What are the Top 10 Stocks to Buy Right Now in United States
There are literally thousands of publicly traded companies you can invest in, not to mention the many exchange-traded funds (ETFs) and mutual funds you can buy, so it’s not surprising many investors don’t know where to begin. And, with the recent market downturn, especially when it comes to growth stocks, there are plenty of stocks trading for significantly less than they were just six months or a year ago.
But what are the top 10 stocks to buy right now in united states? Although I don’t have a crystal ball that tells me what stocks will deliver the best returns, I’ve tried to do the next best thing. In this article, I’ll discuss 10 stocks that I think could be great buys in 2023 for long-term investors looking to put their money to work.
Before we get to the stocks, let’s acknowledge three caveats:
- Choosing the best stocks to buy today heavily depends on your personal financial situation. To get a feel for where you stand, read our guide on how to invest in stocks. It walks you through topics such as establishing an emergency fund, allocating assets, and when it makes sense to buy stocks.
- I like these stocks as long-term investments. I have absolutely no idea what they’ll do over the next few weeks or months. In fact, if inflation stays elevated longer than expected or the U.S. falls into a recession, it’s entirely possible that most or all of these could decline in the near term.
- Although I ensured some variety, the list below isn’t meant to be a fully diversified portfolio. Instead, they’re my highest-conviction long term stocks to invest in for 2023 and beyond. The best one-step way to diversify your holdings is to build the core of your portfolio around something like the Vanguard Total World Stock Index Fund ETF (NYSEMKT:VT).
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Let’s get to my list of the 10 best stocks to buy now and hold for the long term, from smallest market cap to largest, followed by the summary buy thesis for each one.
Table of Contents
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.
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Again, there’s no such thing as a perfect stock. However, these are the top 10 best stocks to buy now:
- ServiceNow, Inc. (NYSE: NOW)
- Alphabet Inc. (NASDAQ: GOOG)
- Amazon.com, Inc. (NASDAQ: AMZN)
- The Walt Disney Company (NYSE: DIS)
- Palo Alto Networks, Inc. (NASDAQ: PANW)
- The Boeing Company (NYSE: BA)
- Prologis, Inc. (NYSE: PLD)
- Johnson & Johnson (NYSE: JNJ)
- MercadoLibre, Inc. (NASDAQ: MELI)
- Costco Wholesale Corporation (NASDAQ: COST)
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. 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.
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. In fact, it’s ServiceNow’s profitability which makes it one of the best stocks to buy for 2022 and 2023.
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2. Alphabet Inc.
When looking for the best stocks to buy for 2023, 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.
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 2023. 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. Based on valuation and free cash flow alone, Alphabet looks like one of the best stocks to buy right now.
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. 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. 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.
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. 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. 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 2023 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. 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%. 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.
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.
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. 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. 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 2023. 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.
Despite Prologis’ unique position, shares of the REIT have done nothing but struggle for the better part of 2023. Shares have been in a free fall ever since the company announced the acquisition of Duke Realty Corporation for $23 billion. 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.
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. On most investors’ lists of the best stocks to buy for 2023, Johnson & Johnson looks more than capable of sheltering portfolios from volatility in the near term and providing a long runway for growth.
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 2023. As a result, analysts most familiar with the company are forecasting annual earnings to grow at least 4.1% over the next five years.
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. 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.
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.
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.
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.
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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