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? Tesla (TSLA), Microsoft (MSFT), Alphabet (GOOGL), Advanced Micro Devices (AMD), Fortinet (FTNT), and Old Dominion Freight Line (ODFL) are prime candidates.
Since the coronavirus bear market, stocks rebounded powerfully. The muscular action reflects rising confidence that the economy will eventually recover from the coronavirus. But Covid remains a concern, even as vaccinations reach more and more Americans. The rising number of cases of the new Delta variant is a worry.
The major indexes have been coming under the pressure of rate, with factors including inflationary worries and the possible demise of the heavily indebted China Evergrande weighing on the market. The prospect of the Federal Reserve tapering bond purchases is another issue.
Best Stocks To Buy: The Crucial Ingredients
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.
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 time to turn to stock charts to plot a good entry point. It would help if you waited for a store to form a base, and then buy once it reaches a buy point, ideally in heavy volume. In many cases, a stock arrives at a proper buy point when it breaks above the original high on the left side of the base. More information on what a command is and how charts can be used to win big on the stock market can be found here.