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), Quanta Services (PWR), DoorDash (DASH), Sea (SE) and Howmet Aerospace (HWM) are prime candidates.
The market confounded expectations for difficulties and turned in an outstanding performance in 2023 and 2024. Donald Trump’s election victory initially boosted stocks, but they then got walloped due to the Trump administration’s tariff agenda. The market is back near highs, however, as Trump has eased tariffs, at least temporarily. The Federal Reserve has now moved to cut rates amid a weakening labor market.
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 2024. The major indexes surged to record highs in the wake of Donald Trump’s presidential victory, but tariff worries and a more cautious outlook from the Fed on interest rates are now weighing on stocks.
The stock market is back near highs after fighting back with aplomb after coming under considerable pressure. The S&P 500 has moved above its 50-day moving average as well as its 200-day line, as has the Nasdaq composite. They were briefly forced below the short-term 21-day line, but have rallied back. Recent gains were impressive as stocks come off lows.
The current fight-back means investors should be putting money to work, though they should still be on their guard in case of another pullback in this headline-driven market. The selections below are among the best stocks to buy or watch now. The IBD 50 is also a rich hunting ground.
In addition, it is now especially 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
- Quanta Services
- DoorDash
- Sea
- Howmet Aerospace
Now let’s look at these five stocks to buy or watch. An important consideration is that these best stocks to buy and watch all boast impressive relative strength.
Nvidia Stock
Nvidia stock is in the buy zone above a flat base ideal entry point of 184.48, according to MarketSurge analysis. The stock recently found buying support near the 50-day moving average. It has moved clear of its 21-day exponential moving average.
The relative strength line drifted lower during its base-building phase, but is now moving higher again. The RS line gauges a stock’s performance vs. the S&P 500.
The all-around performance of Nvidia stock is strong, with its IBD Composite Rating sitting at a perfect 99.
Nvidia stock has been on a strong run so far in 2025, rising nearly 41%. Institutions have been loading up on the stock lately, with its Accumulation/Distribution Rating coming in at B.
In total, 41% of shares are held by funds according to MarketSurge data. It boasts a plethora of highly rated holders, including the lauded Fidelity Contrafund (FCNTX) and the Franklin Growth Fund (FKGRX).
Strong fundamentals are key to this score, with its Earnings Per Share Rating coming it at best-possible 99. Earnings have risen by an average of 53% over the past three quarters. This is well above the 25% growth sought by disciples of the IBD Methodology. Earnings accelerated to a 54% lift in the most recent quarter.
While competition in the artificial intelligence space is heating up, with Broadcom (AVGO) recently revealing that it received a massive order from a new client believed to be OpenAI, Nvidia’s latest Blackwell chip remains the best offering available at the moment. Analysts do not believe the AI space is a zero-sum game.
Wall Street experts are bullish on Nvidia. It holds a consensus rating of strong buy with an average price target of 211.26, according to Tipranks.
CFRA analyst Angelo Zino rates the stock as a buy with a 210 target. He believes Nvidia has a strong development pipeline, offers China upside and believes AI prospects at home are rosy.
“We are optimistic about (Nvidia’s) growing addressable market and the sustainability of spending plans from hyperscalers with levels moderating after the ‘Big Four’ virtually doubled capex spend in the last two years,” he said in a Sept. 6 note to clients. Amazon.com (AMZN), Microsoft (MSFT), Alphabet (GOOGL) and Meta Platforms (META) are the companies referred to as the “Big Four.”
Bank of America analyst Vivek Arya is even more bullish, rating Nvidia as a buy with a 235 target. He said in a Sept. 1 note to clients that the target “is justified by (Nvidia’s) leading share in fast-growing AI compute/networking markets, offset by lumpiness in global AI projects, (the) cyclical gaming market and concerns around access to power.”
He said potential risks include “larger than expected impact from restrictions on compute shipments to China” and “enhanced government scrutiny of (Nvidia’s) dominant market position in AI chip” sales.
Quanta Services Stock
The construction stock is flirting with a cup base buy point of 424.94. This is an early-stage pattern, which is a bonus.
The stock previously cleared an early entry of 400.87. In early June the 50-day moving average cleared the 200-day line, a bullish technical maneuver known as a “golden cross.”
In addition, the relative strength line is turning higher as it builds the right hand side of the base.
PWR stock has a mighty IBD Composite Rating of 97. This is a reflection of excellent all-around performance.
The stock is among the top 16% of issues in terms of price performance over the past 12 months. It has been doing very well so far this year, rallying more than 33%.
Earnings performance is top-notch, with the stock holding a near-perfect EPS Rating of 98. Things have been stepping up on this front, with profits popping by 34% over the past three quarters.
Wall Street sees earnings rising 18% in 2025 before slowing to 17% growth next year. Analysts have been revising their estimates upward of late, a good sign.
Institutions have added to their holdings of PWR stock of late, with its Accumulation/Distribution Rating coming in at B.
MarketSurge data shows that 59% of shares are currently held by funds. A number of well-respected funds are holders, including the Baron Asset Fund (BARAX) and the Allspring Growth Fund (SGRAX).
The company has been expanding too, completing three acquisitions in the first half of 2025. It also announced in July that it closed a deal for Dynamic Systems, based in Austin, Texas.
“Demand for our services remains resilient, fueled by our customers’ multiyear programs to build the power grid, generation and energy infrastructure necessary to support load growth from technology adoption and manufacturing reshoring,” Quanta CEO Duke Austin said during the firm’s most recent earnings call.
Jefferies analysts recently upgraded Quanta Services to buy from hold, increasing the stock price target to 469 from 398. Jefferies noted that the company’s total addressable market is expanding across data centers, renewables, transmission and pipelines.
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
DoorDash Stock
DoorDash is in the buy zone above a cup-with-handle base ideal entry point of 269.06, MarketSurge analysis shows.
It sits bullishly clear of its short-term and major moving averages. The relative strength line also remains near recent highs.
DoorDash stock is strong both fundamentally and technically, which is reflected in its IBD Composite Rating of 98 out of 99.
The stock holds an Earnings Per Share Rating of 80 out of 99. The firm has swung from losses to profit in each of the past four quarters.
Analysts see further profit growth ahead. Earnings are expected to spike 757% this year before slowing to 60% growth in 2026, MarketSurge data shows.
The stock is also a strong performer technically. In fact, DoorDash has rallied by more than 65% so far in 2025.
Institutions have been increasing their holdings of the stock lately, with its Accumulation/Distribution Rating coming in at B.
A number of Wall Street heavy hitters have taken a stake in the company. These include the Fidelity Contrafund (FMAGX) and Allspring Growth Fund (SGRAX).
Chief Executive Tony Xu was bullish on the firm’s prospects during their most recent earnings call, boasting that food is “the most resilient category and most sought-after category for convenient consumption.”
For the current quarter, DoorDash guided for gross order value of $24.45 billion, based on the midpoint of its range. Analysts were looking for $23.83 billion in gross order value in the September-ended period, according to FactSet.
RBC Capital Markets analyst Brad Erickson, who rates the stock as outperform, said in a note to clients that “the simple story is somehow, someway, the core U.S. restaurant business is still getting better, with broad acceleration.”
Earlier this year Citi analyst Ronald Josey, who rates the stock as a buy with a 315 target, said he wants the firm to “leverage its existing audience base,” particularly members of its DashPass program, so it can expand in other delivery areas such as grocery, convenience, and alcohol.
DashPass is a subscription service that typically costs $9.99 per month. It offers free delivery and reduced service fees on eligible orders. Josey noted in a note to clients that members of the program typically order twice as frequently as nonmembers.
Sea Stock
E-commerce play Sea is clearing a short trendline entry. It is also forming a consolidation with a higher potential buy point of 199.30. This could serve as an alternate entry if it gathers steam before a proper base forms.
It comes after it offered up a buying opportunity by rebounding off the 10-week moving average.
The relative strength line is on the rise once again following a recent dip. This is a positive sign, though it remains off recent highs.
Overall performance is outstanding, with its IBD Composite Rating sitting at 98 out of 99.
It is also strong fundamentally. This is reflected in its EPS Rating sitting at 82 out of 99.
Sea’s earnings have been improving lately. In the most recent quarter, earnings surged 391% to 64 cents a share. This came after it swung from a loss of 4 cents a share to earnings of 65 cents in the first quarter. It also swung from a loss of 19 cents a share to 39 cents a share in earnings in the fourth quarter of 2024.
Further progress is expected, with Wall Street seeing full-year EPS growth of 387% this year and 48% in 2026. This is well in excess of the 25% growth rate sought by The IBD Methodology investors.
The online shopping stock is among the top 10% of issues in terms of price performance over the past 12 months. Institutions have been helping to drive the outperformance of late, with its Accumulation/Distribution Rating sitting at a B-. In total, 48% of shares are held by funds.
The Singapore-based company runs Shopee, the largest online retail company in Southeast Asia. Shopee operates in countries including Taiwan, Vietnam and Brazil.
However, the company is quite diversified. It offers payments and financial services through its SeaMoney business and develops and publishes video games under its Garena banner. Sea actually started as a video game company before branching out into online shopping.
Wall Street is currently bullish on Sea stock. It holds a consensus rating of buy with an average price target of 205.58, according to TipRanks.
CFRA analyst Jian Xiong Lim rates the stock as a buy with a 200 target. Sea’s “competitive advantage stems from Shopee’s well-developed delivery network enabling 50% of its orders to be delivered within two days,” he said in a Sept. 13 research note.
Wedbush analyst Scott Devitt is also bullish, rating Sea as outperform with a 200 target.
“We remain encouraged by the near-term margin trajectory and management’s ability to navigate longer-term competitive threats,” he said in an Aug. 14 note to clients. “The company has continued to invest in key areas of differentiation, such as logistics, to maintain its leading market position while demonstrating clear improvements in margin trajectory.”
He highlighted the fact that Sea has become the market leader in Brazil by order volume while remaining adjusted earnings before interest, taxes, depreciation, and amortization (EBIDA) positive.
To top it all off, Sea is a member of the IBD Leaderboard list of top stocks.
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Howmet Aerospace Stock
Howmet Aerospace stock is flirting with a cup base ideal entry point of 193.26, MarketSurge analysis shows. It also had an early entry above a short-term high of 190.29.
Shares briefly cleared the buy point but pulled back slightly, finding support at the 21-day exponential moving average, comfortably above the 50-day line. The relative strength line is improving, though still off recent highs.
HWM is an excellent all-around performer, which is reflected in its IBD Composite Rating of 97 out of 99.
Price performance is strong, with the stock sitting among the top 11% of equities in terms of gains over the past 12 months. So far in 2025, it is up around 75%, which is much better than the benchmark S&P 500.
Fundamental performance is an even bigger strength, with its EPS Rating coming in at 98 out of 99. There has been strong progress on this front lately, with profits rising by an average of 42% over the past three quarters.
Analysts see EPS rising 35% this year to $3.63, before staging a further 19% advance in 2026.
Institutions have been adding slightly to their holdings of the stock lately, with its Accumulation/Distribution Rating coming in at B-.
Howmet Aerospace stock has an outstanding level of institutional backing. Funds currently hold 61% of shares, MarketSurge data shows. Noteworthy holders include the Fidelity Contrafund (FCNTX) and the MFS Growth Fund (MFEGX).
Defense contractors have trended up this year, driven by proposed increases to the U.S. defense budget, greater spending commitments from NATO, and ongoing conflicts in the Middle East and Europe. Civilian aircraft demand also is solid.
The firm’s CEO John Plant recently said that the “commercial aerospace market should continue to grow, driven by healthy passenger traffic, extraordinarily high (original equipment manufacturing) backlogs and desire for new, fuel-efficient aircraft.”
He added that the defense aerospace market strength should carry through 2025, while booming data center expansions should maintain strong demand for industrial gas turbines for the rest of the year.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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