20 Best Stocks to Buy for the New Bull Market
The U.S. is officially in a bull market, but economic weakness persists. The best stocks to buy now must have acutely positioned businesses and be able to withstand more turbulence.
2020 has been a year for the history books, and it's still far from over. We still have a pandemic to contend with and a presidential election coming.
But with the S&P 500 finally climbing over its February highs, it's safe to say the bull market is back. And some of the best stocks to buy now are those that have already been leading the charge.
The market gains of the past five months have been dominated by large-cap tech stocks, particularly by those with monopoly or near-monopoly power in their respective areas. It also has been powered by a "stay at home" theme, with the stocks least affected by social distancing generally performing the best.
But what comes next? With the economy still looking very wobbly, should we be concerned that new all-time highs in the market are leading investors to the slaughter?
"This is not characteristic of a downtrend," explains JC Parets, Chief Market Strategist at All Star Charts. "For the past 100 years, markets seeing all-time highs are classic for the type of environment that is rewarding us for owning stocks, not to be selling them. All-time highs are perfectly normal for this period. We expect more of them. A lot more, actually."
But as you explore the best stocks to buy for this new bull market, remember: Not all companies will participate equally. Airlines, hotels and brick-and-mortar retail could catch a tailwind but still are at risk due to decreased traffic. Even the successful launch of a vaccine this year wouldn't guarantee a quick recovery, as business travel isn't likely to return to its old levels any time soon. In fact, although the large-cap tech trade is looking a little long in the tooth, it's likely the next leg of this bull market is led by growth companies in general, and tech in particular.
Today, we'll look at 20 of the best stocks to buy now for the next stage of the bull market. These companies boast a blend of well-positioned businesses, strong balance sheets and/or leading positions within their industries.
Data is as of Aug. 20. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price.
- Market value: $1.65 trillion
- Dividend yield: N/A
Amazon.com (AMZN, $3,297.37) is one of the best-performing large-cap stocks this year. AMZN shares are up 78% year-to-date and have nearly doubled from their March lows. The company entered the coronavirus crisis uniquely positioned to do well, and Amazon continues to outperform even as life returns to normal.
If you're tempted to write off Amazon as a virus play destined to lose steam once life gets back to normal, let me ask you a question: Once COVID-19 fades into the background, are you likely to stop buying at Amazon?
Sure, you might venture out to the malls again for a little retail therapy (the malls that haven't been converted to Amazon distribution centers, anyway). But once you get used to Amazon as your go-to store, those patterns aren't likely to be broken for a long time.
Also, Amazon is also a lot more than just a retailer. Its Amazon Web Services (AWS) unit has been its primary driver of profitability for years, and that's also unlikely to change any time soon. If anything, the COVID experience has accelerated the transition away from in-house information technology to a cloud-based model as more professionals work from home.
AMZN has long graced many "best stocks to buy" lists, and it continues to look attractive to this day. The stock can't continue this blistering pace forever, but it's likely to continue leading this bull market higher for at least another few quarters.
- Market value: $369.8 billion
- Dividend yield: 1.7%
Like Amazon, Walmart (WMT, $130.57) has been knocking the cover off the ball throughout this crisis.
Walmart's second-quarter comparable-store sales grew 9.3%, including a blistering 97% surge in e-commerce sales. Americans in the COVID era are eating more at home, which helps Walmart's grocery business. But electronics, toys, cleaning supplies and just about everything else WMT sells is also in high demand these days – and fortunately, Walmart spent the years prior to the crisis building out its e-commerce arm.
It comes down to the "retail apocalypse" we've been hearing about for years. It's well established that America has vastly more store square footage per capita than any other country in the world – roughly five times the amount of store square footage per capita as the United Kingdom and six times that of France. And a lot of that square footage is occupied by weaker retailers that have been limping along for years, kept alive by cheap credit.
Many of these retailers won't survive this recession. Others, at the very least, will need to consolidate and reduce store count. Some of their losses will be Walmart's gain.
WMT is perhaps one of the best stocks to buy for a bull market that coincides with a prolonged recession. It's during a recession when, in true Darwinian natural selection, the fittest survive. And other than perhaps Amazon, no retailer has proven to be fitter than Walmart.
Bank of America
- Market value: $217.5 billion
- Dividend yield: 2.9%
Banking stocks have had a rough decade. They were utterly annihilated during the 2008 meltdown, and their recovery was slow and torturous due to increased regulatory scrutiny and capital requirements.
Things had started to look up in recent years, with the regulators backing off and interest rates rising, which helps with bank profitability. But then COVID happened, knocking interest rates back to near zero and bringing the very real threat of mass defaults.
But if you believe at least a partial rotation into value stocks could be in the works, Bank of America (BAC, $25.10) is one to consider for the next leg higher. BAC trades at 2017 prices and is still about 30% below its pre-COVID highs. The shares also sport a dividend yield of 2.9%.
Banking might never again be the money-making machine it was in years past, particularly in a low-interest-rate environment. But that's OK. BAC isn't a growth stock. It's a value stock, and one that's caught the eye of none other than the Oracle of Omaha himself. Warren Buffett's Berkshire Hathaway has been aggressively adding to its BAC position even while selling off other bank stocks, and it is now its second-largest portfolio holding after Apple.
If it's good enough for Buffett, it's probably good enough for us.
- Market value: $492.3 billion
- Dividend yield: N/A
Speaking of Warren Buffett, the Oracle of Omaha admittedly does have some egg on his face at the moment.
Buffett's decades-long track record is without equal, but Berkshire Hathaway's (BRK.B, $206.12) stock portfolio has hit a rough patch in 2020. Buffett had major positions in airlines, energy and banks going into the crisis, and he's subsequently trimmed back or eliminated all of them as the year has progressed.
All of that said, Buffett thrives in times of crisis. In the 2008 meltdown, he made a fortune by effectively bailing out Goldman Sachs (GS) and General Electric (GE). He was able to make extremely profitable deals because, when crisis struck, he had the cash and the financial firepower to do it.
Well, we're in the long recovery phase of another crisis, and Buffett has more cash to deploy than ever, at $147 billion. What the Oracle will do with it remains to be seen. But that optionality is precisely what gives Berkshire Hathaway the potential to be one of the best stocks to buy as we potentially pivot out of the bear market. Buffett made some unexpected moves in the second quarter, such as initiating a position in gold miner Barrick Gold (GOLD).
Only time will tell what Berkshire accumulates next, but rest assured the Oracle will keep us guessing.
- Market value: $298.7 billion
- Dividend yield: 0.1%
Nvidia (NVDA, $485.64) has been one of the unexpected winners of the COVID pandemic. For most of its life as a public company, it has been known as a maker of video cards for gamers. But recently, Nvidia has found all kinds of new uses for its chips, including artificial intelligence, autonomous driving and Bitcoin mining.
But the biggest growth story here is Nvidia's entry into data centers, where it is presently kicking Intel's (INTC) tail.
Cloud computing has been one of the most explosive growth stories of the past decade, driven by Amazon.com's AWS and Microsoft's Azure platforms. But the COVID-19 outbreak massively accelerated this trend even further. With millions of Americans working from home, streaming video, and doing daily Zoom meetings, demand for data center computing has only growth.
Nvidia recently reported second-quarter results: $3.87 billion in revenue and $2.18 per share in profits both topped aggressive Wall Street estimates.
Most importantly: Data center sales soared 167% year-over-year to $1.75 billion, putting the segment ahead of gaming revenues for the first time in Nvidia's history.
NVDA isn't a cheap stock, but it's hard to see an immediate catalyst that slows it down.
- Market value: $231.5 billion
- Dividend yield: N/A
The COVID pandemic attacked Walt Disney (DIS, $128.12) on multiple fronts. The first and most obvious are the social distancing rules that have massively reduced Disney's theme park and cruise businesses.
Alas, it gets so much worse than that. Disney's traditional media empire is also struggling. With live sports still a little touch and go, its ESPN unit is suffering. Disney's movie business is effectively on ice until Americans start braving the movie theaters again. It's all but certain that advertising revenues will fall at the ABC television network, which Disney also owns. Companies generally scale back ad spending during recessions.
And if that's not bad enough, all these issues led to Disney suspending its dividend for the first half of 2020.
But it's safe to say that these setbacks are temporary. Disney has some of the most iconic entertainment brands in existence in its Disney characters, as well as its Star Wars and Marvel franchises. These are the unassailable competitive moats that Warren Buffett likes to rave about, and they're the reason why people will once again flock to Disney resorts and crowd to see Disney movies once they're able.
Disney's biggest growth story, however, is the online video streaming service Disney+, which competes directly with Netflix (NFLX). Disney announced in early August that its Disney+ streaming service surpassed 60 million subscribers. For context, DIS originally forecast reaching 60 million to 90 million subscribers by 2024.
Let's play with the numbers. Netflix has a market cap of $219 billion at current prices. By that specific measure, Disney's streaming service alone could eventually be worth as much as Netflix given that virtually every parent around the world will consider it a necessity. (And given that Disney already owns the content, its profit margins should also be a lot higher.) Yet Disney's market cap is only $231 billion, suggesting that the rest of Disney's sprawling empire is only worth $12 billion.
Obviously, this is just a quick-and-dirty analysis for example's sake. But the broader point holds: If Disney's streaming service is even remotely successful, then DIS stock is undervalued by a country mile.
- Market value: $1.62 trillion
- Dividend yield: 1.0%
It's telling that during one of the most volatile markets in history, Microsoft's (MSFT, $214.58) share price is actually up 36% year-to-date.
If we're potentially looking at a prolonged recession, you might think that a supplier of business software would be a risky bet. Traditionally, software sales have been cyclical, with companies deferring major upgrades when times get tight.
And in another era, MSFT might truly have been at risk. But over the past decade, Microsoft has shifted to a subscription-based model for many of its software offerings, including its cash-cow Office suite (now part of Microsoft 365), which includes Word, Excel and PowerPoint, among others. If we see mass layoffs in white-collar professions, the total number of subscribers might dip a little. But given that this crisis is hitting service and hospitality workers a lot harder than office staff, any dip in MSFT should be relatively muted.
The bigger story, of course, is Microsoft's dominance in cloud computing. Amazon Web Services remains the market leader, with a 37% market share. But Microsoft's Azure is in second place with a 20% share, and the next biggest competitor is a distant third at just 5%. The cloud really is a two-horse race between Amazon and Microsoft.
With companies looking to cut costs in what promises to be a nasty recession, more of their workload will get shifted to the cloud, accelerating a trend that was already well established.
Enterprise Products Partners LP
- Market value: $39.7 billion
- Distribution yield: 9.8%*
Energy has a reputation for being a volatile sector. But 2020 has been volatile even by the standards of oil and gas.
The sector started the year in a state of oversupply due in part to lower demand from China. The coronavirus outbreak in Wuhan disrupted China's factories late last year, and lockdowns further sapped demand. And then, of course, we had the short-lived price war between Saudi Arabia and Russia that briefly saw oil prices go negative.
While off their lows, energy stocks are still pretty bombed out right now, and there's no immediate reason to believe that will change. Cheap stocks can stay cheap for a long time in the absence of a catalyst to send them higher. And the crude oil market will likely remain oversupplied for the foreseeable future, which is made worse by the economy being in recession.
All the same, a few energy stocks are cheap enough today to warrant buying, even in the absence of a major catalyst.
For example, consider Enterprise Products Partners LP (EPD, $18.16), long considered to be the bluest blue chip in the midstream pipeline space. Enterprise has virtually no exposure to crude oil prices as its business consists primarily of transporting and storing natural gas and natural gas liquids.
Nonetheless, EPD shares are now roughly 40% below their 52-week highs and trade at prices last seen in 2010. They also yield nearly 10%!
We can't know for sure when conditions will improve in the energy sector. But EPD – with a monstrous payout that's still well-supported by current cash flows – might be one of the best high-yield stocks to buy on the dip.
* Distribution yields are calculated by annualizing the most recent distribution and dividing by the share price. Distributions are similar to dividends but are treated as tax-deferred returns of capital and require different paperwork come tax time.
- Market value: $156.2 billion
- Dividend yield: 2.4%
Time and time again, McDonald's (MCD, $209.88) has proven to be a survivor. Most recently, Mickey D's had to adapt to COVID by closing most of its dining rooms. But it stayed relevant by keeping its drive-through windows open in most locations and offering delivery through apps such as DoorDash and Uber Eats.
All of that is the past. But MCD stock should get a boost from two major tailwinds going forward:
- To start, fast food tends to do well in a recession. It's often as cheap as making a hot meal at home, and McDonald's greasy French fries are the ultimate comfort food. With the unemployment rate still extremely high, you can expect a lot of cash-strapped Americans to trade down to fast food.
- Secondly, another one of McDonald's recent problems should be partially alleviated by the post-coronavirus recession. The booming economy of recent years had made labor a scarce commodity, and restaurants have long been complaining about rising labor costs. With so many Americans unemployed now, the labor market will likely remain slack for a while.
McDonald's is a survivor, having adapted itself over the decades. And you can bet the company will adapt and come out of the coronavirus crisis stronger than ever.
- Market value: $90.3 billion
- Dividend yield: 2.1%
Coffee chain Starbucks (SBUX, $77.22) has had a rough 2020. Part of the appeal of fancy coffee is getting out of your house and lingering for a while, and many consumers are still reluctant to do that due to COVID concerns. Starbucks is having to lean a lot more heavily on to-go orders
But this too will pass, and it's doubtful that the crowds will stay away for long. We might see baristas wearing masks for a while, and the company will likely see higher expenses for cleaning and sanitation for the next several months. But it's hard to imagine a scenario in which coffee drinkers give up their drug of choice.
Consumers cut back on large expenses during recessions, but they tend to indulge in frivolous little pleasures like a premium cup of coffee. You need a little joy in your life, after all. And labor costs should moderate for a while given the number of service workers who are looking for work.
A self-inflicted wound to Chinese rival Luckin Coffee (LK), which found that roughly $310 million of its transactions last year might have been fabricated, could also help Starbucks' stance in China, where it has been rapidly expanding.
- Market value: $2.02 trillion
- Dividend yield: 0.7%
Apple (AAPL, $473.10) is the world's premier consumer electronics company, one of the market's best blue-chip stocks, and the first $2 trillion stock by market value. COVID couldn't change any of that, and it's hard to see anything else stopping that in the foreseeable future.
Apple has struggled with supply-chain issues all year, and the company announced that the upcoming iPhone 12 will be delayed for at least a couple weeks.
No big deal. These setbacks are temporary, and Apple has had no problem meeting its sales goals. For the quarter ended June 30, Apple saw its revenues improve by 11% and its earnings per share grow 18%.
A prolonged recession might slow AAPL a little, but probably not much. Phones are designed to be replaced every few years, and that hasn't changed. Nor has the difficulty in switching operating systems. Once you're in Apple's ecosystem, you're not likely to leave.
What is really helping AAPL right now is that it has been spending years expanding its Services business (the App Store, Apple TV+ and more), which makes its earnings less susceptible to the booms and busts of the hardware upgrade cycle. Services made up about 22% of revenues last quarter, and those revenues tend to be regular and recurring. In fact, Apple reportedly is planning to bundle several of its services together later this year to further improve engagement.
- Market value: $697.7 trillion
- Dividend yield: N/A
Alibaba Group (BABA, $257.97) is one of China's largest and most dominant tech companies. It's one of the few Chinese internet firms that can credibly compete with the American giants globally. Consider it something of a hybrid between Amazon.com and eBay (EBAY), though it also has elements of Google and even PayPal (PYPL).
China's economy is in technical recession this year for the first time in decades. Yet Alibaba's stock price is hitting new all-time highs.
The Chinese export juggernaut might never fully recover from the coronavirus recession, particularly if companies react to the supply chain disruptions by bringing production closer to home. But China was already busily transitioning to a more domestically oriented consumer economy, and Alibaba is a big part of that story. Just as American consumers and businesses continue to move more and more commerce to the internet, so do Chinese consumers and businesses.
Indeed, Alibaba recently reported earnings, and the tech giant says most of its businesses have returned to healthy growth, and that "with all major categories (of its Tmall marketplace grew) at a similar or faster rates relative to December 2019 quarter."
BABA is well-equipped to survive any downturn, with just less than three times as much cash as debt. We can't know with certainty what the economy will look like in five years. But we can be pretty certain that Alibaba will be a larger piece of it.
- Market value: $634.9 billion
- Dividend yield: 0.2%
Another Chinese stock worth owning for the next leg higher is Tencent Holdings (TCEHY, $66.26).
Like Alibaba, Tencent is a little hard to define. It's a social media company and has elements of Facebook (FB). But it's also a streaming video and video game company with elements of Netflix and Activision Blizzard (ATVI).
Its most important product, of course, is "everything" app WeChat. WeChat is similar to Facebook's WhatsApp in that it can be used for texting and voice and video calls. But it's also a leader in mobile payments via WeChat Pay and serves as an e-commerce platform. Tens of millions of people in China effectively run their lives on WeChat.
Tencent's shares barely fell at all during the March meltdown, and TCEHY has been hitting new highs for most of the summer.
There is always the risk that America and China's trade war takes a nasty turn and Tencent finds itself in the crosshairs of American regulators. Already, its WeChat platform has been banned in the U.S. by executive order.
But Tencent is still first and foremost a play on the Chinese domestic economy, and come what may in China, Tencent would seem like one of the best stocks to buy now for the next move higher.
- Market value: $1.07 trillion
- Dividend yield: N/A
There is a perception that internet-based companies are totally immune from the effects of the virus and actually benefit from them. After all, consumers have little else to do but surf the net.
That's a half-truth at best. Many internet companies derive the bulk of their revenues from ad spending. And with the travel, sports and movie industries still in various stages of shutdown, a lot of the biggest ad spenders are out of commission … indefinitely.
It's important to remember that this is temporary. Not all of these traditional ad spenders will make it. But once life becomes a little more normal, the survivors will need to spend on advertising to convince consumers things are safe again and to prod them back through the doors. Ad spending will come back with a vengeance by necessity.
Alphabet (GOOGL, $1,576.25), Google's parent company, gobbles up about a third of all digital advertising spending, and it has maintained that market share for years. The company also has a bulletproof balance sheet with roughly 16% of its market cap in cold, hard cash.
Alphabet has trailed some of its big-tech peers this year and has only recently revisited its old highs. But Alphabet is also probably the best positioned to benefit from the return to a more normal economy.
Crown Castle International
- Market value: $68.4 billion
- Dividend yield: 3.0%
Real estate investment trusts (REITs) have had a rough year with late rent checks and cash-strapped tenants. Many REITs have already had to cut or eliminate their dividends.
But all REITs are not created equal.
Cell-tower REIT Crown Castle International (CCI, $162.88) is very well positioned to both ride out the current storm and continue to perform admirably in whatever economic conditions follow. Crown Castle owns, operates and leases more than 40,000 cell towers and 80,000 miles of fiber cable spread across the United States.
Life has been able to carry on more or less uninterrupted for many tech and professional workers throughout the period of office closures because of our nation's telecom infrastructure.
Is the trend of working from home permanent? Only time will tell. But it's safe to assume that, no matter what happens, we'll be using more mobile data with every passing year And that means continued growth for Crown Castle, who leases out its infrastructure to the likes of AT&T (T) and Verizon (VZ).
And in an era in which many REIT dividends are getting slashed, Crown Castle yields a safe 3%. That payout has grown 46% over the past five years.
Digital Realty Trust
- Market value: $41.7 billion
- Dividend yield: 2.9%
Many landlords are really struggling right now and face a lot of uncertainty from their commercial tenants.
Digital Realty Trust (DLR, $155.15), which is up 30% this year, is distinctly not one of them.
Digital Realty is one of the world's largest data center REITs, with 280 data centers spread across 22 countries and 47 metro areas. The concept of a "tenant" here is very different compared to other REITs, however. Digital Realty's customers are renting space for their servers and nothing more.
The rise of cloud computing and software as a service are two of the biggest trends of the past decade, and they show no signs of slowing down. That was true pre-coronavirus and should continue to be true in ongoing post-virus recovery.
Digital Realty counts among its largest tenants a virtual who's who list of major tech and media companies: International Business Machines (IBM), Oracle (ORCL), JPMorgan Chase (JPM), Uber Technologies (UBER), Facebook and Verizon, to name a few. Many of them are extremely well situated, financially.
But what makes DLR one of the best stocks to buy now is this: Even if some of Digital Realty's clients get into financial trouble during this crisis – and some likely will – the data center rent will be one of the last expenses they cut. If the server is important enough to put in an outside data center, it's too important to let slide.
Digital Realty is a defensive stock that is also poised for growth.
- Market value: $434.4 billion
- Dividend yield: 0.6%
Consumer spending was down sharply this year because of forced store closures, and it remains depressed due to economy being slow to recover.
Not surprisingly, Visa (V, $204.15) and other credit card processors have had a rough time, as they make money based on the volume and size of purchases made by consumers swiping their cards.
But there are reasons to believe that these companies will recover nicely and take the lead in the new bull market.
To start, to the extent that purchases are being made, they are more likely to be made on a credit or debit card than via cash or check. Online purchases are almost exclusively made by credit card, and the virus massively accelerated the move away from cash even for in-person sales. So, as the percentage of transactions made with a card rise, you're going to see a lot more transactions made on plastic as the economy heals.
Better still, Visa and rival Mastercard (MA) take no credit risk, unlike American Express (AXP) and Discover Financial Services (DFS). Visa is simply a payments provider, not a bank. Thus, even if delinquencies stay high in the recession, the effects on Visa aren't all that severe, and the company might emerge from this crisis stronger than ever.
- Market value: $203.4 billion
- Dividend yield: 3.5%
The travails of the restaurant industry are well known. Former Starbucks CEO Howard Schultz made headlines months ago when he said that 30% of small, family-owned restaurants might fail due to the COVID pandemic. That number might actually prove to be conservative depending on how long this drags on.
The loss of restaurant orders has taken a bite out of Coca- Coca-Cola (KO, $47.35) revenues. Revenues dropped by 26% in the second quarter, which is a remarkable sales hit for a company long considered to be a consumer staple. But this won't last forever. At some point – even if it is still months away – restaurants will boom again, and Coca-Cola will get its mojo back.
It might be controversial to call Coca-Cola one of the best stocks to buy right now given that it left robust growth behind long ago. Soft drink sales have been declining for years as consumers look for healthier alternatives, and state and local governments target fattening foods in their war on the obesity epidemic.
But Coca-Cola has been quietly revamping its portfolio to focus on healthier, low-sugar options, as well as growthy areas such as energy drinks. Meanwhile, KO shares are trading today at levels seen five years ago, and they sport a dividend of well above 3%. These recent declines would seem like a good opportunity to accumulate shares of one of the most iconic brands in history at prices we might not see again for a long time.
- Market value: $83.4 billion
- Dividend yield: 3.1%
America's retailers are still suffering due to social distancing concerns, and that's unlikely to get too much better in the immediate future, even if a vaccine is imminent. With the economy in recession and with unemployment still elevated, many retailers no doubt face a rough road to recovery.
But convenience stores and pharmacies would seem largely immune to the retail apocalypse. Spending on basic sundries doesn't generally fall much during a recession, and spending on cheap luxuries and comfort food snacks may actually rise.
This brings us to pharmacy chain CVS Health (CVS, $63.72).
CVS's core pharmacy and retail business should be mostly unaffected by any lingering effects of the virus scare. CVS's retail businesses actually benefitted from crisis hoarding of basic necessities; in fact, the company has been thriving amid the crisis.
"The environment surrounding COVID-19 is accelerating our transformation, giving us new opportunities to demonstrate the power of our integrated offerings and the ability to deliver care to consumers in the community, in the home and in the palm of their hand which has never been more important," CEO Larry Merlo said in the company's latest quarterly earnings release, which saw the company increase its full-year earnings guidance.
CVS already was making inroads in the overburdened health system with its chain of walk-in clinics. America's health system was broken long before COVID-19 hit, and it's no less broken now. CVS's affordable convenient-care clinics are, for now, part of the long-term solution.
Regardless of who wins the next election or what comes next in the ongoing virus saga, companies that offer cheap solutions to our health care funding crisis will be rewarded, and CVS fits the bill.
Brookfield Asset Management
- Market value: $50.7 billion
- Dividend yield: 1.4%
Finally, regardless of who wins the next election, we will likely see a major infrastructure spending bill. Both parties have talked about the need for infrastructure for years, but until now, the conditions simply weren't right to make a bipartisan deal.
That has changed. The waves of unemployment claims have created comparisons to the Great Depression of the 1930s. Back then, the government responded with massive infrastructure projects via the Works Progress Administration, Tennessee Valley Authority and other newly created agencies.
With millions of unemployed Americans looking for work, budget concerns have been thrown out the window. It seems to be less a question of whether an infrastructure spending bill gets passed and more a question of how large it will be.
This trend puts Brookfield Asset Management (BAM, $33.54) among some the best stocks to buy now. Brookfield is an asset manager overseeing a sprawling empire of gritty, real-economy businesses. In particular, it specializes in infrastructure and renewable power via its listed investment partnerships Brookfield Infrastructure Partners LP (BIP) and Brookfield Renewable Partners LP (BEP).
You could invest directly in the partnerships, of course. But by investing in the management company, you get exposure to the entire Brookfield empire, which includes rail, toll roads, utilities and more.