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), Ensign (ENSG), On Holding (ONON), Amphenol (AMPH) and JPMorgan Chase (JPM) 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. The central bank has now started to cut rates, which could further help 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 S&P 500 and the Nasdaq got smacked below the key 50-day moving average after July’s jobs report spooked investors. While there was more choppy action at the start of September, the Nasdaq and the S&P 500 recaptured the important technical benchmark before moving to new highs.
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
- Ensign
- On Holding
- Amphenol
- JPMorgan Chase
Now let’s look at Nvidia stock, Ensign, On Holding, Amphenol and JPMorgan Chase 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 a buy zone above a consolidation entry of 140.76, according to MarketSurge analysis. This is a midstage base, which neutral.
The semiconductor play has been rallying well after getting support at the the 50-day moving average.
In addition, the relative strength line is gliding higher for the past several weeks following a recent dip, an encouraging sign as it breaks out from its pattern.
Overall performance is strong, which is reflected in NVDA’s best-possible IBD Composite Rating of 99.
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 of 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 east of the past four quarters, coming in at 122% growth in the most recent quarter.
Institutional sponsorship has increased of late, with the stock’s Accumulation/Distribution Rating coming in at B-.
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.”
Demand for Nvidia’s next generation graphic processing units GB200 is expected to reach 3 million in 2026 vs. 1.5 million for its H100 units in 2023. The GB200 combines two Blackwell Tensor Core GPUs and one Grace CPU.
As if that wasn’t enough, Nvidia is also a member of the prestigious IBD Leaderboard list of top stocks.
Ensign Stock
The nursing care stock is trading in the buy zone above a flat base entry of 154.93, MarketSurge analysis shows. The 5% buy zone her runs as high as 162.68.
The relative strength line is moving higher again following a period of sideways movement during its consolidation phase. This reflects a stock’s gains vs. the benchmark S&P 500.
ENSG stock has been on a strong run this year. It has rallied by around 40% so far in 2024.
The stock is an excellent all-around performer, with its IBD Composite Rating coming in at a strong 94 out of 99. Earnings performance is key here, with its EPS Rating also sitting at 94.
Earnings have grown by an average of 15% over the past three quarters. While solid, it falls short of the 25% growth levels sought by investors following The IBD Methodology.
Nevertheless, consistent ongoing strong earnings are expected by Wall Street, with full-year EPS seen rising 15% this year before slowing to 12% growth in 2025.
Big Money has been standing pat on the stock of late, with its Accumulation/Distribution Rating coming in at C. In total, 62% of ENSG stock is currently held by funds, according to MarketSurge data.
Ensign offers services through around 300 skilled nursing and senior living facilities. Each facility is run independently by its own management team.
The firm currently operates in 13 states. It receives the bulk of its revenue from Medicare and Medicaid programs.
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
On Holding Stock
Shoe stock On Holding is actionable as it rebounds off the key 10-week moving average. It is buyable as much as 5% above this key technical benchmark. It was also actionable as it snapped a downtrend at the end of last week.
Stock market performance is particularly strong for ONON, with the stock up around 85% so far in 2024. This means it is comfortably outperforming the benchmark S&P 500.
The footwear play is in the top 5% of issues in terms of price performance over the past 12 months.
The stock holds a strong IBD Composite Rating of 95. Earnings performance is the weakest part of the picture, with ONON stock holding an EPS Rating of 81 out of a best-possible 99.
Wall Street expects significant improvement on this front. While earnings are expected to grow 8% in 2025, EPS is then seen popping 29% in 2026 before accelerating to 41% growth in 2027.
Big Money is a strong backer of ONON stock. In total, 52% of shares are held by funds, according to MarketSurge data. An additional 25% is held by management.
Institutions have been net buyers of late, with the stock’s Accumulation/Distribution Rating coming in at B. Noteworthy holders include the well-respected Virtus KAR Mid-Cap Growth Fund Class A Fund (PHSKX) and the Fidelity Contrafund (FCNTX).
The company is famously backed by Swiss tennis great Roger Federer. However the Swiss company has plenty of stardust to blow around. Not only Iga Swiatek, the current World No. 2 in ladies’ tennis, among its star athletes, but actress and singer Zendaya has also signed on as a brand ambassador.
The products offered by the company are also impressive, according to Wedbush Securities analyst Tom Nikic.
“On shoes are nothing that the consumer has seen before,” he told IBD. “They’re nothing that the consumer has felt before on their foot, and so it’s something that is new and exciting.”
Amphenol Stock
The electronics stock is just below 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 10-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 39% 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 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.
These Stocks Are Are Big Earnings Movers After Nasdaq Hits High
JPMorgan Chase Stock
JPM stock offered an aggressive entry as it recaptured the 10-week moving average, a few weeks ago.
It is now just below a cup-base buy point of 225.48. This is a second-stage base, which still counts as early. Its latest pattern was formed in over six weeks, MarketSurge analysis shows.
Overall performance is solid, with JPM holding an IBD Composite Rating of 87 out of 99. Earnings performance is an Achilles’ heel, with its EPS Rating coming in at 73 out of 99.
Price performance is better though, with JPMorgan stock among the top 15% of issues in terms of price performance over the past 12 months. The stock has gained more than 31% so far this year.
Big Money has been loading up on JPM stock of late. This is reflected in its Accumulation/Distribution Rating of B-.
Funds own 37% of the Dow Jones stock’s shares, according to MarketSurge data. A further 1% is owned by banks.
The respected Janus Henderson Forty Fund (JARNX) is among the noteworthy holders.
JPMorgan Chase was boosted after the firm posted a 4% EPS decrease to $4.37 on $42.7 billion in revenue.
FactSet expected a 7.8% decline in earnings per share to $3.99 on about 4% revenue growth to $41.43 billion.
The banking behemoth saw assets under management increase by 23% to $3.9 trillion. Net interest income rose 3% to $23.5 billion. Average deposits were down 8% from last year, while average loans rose 1% from 2023.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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