What are best stocks to buy now ? What are best stocks to invest in now? Which are the top 10 stocks to buy now? These are common questions asked by stock traders. Some of the most common ways of investing in stocks ans shares is via shares ISA, regular shares, bonds, GICs and ETFs. Now is the right time to look at the top 10 stocks to buy now.
So if you want to explore into investing in top 10 stocks to buy now then the following information will help you into that world.
Adobe Inc. (ticker: ADBE)
Adobe has been a solid performer, with the software giant surpassing a $300 billion valuation. Much of 2021’s gains came after Adobe reported impressive fiscal second-quarter earnings in June. Revenue and non-GAAP earnings per share both rose by about 23% year over year, exceeding analyst expectations. A practically required expense for professional and amateur creatives of all types, Adobe’s offerings are largely centered around its digital media segment, which generated $2.8 billion of the $3.8 billion in revenue last quarter. The Adobe Creative Cloud is in turn the driver of digital media, where recent subscription momentum in programs like Lightroom and Photoshop helped Adobe post an impressive quarter. The company remains an attractive, high-margin software business with a growing number of loyal returning customers.
Year-to-date returns (through Aug. 6): +26.2%
Amazon (NASDAQ: AMZN)
The coronavirus pandemic is a horrible thing. More than 219 million people around the world have gotten sick, with more than 4.55 million people losing their lives. There’s no downplaying the seriousness of this illness.
However, even the darkest cloud has a silver lining.
Online retail companies have become prime beneficiaries of the crisis. For months, consumers were told to stay at home, only leaving the confines of their homes in search of absolute necessities.
While there were already growing numbers of consumers shopping online, travel restrictions and temporary lockdowns led to a tidal wave of consumers who shifted from brick-and-mortar shopping to shopping on the web. Naturally Amazon.com, one of the most successful e-commerce websites in the world, seemed likely to benefit greatly from this trend — and benefit it has.
Since June 2020, the company’s stock price has climbed from around $2,545 per share to nearly $3,500 per share. With this kind of growth, the e-commerce pioneer has not only become one of the largest companies in the world, but one of the strongest growth stocks on the market today.
As a result of the growth, the stock trades with a pretty high valuation, with a price-to-earnings (P/E) ratio of around 60, compared to the e-commerce average of around 55. However, the high price-to-earnings ratio is offset by the outsize earnings and revenue growth seen from Amazon.com when compared to other e-commerce players.
Perhaps that’s why all 32 analysts covering the stock rate it a Buy according to TipRanks, which outlines an average price target of a whopping $4,202.39 per share.
All in all, with e-commerce dominance at a time when more and more people are shopping online, Amazon.com stock is one to watch closely.
Spotify Technology SA (SPOT)
Spotify has been quite another story, the worst performer on the list of the best stocks to buy for 2021. The business is still healthy, but it has simply failed to meet market expectations in recent quarters. The company picked up 9 million monthly active users in the second quarter, finishing with 365 million, below the prior quarter’s guidance for 366 million to 373 million. Margins are improving, though, due in part to the company’s bets on podcasts, for which Spotify doesn’t have to shell out per-spin music licensing fees. A relatively new feature allowing artists to pay for promotion in Spotify’s nascent Discovery Mode is another potential catalyst in the quarters and years ahead, with artists in Discovery Mode garnering 40% more listeners than in their pre-Discovery Mode days. Patient investors should stick with SPOT.
YTD returns: -29.5%
Upwork (NASDAQ: UPWK)
Upwork is a tech play that’s focused on connecting contractors and those in need of contract work in the gig economy. Those who need articles written, graphics created, websites built, voiceovers added to videos, and a long list of other services will find talented experts in these crafts on the company’s website.
Of course, Upwork needs to make money in the process, and it makes plenty. In order to use the platform, freelancers must agree to the following fee schedule:
- Freelancers pay 20% of their billings to the company for the first $500 paid by a new customer.
- From $500.01 to $10,000 in billings of the customer, the platform charges a fee equal to 10% of billings.
- Finally, for all billings of a single customer with total billings of $10,000.01 or more, the company takes a 5% cut.
Prior to the coronavirus, the gig economy was already taking off. Consumers who have dreamed of working from home finally had a way to do so. Then, as the world shut down, the gig economy boomed.
Businesses deemed to be nonessential were forced to close their doors. This left many workers without a job and standing in unemployment lines of record length. Many of these displaced workers began looking for work-from-home opportunities, leading to a flood of demand for Upwork and its competitors. Moreover, this increased demand is likely to continue.
There have also been major changes for employers. Employers now have access to talent around the world, not just in close proximity to the office. What’s more, companies are finding that not only do workers prefer to work remotely, but they’re more effective when they do, according to Business News Daily. COVID-19 led countless companies to realize this, many of which say they’ll never bring employees back into the office, according to CNN.
Analysts absolutely love this stock because of the growing work-from-home trend and Upwork’s ability to capitalize on it, demonstrated by its significant revenue and earnings growth. According to TipRanks, four analysts cover the stock, all of whom rate it a Buy. Price targets range from $57 and $76 per share, averaging out to $67.50 and suggesting the potential for nearly 50% gains compared to current levels. Granted, you shouldn’t blindly follow Wall Street analysts, but these ratings are encouraging.
The bottom line here is simple. Upwork has seen tremendous growth already, and considering the flourishing of the gig economy and the trend toward remote work, that growth is likely to continue. As a result, the stock is one to pay close attention to.
BJ’s Wholesale Club Holdings Inc. (BJ)
The thesis for warehouse club retailer BJ’s being named one of the best stocks to buy for 2021 was simple: Cost-conscious consumers looked poised to seek out savings during an elongated pandemic, benefiting bulk retailers like BJ’s. Plus, among direct competitors, BJ’s was far cheaper than Costco Wholesale Corp. (COST) stock, which traded for roughly three times the price-earnings ratio of the smaller BJ’s. The second-best performer on this list to date, BJ’s still trades at a steep discount to Costco, with BJ stock trading for 18 times earnings versus Costco’s P/E of 41. BJ’s is slowly expanding, with plans to open six new warehouses this fiscal year.
YTD returns: +39.0%
Apple (NASDAQ: AAPL)
Staying on the tech trend, Apple is next on the list. With a market cap of more than $2.46 trillion, the tech giant is one of the largest companies in the world, the largest company listed on the Dow Jones Industrial Average, and like the stocks mentioned above and the majority of those mentioned below, it has become a household name.
As you likely know, Apple is the creator of the iPhone, iPad, and Mac computers, with the iPhone representing the vast majority of the company’s revenue.
The stock had a strong start to the year, but gains tapered off in late January and again in late February, bringing the stock down to what many believe is a discount. While the stock has rebounded from the lows, there’s still a strong argument that the stock is undervalued.
In big tech, there are few growth stories that are quite as strong as Apple’s, especially in the fiscal third quarter of 2021. Here are some key stats from the earnings report:
- Revenue. The company generated $81.43 billion in revenue, up 36.44% on a year-over-year basis.
- Net Income. Net income came in at 21.74 billion, up 93.2% year-over-year.
- Earnings Per Share (EPS). Finally, EPS came in at $1.3, up 100% year-over-year.
All of these figures beat analyst expectations by wide margins.
Some argue that the growth is the result of Apple’s status as the leading global device manufacturer. Others argue that the growth was fueled by spending as a result of stimulus payments given to U.S. consumers. Some say it’s a mix of the two.
No matter where it came from, this growth is impressive.
It’s these impressive numbers that form the basis for the overwhelmingly positive analyst opinions on the stock. Out of 23 analysts covering AAPL stock, 17 rate it a Buy, six rate it a Hold, and none rate it a Sell, with an average price target of $167.09 per share, representing the potential for more than 12% gains, according to TipRanks.
Notwithstanding recent volatility, the stock is currently trading with a relatively high valuation when compared to the industry average. However, like other big tech names on this list, the high valuation associated with the stock is offset by the strong growth seen in revenue and earnings, growth that many believe will continue for the foreseeable future.
The Walt Disney Co. (DIS)
Disney shares have put up a lackluster performance in 2021, but the Burbank, California-based entertainment giant is still one of the more solid blue-chip stocks on this buy list. Its trailing financials have taken a big hit as the pandemic forced Disney’s iconic parks to close or operate at limited capacity and its cruise line business to suspend operations entirely. Things have been starting to look better on those fronts, with cruises gradually starting to set sail again in August. The Delta variant is an obvious risk to its Parks, Experiences and Products division in the near term. At the same time, the relatively fresh Disney+ streaming service has been growing rapidly, more than tripling subscribers year over year in the second quarter, to 103.6 million. If COVID-19 variants force Disney to once again close down parts of its business, investors can at least rest assured that Disney’s streaming interests in Disney+ and Hulu will act as a hedge.
YTD returns: -2.2%
Stitch Fix Inc. (SFIX)
Next up is Stitch Fix, the subscription e-commerce clothing company that sends custom-picked clothes to its customers on a recurring basis. At just over $4 billion, SFIX is a mid-cap stock, and by far the least valuable company on this list.
Admittedly volatile and still unprofitable, SFIX may carry more risk than its peers on the October buy list, but it’s coming off an impressive quarterly report in September and deserves some credit.
Revenue rose 29% in the July quarter, more than the company’s 21% forecast. The company also touted the August launch of its direct buying feature, called Stitch Fix Freestyle, its first foray into e-commerce that is not exclusively for subscribers.
With anyone now able to go on its website and shop for clothes, Stitch Fix is opening itself up to a much larger market, and the company also has enviable long-term growth opportunities that it plans to exploit in areas like accessories, footwear and international markets.
The road to profitability is likely a multiyear path, but that’s often the case with less mature companies.
READ: 7 Best Esports Stocks to Buy
Gevo (NASDAQ: GEVO)
Gevo isn’t necessarily the type of company you would expect to see on a list like this. The company is anything but profitable, and the stock was still trading in the penny category in late 2020.
Nonetheless, Gevo has seen an exceptional rise thus far in 2021. Year to date, GEVO stock has climbed by more than 60%, and that’s after recent profit taking as the stock touched record highs.
Gevo is a clean energy company, but the company isn’t making solar panels, windmills, or batteries. Gevo is focused on the production of clean, renewable fuels, making it an interesting take on exposure to energy stocks.
Over the past several years, the company has perfected technology that allows it to turn renewable feedstock like waste wood and food scraps into clean, renewable fuels, including jet fuels that have been used to power commercial flights.
Recently, Gevo has been getting quite a bit of attention from proponents of clean energy and demand from airlines and fuel distributors around the world. That attention has been amplified in recent months as a result of a change in political tides.
With President Joe Biden in the White House and Democrats in control of Congress, many expect there to be major clean energy legislation in the coming months. As a result, companies that operate in the clean energy space are likely to benefit from the following:
- Grants. Grants will likely be provided to clean energy companies like Gevo to fund research and to increase the supply of clean energy products.
- Tax Cuts. The federal government is likely to further support clean energy companies through tax policies that benefit green energy producers, helping these companies to keep funds in house and offer more competitive pricing of clean energy to consumers.
- Increasing Demand. Many expect tax credits to be provided to consumers who take advantage of clean energy products. Should this be the case, consumer demand for these products will likely increase — yet another plus for Gevo.
Expecting a rise in demand, Gevo is in the process of building its first Net Zero production facility, where it will be able to produce massive amounts of clean fuel with a net zero carbon footprint. The facility is expected to be completed and operational by the end of 2021. This has quite a bit to do with its lack of profitability. The company is following a growth business model like that of Amazon.com, investing in infrastructure early to stay ahead of the curve later.
At the same time, Gevo has a strong balance sheet due to a recent capital raise, and with the clean energy movement gaining steam, it has plenty of support from the retail investing community. This, combined with a recent dip in price that creates a compelling value opportunity, makes Gevo stock worth its position on your watchlist.
Facebook Inc. (FB)
There are an estimated 4.7 billion active internet users on the planet. Facebook alone counts 3.51 billion monthly active users of its dominant family of products, which include its eponymous app, Messenger, Instagram and WhatsApp. Facebook is beating the market thus far in 2021, and the second quarter was a good one, with revenue up 56% year over year. Although it’s a behemoth at a valuation of around $1 trillion, Facebook still places a high priority on innovation: The company is a leader in artificial intelligence research, has plans to integrate e-commerce features into Instagram and is working on a long-term vision to create what CEO Mark Zuckerberg calls the “metaverse,” a sprawling virtual world in which people digitally live, work and play together.
YTD returns: +33.1%
Conclusion
Finding the best stocks to buy now is very difficult. That’s because it’s hard to know what is going to be best in the next five years. However, certain stocks are still likely to grow dramatically even if it might take time for them to get there. If you’re looking for the best stocks to buy right now then you are at the right place.