Analysts' Top S&P 500 Stocks to Buy Now

Shopping for stocks when markets are reeling with uncertainty might feel scary and unnatural. But let's not forget that the idea is to buy low.

True, the conflict with Iran has rattled global nerves, but the outlook for corporate profits remains bright. And while the case for lower interest rates isn't as strong as it was just a month ago, markets looked due for some kind of pullback. As Barry Ritholtz, chairman of Ritholtz Wealth Management notes, recent upside price action looks like "a case of an oversold market wildly overdue for a bounce."

Besides, there are always select names set to outperform.

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Although the Magnificent 7 stocks have done much of the bull market's heavy lifting, that hardly means these names are doomed to underperform from here. At the same time, a rotation out these names has capital flowing to other, sometimes sleepier, sectors.

As we'll see below, five of Wall Street's top-rated S&P 500 stocks to buy hail from the Magnificent 7. Companies from the financial, health care and industrials sectors are ably represented, too.

How we found analysts' top-rated S&P 500 stocks

It's well known that industry analysts are reluctant to slap Sell ratings on the names they cover. There are several reasons for this, some more defensible than others.

What's less commonly understood is that Strong Buy recommendations, while not nearly as rare as Sell calls, are in somewhat short supply, too.

If you run a screen of the S&P 500 using data from S&P Global Market Intelligence, you'll see that analysts assign a consensus Sell recommendation to only one stock.

At the other end of the ratings spectrum stands the Street's highest recommendation of Strong Buy. A total of 44 stocks made the cut there as bullish sentiment soars.

First, a note on our methodology: S&P Global Market Intelligence surveys analysts' stock recommendations and scores them on a five-point scale, in which 1.0 equals Strong Buy and 5.0 means Strong Sell.

Any score of 2.5 or lower means that analysts, on average, rate the stock a Buy. The closer the score gets to 1.0, the stronger the Buy call.

In other words, lower scores are better than higher scores.

Have a look at the chart below to see the 44 stocks in the S&P 500 that score an elite Strong Buy recommendation from industry analysts. Investors who fear it's too late to buy Amazon.com (AMZN), Microsoft (MSFT) or Nvidia (NVDA) will be happy to see they easily made the list.

As much as artificial intelligence (AI) is driving capital spending and market sentiment, analysts see plenty of reasons to be bullish on names across multiple sectors. Here we highlight what Wall Street has to say about three less sexy stocks on the list this month.

Targa Resources

Targa Resources (TRGP) is a top way to play a rebound in the midstream sector of the oil and gas industry. Analysts like the way it operates in nearly every segment of its industry and adore its geographic diversity.

Indeed, when it comes to gathering, processing, transporting and storing natural gas and natural gas liquids (NGLs) in places such as the Anadarko and Permian Basins, analysts say Targa "overshadows" other energy companies.

"With more than 80% of its revenues coming from fees, Targa's cash flows are largely immune from volatile energy prices," writes Argus Research analyst John Staszak, who rates shares at Buy. "Targa plans to add three new plants each year in the Permian Basin. These plants should translate to annual EBITDA above $6 billion following the completion of the company’s Speedway plant."

No wonder Argus has so much company in its bullish call. Of the 21 analysts covering the energy stock surveyed by S&P Global Market Intelligence, 14 call it a Strong Buy, five say Buy and two have it at Hold. That works out to a consensus recommendation of Strong Buy.

Boston Scientific

If you have ever undergone a minimally invasive medical procedure, chances are you've used something made by Boston Scientific (BSX). From stents and catheters to pacemakers and implantable defibrillators, BSX is critical to modern medicine.

Analysts say the company's strong pipeline, new product launches and additional acquisitions should continue to support revenue growth and margin expansion.

"BSX has a steady cadence of new product flow across its portfolio and is delivering above MedTech industry growth, with particular outperformance over the past year-plus owing to rapid acceleration of the company's Electophysiology business," notes Oppenheimer analyst Suraj Kalia, who rates shares at Outperform (the equivalent of Buy). "BSX is adding to the portfolio through tuck-in M&A and has several product tailwinds."

The health care stock is down about 30% over the past 52 weeks, but that just has it primed for outperformance, bulls say. Analysts' average price target of $102.48 gives BSX implied upside of about 48% over the next 12 months.

Of the 35 analysts covering BSX, 25 rate it at Strong Buy and 10 say Buy. That works out to a consensus recommendation of Strong Buy, and with high conviction to boot.

GE Aerospace

GE Aerospace (GE), which retained the classic GE ticker following the spinoff of GE Verona (GEV) in 2024, has seen its shares soar as it returns gobs of cash to shareholders.

Bulls credit canny management and cost-savings initiatives, among other efforts, to boost results.

"The company has been focusing on increasing productivity and improving its supply chain by working closely with suppliers," notes Argus Research analyst Kristina Ruggeri, who rates shares at Buy. "These efforts have meaningfully improved the availability of components for GE, helping it meet demand, and have led to higher sales and margins."

As a result, the company was able to boost its dividend by nearly 30% in February, and that was after buying back about $7 billion in stock last year. GE has an estimated $3 billion left under its $15 billion share repurchase program.

That's helped the industrial stock return more than 40% over the past year, and Wall Street sees more outsized upside ahead. Of the 19 analysts covering GE, 14 rate it at Strong Buy, three say Buy, one calls it a Hold and one has it at Sell. That works out to a consensus recommendation of Strong Buy.

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