![]() ![]() To compile the list, we looked for high-quality companies with solid fundamentals like strong earnings and revenue growth, as well as free cash flow, and many with a value tilt as measured by their forward price-to-earnings (P/E) ratios. So, with all of this in mind, here are 12 of the best stocks to buy now. Sectors typically grouped in the value style include energy, financials, industrials and materials. These cycles last a while," says Ryan Detrick, chief market strategist at money management firm Carson Group. Generous and growing dividends are a hallmark of high quality and are likely to make up a much bigger portion of total returns than they have recently, says Caroline Randall, a portfolio manager at mutual fund company Capital Group.Īnd now may be a good time to tilt toward value-oriented companies and small-cap stocks, both longtime underperformers that are showing signs of new life. "Instead, emphasize quality with a focus on earnings consistency and good profitability." "Investors should avoid volatile names and be cautious on both deep-value and unprofitable growth companies," Koesterich says. Given the uncertain, sometimes roiling backdrop for stocks, where should investors look when seeking out the best stocks to buy now? A popular piece of advice among Wall Street strategists now is to resist the bargain-basement appeal of the most beaten-up stocks and focus instead on high-quality shares. "Today, none of those conditions are in place." How do I find the best stocks to buy? "History tells us that markets don't find a bottom until investors can see Federal Reserve rate cuts or a trough in economic activity on the horizon, or when valuations are so low that they price in a bear-case scenario," says Mark Haefele, chief investment officer at UBS Global Wealth Management. ![]() As for a potential recession, we have the odds of one starting later this year at 50-50.įor stocks, the turn from tighter monetary policy to easing will be a compelling all-clear signal – as will rock bottom valuations in prices. ![]()
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