"While we expect near-term demand choppiness, we're increasing our out-year estimates to reflect a greater appreciation for AMD's broadening datacenter total addressable market," wrote Wells Fargo (opens in new tab) analyst Aaron Rakers in a note to clients. Still, analysts on average expect a 27% jump in annual earnings over the next three to five years, according to S&P Global Market Intelligence, ahead of the company's peers, fueled in part by market-share gains for its data-center chips (sales climbed 42% in the most recent quarter compared with the year before). The shares are up more than 40% for the year-to-date, but trade at 31 times expected earnings for the year ahead – a significant discount to the typical price-earnings multiple over the past decade. Analysts have mixed ratings on one of Wall Street's best semiconductor stocks in part because an economic slowdown and negative investor sentiment are near-term obstacles. Take Advanced Micro Devices ( AMD (opens in new tab), $92.33), a leading semiconductor manufacturer. This will allow you to scoop up value-focused shares at historically attractive relative P/Es and high-growth stocks at valuations that have come down from the stratosphere and are now at normal, if not yet underpriced, levels.Ĭompanies will continue to invest in software and hardware solutions to high labor costs, he says, and many of the firms have "fantastic" balance sheets. Instead, take a barbell approach, says Tony DeSpirito, a managing director and portfolio manager at BlackRock (opens in new tab). But all, for one reason or another, are well positioned to benefit from a transition to a bull market from a bear market.ĭon't ignore the tenets of diversification and shun tech or the growthier side of the market completely when adjusting your portfolio to include the best stocks to buy now. The names featured here vary by size and industry and are not meant to compose a diversified portfolio. 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 (opens in new tab). 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 (opens in new tab).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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