If the idea is to buy low, then going shopping for stocks when markets are flirting with record highs might not seem like the greatest idea. But there are always select names set to outperform — and that's especially true when market leadership is comparatively narrow.
Although a number of 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. Indeed, as we'll see below, three of Wall Street's top five stocks to buy now hail from the Magnificent 7. Companies from the real estate, aerospace and, uh, french fry sectors are also ably represented.
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.
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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 two stocks. At the other end of the ratings spectrum stands the Street's highest recommendation of Strong Buy. A total of 25 stocks make the cut there, as you can see in the chart below.
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 25 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.
Also note that Emerson Electric (EMR), a member of the Dividend Aristocrats, and GE Aerospace (GE), fresh from its split from GE Vernova (GEV), are just a couple of newcomers to the list.
Swipe to scroll horizontally
Analysts' top S&P 500 stocks to buy now| Company (ticker) | Analysts' consensus recommendation score | Analysts' consensus recommendation |
|---|
| Amazon.com (AMZN) | 1.29 | Strong Buy |
| Nvidia (NVDA) | 1.33 | Strong Buy |
| Microsoft (MSFT) | 1.33 | Strong Buy |
| Bio-Techne (TECH) | 1.39 | Strong Buy |
| Alexandria Real Estate Equities (ARE) | 1.39 | Strong Buy |
| Emerson Electric (EMR) | 1.39 | Strong Buy |
| Delta Air Lines (DAL) | 1.40 | Strong Buy |
| ServiceNow (NOW) | 1.41 | Strong Buy |
| GE Aerospace (GE) | 1.41 | Strong Buy |
| Lamb Weston (LW) | 1.42 | Strong Buy |
| Howmet Aerospace (HWM) | 1.43 | Strong Buy |
| Elevance Health (ELV) | 1.43 | Strong Buy |
| Mondelez International (MDLZ) | 1.44 | Strong Buy |
| UnitedHealth Group (UNH) | 1.44 | Strong Buy |
| PTC (PTC) | 1.44 | Strong Buy |
| Las Vegas Sands (LVS) | 1.45 | Strong Buy |
| Boston Scientific (BSX) | 1.45 | Strong Buy |
| Uber Technologies (UBER) | 1.46 | Strong Buy |
| Mastercard (MA) | 1.46 | Strong Buy |
| Synopsys (SNPS) | 1.47 | Strong Buy |
| S&P Global (SPGI) | 1.48 | Strong Buy |
| DexCom (DXCM) | 1.48 | Strong Buy |
| Targa Resources (TRGP) | 1.50 | Strong Buy |
| Meta Platforms (META) | 1.50 | Strong Buy |
| Assurant (AIZ) | 1.50 | Strong Buy |
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FAQs
The S&P 500 could approach or exceed the 10,000 level by the early to mid-2030s. Many investors take it as a given that—since returns on the S&P 500 have been strong for 10-plus years—stocks are expensive and over-owned.
What S&P 500 should I invest in? ›
What's the best S&P 500 index fund?
| Index fund | Minimum investment | Expense ratio |
|---|
| Vanguard 500 Index Fund - Admiral Shares (VFIAX) | $3,000. | 0.04%. |
| Schwab S&P 500 Index Fund (SWPPX) | No minimum. | 0.02%. |
| Fidelity 500 Index Fund (FXAIX) | No minimum. | 0.015%. |
| Fidelity Zero Large Cap Index (FNILX) | No minimum. | 0.0%. |
1 more rowMay 1, 2024
The 9 Best Stocks To Buy Now
| Company (Ticker) | Forward P/E Ratio |
|---|
| The Kraft Heinz Company (KHC) | 12.3 |
| The Progressive Corporation (PGR) | 18.2 |
| Spotify Technology S.A. (SPOT) | 50.8 |
| Tapestry, Inc. (TPR) | 8.7 |
5 more rowsMay 10, 2024
S&P 500 ETF Components
| # | Company | Symbol |
|---|
| 1 | Microsoft Corp | MSFT |
| 2 | Nvidia Corp | NVDA |
| 3 | Apple Inc. | AAPL |
| 4 | Amazon.com Inc | AMZN |
66 more rows9 Best Growth Stocks to Buy for 2024
| Stock | Implied upside over May 29 close* |
|---|
| Tesla Inc. (TSLA) | 19.2% |
| Mastercard Inc. (MA) | 22% |
| Advanced Micro Devices Inc. (AMD) | 21.1% |
| Intuit Inc. (INTU) | 19.5% |
5 more rows15 hours ago
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| Company (ticker) | Analysts' consensus recommendation score | Analysts' consensus recommendation |
|---|
| Amazon.com (AMZN) | 1.29 | Strong Buy |
| Nvidia (NVDA) | 1.33 | Strong Buy |
| Microsoft (MSFT) | 1.33 | Strong Buy |
| Bio-Techne (TECH) | 1.39 | Strong Buy |
21 more rowsThe S&P 500 could approach or exceed the 10,000 level by the early to mid-2030s. Many investors take it as a given that—since returns on the S&P 500 have been strong for 10-plus years—stocks are expensive and over-owned.
What are the top 10 stocks to buy? ›
Overview of Best Long-Term Stocks to Buy in India
- Infosys Limited: ...
- TCS (Tata Consultancy Services) Limited: ...
- Reliance Industries Limited (RIL): ...
- Asian Paints Limited: ...
- Hindustan Unilever Limited (HUL): ...
- Titan Company Limited: ...
- Maruti Suzuki India Limited: Future Potential: ...
- Larsen & Toubro Limited (L&T): Future Potential:
The “Magnificent Seven” might sound like the title of an old Western film or what a large family might name its group chat, but in finance the moniker is being used to describe a group of high-performing tech stocks: Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla.
What stocks are expected to rise? ›
The Best Growth Stocks of May 2024
| Company (ticker) | 5-Year Avg. Yearly EPS Forecast |
|---|
| The Vita Coco Company, Inc (COCO) | 104.1% |
| Live Nation Entertainment, Inc. (LYV) | 80.3% |
| Nvidia Corporation (NVDA) | 37.9% |
| Full Truck Alliance Co. Ltd (YMM) | 35.9% |
6 more rowsMay 2, 2024
Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains. But the middle part of the second quarter of 2024 showed a big divergence of returns.
What stocks have consistently outperformed the S&P 500? ›
Stocks That Outperform the S&P 500 Every Year for the Last 5...
- Linde plc (NYSE:LIN) 5-Year Share Price Returns as of November 16: 158% ...
- Casella Waste Systems, Inc. (NASDAQ:CWST) ...
- DexCom, Inc. (NASDAQ:DXCM) ...
- Arthur J. Gallagher & Co. ...
- Crocs, Inc. ...
- TFI International Inc. ...
- SPS Commerce, Inc. ...
- Axon Enterprise, Inc.
Sector*
- Microsoft Corp. Symbol. MSFT. Sector* Information Technology.
- Apple Inc. Symbol. AAPL. Sector* ...
- Nvidia Corp. Symbol. NVDA. Sector* ...
- Amazon.com Inc. Symbol. AMZN. Sector* ...
- Alphabet Inc A. Symbol. GOOGL. Sector* ...
- Meta Platforms, Inc. Class A. Symbol. META. ...
- Alphabet Inc C. Symbol. GOOG. Sector* ...
- Berkshire Hathaway B. Symbol. BRK.B. Sector*
For May 2024, the most undervalued stocks—those with the lowest price-to-earnings (P/E) ratios for each sector—include Revelation Biosciences, a healthcare company developing therapies to treat diseases; Urgent.ly, a mobile app for roadside assistance; Toro Corp., which operates oceangoing tankers; and the cinema ...
Which are the best stocks for next 5 years? ›
Growth stocks for next 5 years
| S.No. | Name | CMP Rs. |
|---|
| 1. | Brightcom Group | 11.25 |
| 2. | Rama Steel Tubes | 11.87 |
| 3. | Axita Cotton | 21.30 |
| 4. | One Point One | 54.35 |
23 more rowsOf the 65 Amazon stock analysts following the company, 95% hold a buy rating, according to FactSet. Further, FactSet data shows those analysts have, on average, set a 12-month price target of 222.15 for Amazon stock, according to FactSet.
How to invest in S&P 500 for beginners? ›
How to invest in an S&P 500 index fund
- Find your S&P 500 index fund. It's actually easy to find an S&P 500 index fund, even if you're just starting to invest. ...
- Go to your investing account or open a new one. ...
- Determine how much you can afford to invest. ...
- Buy the index fund.
The Vanguard S&P 500 ETF (VOO 0.08%) is one of the best ways to invest in the S&P 500, which has been a pretty smart strategy over the long term. Since 1965, the S&P 500 has produced a total return of 10.2% annualized. The Vanguard ETF has an expense ratio of just 0.03%, so you get to keep most of your gains.
What are the best S&P 500 months? ›
S&P 500 Seasonal Patterns
- Best Months: March, April, May, July, October, November, and December.
- Worst Months: January, June, and September.
Vanguard S&P offers a lower expense ratio (0.035%) than SPY (0.095%), which means lower costs for investors and potentially higher net returns over the long term. VOO might be the more economical choice for cost-conscious investors, especially those investing large sums or planning for long-term goals like retirement.
