The 10 Best Stocks To Buy Now To Make Money

With the volatility of the market, it can be hard to find stocks that are worth investing in. However, many factors go into determining what a good stock is. After examining these factors, you'll have a clearer picture of whether or not you should invest in a particular stock. Here are some of the best stocks to buy now in 2021.

The 10 Best Stocks To Buy Now To Make Money

What to Look for in a Stock

The first thing to do is figure out what kind of stock you are looking at. There are some important attributes that you'll want to look at when searching for a good stock. For example, do you want a company with great growth potential? An established brand that is undervalued?

The first thing you should look at is valuation. The companies listed in Figure 1 have a price-to-earnings (P/E) ratio of 15 or less. In other words, their earnings are not extremely volatile. When looking at a stock, you'll want a company with a low valuation to buy low and sell high.

Make Sure the Company Is Well-Positioned

For stocks to be good buys, a company's management team has to be competent. At the same time, the stock has to be well-positioned, and not just well-positioned in a niche that can't help but grow.

For instance, Stitch Fix (NASDAQ: SFIX) is a company that designs and sells stylish clothing for personal use. Since it isn't competing with more established brick-and-mortar clothing retailers, SFIX is set up to benefit from secular growth.

Tech Stocks to Buy in 2021: Pandora Media

With so many music-streaming competitors, it may seem like Pandora Media (NYSE: P) is a dying company. However, the rise of ad-supported streaming services has significantly increased Pandora's chances of growth.

Keep an Eye on the Competition

Another factor that determines whether or not a stock will be a good investment is whether or not the company has a dominant position. If competitors come in with a similar product, they could hurt the company's earnings and cause it to lose its dominant position. It's always best to keep an eye on the competition and understand what kind of product they have and how it will compare to your company's products. A company with strong enough brands and a massive customer base is likely to do better than one that competes with lots of small brands.

Make Sense of Risks

Another factor to consider when deciding what kind of company to invest in is its risk profile. If a company is highly cyclical, it may be best to avoid it.

What You Need to Know About Buying Stocks

Anatomy of a Stock: How a Stock Gets Created and What Is Next

Over the long run, the stock market works pretty much the same way as the market of any other kind. There are a handful of stocks that are going to be responsible for the majority of overall returns. If you buy the best stocks that are going to take the market higher in the long run, you should be able to earn some pretty impressive returns. The secret to this, however, is to understand the why behind the market moves. Over the long run, the market moves either higher or lower in a pattern of ups and downs. Over the past several years, the ups have been way up and the downs have been way down. In 2017, the ups were way up and the downs were way down.

Best Stocks to Buy Now

Microsoft Corporation (MSFT) Microsoft's Azure platform can handle the most data-intensive tasks. The Azure platform is primarily used for hosting company's data storage services. This robust platform provides major growth opportunities for Microsoft to monetize. The Cloud segment has tremendous room for growth. Microsoft expects its Azure revenue to exceed $25 billion in its current fiscal year. The enterprise market is becoming increasingly important as corporations have adopted cloud technology. After analyzing the cloud market, I would expect Microsoft to perform strongly in the coming years.

The company's Surface devices have been a major success. According to market research firm IDC, Surface revenue in 2016 was equal to the Windows PC market.

Facebook Inc (FB)

Facebook Inc (NASDAQ: FB ) CEO Mark Zuckerberg’s third-quarter earnings call hit home for those who have watched his fortune go up and down in 2018. On the call, he acknowledged that Facebook needed to take some responsibility for allowing itself to be misused by others. He also promised to take on some of the costs of fixing the problems, a process he called “one of the biggest challenges that I’ve seen in my career.” There has been a lot of bad press for Facebook, much of which can be laid at Zuckerberg’s feet. However, despite Zuckerberg’s acknowledgment, I don’t see this as a company that is facing a major financial threat. The company has indeed increased its spending on security measures. As well, there have been indications that they are cutting back on marketing.

Alphabet Inc (Google) (GOOGL)

Alphabet Inc (NASDAQ: GOOGL) is known as Google, but a recent article showed it’s a $567 billion company. The company’s Google search engine is used by more than a billion people every day. Revenue growth and earnings growth are likely to be among the best in the market. This shouldn’t be a surprise given that GOOGL is one of the largest internet companies in the world, with strong and consistent growth trends and a market cap of $702.3 billion. 

At the end of the year, it’s likely investors will start paying attention to GOOGL to find out if its recent gains are justified. Analysts expect EPS of $32.79 in fiscal 2021. This would equate to a 14.5% EPS growth rate over the next four years.

Amazon.com, Inc. (AMZN)

Last but not least, there is always Amazon.com, Inc. (NASDAQ: AMZN). The company has the world by the tail, with a market cap of $713 billion. 

With Amazon's cloud-computing business, AWS, and the stock's runaway growth, the company is hard to ignore. In the first quarter of 2017, Amazon reported $35.7 billion in revenue and $724 million in operating income. Sales were up 23% and operating income grew by 116% year-over-year. Analysts expect Amazon to report $39.74 billion in revenue and $543 million in operating income in 2018. The company is expected to have $75 billion in sales and $5.5 billion in operating income in 2021.

Conclusion

While the markets are largely unpredictable, the factors that go into investing dictate what a stock should be worth. The market is fickle, so it is always possible that something could happen to change the stock's value overnight. However, when you find a stock that can grow in a positive direction over time, it's usually a good idea to buy it, and hold onto it for the long term. This will help you grow your money and avoid the dangers that come with poor stock selection.