Hot Stocks To Buy Right Now
On October 17 Morgan Stanley CIO, Mike Wilson, appeared on a call with CNBC where he pointed out that his "intermediate-term view is more constructive" and explained why he sees a rally in stocks in the short term. Mike Wilson said that he does not think it is a "cost-push inflation" situation, it is rather a "demand-pull inflation" situation and is "very serious". Here are some comments from Mike Wilson:
hot stocks to buy right now
As of October 17, the S&P 500 has tanked 23% year to date, the Nasdaq is down 32% for the year, and the Dow has lost about 17% since the beginning of 2022. Markets have been hit hard amid high inflation, rising interest rates, and supply-demand imbalances. However, for long-term investors, now might be the time to rack up shares of some of the best-in-class stocks while they are trading at bargain levels. Some of the best momentum stocks to buy now include Constellation Energy Corporation (NASDAQ:CEG), Occidental Petroleum Corporation (NYSE:OXY), and Peabody Energy Corporation (NYSE:BTU).
To determine the best hot stocks to buy right now, we screened for companies that have been gaining in 2022. We narrowed down our selection to stocks that are up more than 30% for the year, as of October 14, and also took into account other factors that will propel them to gain further into year-end. We also gave weight to the hedge fund sentiment and analyst ratings for our picks and ranked them according to their year-to-date performance, from lowest to highest.
Wall Street is bullish on CF Industries Holdings, Inc. (NYSE:CF). On October 3, RBC Capital analyst Andrew Wong upgraded CF Industries Holdings, Inc. (NYSE:CF) to Outperform from Sector Perform and raised his price target to $135 from $110. On October 4, Citi analyst P.J. Juvekar raised his price target on CF Industries Holdings, Inc. (NYSE:CF) to $120 from $117 and reiterated a Buy rating on the shares. As of October 17, CF Industries Holdings, Inc. (NYSE:CF) has gained 42% year to date and has a 3-month average trading volume of 2.47 million. The stock is one of the best momentum stocks to buy now.
First Horizon National Corporation (NYSE:FHN) is one of the largest banks in southeast America and is among the best momentum stocks to buy now. As of October 17, the stock has gained 43.25% year to date. First Horizon National Corporation (NYSE:FHN) is awarding investors with a strong dividend and is a cash-rich company to invest in. As of October 17, the stock is offering a forward dividend yield of 2.5% and the company has free cash flows of $1.19 billion.
Itaú Unibanco Holding S.A. (NYSE:ITUB) is one of the best momentum stocks to invest in right now. The stock has pulled back significantly and is presenting an attractive entry point for investors. As of October 17, Itaú Unibanco Holding S.A. (NYSE:ITUB) is trading at a PE multiple of 10x and has gained 45% year to date. Itaú Unibanco Holding S.A. (NYSE:ITUB) is profitable and cash-rich. The company has free cash flows of R$127.8 billion and has a trailing twelve-month operating margin of 38.63%.
Centrais Eletricas Brasileiras SA (NYSE:EBR) is a major Brazilian utility and power generation company. The stock is trading at bargain levels and is also attracting a lot of attention on Wall Street. As of October 17, the stock is trading at a trailing twelve-month PE ratio of 10.96 and has a 3-month average volume of 1.73 million. The stock is among the best momentum stocks to invest in right now and is up 52% for the year, as of October 17.
In addition to Centrais Eletricas Brasileiras SA (NYSE:EBR), other stocks that are up more than 50% for the year, as of October 14, include Constellation Energy Corporation (NASDAQ:CEG), Occidental Petroleum Corporation (NYSE:OXY), and Peabody Energy Corporation (NYSE:BTU).
Exxon Mobil Corporation (NYSE:XOM) is one of the best momentum stocks to buy now. As of October 17, the stock has gained 59% year to date. The company is profitable and cash-rich and has a trailing twelve-month operating margin of 14% and has free cash flows of $49.2 billion. As of June 30, GQG Partners is the largest shareholder in Exxon Mobil Corporation (NYSE:XOM) and has stakes worth $4.06 billion in the company.
Some of the best momentum stocks to buy right now, while they are still coming cheap, include Constellation Energy Corporation (NASDAQ:CEG), Occidental Petroleum Corporation (NYSE:OXY), and Peabody Energy Corporation (NYSE:BTU).
Nordic American Tankers Ltd (NYSE:NAT) is a global tanker company that owns and operates double-hull crude oil tankers. The stock is attracting a lot of attention on Wall Street and is one of the best momentum stocks to invest in. As of October 17, Nordic American Tankers Ltd (NYSE:NAT) has gained 62% year to date and has an average 3-month volume of 5.17 million.
As per Forbes, the stock market in China has begun 2023 with strong performance and is expected to continue to improve as the country eases its COVID-19 policies, such as lifting travel restrictions and ending lockdowns. This is due to the growth potential of the world's second-largest economy. Investors also favor value stocks since they tend to perform better than growth stocks during times of high interest rates. This is because high interest rates affect discounted cash flow valuations, which have a greater impact on high-growth stocks compared to value stocks. In addition to that, utilities, consumer staples, and healthcare stocks are considered to be defensive plays that can reduce overall portfolio risk until economic conditions improve. These stocks are generally less affected by economic fluctuations and can provide stability to an investment portfolio. Some of the best momentum stocks so far in 2023 include Meta Platforms, Inc. (NASDAQ:META), Tesla, Inc. (NASDAQ:TSLA), and Shopify Inc. (NYSE:SHOP).
C3.ai, Inc. (NYSE:AI) is a California-based company that operates as an enterprise artificial intelligence software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It is one of the best hot stocks to invest in. On February 6, C3.ai, Inc. (NYSE:AI) shares rose more than 5% as investors continued to pour into artificial intelligence stocks. The year-to-date share price gains as of February 6 came in at more than 138%.
Coinbase Global, Inc. (NASDAQ:COIN) offers technology and financial infrastructure for the global crypto economy. It was founded in 2012 and is based in Wilmington, Delaware. Coinbase Global, Inc. (NASDAQ:COIN) is one of the best momentum stocks to monitor. Year to date, the stock has climbed nearly 120% as of February 6 and the average 3-month trading volume came in at 17.28 million.
Transocean Ltd. (NYSE:RIG) was founded in 1926 and is based in Steinhausen, Switzerland. The company provides offshore contract drilling services for oil and gas wells worldwide. On January 4, Transocean Ltd. (NYSE:RIG) announced that it has secured contract awards and extensions for five of its drilling rigs, which will result in a total of $488 million in firm order backlogs. It is one of the best momentum stocks to consider buying.
Lyft, Inc. (NASDAQ:LYFT) is a California-based company that runs a platform connecting passengers with drivers for ride sharing services in North America. The firm manages transportation networks that provide customers with tailored, on-demand access to different transportation options. It is one of the premier momentum stocks to invest in.
There's no question 2022 has been a difficult year for investors, particularly for momentum investors. Persistently elevated inflation, rising interest rates and macroeconomic uncertainty have pressured stock prices throughout the year. In addition, rising costs and a tight labor market are eating into profit margins and weighing on valuations. As a result, less than one in four S&P 500 stocks has generated a positive year-to-date return so far in 2022.
When seeking out the best stocks to buy now, investors will need to be brave and patient in regard to timing, as well as agile as the stock market eventually transitions from bear market to bull market. Go ahead and add resolute to the character traits you'll need this year, because many market strategists say you can't get from one market to the other without going through a recession first.
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. "Investors should avoid volatile names and be cautious on both deep-value and unprofitable growth companies," says Koesterich. "Instead, emphasize quality with a focus on earnings consistency and good profitability."
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. Over the past five years, for example, the S&P 500 Value Index (opens in new tab) has returned 6.2% annualized, compared with 9.1% for the S&P 500 Growth Index (opens in new tab). Through early 2023, value has outperformed growth, with a 4.1% return compared to growth's 3.8% gain. "We would stick with value. These cycles last a while," says Ryan Detrick, chief market strategist at money management firm Carson Group (opens in new tab). Sectors typically grouped in the value style include energy, financials, industrials and materials.
So, with all of this in mind, here are 12 of the best stocks to buy now. The names featured here vary by size and industry and are not meant to compose a diversified portfolio. But all, for one reason or another, are well positioned to benefit from a transition to a bull market from a bear market in 2023.
Don'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. Instead, take a barbell approach, says Tony DeSpirito, a managing director and portfolio manager at BlackRock (opens in new tab). This will allow you to scoop up value-focused shares at historically attractive relative price-to-earnings ratios (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. 041b061a72