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? Tesla (TSLA), Google-parent Alphabet (GOOGL), Microsoft (MSFT), West Pharmaceutical Services (WST) and NXP Semiconductors (NXPI) are prime candidates.
Since the coronavirus bear market, stocks rebounded powerfully. The strong action reflected rising confidence that the economy will eventually recover from the coronavirus.
Worries around Covid rose with the emergence of the omicron variant, but there are hopes that this coronavirus strain tends to result in mild cases.
The Federal Reserve recently held its final meeting of the year. Stocks traded choppily after the central bank moved to speed up tapering and offer more clarity on when it will increase interest rates. Stocks made good progress heading into the Christmas holiday as the Santa rally got underway.
While 2021 was a bumper year for the stock market, there are reasons for investors to be optimistic going into 2022.
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 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.
IBD’s CAN SLIM Investing System has a proven track record of significantly outperforming the 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…