Buying a stock is deceptively easy, but purchasing the right stock at the right time without a proven strategy is incredibly hard. So what are the best Robinhood stocks to buy now or put on a watchlist?
At the moment, Alphabet (GOOGL), Advanced Micro Devices (AMD) and Microsoft (MSFT) are standout performers. Unlike meme stocks such as GameStop (GME) and AMC Entertainment (AMC), these stocks offer a mix of solid fundamental and technical performance.
Best Robinhood Stocks To Buy: The Crucial Ingredients
There are thousands of stocks trading on the NYSE and Nasdaq. But to generate big gains you have to find the very best. The best Robinhood stocks for investors will be those that offer a mix of earnings and stock market performance.
The CAN SLIM system 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.
The Market Is Key When Buying Robinhood Stocks
A key part of the CAN SLIM formula is the M, which stands for 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.
New Covid worries have taken a toll on the market, but a rebound following the latest Fed meeting saw the IBD market outlook switch to a confirmed uptrend. While it came under pressure for a spell, an early start to the Santa Claus rally helped the stock go back into a full uptrend on Christmas Eve. The Nasdaq, S&P 500 and the Dow Jones Industrial Average are all back above the key 50-day moving average. They are also trading around record highs.
With the market uptrend back in force, this is the best time to buy fundamentally strong stocks that are breaking out of proper base patterns. The stocks below are ideal candidates. Nevertheless, it remains crucial that investors stay disciplined…