What to Invest in Right Now? These Companies Have Nice Growth Prospects
With investments becoming an increasingly attractive proposition, many people are looking at the best stocks to buy. However, it can be more challenging for newer investors to catch on to what to invest in right now.
That’s where we come in to straight up tell you what the best stocks based on Traders Union experts’ research are. With access to in-depth analysis, they’ve been able to use filters to identify stocks that have significant potential for future growth.
Keep reading to find out more about investing and what to invest in right now!
Is Buying Stocks a Good Idea Now?
The onset of the Covid-19 saw one of the most rapid declines in economic conditions ever witnessed in history. Then, as everything came to a close, it pushed the whole world into an economic recession, with many countries struggling to recover.
That being said, as the country begins to open up again, the United States is starting to showcase signs of economic recovery. The first quarter of 2023 showcases that the economy is growing at an annualized rate of 6.4%. That’s nearly 2% higher than the 4.3% figures from the final three months of 2020!
While the economic conditions indicate a steady growth level, and the number of cases is starting to come under control, there’s still a long way to go before the economy fully recovers from the pandemic.
Nevertheless, the signs indicate that the economy is well on its way towards recovery. For example, after experiencing one of the most significant drops in recent memory in March 2020, the Dow Jones Industrial Average reported its record high, finishing above 35,000 the first time.
With a little bit of financial savvy, it is easy to see the trend the market’s going to take. There’s still more than enough room to make investments and except growth despite the market already reaching an all-time high.
Even though general economic conditions are indicating recovery, there are still a few risks with investing. Currently, the Fed's engaging in an ultra-loose monetary policy. Therefore, with low-interest rates in the market, the level of investment increases significantly.
Low-interest rates also mean that people don't need to invest in stocks with a higher rate of return to earn a profit. However, as the economy continues to show signs of recovery, there will eventually come a time when the Fed starts to tighten the monetary policy.
As monetary policy tightens, the interest rates will increase, and that can become an issue. Investors that overbought shares with a rate of return according to lower interest rates will find themselves in a situation where they’re losing money and are looking to dump stocks.
There are risks that come with any sort of investment because the market can be unpredictable. But, generally, investing in sound stocks means that you can stick around for the long game and eventually make a profit.
You may also be interested in information about Hawkish And Dovish Monetary Policy.
What Stocks Are Worth Buying Now?
As much as people might like to claim, there’s no definitive way to predict the future and identify which stock will grow definitively. The only thing that investors can do is set up filters to identify companies that meet several defined metrics.
These metrics can then provide investors with an indication of what stocks will potentially showcase growth in the future. Almost every successful investor has some sort of filter that allows them to screen through stocks.
Applying filters that allow the investors to screen through hundreds and thousands of different stocks is no longer the incredibly challenging task that it once was. With so many different stock screening applications available in the market, it is all about picking the one that suits your needs the most.
Most of these applications either recommend different filters that you can apply or set up your custom metrics. We’d recommend going for a stock screener that allows you to set up your metrics.
After looking at some of the metrics that experts recommend, here are some of the filters that we use to identify what stocks show potential for future growth.
1. Rapid Sales and Earnings Growth Figures
Investors need to filter for companies indicating sales and earnings growth greater than 15%. This is a benchmark that plenty of different institutions and high-profile investors use to identify stocks that they’re expecting to grow.
Simultaneously, investors need to keep in mind that companies that grow rapidly often have trouble maintaining those figures consistently. Ideally, investors should look for companies indicating a sales and earnings growth between 15-30%.
These companies are more likely to showcase a sustained growth rate over a more comprehensive period. So rather than investing in companies that are showcasing unsustainable growth rates of 40-50%, it is a better bet to approach companies that showcase sustained levels of growth.
2. Solid Technical Analysis
Technical analysis shouldn’t be the predominant factor that investors use to select a stock. However, it still has a significant role to play in the selection process.
Investors need to look for companies where the technical analysis indicates that the price and volume increase steadily. The stocks that increasing volume is currently under accumulation. That means there’s momentum in the stock, which can continue to bring it to a new level.
Additionally, investors should look for stocks that are continuously reaching new highs. It is a clear indication of a company breaking through technical resistance levels, and the stock’s value will increase consistently in the future.
3. High Volumes of Insider Buying
Insider buying is a massive indication of a company that might be undervalued. While a small portion of senior executives buying shares might be a simple demonstration of faith in the company, most of them buying shares in a company’s stock is one fundamental reason.
Filter specifically for companies where most insiders buy stocks at or near the current market price. There are a lot of major sources for insider data like the SEC, Finviz, and Morningstar.
Top 10 Best Stocks to Buy Now
If you’re considering what to invest in right now, look no further. Below is a list of excellent and reliable companies with healthy growth prospects that make them ideal investment options for individuals looking to buy company shares:
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1
Adobe Inc. (ADBE)
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2
Facebook Inc. (FB)
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3
Johnson & Johnson (JNJ)
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4
Sonos Inc. (SONO)
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5
Berkshire Hathaway Inc. (BRK.B)
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6
3M Co. (MMM)
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7
The Walt Disney Co. (DIS)
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8
Nautilus Inc. (NLS)
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9
The Procter & Gamble Co. (PG)
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10
Amazon (AMZN)
Adobe Inc. (ADBE)
Adobe offers a wide variety of computer software products that are employed by users in virtually every country. The company is valued at $300 billion and made significant gains in 2023, thanks to its commendable Q2 earnings this year.
Adobe reported quarterly revenue of $3.84 billion in its second-quarter report, indicating a 23% overall growth.
The majority of its recent stock growth success can be credited to Adobe’s digital media products, including the leading art and editing tool, Photoshop. These products are available on a subscription basis, hence deriving continuous, long-term income instead of one-time purchases.
The company currently features a P/E ratio of 57.02. In addition, its 12-month trailing P/E is 56.87X, while the software industry’s average P/E is 36.74X. These statistics clearly indicate Adobe’s immense success and likelihood to continue to secure new financial highs, hence making it an excellent investment option that’s certainly worth considering.
2. Facebook Inc. (FB)
In the world of stocks, the name “Facebook” is synonymous with the Facebook app, Instagram, Messenger, and WhatsApp. Therefore, buying Facebook shares would imply that you’re investing in all of these social media platforms which unite under the Facebook mononym.
The brand itself is valued at $1.02 trillion and has an existing P/E ratio of 27.10. Its year-over-year Q2 revenue has increased by 56%, which is promising, especially because the market’s prediction indicated a 27.8 billion increase, but the company topped expectation by securing the $29 billion mark.
Its net income increased to $3.61 per share, which is more than double what it was during last year’s Q2 development. Overall, the net income increased to $10.4 billion, where, in 2020, it was roughly $5.2 billion.
As for active users, the platform recorded a new high thanks to its 7% year-over-year increase.
Of course, this doesn’t mean that Facebook’s future growth in Q3 and Q4 will present similar results. In fact, there might be a significant deceleration in growth rate while costs remain stationary. Such behavior is typical in the stock market and should not be a cause for alarm. Regardless of the upcoming quarters’ forecast, Facebook remains an excellent blue-chip investment opportunity, especially if you’re looking for an innovative company with a golden promise for the future.
3. Johnson & Johnson (JNJ)
Johnson & Johnson is over 130 years old – needless to say, the company has firm roots in its pharmaceutical and health/beauty product business niche.
The company is currently valued at $470 billion and boasts a 26.31 P/E ratio, as well as a 2.42% dividend yield. Over the years, the company has garnered an AAA debt rating, which is the highest and most beneficial of its accord.
2023 brought forth a remarkably high demand for medical equipment, which is a Johnson & Johnson specialty. As a result, the company’s Q2 revenue saw a 62.7% increase, surpassing expectations set forth by Wall Street experts. During this time, share prices rose by $2.48 per share, thanks to a sales total of $23.31 billion.
When converted to percentages, these values are displayed as a 27.1% increase in sales and a 48.5% increase in earnings. Of course, these values are much higher than would be expected had the pandemic not occurred. 2020’s stock prices, sales, and earnings were significantly lower than an average year’s, so a natural rise was expected in 2023 as corporations sought to build themselves back up again.
4. Sonos Inc. (SONO)
Sonos manufactures wireless sound systems for your home. Each device plays a small role in the significantly larger Internet of Things (IoT) and is connected to the web through WiFi use. The company also offers a paid radio subscription service (Sonos Radio HD) which regularly brings in new subscribers and the money that follows.
The company bears a P/E ratio of 26.22 and a market cap of around $5.11 billion. Experts predict the company’s stock prices will continue to rise after their year-over-year Q1 and Q2 revenue growths, which are valued at 15% and 90%, respectively.
This is because the company offers new-age technology, including smart home products, which saw a rapid rise in demand in 2020 thanks to the pandemic’s work-from-home trend. This suggests that consumers are actively looking to incorporate smart technology into their households. Luckily, such products happen to be Sonos’ specialty, suggesting that an influx of new sales is just around the corner!
5. Berkshire Hathaway Inc. (BRK.B)
Owned by none other than superstar investor Warren Buffet, Berkshire Hathaway is a multinational conglomerate holding company with an impressive valuation of around $650 billion. In addition, the conglomerate owns a number of top-level brands, including HomeServices of America and Dairy Queen.
The company’s trailing-twelve-months P/E is 28.60X. Its 2023 Q2 earnings were $6.69 billion, which is a 21.3% increase from 2020’s Q2 income.
Proceed with consideration, though. BRK B’s Class A stocks cost an impressive amount. Statistically speaking, the company’s stocks are the currently most expensive public trading stock one can buy. This is because the company’s board of directors decided against splitting its stock, resulting in a higher-than-average share price.
6. 3M Co. (MMM)
3M is another multinational conglomerate corporation. Unlike Berkshire Hathaway, this one is dedicated to developing technology and products that improve worker safety, champion healthcare, and encourage industrial development.
The company currently holds a P/E ratio of 19.17, with a $112.76 billion market capital. Its dividend yield is 3.04%, and the company’s 2023 Q2 sales were reported at a stunning $8.9 billion, indicating a 25% rise in year-over-year sales income. The company also managed to exceed its $8.55 billion forecasts and is likely to continue to display steady growth in the upcoming quarters.
7. The Walt Disney Co. (DIS)
Disney’s company was founded almost 100 years ago, at a time when few believed in the magic of his filmmaking. Over the decades, the company has managed to become a key player in the world of American entertainment and bears an undefeatable monopoly over the industry thanks to its numerous parks, cruises, resorts, films, and additional products and services, which are championed across the globe.
While the company’s overall record has earned it a blue-chip reputation, stocks took a hit in 2020 due to the coronavirus pandemic, which led to the abrupt closure of Disney resorts, parks, and cruises.
However, Disney has managed to keep itself afloat by employing other tools that it is well known for Disney films, retail products, and merchandise, and its very own streaming service, Disney+, which has an impressive 173 million global subscribers.
The company has a P/E ratio of 290.94 as of January 2023. However, experts strongly believe things will begin to look brighter in the near future as the company seeks to rebuild itself after the pandemic. Disney stocks are hence an excellent long-term investment but won’t do you much good in the short run.
8. Nautilus Inc. (NLS)
Nautilus is known for its remarkable (and relatively affordable – at least when compared to rival brand, Peloton) home exercise equipment and related retail products. Its 2023 Q1 revenue was listed at 81.7%, while its Q2 percentage skyrocketed to near 120% when accounted for by a year-over-year comparison against 2020’s first and second quarters.
Few companies compare to Nautilus’ remarkable recent breakthroughs, which were primarily due to the new home workout trend – a direct effect of the coronavirus pandemic. However, it is unlikely that the company will continue to produce such impressive sales figures a year from now, given that the pandemic ends and regular gyms reopen. Still, a Nautilus investment can be beneficial due to the company’s dedication towards creating exceptional products and increased consumer demand for smart home products.
9. The Procter & Gamble Co. (PG)
Founded in 1837, Procter & Gamble has had ample time to establish itself as a kingpin in the consumer market. The best thing about this company is its ability to avoid the negative impact of a recession. This is because Procter & Gamble deal in everyday necessities, including essentials like shampoo, soap, and washing powder. After all, P&G has a hold over some of the world’s leading brands, including Tide, Oral-B, Always, and Head & Shoulders. As a result, such products will be purchased regardless of where the economy may stand at any given point in time.
Owing to its relative sales stability, P&G is one of the most reliable companies one can choose to invest in. It currently holds a market capital of $346.39 billion with a 25.94 P/E ratio and a dividend yield of 2.44%.
10. Amazon (AMZN)
With a market value of $1.7 trillion, Amazon is by far the largest and most profitable e-commerce retailer in the world. Thanks to its ability to deliver virtually any product to almost any corner of the world, Amazon was able to reap the benefits of the pandemic’s stay-at-home culture, unlike any other retail company.
Buying stocks in Amazon was a smart idea before the pandemic and became an even smarter idea during the pandemic and will likely remain so after the pandemic ends. E-commerce culture was alive and thriving before the coronavirus inhibited consumers’ outdoor mobility and only got stronger during the pandemic.
The company offers investors a P/E ratio of 57.34. Unfortunately, a single stock share can cost you well over $3000, so be sure to take that into consideration before committing to this company.
Best Stock Brokers
The ideal stockbroker will afford you a wide variety of markets, a reliable and easy-to-use platform, plus a low stock fee and negligible account minimum. Webull, Robinhood, and Interactive Brokers are three remarkable stockbroker platforms that meet this criterion. They are 100% safe to use and do not charge any commission – at least for their free accounts.
| Broker | Account Minimum | Stock Fees | Markets | |
|---|---|---|---|---|
$0 |
$0 |
Multiple popular markets, including Equities, ETFs, and Indices. |
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$0 |
$0 |
135 markets, spanning across 3 countries. |
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$0 for brokerage or Robinhood Gold account ($2000 for margin account) |
$0 |
Multiple domestic and global markets |
These online brokers offer a free-of-cost trading platform through which you can buy real stocks for companies based in multiple markets across the globe. They are also ideal for those who are new to the world of stocks and trading, thanks to their accessible layout that makes for a stress-free user experience.
Summary – What Should I Invest in Right Now?
This article has thus far covered 10 excellent companies worth investing in. If you’re looking to invest in a high-profile stock (accompanied by a flashy price tag), options like Amazon and Berkshire Hathaway are ideal prospects. However, if you’d rather invest in stocks that are more attainable, consider Nautilus and Adobe, both of which are reliable companies that have shown remarkable growth this past quarter.
As for how to make these investments, it is highly recommended that you look into reliable online brokerage sites, like the ones listed above. Webull, Interactive Brokers, and Robinhood all offer free accounts to their basic users. Those who’d like to upgrade their account can look into premium packages, like the $2000 minimum Robinhood margin account.
These sites are ideal for both beginners and pros because of their reliability and authentic practices. However, it is best to steer clear of unknown dealers with shady trading platforms that lack a substantial userbase. Such platforms may be scams that could cost you to lose your invested money, so beware!
FAQs
Below is a collection of answers concerning frequently asked questions related to stocks and investment:
What are “blue-chip” stocks?
When a company has an impeccable reputation and regularly brings in remarkable profits or maintains a monopoly over a certain market, its stocks qualify as “blue-chip” stocks. Investing in blue-chip stocks is considered to be significantly safer than investing in a new or unknown company. This is because companies with blue-chip stocks are less likely to make significant business losses that might reduce their income or cause investors to lose their stocks and related profits.
What is an account minimum?
Upon signing up for online trading through a reliable broker, you will be asked to add some cash into your trading account. Every broker has a different minimum requirement; some will ask you to keep $50 in your starter account, while others may have higher or lower demands. This demand is known as your account minimum.
Can I invest $50 in stock?
Yes, you can invest $50 in stock – as long as the stock you’ve chosen sells shares that are worth $50 or less. Investing a small amount is ideal for those who are trying to learn how to handle stocks, especially in their first few days or weeks dealing with the stock market.
It helps to sign up with a brokerage site that allows a $50 account minimum if that’s all you currently plan on investing. However, if you’re planning on investing $50 in one stock or one specific company but don’t mind having extra cash in your trading account, feel free to opt for an online broker that has a higher account minimum.
What are fractional shares?
Fractional shares are a system that allows multiple people to invest in a single share. Any profits generated through those shares are split between all investors in a ratio that correlates with each investor’s original investment amount or share percentage.
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Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.