10 Best US Stocks to Buy Now
In this article we will take a look at the 10 best US stocks to buy now. You can skip our detailed analysis of these companies and go directly to 5 Best US Stocks to Buy Now.
It has been an eventful year for the stock market in the United States marked by financial volatility, the COVID-19 vaccine rollout that has achieved better than expected results, new economic policies spurred by stimulus packages and rising inflation fears, as well as the stock volatility resulting from increased retail investor interest in the post pandemic economy. The DOW Jones Industrial, NASDAQ Composite, and S&P 500 have all offered returns of close to 10% year-to-date and are averaging close to 40% year-on-year.
This boost is partly the result of the massive growth in technology stocks. Amazon.com, Inc. (NASDAQ: AMZN), one of the largest tech firms in the world, has reached over $1.6 trillion in market capitalization and most analysts are still bullish on the company stock which looks set to break the $2 trillion barrier soon. Amazon.com, Inc. (NASDAQ: AMZN) recently hired more than 70,000 logistics workers in North America and is exploring the acquisition of a medical diagnostics firm for a foray into the health industry.
Another big story for the year has been the stock volatility of Tesla, Inc. (NASDAQ: TSLA), the electric vehicle manufacturing company owned by billionaire Elon Musk. After rising close to 700% in twelve months, Tesla, Inc. (NASDAQ: TSLA) stock has been on a downward trajectory despite the company reporting record vehicle delivery numbers for the first quarter of 2021. Some of this drop in value is due to concerns surrounding Tesla, Inc. (NASDAQ: TSLA) deliveries for the rest of the year due to a shortage of auto chips and falling demand for new EVs in the Chinese market.
In the manufacturing sector, Caterpillar Inc. (NYSE: CAT) seems the standout choice for one of the best US stocks this year. The company is uniquely placed to benefit from a plan by US President Biden, dubbed the American Jobs Plan, that envisions the spending of hundreds of billions in government money to overhaul American infrastructure. Caterpillar Inc. (NYSE: CAT) stock has also soared in recent weeks as labor demands pick up and industries reopen after being shuttered for large parts of 2020 due to the coronavirus crisis.
A fall in the national unemployment rate, new stimulus payments, and possible growth in the manufacturing sector look set to drive further market highs this year. However, amid worries surrounding the tech industry in general, value stocks have also gained in popularity in recent days. The stocks outlined below have strong fundamentals, chances of a great profit return, are included on top indexes, and also have solid innovative prospects. Amid changing market dynamics, a lot of research is needed before companies with upside potential can be identified.
The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best US stocks to buy now.
Best US Stocks to Buy
10. Adobe Inc. (NASDAQ: ADBE)
Number of Hedge Fund Holders: 107
Adobe Inc. (NASDAQ: ADBE) is a California-based computer software company founded in 1982. It is placed tenth on our list of 10 best US stocks to buy now. Adobe stock has returned more than 26% to investors over the past year. The software solutions marketed by the company are used by content creators, experience designers, app developers, students, and creative professionals, among others. Some of the famous brands the firm owns Adobe Photoshop and Adobe Reader, among others.
On March 23, Adobe Inc. (NASDAQ: ADBE) reported earnings for the first fiscal quarter in 2021, reporting a revenue of more than $3.9 billion and earnings per share of $3.14. The earnings per share were up 38% year-on-year.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Tesla, Inc. (NASDAQ: TSLA), and Caterpillar Inc. (NYSE: CAT), Adobe Inc. (NASDAQ: ADBE) is one of the best US stocks to buy now.
In its Q1 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Adobe Inc. (NASDAQ: ADBE) was one of them. Here is what the fund said:
“Adobe and Autodesk are both prime examples of the rotation that occurred during the quarter. Both are dominant businesses in their respective markets, which are experiencing structural tailwinds. Despite each business’s position of strength, the stocks of cyclicals and businesses with higher leverage and lower profitability were more favored this past quarter. In stark contrast, Adobe and Autodesk both have low leverage, high levels of profitability, high recurring revenues that mitigate cyclicality, and are both capital-light business models—all attributes we appreciate as investors. Adobe and Autodesk were also two of the top three performers within the Portfolio during 2020.”
9. The Walt Disney Company (NYSE: DIS)
Number of Hedge Fund Holders: 134
The Walt Disney Company (NYSE: DIS) is a California-based multinational media and entertainment company. It was founded in 1923 and is ranked ninth on our list of 10 best US stocks to buy now. Disney stock has returned more than 46% to investors over the course of the past twelve months. The company owns many famous film studios, broadcast channels, and entertainment parks, among a host of other businesses. It also has stakes in the internet streaming platform business.
The Walt Disney Company (NYSE: DIS) stock took a battering in 2020 as the coronavirus pandemic forced the theme parks the company owns to remain shut for most of the year. However, the firm recently announced the reopening of its European theme parks in June as the vaccine rollout allows for the resumption of business.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in The Walt Disney Company (NYSE: DIS) with 10 million shares worth more than $1.9 billion.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Tesla, Inc. (NASDAQ: TSLA), and Caterpillar Inc. (NYSE: CAT), The Walt Disney Company (NYSE: DIS) is one of the best US stocks to buy now.
8. Bank of America Corporation (NYSE: BAC)
Number of Hedge Fund Holders: 97
Bank of America Corporation (NYSE: BAC) is a North Carolina-based investment bank and financial services company founded in 1784. It is placed eighth on our list of 10 best US stocks to buy now. Bank of America stock has offered investors returns exceeding 87% in the past twelve months. The bank is one of the largest ones in the United States and has served more than 66 million consumer and small business clients. It has more than 4,300 branches and almost 17,000 ATMs across the country. The bank has 40 million active users.
On May 18, Bank of America Corporation (NYSE: BAC) announced that it would be raising its minimum hourly wage to $25 within the next four years. Last year, the company had raised its minimum hourly wage to $20 per hour.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Tesla, Inc. (NASDAQ: TSLA), and Caterpillar Inc. (NYSE: CAT), Bank of America Corporation (NYSE: BAC) is one of the best US stocks to buy now.
7. Brown-Forman Corporation (NYSE: BF-B)
Number of Hedge Fund Holders: 35
Brown-Forman Corporation (NYSE: BF-B) is a Kentucky-based company that makes and sells alcoholic drinks. It was founded in 1870 and is ranked seventh on our list of 10 best US stocks to buy now. Brown-Forman stock has returned more than 23% to investors in the past year. The company is one of the largest beverage firms in the US with a market cap of over $37 billion and has operations in more than 170 countries. Some of the famous drinks marketed by the firm include Jack Daniel's, Woodford Reserve, Canadian Mist, and GlenDronach, among others.
Brown-Forman Corporation (NYSE: BF-B) announced earnings results for the third fiscal quarter on May 3, reporting earnings per share of $0.45, beating market predictions by $0.02. It also posted a revenue of more than $911 million.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in Brown-Forman Corporation (NYSE: BF-B) with 11 million shares worth more than $774 million.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Tesla, Inc. (NASDAQ: TSLA), and Caterpillar Inc. (NYSE: CAT), Brown-Forman Corporation (NYSE: BF-B) is one of the best US stocks to buy now.
6. General Electric Company (NYSE: GE)
Number of Hedge Fund Holders: 68
General Electric Company (NYSE: GE) is a Boston-based company that has interests in several businesses, including consumer electronics, aviation, and healthcare. It is placed sixth on our list of 10 best US stocks to buy now and was founded in 1892. General Electric stock has offered investors returns exceeding 106% in the past twelve months. The company has stepped up investments in renewable energy in recent years, pouring money into the onshore and offshore wind, blades, hydro, storage, solar, and grid solutions businesses.
On May 14, investment advisory Citi reinstated coverage on General Electric Company (NYSE: GE) stock with a Buy rating and a price target of $17 on the back of strong progress made by the Boston firm as it seeks a rebuild after the pandemic.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Tesla, Inc. (NASDAQ: TSLA), and Caterpillar Inc. (NYSE: CAT), General Electric Company (NYSE: GE) is one of the best US stocks to buy now.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and General Electric Company (NYSE: GE) was one of them. Here is what the fund said:
“General Electric is outperforming our expectations for 2021 as the economic recovery is occurring faster than expected. We are particularly pleased with its free cash flow generation. We are happy to own it in our portfolio.”
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Disclosure: None. 10 Best US Stocks to Buy Now is originally published on Insider Monkey.
