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? Caterpillar (CAT), Eli Lilly (LLY), Citigroup (CITI), Teradyne (TER) and Krystal Biotech (KRYS) are prime candidates.
Indexes confounded expectations for difficulties and turned in an outstanding performance in 2023, 2024 and 2025. The Federal Reserve moved to cut rates amid a weakening labor market. However it looks like rate cuts are on hold amid inflation concerns. The conflict in Iran caused a sharp pullback, but then stocks rallied back to new highs.
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.