It was challenging to observe the current trends in the stock market. ThatFederal Reserveis taking steps to curb high inflation rates, and many financial experts agree that an economic downturn may be in the offing.
It is not surprising that this development has affected the market. Well-known indices such as the S&P 500, the Dow Jones Industrial Average and the Nasdaq composite have seen significant declines.
In situations like these, it can be difficult to decide which stocks to invest in, if at all. But even in an environment that feels like navigating turbulent waters, there are promising opportunities up for grabs.
Top 10 stocks to invest in now: March 2024
When the bears take over the market, it is easy to doubt your investment decisions and difficult to find something you would be interested in putting your money into. But no matter how red the market is, there is always a glimmer of green.
Where are the glitter now?
The best stocks to buy now are large companies with a huge financial moat – a competitive advantage that keeps competitors from undermining it. Many of these are non-cyclical investments that offer strong returns.
And there are a few cyclical gems that risk-tolerant investors might want to dig into to get a discount on gains that seem all but guaranteed in the future.
Here are some ideas for the best stocks to buy now. There is something for every type of investor.
- Amazon.com, Inc. (NASDAQ: AMZN)
- Alphabet Inc. (NASDAQ: GOOGL)
- Meta Platforms Inc (NASDAQ: META)
- ASML Holding NV (NASDAQ: ASML)
- Tesla: (NASDAQ: TSLA)
- Apple: (NASDAQ: AAPL)
- Duke Energy Corp (NYSE: DUK)
- Microsoft Corp (NASDAQ: MSFT)
- NVIDIA: (NASDAQ: NVDA)
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1. Amazon.com, Inc. (NASDAQ: AMZN)
🏆Best for risk-tolerant investors
Technology stocks like Amazon are probably the last pick you'd expect to see on this list. The company operates in a highly cyclical industry and has given up about a third of its value this year alone.
No doubt some AMZN investors are frustrated beyond words right now, but now is often the best time to buy.
Amazon is an e-commerce giant with a clear ability to weather economic storms. The company's stock price didn't even budge in light of the COVID-19 pandemic, likely because it benefited greatly from stay-at-home orders and store closures.
This is not the first crisis the company has faced. Although the company had its ups and downs, the company's strong fundamentals helped it weather the dot-com bubble and the Great Recession. And while stocks may be falling in value right now, this trend likely won't last forever.
If history is any indication, the company will be sailing back to record highs in no time.
The company also has the potential to return to greatness if fears subside. For most of its existence, Amazon has focused on razor-thin margins in the e-commerce sector.
However, the newer Amazon Web Services (AWS) cloud computing offering is anything but a thin-margin offering. The margins on the AWS business are so high that they are skyrocketing the company's average margins.
All told, Amazon is facing some financial headwinds, but it's nothing the company hasn't yet been able to handle perfectly.
If you're risk tolerant enough to hold on to what could be a short-term crash, and smart enough to be able to dollar average in a bear market, then AMZN is a stock worth considering.
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2. Alphabet Inc (NASDAQ: GOOGL)
🏆The best for long-term growth
Alphabet Inc., Google's parent company, is emerging as an opportunity for investors looking for long-term growth and innovation.
Although Alphabet does not offer a dividend, it makes up for this with its dominant presence in several technology sectors.
Alphabet's diverse portfolio is constantly expanding, as they have expanded into areas such as artificial intelligence and autonomous vehicles with Waymo.
Over the years, GOOGL has maintained a strong position in the market and has continued to rise despite the 2008-2008 recession and the COVID-19 pandemic. This makes GOOGL a solid choice for stable long-term growth.
3. Meta Platforms Inc (NASDAQ: META)
🏆 Best for growth investors
Meta Platforms, formerly Facebook, is a favorite on Wall Street; it is one of the most common stocks in ETF portfolios. However, the past year has been a difficult time. While this may send most investors running for the mountains, it is actually an opportunity.
Meta is a growth stock by almost any definition. The company has had solid revenue growth for years and earnings per share (EPS) growth has been impressive. Moreover, the stock was known for its massive rally until the curtain was pulled on the tech sector as inflation concerns surfaced earlier this year.
Of course, there are some short-term headwinds to consider, including:
- Weak e-commerce consumption.As prices rise and fears of a recession grow, e-commerce and consumer spending are likely to decline, which could weigh on the company's advertising revenue.
- Transition to the Metaverse.Meta recently changed its name from Facebook in an attempt to rebrand the company as the center of all things metaverse. This transition may come with some growing pains in the near future.
- Economic headwinds.Many experts are warning of a possible recession that could affect the company's revenue and profitability in the short term.
Even with these headwinds, Meta offers a unique opportunity to profit from a stock that has historically significantly outperformed the market, but at a steep discount to its current market value.
4. H&R Block Inc (NYSE: HRB)
🏆 Best for value investors
H&R Block is a household name that offers both do-it-yourself tax services and full-service tax professionals. It's also one of the most attractive value stocks on the market.
HRB shares have great appeal in the current economic times.
All people eat, sleep and pay taxes. Rising interest rates and declining consumer spending may have a negative impact on other businesses, but people still need to file taxes regardless of the state of the economy. HRB's business model performs well even when a recession occurs.
While other companies are looking for ways to reduce costs heading into a recession, HRB is working to revamp its small business product to increase profitability.
If that's not enough for you, the company even adds a nice, thick layer to top it all off with a respectable yield.
5. ASML Holding NV (NASDAQ: ASML)
🏆Best for banking with microchip shortages
ASML Holdings has a monopoly on the extreme ultraviolet (EUV) lithography machines needed to create the tiny patterns found on microchips. They aren't just aesthetically pleasing either. The smaller and more complex these patterns are, the more data a chip can process.
Even with a potential recession looming, analysts are predicting significant earnings growth for the remainder of 2023 and 2024.
The bottom line is, it's simple. ASML has a global monopoly on a tool used to create a product in high demand in a global supply shortage. The tools are used to create the microchips that automakers, medical device makers and technology companies can't get enough of.
Not to mention that recent share price declines have brought the stock price to a more than reasonable valuation.
6. Tesla (NASDAQ: TSLA)
🏆The best for visionary investors
Perfect for investors who want to support sustainable energy sources, Tesla Inc. is an exciting possibility.
While Tesla doesn't offer a dividend, it makes up for it with its forward-thinking innovations in electric vehicles, renewable energy, and cutting-edge technology. Over the past five years, TSLA has grown explosively and continues to rise.
While there may be some volatility, long-term investors can see big upside. When you invest with TSLA, you invest with a forward-looking vision in a rapidly developing industry.
7. Apple (NASDAQ: AAPL)
🏆Best for risk-averse investors
Apple Inc. is another tech giant topping the list that has a long track record of innovation, stability and steady share growth.
AAPL also offers its investors a dividend yield of 0.48%, which while not a high-yielding stock, still shows a consistent track record of engaging with its shareholders.
Apple's success is built on its iconic products, including the iPhone, iPad, Mac and wearable technology. They continue to expand their reach by introducing services like Apple Music, Apple TV+ and the App Store.
Over the years, Apple Inc. showed explosive, steady growth, perfect for investors looking for stability.
8. Duke Energy Corp (NYSE: DUK)
🏆 Best for recession-proofing your portfolio
Duke Energy is one of the largest electric utilities in the United States. The company serves more than 7.7 million residential customers in six states.
There are three compelling reasons to consider investing in DUK in a bear market:
- Consumer habits.When the economy is improving, consumers spend less, but almost always pay their energy bills. This makes DUK a good investment in a recession.
- History.The company has historically outperformed the S&P despite multiple financial problems.
- Stability over growth.The company has experienced impressive growth in recent years, but management's core focus is on the stability of the business, ensuring low volatility.
Honestly, there isn't much to say about Duke Energy. It's not a sexy company; it doesn't have much growth prospects and it's not likely to get you rich quickly. But what it doesn't do only serves to indicate what it does do.
Duke Energy continues its mission to provide quality at reasonable prices to its customers. While it does that, it offers its investors stable returns, consistently paid dividends, and an easier time going to bed at night, regardless of the state of the economy or the broader market.
9. Microsoft Corp (NASDAQ: MSFT)
🏆Best for technology enthusiasts
Another tech stock makes our list, and for good reason. Technology stocks may seem risky, but Microsoft's resilience and adaptability make it a stable choice for the risk-tolerant investor.
From gadgets and software to cloud services and gaming consoles, Microsoft is positioning itself as a technology giant with a proven ability to take on the market. Whether it's the dot-com bubble, the 2008 recession, or the COVID-19 pandemic, Microsoft has remained steadfast.
10. NVIDIA (NASDAQ: NVDA)
🏆Best for growth investors
NVIDIA Corporation is a powerhouse in semiconductor technology and has demonstrated explosive growth over the past eight years.
While not much, NVDA provides a dividend and makes up for it with its push for innovation in graphics processing units (GPUs) and artificial intelligence.
NVIDIA has a long history of innovation, including 3D graphics, the GPU, the NVIDIA RTX™ upgrade to the GPU, and their Omniverse platform.
Although the stock can be volatile, NVDA is a good choice for investors who like innovation, growth and dividends.
Methodical
At the start of each quarter, Money Crashers compiles a list of the best stocks to buy right now. This stock selection is based on the stability of the company and market trends.
For each stock in the list, we include the current dividend, price/earnings ratio and current market capitalization. This page will change and update as the market fluctuates.
Last words
The above stocks are among the best to fall behind as market declines continue. Given the state of the market, they are all large-cap stocks, and most follow a more reserved investment strategy.
While these are my top picks for investors looking for diverse opportunities, you have your own unique risk tolerance and investment goals.
Never blindly invest in the stock picks you read about online, even the stock picks above. Do your own research and make informed investment decisions based on what you learn and how it relates to your unique situation.
Revelation:The author currently has no positions in the stocks mentioned herein, but may buy shares in Devon Energy (DVN), H&R Block (HRB), ASML Holdings (ASML), UGI Corp (UGI) and Duke Energy (DUK) within the next few years ). 72 hours. The views expressed are those of the author of the article and not necessarily those of other members of the Money Crashers team or Money Crashers as a whole. This article was written by Joshua Rodriguez who shared his honest opinion about the companies mentioned. However, this article should not be construed as a solicitation to purchase shares of any security and should be used for entertainment and information purposes only. Investors should consult a financial advisor or conduct their own due diligence before making any investment decision.
