Friday, 15 May 2020

5 Best Stocks To Buy And Watch Now

By Investors.com


stocks to buy

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? Microsoft (MSFT), Netflix (NFLX), PayPal (PYPL), Chipotle Mexican Grill (CMG) and Pool (POOL) are looking stronger as the stock market continues to bounce back from the severe coronavirus correction.

 While the long bull market was finally vanquished by the coronavirus crisis, things are again looking up. The stock market is once again in a confirmed uptrend. The rally has been strengthening, with the tech-heavy Nasdaq clearing key resistance levels and more top stocks breaking out. And the uptrend recently overcame an important test by rebounding from a sharp selloff.

 A key to the rosier picture is the improving news on Covid-19, both in the U.S. and around the world. Many states are now looking at how they are going to come out of lockdown and get their economies firing again. However, stress in the oil markets has added to uncertainty.


 
So why are these five names above the rest to buy or watch? Before turning to that question it is important to consider how one goes about choosing a stock in the first place. Superior fundamentals and technical action, and buying at the right time, are all part of a shrewd investing formula.
Several of the stocks named are featured on IBD's prestigious Leaderboard list of top stocks.


Best Stocks To Buy Or Watch

 

Microsoft Stock

Microsoft stock rose is currently in buy zone from a double-bottom base with a 175.10 ideal buy point, MarketSmith analysis shows. MSFT stock also is above a 180.10 entry from a handle. It has rebounded from  its 21-day moving average.
In the latter half of April, Microsoft stock rose in a rolling, uneven fashion, echoing the action of the stock market rally. Even leading stocks will tend to follow the market. And Microsoft is a leader. The relative strength line for Microsoft stock is around its all-time highs, and climbed solidly through the market crash and in the current stock market rally.
The RS line, the blue line in the charts below, tracks a stock's performance vs. the S&P 500.

 Microsoft stock has been outperforming the S&P 500 index for years. So it's no surprise that MSFT stock is a member of the prestigious IBD Long-Term Leaders list. Stocks on this list stabilize your portfolio but quietly deliver stellar long-term gains. To qualify as a Long-Term Leader, a stock has to have stable earnings, stable price outperformance and high-quality institutional sponsorship. These stocks can be bought on pullbacks or on breakouts.

  Read The Whole Analysis on Investors




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