Despite macroeconomic uncertainty and concerns about a potential U.S. recession and the looming possibility of a government shutdown, investors remained optimistic about the market regaining its mojo this October. Multiple stocks have not only delivered double-digit returns in the past month, but they’re still trading at reasonable prices. So, how to choose the best stocks to buy now?
If you like playing it safe during unpredictable times in the stock market, defensive stocks are your go-to. But if you’re more into the exciting world of high-flying growth stocks that have the potential for big return, go for those ones on the rise. Or, if you tread the balanced middle ground — not too risky, not too safe — mixing defensive and growth stocks could be the secret to a strong and diverse portfolio.
We’ve compiled a list of the 6 best stocks to buy now, to help you choose the ones that match your approach.
1. Meta Platforms (META Stock)
This is one of the largest and most influential global tech companies and the world’s largest online social network. It offers a Family of Apps comprising the flagship Facebook platform, Instagram, Messenger, WhatsApp, etc., and Reality Labs with an array of augmented and virtual reality technologies.
Meta stock has had significant price fluctuations in the past few years, from peaking at $379.38 in 2021 to a substantial decrease throughout 2022. However, Meta’s share price has been steadily recovering since then and has gained nearly 155% year-to-date. Moreover, Meta seems to be catching the attention of analysts as one of the best shares to trade now. They expect a significant upside potential, driven by an anticipated uptick in ad revenue and benefits from its AI initiatives.
While Meta recorded a substantial loss in ad revenue, a staggering $10 billion incurred due to Apple’s privacy policy amendments for the iPhone marked a challenging period.
Meta’s Upcoming Quest 3
Meta has made substantial investments to leverage AI to enhance its competitive edge. At the Connect conference, Meta unveiled its new Quest 3 virtual reality (VR) headset, several generative AI tools, and an advanced conversational assistant accessible on WhatsApp, Messenger, and Instagram. CEO Mark Zuckerberg introduced his vision for a metaverse future with photorealistic avatars.
Meta Platforms was the IBD Stock Of The Day on September 22. Wall Street analysts are bullish about Meta stock, considering it among the best stocks to buy now. Goldman Sachs believes the stock is undervalued and sees a potential upside of nearly 28%.
InvestingPro data reveals that Meta boasts robust financial health and promising upside potential.
2. Albemarle (ALB)
Albemarle Corp. (ALB), founded in 1993 and headquartered in Charlotte, NC, is a leading manufacturer of highly engineered chemicals and one of the world’s largest lithium producers. It’s also one of the lowest-cost lithium producers, aiming to develop a reliable supply of high-quality lithium and advance the evolution of lithium-ion batteries.
Lithium is set to dominate the electric vehicle (EV) revolution, aiming to combat climate change and utilize excess renewable energy. Global EV sales surged 32% year-over-year in Q1 2023, reflecting sustained growth.
With most EVs relying on lithium-powered batteries, the demand for lithium remains robust. This presents a lucrative opportunity for lithium miners, and Albemarle is one of the best stocks to buy now for investors looking to capitalize on this trend.
While Albemarle Corporation has faced a challenging period with other lithium stocks, the demand for lithium mining continues to rise, indicating a potential growth to $516 million by 2028.
In 2023 Q1, Albemarle Corporation’s revenue surged 129% to $2.58 billion, and its adjusted EPS skyrocketed 334% to $10.32.
In May, ALB announced an impressive deal with Ford. The company will “supply more than 100K metric tons of battery-grade lithium hydroxide for ~3M future Ford electric vehicle batteries” from 2026 to 2031.
What’s Next for Albemarle
Albemarle Corp. (ALB) is well-positioned to benefit from the ongoing EV revolution and the increasing focus on renewable energy.
Albemarle’s in the financial spotlight, getting a thumbs-up from several experts. Business Insider gives it a solid buy rating. Morningstar claims lithium products could give Albemarle a competitive edge for at least the next 10 years. Citigroup tags ALB as one of its “top picks” with a shiny new “buy” rating, and UBS Group boosts the price target by raising its rating on ALB from “neutral” to “buy.” But that’s not all – Albemarle is also on the Time100 Most Influential Companies 2023 list. Talk about making waves!
3. Super Micro Computer, Inc. (SMCI)
Super Micro Computer, Inc., also known as Supermicro, is a leading company that designs and manufactures high-performance server and storage solutions. It provides server and storage system integration, configuration, workstations, networking devices, and server management software. It also provides support and update services to such technology companies and AI projects as enterprise IT, big data, cloud computing, the Internet of Things (IoT), and more. The company focuses on “green computing” to reduce costs and environmental impact.
Super Micro Computer is headquartered in California, with operations in over 100 countries.
Super Micro Computer, Inc. has a Zacks Rank #1 (Strong Buy).
On October 5, 2023, Zacks Equity Research named Super Micro Computer Inc SMCI the Bull of the Day.
Super Micro is up 195% this year and earned 52% of revenue from AI systems last quarter, equating to $1.13 billion, much higher than its peers, who generally reported about 20% of revenue from AI systems for the same period. Notably, SMCI has outperformed Nvidia’s stock in 2023.
Super Micro’s Advantages
One of the significant advantages of the company is that SMCI has adopted a “building block” architecture for its servers rather than producing standardized models. This approach allows for the mass customization of servers, tailoring them to specific applications and precise customer needs.
Secondly, given the power-intensive nature of AI solutions, SMCI’s energy-efficient designs are particularly sought after in the AI space.
Lastly, SMCI’s strategic location in Silicon Valley enables it to be at the forefront of the market with the latest designs and solutions.
SMCI is one of the best stocks to buy now, with most Wall Street Analysts recommending it.
The current consensus among 9 polled investment analysts is to buy Super Micro Computer Inc. stocks.
4. Uber Technologies (UBER)
Uber is a transportation-as-a-service (TaaS) business headquartered in San Francisco and operating in 70 countries worldwide. The ridesharing company hires independent contractors as drivers and links them to passengers using the Uber app. Uber offers rides under a dynamic pricing model depending on the destination and demand.
In Q2 2023, Uber had 137 million monthly active platform consumers (MAPCs), completed 2.3 billion trips, and its shares skyrocketed 94% this year.
While Uber’s stock might have nearly doubled since the beginning of 2023, it’s still only trading at around the same price as in its IPO of 2019. This presents investors with a good opportunity to buy Uber shares right now.
What’s Next for Uber?
Uber has had its ups and downs since its IPO, but its business is currently experiencing strong momentum. Its success is due to the company’s overseas expansion and superior customer value proposition, such as delivery options for non-dining businesses, mobility options for two-wheeler and three-wheeler vehicles, and the rollout of Uber for Business and Uber Health.
Uber is considered IBD Stock of the Day, with most experts believing it’s a great time for purchase. Wall Street Analysts have given it a consistent Buy ranking for the last 3 months. The famous internet analyst Brent Thill has recommended Uber Technologies (UBER) as one of his three favorites for 2023.
5. Royal Caribbean Cruises LTD (RCL)
Royal Caribbean Group is a leading cruise company founded in 1968 and headquartered in Miami, FL. The company was up 112% in August as its revenue, bookings, and profits continued to grow.
Royal Caribbean’s outstanding performance in 2023 was attributed to the strong demand, higher ticket prices, and heightened onboard passenger revenue. From a short getaway to a luxury world cruise, the Royal Caribbean offered 1.9 million vacations appealing to a wide range of travelers.
The company’s Q2 revenue reached a new record of $3.5 billion, and net income finished at $458.8 million. Over the last 12 months, the company generated around $1.4 billion in operating revenue.
What’s Next for the Royal Caribbean Group?
Industry analysts expect steady growth for the cruise industry for this decade. Passenger volumes are expected to reach 36 million in 2024 and 39.5 million by 2027, up 21% and 33% compared to 2019 levels.
While the stock is considered risky due to the company’s massive debt, in its Q2 report, the Royal Caribbean’s management claims bookings for 2024 excursions are up significantly compared to any prior year and at record prices.
RCL stock has a consensus buy rating: the rating score is based on 32 buy ratings, 11 hold ratings, and 5 sell ratings.
The company is on the Forbes’ list of 10 Best Performing Stocks of October 2023.
6. E.ON (EONGY)
E.ON SE is an international energy company headquartered in Essen, Germany. Its business areas and solutions include Energy Grid, E-Mobility, Green Hydrogen, Green Internet, City Energy Solutions, IQ Energy, and more. The company produces electricity from onshore and offshore wind farms, solar PV, and energy storage sources. It distributes electricity, gas, and other energy-related products and services and carries out maintenance in North America, Europe, and other regions. EONGY also has operations in chemicals, real estate, telecommunications, aluminum, silicon wafers, etc.
E.ON is valued at around $30.24 billion. Its shares have risen 51.4% in the past year.
EONGY and FPT Software have announced a partnership for opening an offshore development center (ODC) in Vietnam in fields such as SAP, DevOps, Data Analytics, and AI.
What’s Next for E.ON?
EONGY is catching some positive vibes. It has an overall promising outlook, with a Zacks Rank of #2 (Buy) and a Value grade of A. Citigroup’s on board with an upgrade from “neutral” to a “buy” rating, and Societe Generale and HSBC follow suit, shifting from “hold” to “buy” ratings. EONGY has an overall Buy rating on StockNews, assessed by 118 different factors.
Plus, the current consensus among 19 polled investment analysts is to buy stock in E ON SE, and this consensus has been holding strong since September.
Looks like EONGY’s got the green light across the board!
Final Words
Our curated list of the top 6 stocks to buy now aims to help you make informed investment decisions that resonate with your unique trading style. Each stock on this list has been analyzed based on a nuanced understanding of market trends, company performance, and broader economic dynamics.
Picking the best stocks to buy now depends on your specific investment goals and risk tolerance.
As always, make sure to do your own research and consider several factors before investing.
