Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist? Nvidia (NVDA), Meta Platforms (META), Netflix (NFLX), Amphenol (APH) and Deckers Outdoor (DECK) are prime candidates.
Inflation and the Federal Reserve tightening rates aggressively worried investors last year. However, the market confounded expectations for difficulties and turned in an outstanding performance in 2023. More moderate gains were expected for 2024, but the benchmark S&P 500 turned in very strong gains for the first half of the year amid growing confidence that the Fed will reach its goal of a soft landing. Donald Trump’s election victory is also boosting stocks.
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Best Stocks To Buy: The Crucial Ingredients
Remember, there are thousands of stocks trading on the NYSE and Nasdaq. But you want to find the very best stocks right now to generate massive gains.
The IBD Methodology offers clear guidelines on what you should be looking for. Invest in stocks with recent quarterly and annual earnings growth of at least 25%. Look for companies that have new, game-changing products and services. Also consider not-yet-profitable companies, often recent IPOs, that are generating tremendous revenue growth.
Using such an approach can help give you an edge over the benchmark S&P 500. Outdoing this industry benchmark is key to generating exceptional returns over the long term.
In addition, keep an eye on supply and demand for the stock itself, focus on leading stocks in top industry groups, and aim for stocks with strong institutional support.
Once you have found a stock that fits the criteria, it is then time to turn to stock charts to plot a good entry point. You should wait for a stock to form a base and then buy it once it reaches a buy point, ideally in heavy volume. In many cases, a stock reaches a proper buy point when it breaks above the original high on the left side of the base. More information on what a base is, and how charts can be used to win big on the stock market, can be found here.
Don’t Forget The Stock Market Direction When Buying Stocks
A key part of investing is to keep track of the market. Most stocks, even the very best, follow the market direction. Invest when the stock market is in a confirmed uptrend and move to cash when the stock market goes into a correction.
The stock market turned in stunning gains in 2023 and has been building on those gains so far this year, for the most part. The major indexes have surged to record highs in the wake of Donald Trump’s presidential victory.
The stock market is looking bullish again. Investors should be looking to buy high-quality issues with good growth prospects. The selections below are among the best stocks to buy or watch now. The IBD 50 is also a rich hunting ground.
Nevertheless, it remains crucial to stay on top of sell signals. Any stock that falls 7% or 8% from your purchase price should be jettisoned. Also beware of sharp breaks below the 50-day or 10-week moving average.
Things can change quickly when it comes to the stock market. Make sure to keep a close eye on the market trend page here.
Best Stocks To Buy Or Watch
- Nvidia
- Meta Platforms
- Netflix
- Amphenol
- Deckers Outdoor
Now let’s look at Nvidia stock, Meta Platforms, Netflix, Amphenol and Deckers in more detail. An important consideration is that these best stocks to buy and watch all boast impressive relative strength.
Nvidia Stock
The artificial intelligence stock is in the buy zone above a consolidation entry of 140.76, according to MarketSurge analysis. This is a midstage base, which is neutral. Investors also could treat 144.42 as a high handle.
The semiconductor play rallied well after getting support at the 50-day moving average. It also found support at the 21-day line at the end of October.
In addition, the relative strength line is holding near highs after ascending for the past several weeks, an encouraging sign as it attempts to break out from its pattern.
Overall performance is strong, which is reflected in NVDA’s extremely strong IBD Composite Rating of 97.
Earnings performance is a key strength for the stock, which has a rare, perfect EPS Rating of 99.
Indeed, earnings have grown by an average 361% over the past three quarters, impressive performance in anyone’s book.
Steady growth is expected going forward, with Wall Street analysts seeing EPS rising 119% in 2025 before slowing to 43% growth in 2026.
Revenue growth has popped by triple digits percentage wise in all of the past four quarters, coming in at 122% growth in the most recent quarter.
Fiscal Q3 earnings are due on Nov. 20.
Institutional sponsorship is poor though with the stock’s Accumulation/Distribution Rating coming in at D. But the up/down volume ratio, tracking a slightly shorter span, is a robust 1.5.
Consulting firm Bain said the total addressable market for AI hardware and software will grow 40% to 55% for at least the next three years.
The firm’s now famous CEO Jensen Huang recently said that a design flaw in its next-gen Blackwell chip has been fixed. Earlier, yields were low but AI-chip maker Taiwan Semiconductor (TSM) helped “recover from that yield difficulty and resume the manufacturing of Blackwell at an incredible place,” Huang said.
Demand for Nvidia’s next generation graphic processing unit, GB200, is expected to reach 3 million units in 2026 vs. 1.5 million for its H100 units in 2023. The GB200 combines two Blackwell Tensor Core GPUs and one Grace CPU.
Netflix stock got a boost on the news it was to replace rival chipmaker Intel (INTC) in the Dow Jones Industrial Average. It took its place in the index on Nov. 8.
As if that wasn’t enough, Nvidia is also a member of the prestigious IBD Leaderboard list of top stocks.
Meta Platforms Stock
The social media stock is just below an ideal flat-base entry of 602.95, MarketSurge analysis shows. This is arguably part of a bullish base-on-base pattern.
The relative strength line has been moving sideways during its consolidation phase. This line reflects a stock’s gains vs. the benchmark S&P 500.
Shares are finding support at their 21-day and 10-week lines.
META stock has been on a strong run this year. It has rallied around 67% so far in 2024.
The stock is an excellent all-around performer, with its IBD Composite Rating coming in at a strong 96 out of 99. Earnings performance is key here, with its EPS Rating also sitting at 96.
Earnings have grown an average of 59% over the past three quarters. This is comfortably clear of the 25% growth levels sought by investors following The IBD Methodology.
Strong earnings are expected by Wall Street, with full-year EPS seen rising 45% this year before slowing to 12% growth in 2025.
Big Money has been snapping up the stock of late, with its Accumulation/Distribution Rating coming in at B-. In total, 47% of META stock is currently held by funds, according to MarketSurge data.
Meta Platforms has a robust roster of social media properties including Facebook, Instagram and WhatsApp.
The social media stock is a turnaround story. It has been boosted by job cuts amid an efficiency drive from Chief Executive Mark Zuckerberg, as well as an online advertising revival.
The firm is betting big on the nascent space of artificial intelligence. The firm recently told investors it expects to spend $38 billion to $40 billion on capital expenditures this year, up from its previous range. The company also said it expects “significant capital expenditures growth” for 2025.
Those investments will focus mostly on building advanced data-center capacity to support training and deploying AI algorithms.
During the earnings call, Zuckerberg said there are several opportunities to use AI to improve Meta’s core business.
“So I think we should invest more there,” Zuckerberg said. “And second, our AI investments continue to require serious infrastructure, and I expect to continue investing significantly there too.”
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Netflix Stock
Netflix stock is in the buy zone above a 773 entry from a three-weeks-tight pattern, according to MarketSurge analysis. The Oct. 29 high of 763.88 also provided an early entry.
The three-weeks-tight pattern forged just above a prior consolidation.
NFLX is clear of the 21-day exponential moving average after getting support at the 50-day line. In addition, the relative strength line sits near fresh highs, a bullish sign.
Overall performance is strong, which is reflected in NFLX’s perfect IBD Composite Rating of 99. Earnings performance is also mighty, with its EPS Rating standing at 98.
Indeed, earnings have grown by an average 59% over the past three quarters, impressive performance by any standard. In the most recent quarter earnings rose by 45% to $5.40 per share.
EPS is seen rising 65% in 2024 and then slowing to 20% growth in 2025.
Institutional sponsorship has increased of late, with the stock’s Accumulation/Distribution Rating coming in at B.
NFLX stock has been benefiting from the company’s moves to crack down on password sharing and to offer a cheaper ad-supported tier of service.
Netflix has grown tremendously from its roots as a subscription DVD-by-mail service. It is now the leader in digital streaming, offering subscription video-on-demand service in over 190 countries.
It produces its own content, with hits including “Stranger Things,” “The Crown,” “Squid Game” and “Bridgerton.” Additionally, content costs are coming down as rivals license more shows to Netflix once again.
Also, the firm is moving beyond its wheelhouse of movies and shows and into the live events arena.
Earlier this year it announced a deal with TKO Group (TKO) to carry the WWE’s flagship pro wrestling program “Raw” starting in January 2025. The 10-year deal is worth over $5 billion.
Netflix has also announced that it will stream two NFL games on Christmas Day this year. Plus, it will stream at least one Christmas Day football game in 2025 and in 2026.
The addition of live content will help attract advertisers to Netflix, Argus Research analyst Joseph Bonner said.
Netflix stock currently sits at the summit of the competitive Leisure-Movies & Related industry group.
Amphenol Stock
The electronics stock is at the edge of a buy zone above a consolidation buy point of 70.84, according to MarketSurge analysis.
This is an early-stage pattern, a bonus. APH has been getting support at the 21-day line of late.
During its consolidation phase the stock found support at the 200-day line as well as the 50-day moving average.
Excellent all-around performance is reflected in APH’s best-possible IBD Composite Rating of 99. Earnings performance is excellent here, with Amphenol holding an EPS Rating of 95 out of 99.
It is strong on the technical front as well. APH’s stock price has ballooned 49% so far this year. This is comfortably better than the benchmark S&P 500’s lift.
Institutions have been net buyers of the stock lately, with its Accumulation/Distribution Rating coming in at B+. Currently, 55% of its shares are held by funds, according to MarketSurge data. Holders include the Franklin Growth Fund (FKGRX) and the Fidelity Contrafund.
But there’s more, for Amphenol is also a member of the exclusive Big Cap 20 list of stocks. Stocks that make this roster have to have a solid track record of big gains coupled with low volatility.
The company is a major global supplier of connectors, sensors, and interconnect systems. It sells into markets including automotive, commercial air, IT, the military and data communications.
The firm has been active on the acquisition front as it chases growth. Back in May it bought Carlisle Companies’ interconnect technologies business for $2 billion and in July it announced it was to snap up the mobile networks-related businesses of CommScope for $2.1 billion.
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Deckers Outdoor Stock
Deckers stock is in the buy zone above a handle ideal entry point of 172.57. This is a third-stage base, which counts as midstage.
Overall performance is solid, with DECK holding an IBD Composite Rating of 90 out of 99. Earnings performance is outstanding, with its EPS Rating coming in at 99.
Price performance is also solid, with Deckers stock among the top 16% of issues in terms of price performance over the past 12 months. The stock has gained nearly 58% so far this year.
Big Money has been loading up on DECK stock of late. This is reflected in its Accumulation/Distribution Rating of B.
Funds own 61% of shares of the parent of Ugg brand boots and shoes, according to MarketSurge data. A further 1% is owned by banks.
The respected Artisan Mid Cap Fund (ARTMX) is among the noteworthy holders.
The stock was boosted last month after the company reported a 39% increase for Q2 2025 earnings to $1.59 per share, beating FactSet estimates of $1.24 per share. Revenue jumped 20% to $1.31 billion, while analysts expected $1.2 billion.
Sales growth came in well clear of Wall Street expectations, led by strong gains at Hoka and Ugg.
KeyBanc called the report a “resounding beat on all fronts,” noting upside potential based on Deckers’ new product launches and “strong international runway.” The firm raised its price target on DECK stock to 190 from 180 and maintained an overweight rating on the shares.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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