Shopping for stocks when valuations are stretched and policy uncertainty abounds might not feel like the best idea. After all, the idea is to buy low.
However, the outlook for equities has brightened considerably over the past month. And besides, there are always select names set to outperform.
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.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Indeed, as we'll see below, four of Wall Street's top-rated stocks to buy hail from the Magnificent 7.
After all, if bulls liked these stocks at higher prices, they should love them now that they've cooled off. Companies from the financial, energy and industrials sectors are ably represented too.
Here's how we found the top S&P 500 stocks to buy now. It's well known that industry analysts are reluctant to slap Sell ratings on the names they cover. There are a bunch of 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 recommendation of Sell to a total of one stock.
At the other end of the ratings spectrum stands the Street's highest recommendation of Strong Buy. A total of 19 stocks made the cut there, up from 17 a month ago, thanks partly to the down market making valuations more attractive.
But first, a note on our methodology: S&P Global Market Intelligence surveys analysts' stock recommendations and scores them on a five-point scale, where 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 19 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.
Company (ticker) | Analysts' consensus recommendation score | Analysts' consensus recommendation |
|---|---|---|
Erie Indemnity (ERIE) | 1.00 | Strong Buy |
West Pharmaceutical Services (WST) | 1.31 | Strong Buy |
S&P Global (SPGI) | 1.39 | Strong Buy |
Amazon.com (AMZN) | 1.39 | Strong Buy |
GE Aerospace (GE) | 1.40 | Strong Buy |
Danaher (DHR) | 1.41 | Strong Buy |
Boston Scientific (BSX) | 1.41 | Strong Buy |
Broadcom (AVGO) | 1.42 | Strong Buy |
Microsoft (MSFT) | 1.42 | Strong Buy |
DexCom (DXCM) | 1.42 | Strong Buy |
Targa Resources (TRGP) | 1.46 | Strong Buy |
Synopsys (SNPS) | 1.46 | Strong Buy |
Meta Platforms (META) | 1.46 | Strong Buy |
Bank of America (BAC) | 1.46 | Strong Buy |
Nvidia (NVDA) | 1.47 | Strong Buy |
Wynn Resorts (WYNN) | 1.47 | Strong Buy |
TKO Group (TKO) | 1.47 | Strong Buy |
KKR (KKR) | 1.48 | Strong Buy |
Delta Air Lines (DAL) | 1.50 | Strong Buy |
Related Content
-
Eight Ways To Save on Your Next Luxury TripLooking for ways to stretch your retirement dollars? Follow these tips to get a deal on your next vacation.
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
What's Next for Stocks After a Chaotic SpringA chaotic tariff policy buffets investors looking for clarity on the economy and inflation.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term CareMany people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Where to Invest in an Uncertain MarketIn an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
My First $1 Million: Events Industry CEO, 65, Northern New JerseyEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
