The 6 Best Stocks to Buy Now
Getting in or out of an investment at the right time can make or break your return. This is especially true if you prefer to buy individual stocks, instead of stock indexes. Individual stock prices tend to be much more volatile when compared to indexes. Owning overvalued stocks can present a major risk to your portfolio. However, finding undervalued stocks can present a major opportunity. This is why it’s important to always be on the lookout for the best stocks to buy now.
Identifying change is a great strategy for finding the best stocks to buy now. This change can be just about anything. It just needs to have the potential to significantly impact a stock’s price. For example, a change in the company’s management could drastically impact the success of a company. On the other hand, a change in consumer behavior could run a company into the ground. This could happen even if the company is making all the right moves. The same is true for a change in political or economic policy.
The first step is to identify this change. The second is to determine how it will impact a certain company. The third is to gather as much data as possible to support your argument. From there, it’s time to make your investment and stick to your guns.
On that note, let’s take a look at 6 of the best stocks to buy now. All of these stocks were chosen due to some type of ongoing change.
NOTE: I’m not a financial advisor and am just offering information and commentary. Please do your own due diligence before making any decisions. I also own small positions in Airbnb and Block Inc.
Moderna (NASDAQ: $MRNA)
We are currently wrapping up year two of the pandemic. Unfortunately, COVID-19 still dominates the headlines. First, it was the delta variant. More recently, it has been the omicron variant. This is why Moderna is still one of the best stocks to buy now.
If you’re not familiar, Moderna is one of the three companies to produce a COVID-19 vaccine. Even more impressively, it pioneered a completely new strategy for creating vaccines. The Moderna vaccine uses mRNA to instruct your cells on how to fight disease. So far, this strategy has been successful in fighting COVID-19. There is a good chance that it can be used to fight other diseases as well.
This medical stock is going to fluctuate based on the most recent COVID-19 news. A surge in COVID-19 cases will mean that more vaccines/booster shots are necessary. This will most likely be a boon for Moderna stock. Currently, COVID-19 cases are the highest they’ve been in months. However, this could very well change by the time you read this. Due to the varying nature of COVID-19, it’s important to check the most up-to-date information. If this Omnicron spike continues then Moderna is one of the best stocks to buy right now.
Moderna’s stock is up approximately 140% so far in 2021. It’s also up 1,340% over the past 5 years.
If you are looking for another stock to trade on Omnicron news, check out Abbott Laboratories. This is one of the companies responsible for producing COVID-19 tests.
Airbnb (NASDAQ: $ABNB)
Airbnb is one of the best stocks to buy now based on a growing lifestyle trend. This trend is workplace flexibility. During the pandemic, people were forced to work remotely. During the pandemic, people seized this opportunity to move to a new location. In fact, there’s a good chance that you know someone personally who did this.
Now, it looks like this trend is here to stay. According to a Gallup poll, 45% of full-time employees worked remotely in September 2021. This number is even higher for white-collar jobs. Additionally, nine out of ten workers want to continue working a more flexible schedule.
Without the pressure to spend 5 days at an office, people have much more freedom on where they can live. If they want, they can work from their living room. People also have the option to move permanently while without needing to find a new job. They can also spend more time traveling and working on the road. This trend has already somewhat materialized. In Q1 2021, Airbnb reported that a quarter of its bookings were for stays 28 days or longer. This is up 11% from pre-COVID levels.
Airbnb is one of just a few companies in the world that can accommodate this new lifestyle trend. It has the flexibility to add as many new living spaces as it wants. It can also offer rooms just about anywhere in the world. Right now, Airbnb is in the process of adding millions of new hosts. This makes it one of the best stocks to buy now.
Airbnb’s stock is up approximately 20% so far since going public in late 2020.
Disney (NYSE: $DIS)
Another trend to keep an eye on is economic policy. Economic policy is constantly changing and impacts companies in a number of different ways. Remarks made by the Federal Reserve definitely have the power to move entire markets. Recently, the Federal Reserve announced that it plans to raise interest rates in 2022. Doing this will help contain price inflation. However, there are many implications of this announcement.
In general, raising the interest rate is bad for high-growth companies. Instead of waiting years for profits to materialize, investors choose to buy invest in profitable companies now. When investors expect higher interest rates, there’s a chance that they’ll transition to more “safe haven” stocks. When it comes to safe-haven stocks, Disney is one of the best options out there.
In 2021, Disney reported $67.42 billion in revenue. It also reported a net income of $2 billion. Disney’s business is also incredibly diversified. It makes money by creating movies, licensing its characters, and operating theme parks and cruise lines. It also operates its own streaming service, Disney+. If one business line suffers, it will be kept afloat by its other operations.
In general, Disney also has no problem generating demand for its products. It has produced beloved movies for decades and there is no sign that it’s stopping anytime soon. Just recently, Spider-Man: No Way Home just enjoyed the second-biggest opening weekend ever. If you need a safe haven stock, Disney is one of the best stocks to buy now.
Disney’s stock is down approximately 15% so far in 2021. However, it’s up 43% over the past 5 years.
Meta Platforms (NASDAQ: $FB)
If you’re excited about the metaverse then Meta Platforms is one of the best stocks to buy now. FYI “Meta Platforms” is just Facebook rebranded.
The metaverse should be the next evolution of the internet. It will merge the existing internet, augmented reality, and blockchain to create a more immersive experience. Although it doesn’t quite exist yet, there are plenty of potential applications. In an announcement video, Meta CEO Mark Zuckerberg stated, “it’s not about spending more time online. It’s about maximizing the time that you already spend.”
Right now, investing in “metaverse stocks” might seem strange. After all, how do you invest in something that doesn’t exist? However, it’s really no different than investing in EV stocks that are still working on producing their first car. Investors have faith in the plan laid out by the management team. By investing early, you’ll most likely enjoy higher returns than investors that buy 5 years later.
Lots of companies are already making big plans for a digital world (or worlds). Clearly, Meta is going all in. Investors looking for the next big tech trend should most definitely stay up-to-date on the metaverse.
Meta’s stock is up approximately 23% so far in 2021. It’s also up 184% over the past 5 years.
Block Inc. (NYSE: $SQ)
Block Inc. is one of the best stocks to buy now based on a change in management. Actually, it’s more like streamlined management. Jack Dorsey recently announced that he is stepping down as CEO of Twitter. Now, he will focus entirely on running Block Inc. FYI, Block Inc. is just Square rebranded.
Block Inc. has already been a successful fintech stock for a few years. It’s best known for its POS checkout systems and money-sending app Cash App. It also recently incorporated Bitcoin investing into Cash App.
For a few years, Dorsey worked as the CEO of both Block Inc. and Twitter. Now, he will be able to devote all of his time and focus to running Block Inc. The fact that Block Inc. will finally have a full-time CEO at the helm definitely bodes well for the stock. It doesn’t hurt that Dorsey is also one of the most visionary founders on Wall Street.
As I said, Block Inc. has already had a good run. However, this management switch up could be the perfect time to jump in. The fac that Dorsey chose to run Block Inc over Twitter means that he has high expectations for the future of the company. Keep an eye on Block Inc as one of the best stocks to buy now.
Block Inc.’s stock is down approximately 23% so far over in 2021. It’s up 1,097% so far over the past 5 years.
I hope that you’ve found this article valuable when it comes to learning about six of the best stocks to buy now. Please base all investment decisions on your own due diligence and risk tolerance.
About Teddy Stavetski
Ted Stavetski is the owner of Do Not Save Money, a financial blog that encourages readers to invest money instead of saving it. He has five years of experience as a business writer and has written for companies like SoFi, StockGPT, Benzinga, and more.