What Stocks to Buy Now and Hold Now in United States

What Stocks to Buy Now and Hold Now in United States

What Stocks to Buy Now and Hold Now in United States

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist? Medpace (MEDP), Wendy’s (WEN), Axon Enterprise (AXON), Vertex Pharmaceuticals (VRTX) and Noble (NE) are prime candidates. With inflation worries high, and the Federal Reserve tightening rates aggressively, market action was challenging in 2022, with more difficulties expected in 2023. The Russian invasion of Ukraine also continues to cast a shadow over markets.

What Stocks to Buy Now and Hold Now in United States?

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Best Stocks To Buy: The Crucial Ingredients

Remember, there are thousands of stocks trading on the NYSE and Nasdaq. But you want to find the very best stocks right now to generate massive gains. The CAN SLIM system offers clear guidelines on what you should be looking for. Invest in stocks with recent quarterly and annual earnings growth of at least 25%. Look for companies that have new, game-changing products and services. Also consider not-yet-profitable companies, often recent IPOs, that are generating tremendous revenue growth.

IBD’s CAN SLIM Investing System has a proven track record of significantly outperforming the S&P 500. Outdoing this industry benchmark is key to generating exceptional returns over the long term. In addition, keep an eye on supply and demand for the stock itself, focus on leading stocks in top industry groups, and aim for stocks with strong institutional support. Once you have found a stock that fits the criteria, it is then time to turn to stock charts to plot a good entry point. You should wait for a stock to form a base, and then buy once it reaches a buy point, ideally in heavy volume. In many cases, a stock reaches a proper buy point when it breaks above the original high on the left side of the base. More information on what a base is, and how charts can be used to win big on the stock market, can be found here.

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Don’t Forget The M When Buying Stocks

A key part of the CAN SLIM formula is the M, which stands for market. Most stocks, even the very best, follow the market direction. Invest when the stock market is in a confirmed uptrend and move to cash when the stock market goes into a correction. A stock market rally that kicked off 2022 soon fell on its face. The market overall has been choppy since then, with bear market rallies often being undercut by painful drawdowns. The S&P 500, the Nasdaq and the Dow Jones Industrial Average rebounded following the latest jobs report.

The bullish action continued when stocks rallied on the December consumer price index report. Last week big tech layoffs helped the market recovery after some shaky sessions. The stock market is now back in a confirmed uptrend. With earnings season kicking off, investors should raise exposure at a measured pace. A confirmed uptrend is when investors should make most stock purchases. It’s also a good time to add to existing holdings at follow-on opportunities, such as support at the 50-day moving average or at the 10-week moving average. It remains crucial to stay on top of sell signals. Any stock that falls 7% or 8% from your purchase price should be jettisoned.

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Best Stocks To Buy Or Watch

  • Medpace
  • Wendy’s
  • Axon
  • Vertex
  • Noble

Now let’s look at Medpace stock Wendy’s stock, Axon stock, Vertex stock and Noble stock in more detail. An important consideration is that these stocks all boast impressive relative strength.

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Medpace Stock

Medpace stock has formed a consolidation pattern with an ideal buy point of 235.82. The relative strength line is making progress again, a good sign. The stock is rebounded from the 50-day moving average on Jan. 10, offering an early entry. However, it’s possible that MEDP stock will forge a handle, offering a new, lower official buy point and letting moving averages catch up somewhat. Overall performance is excellent, with the stock holding an IBD Composite Rating of 97. It holds a rare perfect EPS Rating of 99. Medpace is also in the top 5% of stocks in terms of price performance over the past 12 months.

The next big catalyst for Medpace stock could be its Q4 earnings report. Analysts expect Medpace to earn $1.86 per share, minus some items, on $386 million in sales. Earnings would rise almost 38% and sales would surge about 25%, according to FactSet.com. It’s also important to note, annual profits are growing. Last year, Medpace earned $4.81 per share. This year, MEDP stock analysts call for $6.97 per share, rocketing 45%. By 2026, analysts project Medpace earnings of $13.05 per share. Annual sales growth is on a similarly strong trajectory.

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Wendy’s Stock

Wendy’s has formed a new flat base with a 23.88 entry. The new pattern is just above a prior base. Investors could use 23.59, just above the Jan. 17 peak, as a slightly early entry. Its relative strength line is also moving higher again after a recent pause. The RS line surged for much of 2022. WEN previously rebounded above the 50-day moving average but is now testing this key benchmark once again. The stock is in the top 21% of stocks over the past 12 months.

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Axon Stock

AXON has formed a cup with handle base pattern with a buy point of 189.72 after previously clearing the key 50-day moving average. The bounce above that level could’ve been considered an early entry for aggressive investors. The relative strength line had been taking a breather during its consolidation but has just hit fresh heights. The pause was healthy following a strong upward move from mid-July until early November. Axon is among the top 3% of stocks in terms of price performance over the past 12 months. Earnings performance is solid, with its EPS Rating a healthy 83 out of 99. Axon makes the bulk of its revenue in the United States. Of the approximately 18,000 law enforcement agencies in the U.S., the firm has a customer relationship with approximately 17,000. Credit Suisse has named Axon its New Top Pick for 2023 and maintains an outperform rating.

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Vertex Stock

Vertex Pharmaceuticals shares have been forming a flat base. This is a first-stage pattern, which means it is more likely to net rich gains. The ideal buy point here is 324.85. Shares recently reclaimed the 50-day line and is now consolidating. Investors could use 312.76 as an early entry. The relative strength line is bending higher again, a positive sign. The company is known for its cystic fibrosis treatments. The firm estimates a market of 88,000 patients. Of those, there are still 20,000 patients who could receive its old-school oral treatments. Analysts are watching for what’s new from Vertex, including an updated regimen of three drugs that could strengthen Vertex’s position against incoming rival AbbVie (ABBV).

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Noble Stock

NE stock has formed a cup base with an ideal buy point of 42.18, though it’s possible a handle is being forged.  The relative strength line has been making progress of late, a good sign. Stock extended after rebound from 10-week moving average. Noble stock has been in a volatile period of multiple breakouts since March 2022. Noble is in the top 5% of stocks in terms of price performance over the past 12 months. Since exiting bankruptcy in June 2021, NE shares are up almost 70%. Earnings performance is not ideal, which is reflected in its EPS Rating of 77 out of 99. Institutions have been piling in of late, with its Accumulation/Distribution Rating coming in at A-. Headquartered in Sugar Land, Texas and incorporated in the Cayman Islands, Noble is an offshore drilling contractor for the oil and gas industry. The Oil & Gas-Drilling group is now rated No. 5 out of 197 industries tracked by IBD.

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