These Are The Top Seven Best Stocks We're Buying Now
With the market entering a seasonally weak and volatile period, you might be wondering what the best stocks to buy are. In this article, we’ll share the top seven stocks that we’re buying along with a brief analysis of each.
Please note that this is our opinion and not financial advice. This is not a recommendation to buy or sell any securities. Always conduct your own research or consult with a financial advisor before making any investment decisions.
The Top Seven Best Stocks We’re Buying Now
| Ticker | Company |
|---|---|
| MSFT | Microsoft |
| V | Visa |
| NVDA | Nvidia |
| GOOGL | Alphabet (Google) |
| META | Meta Platforms |
| ISRG | Intuitive Surgical |
| PLTR | Palantir |
When choosing the best stocks to buy during periods of volatility, we focused on companies with a solid financial foundation, such as strong balance sheets, consistent earnings growth, and positive cash flow. These companies are better equipped to weather economic downturns. We look for stocks that are fairly valued or undervalued, offering potential upside as the market corrects. Additionally, we prioritize companies with a high ranking in the S&P 500, as they are typically industry leaders with proven stability and strong market presence.
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1. MSFT (Microsoft)
Technical Outlook: Bullish
Sector: Technology Services
Industry: Packaged Software
Microsoft’s dominance in enterprise software, cloud computing, and personal computing makes it a cornerstone of the technology sector. The company’s diverse product offerings and recurring revenue streams add to its stability.
Fair Value: $420
Fair Values are calculated using a combination of several methods including a Discounted Cash Flow model with margins of safety based on the underlying company’s business and stock performance.
Business Metrics Rating: 3/3
Cash to Debt Ratio: 1.84
A Cash to Debt Ratio greater than one means that the company’s operating cash flow is the same or more than their total debt. This signifies strong financial performance.
Debt to EBITDA Ratio: 0.47
A Debt to EBITDA Ratio less than or equal to three means that the company is able to pay back its debt in three or less years if net debt and EBITDA are held constant. This signifies the company is not over-leveraged.
Interest Coverage Ratio: 39.8
An interest coverage ratio greater than or equal to three means that the company can pay its interest payment on its debt 3 or more times with its operating profit. This signifies the company is poised to pay its debt as it grows.
Ranking in the S&P500: #2
Currently Rank #2 in the S&P500 with a 6.9% weighting.
2. V (Visa)
Technical Outlook: Neutral
Sector: Commercial Services
Industry: Miscellaneous Commercial Services
As a leader in digital payments, Visa benefits from the ongoing shift towards cashless transactions. The company’s global presence and strong brand make it a resilient choice during market turbulence.
Fair Value: $252
Fair Values are calculated using a combination of several methods including a Discounted Cash Flow model with margins of safety based on the underlying company’s business and stock performance.
Business Metrics Rating: 3/3
Cash to Debt Ratio: 1.00
A Cash to Debt Ratio greater than one means that the company’s operating cash flow is the same or more than their total debt. This signifies strong financial performance.
Debt to EBITDA Ratio: 0.82
A Debt to EBITDA Ratio less than or equal to three means that the company is able to pay back its debt in three or less years if net debt and EBITDA are held constant. This signifies the company is not over-leveraged.
Interest Coverage Ratio: 36.8
An interest coverage ratio greater than or equal to three means that the company can pay its interest payment on its debt 3 or more times with its operating profit. This signifies the company is poised to pay its debt as it grows.
Ranking in the S&P500: #15
Currently Rank #15 in the S&P500 with a 0.9% weighting.
3. NVDA (Nvidia)
Technical Outlook: Bullish
Sector: Electronic Technology
Industry: Semiconductors
NVIDIA is a key player in the semiconductor industry, whose products are essential in gaming, data centers, and autonomous vehicles. NVDA has impressive revenue growth, strong cash flow, and significant investments in cutting-edge technology, making it a strong contender during market volatility.
Fair Value: $122
Fair Values are calculated using a combination of several methods including a Discounted Cash Flow model with margins of safety based on the underlying company’s business and stock performance.
Business Metrics Rating: 3/3
Cash to Debt Ratio: 3.67
A Cash to Debt Ratio greater than one means that the company’s operating cash flow is the same or more than their total debt. This signifies strong financial performance.
Debt to EBITDA Ratio: 0.22
A Debt to EBITDA Ratio less than or equal to three means that the company is able to pay back its debt in three or less years if net debt and EBITDA are held constant. This signifies the company is not over-leveraged.
Interest Coverage Ratio: 192.7
An interest coverage ratio greater than or equal to three means that the company can pay its interest payment on its debt 3 or more times with its operating profit. This signifies the company is poised to pay its debt as it grows.
Ranking in the S&P500: #3
Currently Rank #3 in the S&P500 with a 5.8% weighting.
4. GOOGL (Alphabet | Google)
Technical Outlook: Bullish
Sector: Technology Services
Industry: Internet Software/Services
As the parent company of Google, Alphabet dominates the online search and advertising market. Alphabet’s strong cash flow, minimal debt, and consistent revenue growth underpin its financial resilience.
Fair Value: $194
Fair Values are calculated using a combination of several methods including a Discounted Cash Flow model with margins of safety based on the underlying company’s business and stock performance.
Business Metrics Rating: 3/3
Cash to Debt Ratio: 3.69
A Cash to Debt Ratio greater than one means that the company’s operating cash flow is the same or more than their total debt. This signifies strong financial performance.
Debt to EBITDA Ratio: 0.25
A Debt to EBITDA Ratio less than or equal to three means that the company is able to pay back its debt in three or less years if net debt and EBITDA are held constant. This signifies the company is not over-leveraged.
Interest Coverage Ratio: 294.3
An interest coverage ratio greater than or equal to three means that the company can pay its interest payment on its debt 3 or more times with its operating profit. This signifies the company is poised to pay its debt as it grows.
Ranking in the S&P500: #6
Currently Rank #6 in the S&P500 with a 2.1% weighting.
4. META (Meta Platforms)
Technical Outlook: Bullish
Sector: Technology Services
Industry: Internet Software/Services
Meta Platforms continues to dominate the social media space while expanding into the metaverse. The company has a strong balance sheet, healthy profit margins, and significant cash reserves, positioning it well to navigate volatility.
Fair Value: $495
Fair Values are calculated using a combination of several methods including a Discounted Cash Flow model with margins of safety based on the underlying company’s business and stock performance.
Business Metrics Rating: 3/3
Cash to Debt Ratio: 2.05
A Cash to Debt Ratio greater than one means that the company’s operating cash flow is the same or more than their total debt. This signifies strong financial performance.
Debt to EBITDA Ratio: 0.40
A Debt to EBITDA Ratio less than or equal to three means that the company is able to pay back its debt in three or less years if net debt and EBITDA are held constant. This signifies the company is not over-leveraged.
Interest Coverage Ratio: 105.8
An interest coverage ratio greater than or equal to three means that the company can pay its interest payment on its debt 3 or more times with its operating profit. This signifies the company is poised to pay its debt as it grows.
Ranking in the S&P500: #5
Currently Rank #5 in the S&P500 with a 2.2% weighting.
6. ISRG (Intuitive Surgical)
Technical Outlook: Bullish
Sector: Health Technology
Industry: Medical Specialties
Intuitive Surgical is a pioneer in robotic-assisted surgery, with a growing market share in the medical technology space. The company’s strong earnings growth, low debt, and innovative product pipeline provide a solid foundation for future growth.
Fair Value: $418
Fair Values are calculated using a combination of several methods including a Discounted Cash Flow model with margins of safety based on the underlying company’s business and stock performance.
Business Metrics Rating: 3/3
Cash to Debt Ratio: 19.1
A Cash to Debt Ratio greater than one means that the company’s operating cash flow is the same or more than their total debt. This signifies strong financial performance.
Debt to EBITDA Ratio: 0.04
A Debt to EBITDA Ratio less than or equal to three means that the company is able to pay back its debt in three or less years if net debt and EBITDA are held constant. This signifies the company is not over-leveraged.
Interest Coverage Ratio: 65.7
An interest coverage ratio greater than or equal to three means that the company can pay its interest payment on its debt 3 or more times with its operating profit. This signifies the company is poised to pay its debt as it grows.
Ranking in the S&P500: #56
Currently Rank #56 in the S&P500 with a 0.3% weighting.
7. PLTR (Palantir)
Technical Outlook: Bullish
Sector: Technology Services
Industry: Packaged Software
Palantir specializes in big data analytics, serving both government and commercial clients. The company’s expanding client base, positive free cash flow, and growing earnings potential signal its strength, despite market volatility.
Fair Value: $26
Fair Values are calculated using a combination of several methods including a Discounted Cash Flow model with margins of safety based on the underlying company’s business and stock performance.
Business Metrics Rating: 3/3
Cash to Debt Ratio: 3.09
A Cash to Debt Ratio greater than one means that the company’s operating cash flow is the same or more than their total debt. This signifies strong financial performance.
Debt to EBITDA Ratio: 0.50
A Debt to EBITDA Ratio less than or equal to three means that the company is able to pay back its debt in three or less years if net debt and EBITDA are held constant. This signifies the company is not over-leveraged.
Interest Coverage Ratio: 118.9
An interest coverage ratio greater than or equal to three means that the company can pay its interest payment on its debt 3 or more times with its operating profit. This signifies the company is poised to pay its debt as it grows.
Ranking in the S&P500: N/A
This company is not a part of the S&P500 Index.
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Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.
