Best Strong Buy Stocks for a Stock Picker's Market

Current market conditions have folks seeking out sturdy investment opportunities. These Strong Buy stocks are a good place to start.

four rubber ducks in row with one being picked up by wooden stick
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There's plenty for investors to contend with right now including stock market volatility and uncertainty about the direction of interest rates. That's why those seeking out attractive investment opportunities might want to home in on Strong Buy stocks, or those names that analysts believe can outperform the broader market in the near term.

Current market conditions are ideal for what's called a stock picker's market. This is where folks choose individual stocks based on their singular merits, rather than put additional money into passive, broad-based equity index funds.

"We may be exiting the best S&P earnings per share era, but we are likely entering the best stock picker's market in our careers," says Savita Subramanian, equity and quant strategist at BofA Securities. "We recommend being invested in equities but selectively."

That is not to say investors should ditch their index funds; rather, see this as an opportunity to add strong, individual stocks to their portfolio. Here, the bottom-up approach to stock picking is preferred to the top-down, to find good companies worth adding to one's portfolio.

One group to consider is consumer discretionary stocks, which Subramanian recently double upgraded to Overweight from Underweight, the equivalents of Buy and Sell, respectively. The strategist cited several reasons supporting the bull case for this sector, including expectations that the Fed is done raising rates and a resilient consumer.

But the best stocks to buy are not found solely in the consumer discretionary sector. Here, we feature four Strong Buy stocks across a variety of sectors that analysts are bullish toward. 

To narrow the list, we screened the S&P 1500 Composite Index to find some of the highest-rated stocks on Wall Street. We used data from S&P Global Market Intelligence, which surveys analyst ratings and scores them on a five-point scale. Those with ratings of 1.5 or below are considered Strong Buy stocks. Here are five that are worth consideration.

Data is as of January 10. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Analysts' ratings are courtesy of S&P Global Market Intelligence.

Deborah Yao
Contributing Writer,

Deborah Yao is an award-winning journalist, editor, and personal finance columnist who has held editorial roles at Kiplinger, The Wharton School, Amazon, The Associated Press, S&P Global (SNL Kagan) and MarketWatch. She specializes in writing and editing articles on finance and technology, with particular expertise in the areas of stock analysis, monetary policy, fintech, blockchain, macroeconomics, financial planning, taxes, among others. She has been published in The New York Times, USA Today, CBS News, ABC News, Wharton Magazine, and many other news outlets.