What Are The Best Stocks To Buy Today?
Purchasing stock is a straightforward process; purchasing the right stock without a well-established strategy, however, is an incredibly challenging task. Determining the best stocks to buy now or add to your watchlist can be tricky, but a great place to start is with Microsoft (MSFT), Nvidia (NVDA), Amazon (AMZN), D.R. Horton (DHI) and MercadoLibre (MELI).
Although inflation fears and aggressive Federal Reserve rate changes have caused uncertainty, the market has surpassed 2023’s expectations and delivered a strong performance so far this year, despite recent negative action. Ongoing global conflicts in Ukraine and Israel have added further unpredictability.
When it comes to investing, you want to locate the very best stocks at the moment in order to generate substantial gains. CAN SLIM, a time-tested stock investing strategy, suggests several key guidelines to consider:
• Invest in stocks that have experienced at least 25% growth in quarterly and annual earnings.
• Seek companies that have introduced new, transformative products and services.
• Consider investing in not-yet-profitable companies, often recent IPOs, that are experiencing significant revenue growth.
• Focus on leading stocks in top industry groups and those with strong institutional support.
CAN SLIM’s outstanding track record of outperforming industry benchmarks is essential for realizing exceptional long-term returns. Once you have identified a stock that fits the criteria, turn to stock charts to pinpoint an optimal entry point. Once the stock forms a base, look for a buy point, ideally accompanied by increased trading volume. In many cases, a stock reaches a suitable buy point when it surpasses the original high on the left side of the base.
The M in the CAN SLIM formula represents the market, an integral factor as most stocks, including the best ones, trend with the market’s direction. Invest in stocks during a confirmed uptrend and move to cash during a correction. The stock market has recently regained a confirmed uptrend, signaling an opportune time for investors to make stock purchases. Investors should also utilize the IBD 50 as a valuable resource, while remaining cautious of sell signals, such as when a stock falls 7% or 8% from its purchase price.
Now, let’s dive deeper into the details of Microsoft stock, Nvidia stock, Amazon stock, D.R. Horton stock, and MercadoLibre stock, which are all displaying impressive relative strength.
Microsoft (MSFT) is in a favorable position after surpassing a cup base buy point of 366.78. It boasts an exceptional IBD Composite Rating of 99, indicating outstanding price performance over the last 12 months. The company’s artificial intelligence initiatives and recent earnings growth make it a strong candidate for investment. Additionally, its perfect IBD Composite Rating of 99 underscores its ongoing impressive performance.
Nvidia (NVDA) is another standout performer. Its recent pattern began following an all-time high on Aug. 24, with a current trading range above a double-bottom base with a 476.09 buy point. The company’s extraordinary sales and earnings growth further solidify its position as a top stock to watch.
Amazon (AMZN), D.R. Horton (DHI), and MercadoLibre (MELI) also exhibit strong potential, boasting impressive relative strength and performance metrics. It’s worth noting that these criteria help pinpoint the best stocks to buy or watch in the current market.
Remember, investing in stocks is an ever-changing landscape, and it’s essential to stay informed of market trends and developments. Keep a close eye on potential market risks and remain adaptable to new information.
