitability will simultaneously help it weather today’s inflationary economy and establish a foundation for years of growth.
ServiceNow isn’t just one of the best stocks to buy now; it has been one of the best stocks to invest in since its IPO about a decade ago. Consequently, ServiceNow’s valuation looks expensive. Based on current and future guidance, shares trade at 40 times forward earnings; that’s not cheap at all. For some perspective, ServiceNow’s larger competitor Salesforce trades at 29 times forward earnings. While technically expensive, however, ServiceNow is relatively affordable, at least compared to its 52-week high. While investors will have to pay up for growth, they won’t have to pay nearly as much as they would have at the end of last year.
While fairly insulated from recessionary pressure, ServiceNow will most likely be volatile stock over the short term. There are simply too many questions surrounding the economy to suggest otherwise. However, long-term investors should find ServiceNoe to be one of the best stocks to invest in for a prolonged period of time.
2. Alphabet Inc.
When looking for the best stocks to buy for 2022, investors are often left with a tough decision: Do they play offense or defense against a Fed-created inflationary economy? Traditionally, the rule of thumb is to not “fight the Fed.” When the Federal Reserve is on a mission to slow the economy down, growth stocks are generally hurt as the cost of borrowing money increases. Therefore, investors tend to prioritize defensive stocks with pristine balance sheets that can survive inflationary pressure. It is worth noting, however, that there are some defensive stocks investors don’t need to sacrifice growth for. While typically viewed as a growth stock, Alphabet is uniquely positioned to play both offense and defense for a portfolio.
To put things into perspective, inflationary economies (like the one we are currently in) tend to work against unprofitable tech companies, despite their potential. Without profits, it’s simply too hard to improve quarter over quarter at a time when money becomes more expensive to borrow. Inflationary pressure weighs on quarterly reports and usually takes a significant toll; that’s why we see the entire NASDAQ (the tech-heavy index) down so significantly year-to-date. Investors are trading speculative tech stocks for more dependable blue chips that can weather a recession.
It is worth noting, however, that Alphabet appears to have been oversold in the broad portfolio reallocation. While it is a tech stock, Alphabet doesn’t have the same balance sheet issues which typically lead to a selloff. In fact, Alphabet’s free cash flow is one of the biggest reasons this equity is one of the best stocks to buy in 2022. Alphabet has increased its free cash flow about 150% in just three year’s time. The cash Alphabet has on its balance sheet will easily help the company weather any sort of recession.
Alphabet has such a surplus of cash, in fact, that it recently announced a $70 billion repurchase plan to buy back its own shares. Doing so will increase the intrinsic value of every share. If the company can simply maintain its current cash flow levels, it can replenish the money spent on the buyback in as little as five quarters.
Alphabet’s free cash flow makes its current valuation look like a great buying opportunity. If for nothing else, Alphabet boasts a price-to-earnings growth ratio of 2.08x, which is only slightly above the industry average. Additionally, the company’s price-to-earnings ratio is actually below the industry average; that means Alphabet is trading at a discount relative to its peers. That’s an important distinction to make because Alphabet is an industry leader and well ahead of the competition in almost every category it competes in.
Based on valuation and free cash flow alone, Alphabet looks like one of the best stocks to buy right now. With plenty of cash on the books and a thriving business model, the company looks more than capable of playing defense in today’s inflationary economy. That said, Alphabet should have no problem playing offense for patient, long-term investors. With Google Cloud, YouTube, and a practical monopoly on online search, Alphabet is well positioned to succeed over the long run.
3. Amazon.com, Inc.
Amazon reported third-quarter results that were mostly in line with analysts’ expectations; a feat that’s more impressive than most realize in today’s economy. However, shares dropped immediately after the report was made public. The decline in share price was most likely the result of tempered guidance.
In particular, expected revenue growth for the fourth quarter wasn’t where analysts wanted to see it. While the market wanted year-over-year revenue growth upwards of $155 million in the next quarter, Amazon forecasted somewhere between $140 million and $148 million. Analysts are already attributing the lower guidance to possibly weaker holiday sales onset by today’s inflationary economy and the threat of a looming recession.
Global currency exchange rates and the strong American dollar likely contributed to the weaker guidance, too. As a global company, Amazon is losing money overseas to the strength of the dollar, to the tune of 460 basis points.
Last, but certainly not least, Amazon has been spending a lot of money. Today, Amazon has about as much cash on its balance sheet as it does debt; that’s important to note because Amazon was significantly cash-positive two quarters ago.
All of these headwinds are a concern, but Amazon is being punished for what looks to be short-term headwinds. A closer look at the latest earnings report suggests Amazon performed admirably, given the circumstances. While net and operating margins took a hit, revenue in the fiscal third quarter increased 15% to $127.1 billion, just barely missing estimates of $127.5.
At worst, Amazon’s last quarter was acceptable. However, shares sold off after hours like the report was dreadful. Investors seem to have lost faith in Amazon’s future prospects because of relatively weak expectations for the next quarter and short-term inflationary pressure. That said, it’s hard to bet against Amazon. The latest drop in share price looks more like an opportunity to add one of the best stocks to buy for 2022 than an indictment on the company.
It is hard to imagine the now discounted share price of Amazon isn’t a great buying opportunity. If for nothing else, Amazon Web Services is generating enough sales by itself to make the stock look attractive at these levels. At its current valuation, in fact, investors may be getting the rest of the company for free, or at least a significant discount. The risk/reward profile just tilted heavily in favor of investors.
Moving forward, investors should keep an eye on Amazon Web Service’s margins. Higher energy costs in Europe caused by geopolitical tensions hurt margins for the web platform. Since AWS provides the company with a great deal of cash flow, improving margins would help the natural balance sheet, and perhaps even increase the company’s cash position. If energy costs do come down, AWS should return to its normal cash-producing self and place the company in a much better position.
To be perfectly clear, Amazon faces a number of very real headwinds: foreign currency exchanges, worsening margins, inflation, and budget-conscious consumers. However, most of the news that brought Amazon’s share price down appears to be short-term and manageable. As a result, the drop looks like a great opportunity to add to one of the best stocks to buy today.
4. The Walt Disney Company
The Walt Disney Company might not only be one of the best stocks to invest in for 2022 and 2023, but it may be one of the top stocks to buy now and hold for generations. If for nothing else, Disney owns some of the most valuable intellectual property (IP) in the world and has one of the most loyal fanbases to help grow revenue for years down the road.
That said, the multinational mass media and entertainment conglomerate has seen better days. Shares tumbled after Disney reported its third-quarter earnings. Investors found a few reasons to be scared about the short-term prospects of the company, but the drop is less of an indictment on the long-term outlook of the company and more of an overreaction to what may turn out to be short-term headwinds. Now hovering just above their 52-week low, shares of Disney may represent a great borrowing opportunity.
To be perfectly clear, Disney’s share price is down for a reason. In return for growing Disney’s streaming service by 12.1 million Disney+ subscribers and 14.6 million across all of its streaming services, Disney spent more than investors bargained for. Growth was encouraging, but not at the nearly $1.5 billion operating loss realized in the quarter. For context, Disney’s operating loss in the same period last year was a much more manageable $630 million. After spending so much on content creation, Disney’s adjusted earnings per share fell 19% to $0.30. Of course, the losses will moderate as Disney builds out its library, but investors weren’t happy with this quarter’s results.
Disney’s third quarter results forced the company’s board to reconsider the three-year extension it had on the table for Bob Chapek, the CEO since the first quarter of 2020. Instead of extending Chapek’s tenure as CEO, however, Disney’s board decided to replace him with Bob Iger. For those keeping track, Chapek has officially been replaced by the very person he replaced just few short years ago.
The decision to bring Bob Iger back was most likely the result of the company’s share price performance, or lack thereof. Shares of Disney have drastically underperformed the S&P 500 for the better part of a year, and are languishing just above their pandemic lows. The move to bring in Iger should help improve the public’s perception of Disney and its respective market cap. In fact, news of the reinstatement of Iger as CEO increased shares of Disney by more than six percent by the time the market closed on the day after the announcement.
Despite the temporary boost to share prices, Disney’s 2.04 price-to-earnings growth multiple still trails the industry median of 3.80x. At its current valuation, Disney isn’t a cheap stock, but it is much more affordable on a relative basis.
All things considered, share of Disney have suffered from all of the spending Chapek allocated towards streaming. That’s not to say the decision to spend on Disney+ was a bad idea, but rather that the unfortunate timing of a looming recession makes the spending a lot harder to digest. If for nothing else, Chapek’s spending could work well for Iger. The company’s streaming service is expected to reach profitability by 2024 and could pay huge dividends if it realizes its full potential under Iger.
It would be hard to argue that Disney had anything other than an underwhelming run while under Chapek’s control. However, the blame can hardly be Chapek’s sole responsibility. The pandemic created an environment that would be difficult for anyone to navigate, even the legendary Bob Iger. Nonetheless, his departure breathes new life into shares of Disney, as evidenced by the latest jump in price. As a result, Disney remains one of the best stocks to buy and hold for generations.
5. Palo Alto Networks, Inc.
The best stocks to buy now are going to differ from investor to investor. Those with shorter investment horizons are likely prioritizing defensive stocks which have exhibited resilient metrics in the face of rising interest rates and an impending recession. Investors who are looking at the stock market with long-term aspirations, on the other hand, may view the 2022 selloff as an opportunity to buy growth stocks with a lot of upside. While near-term price movement may be volatile, today’s prices may represent a great entry point for high-growth companies.
There are several ways to play the stock market today, but at least one equity looks more than capable of combining the defensive and offensive strategies investors are using to navigate today’s tricky environment: Palo Alto Networks, Inc. As a leader in the cybersecurity industry, Palo Alto Networks easily exhibits all of the characteristics of a growth stock investors can be in for years (most likely decades). Perhaps even more importantly, however, Palo Alto Networks is a rare equity which combines secular growth opportunities with near-term defensive attributes.
Investors looking for the best stocks to invest in today will appreciate Palo Alto’s economic resilience. If for nothing else, cybersecurity is growing more important with each passing day and businesses are less likely to cut spending than ever before. Not unlike healthcare, cybersecurity is expected to remain strong heading into an inflationary economy, or even a recession.
At the very least, cybersecurity will be one of the last expenses businesses cut as the entire economy starts to budget for the impending slowdown. The need to secure online networks is more important than ever and few companies will be willing to compromise their own networks, as evidenced by the company’s latest earnings report. While most tech companies are struggling to stay afloat in today’s market, Palo Alto reported a 27% increase in revenue in its most recent quarter. At the same time, Palo Alto is gaining market share and nearing sustainable profitability. In doing so, the cybersecurity leader hopes to expand sales over the rest of the year to $7 billion, an increase of 20%.
Palo Alto looks like a good bet to weather the current storm created by today’s macroeconomic environment. Instead of serving as a purely defensive play, however, Palo Alto gives investors plenty of upside; there’s no need to sacrifice growth for safety. Trusted by more than 85,000 customers worldwide, Palo Alto is already a global cybersecurity leader. Along with the sales growth, cash flow, and profitability investors like to see when inflation is rising, Palo Alto’s future looks just as promising as its present.
Despite the looming threat of a recession, Palo Alto expects nothing less than encouraging numbers moving forward. According to the latest earnings report, revenue is expected to increase 25%, led higher by next-gen security offerings. Forecasts expect the company’s already attractive free cash flow to improve, further promoting innovation and share repurchases to drive investor value.
Having already demonstrated the ability to survive in a volatile market, Palo Alto Networks looks like one of the best stocks to invest in today. With strong cash flow and improving margins, the cybersecurity leader is a strong defensive play at a time when few equities look capable of holding water. However, the company’s adoption of next-gen security measures and cloud systems should give it a long, profitable runway. Now that the stock is down about 22% from its 52-week high, its hard not to consider Palo Alto Networks as one of the best stocks to buy right now.
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6. The Boeing Company
The top 10 best stocks to buy now are not going to be the same for every investor. Younger investors with a long-term horizon, for example, are more inclined to favor growth companies and can stand to expose their portfolios to more risk. Those closer to retirement, on the other hand, are more comfortable trading growth for security and cash flow. That said, there are equities trading in today’s market that exhibit attributes most investors covet. In particular, there’s one stock that appears to combine both short-term security and long-term growth: The Boeing Company.
For those unfamiliar with the company, Boeing is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. As the complement to Airbus, Boeing is part of a duopoly that both provides and services the majority of today’s commercial airliners. As an aerospace industry leader, Boeing took a significant hit when travel came to a standstill following the COVID-19 outbreak. In the first quarter of 2020, shares of Boeing dropped from $340.49 to $95.01 in a little over a month. To this day, in fact, Boeing has been one of the worst performing stocks in the market.
There is no doubt about it; Boeing’s stock has struggled for the better part of three years, and justifiably so. Safety concerns regarding the company’s most popular airliner, fewer people traveling, and global supply chain issues have weighed significantly on the stock’s performance. As a result, Boeing is trading well below its 52-week high and at an attractive valuation. In fact, a convergence of the previously discussed headwinds have brought the stocks’ price-to-sales multiple below the Aerospace & Defense industry median—1.43x and 1.68x, respectively. At its current valuation, even conservative price targets suggest significant upside.
Shares of Boeing are now trading at a discount, relative to their peers. However, Boeing is an industry leader that looks to be building momentum. The 737 MAX is up and running again, travel is making a comeback, and airlines are in high demand. For all intents and purposes, Boeing appears to have placed the worst of its problems in the rearview mirror.
At a recent investor day, management did its best to ease investors’ concerns. Onlookers took solace in the company’s plans to reach $100 billion in revenue and $10 billion in free cash flow in the coming years. Perhaps even more importantly, Boeing forecasted increased commercial aviation production by 2025 at a time when most companies are providing weaker guidance. The news was “a pleasant surprise,” according to Ronald Epstein, an analyst at Bank of America.
In keeping its promise to investors, Boeing intends to put its money where its mouth is. Already off to a good start, in fact, Boeing generated nearly $3 billion in free cash flow in its latest quarter and fully expects to achieve positive free cash flow by the end of this year. The ability to increase positive free cash flow will help Boeing at a time when interest rates are rising and convince investors it is one of the best stocks to buy for the rest of 2022 and well into 2023.
More importantly than cash flow, however, are future deliveries. If Boeing is to return to dominance as one of the world’s premier airline manufacturers, it must sell more planes. The first step of many comes in the form of an Alaska Airlines order. The Seattle-based airline just announced it would exercise an option to buy 52 Boeing 737 MAX planes for its fleet and rights for 105 more of them through 2030. The order is the biggest in Alaska Airlines history, and has become necessary to grow and replace its aging fleet. With expectations that more companies will look to do the same, Boeing said production of the 737 MAX will grow to 50 frames a month by 2026, up from 31 today.
Boeing certainly faces a lot of headwinds. Supply chain constraints are making it difficult to build engines and the company’s debt has ballooned over the course of the pandemic. However, at its current valuation, the downside appears to be built in. That’s not to say the stock can’t go lower in the near term, but rather that the risk/reward profile is incredibly attractive at the moment. In the event Boeing is able to execute on all of its promises, there’s no reason to think it’s not one of the top 10 best stocks to buy now.
7. Prologis, Inc.
Prologis has served investors well over the last two decades. Despite the company’s impressive returns since going public, however, it remains one of the best stocks to buy for 2022. At the very least, Prologis looks like an undervalued real estate investment trust with a number of secular tailwinds lining up at its back. At its peak, Prologis will help investors hedge against today’s historic inflation and weather a potential recession. All things considered, Prologis looks like one of the few stocks on Wall Street that can simultaneously help investors navigate this volatile market in the near term and still offer long-term growth potential.
Prologis is starting to look like a great addition to any portfolio, which begs the question: What does the company do? In its simplest form, Prologis owns and operates income-producing real estate in the industrial sector. With more than 984 million square feet of industrial real estate space in 19 countries, Prologis is easily the largest industrial REIT in the world. Strategically positioned in high-barrier, high-growth markets, Prologis’ assets are invaluable to a growing number of industries.
Despite Prologis’ unique position, shares of the REIT have done nothing but struggle for the better part of 2022. Shares have been in a free fall ever since the company announced the acquisition of Duke Realty Corporation for $23 billion. Wall Street appears to think Prologis overpaid and the company’s balance sheet was worse off as a result. Additionally, news of both Amazon and FedEx closing facilities seems to have scared investors into overreacting to the downside. As a result, shares are down more than 35% from their 52-week high and testing new 52-week lows regularly.
It is worth noting, however, that the selloff may be overdone. From a fundamental perspective, Prologis is now a relatively inexpensive stock. With a price-to-earnings ratio of 21.16x, shares of Prologis are trading at a discount to the entire Equity Real Estate Investment Trusts industry, which has a median price-to-earnings ratio of 26.93x; that means investors are paying less for each dollar of the company’s overall earnings than most of its competitors.
While shares of Prologis may be trading at a discount relative to their peers, the company couldn’t be happier with its recent performance and future prospects. As recently as the second quarter, occupancy rates eclipsed 97% and shows signs of heading higher. More importantly, demand for Prologis’ assets remains intact, allowing rent growth to outpace inflationary pressures.
While Prologis appears more than capable of staving off inflationary pressure, it can also help investors do the same. Real estate investments trusts, in fact, are generally viewed as inflation hedges because they can increase revenue in an inflationary economy; that means Prologis can make more money when other companies are having a hard time maintaining margins. As a result, the stock is more likely to outpace its counterparts in other industries. Subsequently, Prologis pays a dividend yield of 3.15%, granting investors dependable cash flow at a time when they need it the most.
Prologis is well positioned to thrive in today’s uncertain economy. A strong dividend yield and a penchant for thriving in an inflationary economy will give investors the safety and stability many covet in a bear market. In return for the defensive positioning, however, investors won’t need to give up growth potential. With the acquisition of Duke Realty, Prologis is easily the biggest player in the industrial real estate industry. As a cornerstone in the global logistics and distribution network, Prologis will only find the need for its facilities growing.
Prologis has had a tough year, but the same can be said about almost every equity in the market. That said, the company’s underperformance has more to do with a market overreaction than actual performance. When all is said and done, Prologis is doing just about everything investors could ask for. As a result, there’s no reason to think Prologis isn’t one of the best stocks to buy for 2022 and beyond.
8. Johnson & Johnson
The more likely the United States is to fall into a recession, the more Johnson & Johnson is expected to become one of the best stocks to buy now. If for nothing else, few companies that trade on Wall Street are better positioned to simultaneously navigate a recession and come out on the other side even stronger than the American multinational corporation. As a stalwart in the healthcare industry with an attractive dividend and a growing pharmaceutical resume, investors will be hard pressed to find a better stock to add to their portfolios for the foreseeable future. On most investors’ lists of the best stocks to buy for 2022, Johnson & Johnson looks more than capable of sheltering portfolios from volatility in the near term and providing a long runway for growth.
Founded in 1886, Johnson & Johnson has spent the better part of two centuries developing medical devices, pharmaceuticals, and consumer packaged goods. The company’s products have helped people around the world tend to countless healthcare issues, from COVID-19 vaccinations to breakthroughs in scientific innovation. The world’s reliance on Johnson & Johnson’s suite of products has been instrumental in the stock’s performance. Year-to-date, in fact, shares of Johnson & Johnson aren’t even down two percent, suggesting the stock has traded with a relatively low beta.
While down about 1.7% year-to-date, Johnson & Johnson is beating the market handedly. The S&P 500, the index which tracks the market’s largest companies, is down about 26.3%. Shares of the multinational corporation have provided today’s investors with a great shelter for their portfolios. Additionally, the company’s 2.68% dividend yield has provided some much needed cash flow at a time when the market can’t seem to get its feet underneath it. While most stocks can’t do anything but drop, J&J has remained steady in the face of adversity and provided investors with cash while they wait for the correction; that’s a lot more than most stocks can say in 2022.
Johnson & Johnson’s resilience was recently put on display when the company announced its third-quarter earnings report. Shares rose the day results were announced, as optimism about the company’s future appears to be contagious. Despite the inflationary economy serving as a headwind, revenue increased nearly two percent to $23.79 billion. Adjusted earnings, while down modestly year-over-year, came in better than expected.
The strong dollar in the United States weighed heavily on global sales, but still managed to grow 4.0% on the heels of a strong pharmaceutical segment. That’s not to discredit the MedTech medical devices and technology businesses (both of which performed admirably), but rather to highlight just how big of a tailwind JJ’s pharmaceutical segment can be.
J&J has found its way to the top of today’s best stocks to buy list because of its ability to perform in a recessionary environment. However, the company’s pharmaceutical catalog suggests the best days are still ahead. As a whole, J&J’s portfolio of drugs is on pace to generate at least $1 billion in sales in 2022. Moving forward, however, the company has an additional 99 drug indications in clinical development. While not every drug is expected to be the next major industry development, the promising pipeline will almost certainly increase sales and earnings. As a result, analysts most familiar with the company are forecasting annual earnings to grow at least 4.1% over the next five years.
To be perfectly clear, no company is completely immune to recessionary and inflationary pressures. Even J&J’s earnings report acknowledged that today’s macroeconomic conditions will most likely impact the company in a negative way, which is why they narrowed some of their guidance. Foreign currency weakness will hurt earnings in the near term, but the step back will be followed by two steps forward. Positive developments in the pharmaceutical industry and plans to spin off its consumer health division will help J&J return value to its shareholders. In doing so, it’s not hard to see why many expect this to be one of the best stocks to buy now.
9. MercadoLibre, Inc.
Headquartered in Buenos Aires, MercadoLibre is an Argentinian company incorporated in the United States that operates an online platform dedicated to e-commerce, financial technology, and a number of other services. While operations are primarily carried out in Argentina, the company services at least 16 countries across Latin America and is estimated to account for about 30% of the e-commerce market share in its respective region. For lack of a better comparison, MercadoLibre is the Amazon of Latin America and it is continuing to grow at a fast rate.
The bull case for MercadoLibre centers on the secular tailwinds of e-commerce and the incredibly long runway it has in Latin America. If for nothing else, Fidelity International suggests e-commerce only penetrated about 9% of Latin America as recently as last year. Perhaps even more importantly, analysts expect the market cap of e-commerce to double as soon as 2025.
Representing nearly one-third of the entire Latin America e-commerce traffic, MercadoLibre is already an industry leader. If it were to simply maintain its current market share, the mere growth of e-commerce would serve as a significant tailwind. However, MercadoLibre amassed 81 million active users by the end of the first quarter, up 15.7% year over year. As the digitization of e-commerce progresses, MercadoLibre should see its active user count increase accordingly. In other words, MercadoLibre is one of the biggest e-commerce players in a region that has a lot of untapped potential. As more people transition to online shopping, MercadoLibre will be a clear beneficiary.
The advent of online services have already delivered great results for the company. In the first quarter of this year, revenue reached $2.25 billion, up 63% year over year. Net income, on the other hand, grew to $65 million over the same period. There is no doubt about it; the business is firing on all cylinders, and this appears to be just the beginning. Provided e-commerce penetration continues to grow and MercadoLibre remains an industry leader, it’s hard to argue MELI isn’t one of the best stocks to buy right now.
At the very least, shares of MELI are trading for much less than they were at this time last year. With a price-to-earnings growth ratio somewhere in the neighborhood of 1.42x, MercadoLibre appears to be trading at an expensive value relative to the Internet & Direct Marketing Retail industry. However, the company’s 5.24x price-to-sales ratio suggests it hasn’t traded at this much of a discount since 2009. Now about one-third of its 52-week high, Mercado Libra is starting to look like too much of a bargain for long-term investors to pass on.
Not only has the company’s share price come in quite a bit, but its long-term prospects remain more attractive than ever. That’s not to say MercadoLibre will be immune to short-term volatility onset by a high inflationary environment and the lingering impact of COVID-19, but rather that few companies look better positioned to thrive over the long run than MELI. As one of the best stocks to buy now, investors who start a new position with MELI, or add to an existing one at these prices, will most likely look back fondly on their purchase.
10. Costco Wholesale Corporation
While nobody knows exactly what to expect from the economy in the fourth quarter, many economists are forecasting slower economic activity in lieu of Federal Reserve rate hikes. In an attempt to bring down inflation, the Fed has initiated a series of steep interest rate hikes. The move will balance the economy over the long run, but perhaps cause a little pain for ill-equipped businesses in the near term. As a result, the best stocks to buy now are those which have simultaneously proven to be resilient in inflationary economies and exhibit long-term growth potential. As it turns out, Costco Wholesale Corporation appears entirely capable of both navigating today’s economy and rewarding investors with long-term growth.
Few equities have been kinder to investors than Costco over the last decade. That said, even the discount retailer hasn’t been able to avoid the 2022 downturn. Shares are trading about 20% below their 52-week high because inflation is weighing on margins and consumers are expected to spend less with a looming recession on the horizon. Following the drop, investors may purchase shares of Costco at a price-to-earnings ratio of 36.8x; that’s not exactly inexpensive, but it is the most attractive valuation the company has presented investors with in today’s bear market.
Despite the stock’s performance, however, Costco appears to be doing just fine. In the midst of arguably the most unpredictable economic environment in decades, Costco continues to post strong earnings. Net sales for the fiscal year, which ended August 28, rose by double digits and net income exceeded $5.8 billion. In the company’s latest fiscal quarter, revenue increased 15.2% year over year to $72 billion. Due to strong performance, Costco is on track to open an additional 28 new warehouses over the rest of the year.
Expanding its footprint should enable Costco to expand on its already impressive 111.6 million cardholders. Membership income increased 10% in the latest quarter and renewal rates tested new highs. According to the fiscal fourth quarter report, renewal rates in North America (Canada and the United States) reached as high as 92.6% and global renewal rates exceeded 90%. For all intents and purposes, Costco’s value continues to bring people back, even at a time when the economy isn’t on stable ground.
To be clear, inflationary pressure is the main culprit for Costco’s lower share price. Increased commodity costs, higher wages for employees, and supply chain issues put downward pressure on earnings. Additionally, inflation may temper customer spending as long as the future remains uncertain. As recently as August, in fact the Bureau of Labor Statistics acknowledged that the consumer price index jumped 8.3% year over year, meaning the costs of goods and services actually rose more than analysts expected.
The combination of these factors isn’t the best news for Costco, but it is not the worst either. As it turns out, inflationary economies drive consumers to make more budget-conscious decisions. With the dollar being stretched thinner than it has been in decades, people are spending less with a penchant for saving as much as they can. As a result, it is safe to assume consumers will turn to Costco in order to meet their modified shopping needs. As a leader in the discount retailer industry, Costco should see a very healthy amount of business for the foreseeable future.
It is no secret that Costco can serve as a great inflation hedge in a portfolio. With a price-to-earnings growth ratio well above the industry average, investors seem perfectly fine paying up for quality. As a result, shares aren’t exactly cheap, but they do seem to be justified by the long-term growth potential. In the meantime, if Costco can manage the inflationary pressure of today’s economy it can easily become one of the best stocks to buy now.
What Are The Best Stocks With The Most Value In 2022?
The top 10 best stocks to buy now represent some of the most attractive opportunities for investors in today’s economy. Many of them are on the list because they exhibit promising indicators that can thrive in an inflationary market. Consequently, there are plenty of stocks with promising futures which aren’t equipped to handle the weight of inflation. Meta Platforms, Inc. (NASDAQ: META), for example, appears to have all the potential in the world, but its current balance sheet prevented it from making the “top 10 best stocks to buy now” list. That said, Meta appears to have an incredible amount of value built into the stock at its current price point.
At the very least, Meta Platforms is one of the most polarizing stocks on Wall Street. The bulls are quick to believe Meta’s variation of the Metaverse will revolutionize Web 3.0, and perhaps even alter the fabric of the entire internet and the way we interact on it. Bears, on the other hand, will point to the billions of dollars Meta is burning through to turn their dream into a reality. Whether or not one side is correct remains to be seen, but one thing appears certain: Shares of Meta appear to be trading at a great value.
For starters, shares of Meta are trading for about one-quarter of the value they had at the beginning of the year. Inflation, fluctuations in daily active users, excessive spending and a number of other headwinds haven’t done the social media giant any favors. Instead, shares are continuing to test 52-week lows regularly in the last quarter of the year. As a result, you can argue Meta is objectively undervalued. With a price-to-earnings multiple of 8.63x, shares of Meta are valued well below the interactive media and services industry median of 20.41x.
To be perfectly clear, Meta is trading at a cheap valuation for a reason. Most notably, Meta has spent over $36 billion on metaverse research and development. In just one year’s time, the company’s free cash flow has transitioned from a significant advantage to a real concern. Dropping from $12.8 billion to $317 million over the last 12 months, the collapse in free cash flow has investors concerned.
Investors are concerned Meta is investing in a future that’s either too far away or unobtainable. As a result, shares have sold off all year. However, if the company’s investments end up paying off, today’s valuation will look like a bargain. While it’s too soon to tell just what the Metaverse will turn into, some estimates place the opportunity upwards of $800 billion by 2024; that’s just over a year away. In other words, Meta has all of the potential in the world to become one of the top 10 best stocks to buy now. If the company can prove its obsessive spending will pay off, today’s price could represent the bargain of a lifetime. Of course, the company has a long way to go. Instead, more cautious investors may way to give this story more time to play out. Those with a greater appetite for risk, however, may find this to be a once-in-a-lifetime opportunity.
What Are The Fastest Growing Stocks In 2022?
The market created in the wake of the pandemic has shifted the balance of power. Whereas the teach-friendly NASDAQ realized historic gains over the course of last year, 2022 has introduced an entirely new set of macroeconomic indicators. In particular, the trends which propped up tech in 2021 were replaced by the highest inflation the United States has seen in nearly 40 years. As a result, the Fed has been forced to increase rates at an historic pace, ultimately giving an entirely new set of equities their own momentum.
The new economy has created some obvious winners in the stock market, but two stocks appear to be growing faster than many of their counterparts: Snowflake Inc. (NYSE: SNOW) and CrowdStrike Holdings, Inc. (CRWD). While the broader tech market tends to underperform in periods of rising interest rates, these two enterprise software companies have managed to thrive.
The advent of technology has also expedited the need for translating and using data in a post-pandemic world. Snowflake, in particular, has seen its growth prospects increase exponentially as data becomes more valuable in the twenty-first century. Snowflake is best known for being one of 2020’s most anticipated IPOs. More specifically, however, Snowflake is a cloud-based data platform that offers an entire platform for individual businesses to consolidate data into valuable metrics which facilitate growth and progression. In other words, Snowflake can take all of the information a company collects and translate it in a meaningful way that promotes future insights. Snowflake builds off the concept of Big Data and allows businesses of every size to benefit from it.
According to Snowflake’s latest earnings report, revenue increased 83% year-over-year; that’s very impressive considering the macroeconomic environment. And while revenue is expected to come in slightly over the rest of the year, forecasts are still calling for full-year revenue growth somewhere in the neighborhood of 68%. While few tech stocks are able to increase revenue in today’s inflationary economy, Snowflake’s updated forward guidance is both encouraging and the primary reason it’s going to be one of the best stocks to buy in 2022 and beyond.
Not unlike Snowflake, CrowdStrike is another tech stock realizing significant growth at a time when tech stocks usually retreat. To be clear, CrowStrike is actually down about 8.7% year-to-date. However, CrowdStrike is easily outperforming the NASDAQ, and for good reason. As the world grows more dependent on technology, the need to secure said technology increases exponentially. For some perspective, the cybersecurity industry currently serves a $58.3 billion total addressable market. In just two years, the total addressable market is expected to expand to $71.1 billion. To that end, even modest outlooks expect the total addressable market to reach as high as $126 billion over the long-run, which means CrowdStrike’s growth is just getting started. At its current valuation, CrowdStrike trades at a premium, but its potential to protect the world’s growing dependency on technology makes it one of the best stocks to buy in 2022 and hold for decades.
The Best Stock With The Most Momentum In 2022
The inflationary environment created by the Fed’s decision to stimulate the economy for the better part of two years has shifted which stocks have the most momentum. Wall Street has already turned its back on the high-growth technology stocks that have soared since the beginning of the pandemic. Inflation inherently weighs on unprofitable companies. The tech-heavy Nasdaq, for example, has dropped approximately 1,939 points since topping out in the third quarter of last year. The decline has been fairly steady, as investors appear more inclined to favor safer stocks with better valuations.
The exodus out of the technology sector has created tailwinds in several other industries. However, two industries in particular appear to have the most momentum in 2022: travel and energy.
The travel industry is currently preparing for what many assume will be the busiest summer in years. As pandemic restrictions lift and more people grow comfortable getting out of the house, it’s safe to assume pent-up demand for travel will boil over as the weather heats up.
The energy sector, on the other hand, has seen many investors flock to it as the crisis in Ukraine grows more severe. In particular, sanctions on Russian gas have made subsequent sources of energy more valuable. Natural gas, in particular, is experiencing a renaissance, as it is growing more apparent the world needs more to cover the loss from Russian sourced pipelines.
The travel and energy sectors have received their own unique catalysts, and investors can use the recent tailwinds to their advantage by adding the following stocks to their portfolios:
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Booking Holdings Inc. (NASDAQ: BKNG): As the parent company of popular travel sites like Booking.com and Priceline.com, Booking Holdings is unquestionably one of largest online travel portals. Of course, the company suffered over the course of the pandemic, but it survived the trial by fire with billions in cash on its balance sheets. Today, Booking Holdings can deploy its cash to take advantage of what may be one of the biggest travel seasons ever. Few companies are positioned as well as Booking Holdings to take advantage of pent-up travel demand, making it one of the best stocks to buy now and hold throughout 2022 and well into 2023.
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Axon Enterprise, Inc. (NASDAQ: AXON): Axon has become synonymous with the development of technology and non-lethal weapons for use by the military, law enforcement, and civilians. Axon was initially renowned for its Taser electroshock weapons, but has since expanded and reinvented its own business model. Today, Axon’s products and services range from body cameras and drones to digital evidence management and dispatch solutions, all of which are interconnected with the company’s proprietary cloud network. Together, Axon’s suite of products and services remove many of the inefficient bureaucratic practices found in many government and municipal law enforcement departments. Axon Cloud, in particular, has proven to be so efficient that sales have grown from $58 million in 2017 to $82 million in the second quarter of this year. As a result, the company’s share price has taken off and never looked back. Axon fully expects to carry its momentum forward and grow sales by 27% in 2022. Axon has been one of the best stocks to invest in since its IPO, and there’s no reason to think it will lose any momentum in the years ahead.
The Best Stocks To Buy And Hold In 2022
The stock market entered into 2022 walking on eggshells, as whispers of interest rate hikes shifted investor sentiment almost overnight. The moment the Federal Reserve announced it would be hiking interest rates to combat inflation served as a catalyst for investors to trade high-growth, unprofitable businesses for their safer counterparts. Higher interest rates will weigh heavier on companies that aren’t generating enough cash.
The threat of higher interest rates is shifting the way Wall Street looks at stocks in 2022, and retail investors need to pay attention to the direction sentiment is heading. In particular, the best stocks to invest in at the moment are those which can thrive in an inflationary environment.
Higher interest rates make it more expensive for businesses to operate, and less-profitable businesses will have a harder time producing the cash flow investors want to see. Therefore, the best stocks to buy and hold in 2022 are those with enough pricing power to offset inflation.
There are plenty of good stocks to invest in, but two seem to have separated themselves from the rest of the competition for now:
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D.R. Horton, Inc. (NYSE: DHI): As one of the largest homebuilders in the United States, D.R. Horton languished over the course of 2022. The moment the Federal Reserve began to combat inflation with higher interest rates, D.R. Horton’s share price began a slow and steady descent. Higher mortgage and acquisition costs effectively brought the entire real estate sector to a halt.
As a result, D.R. Horton experienced an uptick in cancellations and a decline in orders. Contributing to the already rough year, building materials and payroll expenses lowered profit margins. Despite all that has happened, however, few stocks look better to buy and hold for a prolonged period of time. For starters, headwinds have reined in the company’s valuation. With a price-to-earnings multiple of 5.39x, D.R. Horton is trading at a discount, relative to its peers. Subsequently, the United States is squarely in the middle of a housing inventory crisis. Some estimates put the current housing shortfall somewhere around 5.5 million units.
The U.S. is already short millions of houses, and the population continues to grow exponentially. Therefore, it is conceivable that D.R. Horton is on the brink of an historic decade of growth. Well positioned to ease the housing crunch, D.R. Horton looks like one of the best stocks to buy and hold for years, if not decades. Investors who can stomach the volatility that is likely to occur over the next few years may find today’s price to be a great entry point into one of the country’s best homebuilders.
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Brookfield Renewable Corporation (NYSE: BEPC): Brookfield Renewable Corporation (NYSE: BEPC): As its name suggests, Brookfield Renewable Corporation is in the business of renewable energy. A subsidiary of Brookfield Asset Management (a leading global alternative asset manager with over $600 billion of assets under management), Brookfield Renewable Corporation owns and operates more than 5,300 facilities around the globe, each of which are tasked with generating at least some form of renewable energy: hydroelectric, wind, solar, and energy storage technologies.
It is worth noting, however, that the re-emergence of traditional fossil fuel energies has served as a headwind for Brookfield Renewable Corporation. Oil and gas stocks have jumped on the unfortunate geopolitical turmoil transpiring in Eastern Europe. For the better part of 2022, investors have sought shelter in oil and gas, effectively moving away from renewables. As a result, Brookfield Renewable Corporation is down about 38% from its 52-week high while other energies are surging.
Despite a relatively stagnant year (which is more than most equities can say), Brookfield Renewable Corporation looks like one of the best stocks to buy and hold. The company’s safe and attractive 3.90% dividend yield will help investors weather a potential recession without sacrificing future growth. In fact, Brookfield Renewable Corporation is confident it can increase its cash flow at a market-beating pace through 2025. The company has inflation rate increases built into many of its long-term contracts, which should help it increase annual cash flow per share by as much as 6.0%.
With more than enough room on the balance sheet to expand and acquire new facilities, management seems confident that it can increase its dividend payments by as much as 9.0% each year for the next few years. Investors will appreciate the income at a time when recessionary pressure could weigh on most of Wall Street. Additionally, patient investors will benefit from the switch to renewables from fossil fuels for decades. The transition won’t happen overnight and could take decades, but those who remain faithful to one of the largest renewable energy companies on the planet will surely be rewarded at some point in the future.
Summary
Determining the top 10 best stocks to buy now isn’t as simple as reading an article and starting a position in a new company five minutes later. In reality, investors must first understand what they want out of their investment portfolio before they even consider investing a dollar in a single stock. Once intentions are disclosed, investors must then take a look at the overall market and determine which stocks will thrive alongside its current trends. The best equities aren’t in their current position simply because of each company’s performance, but rather because of how well they operate in a specific economic environment. The unique combination of great companies and complimentary macroeconomic conditions will create unparalleled opportunities for patient investors.
When all is said and done, there is no way of knowing the best stocks to buy unless you set a goal. How long is the investing window? Do you prefer passive investments or active investments? What is your risk tolerance? All of these questions, and many more just like them, must be answered before anyone can determine the best stocks to buy.
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FortuneBuilders is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”), or any state securities regulatory authority. The information presented is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing provided shall constitute financial, tax, legal, or accounting advice or individually tailored investment advice. This information is for educational purposes only is not meant to be a solicitation or recommendation to buy, sell, or hold any securities mentioned.
