Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist? Palantir Technologies (PLTR), Spotify (SPOT), Boston Scientific (BSX), TJX (TJX) and MercadoLibre (MELI) are prime candidates.
The market confounded expectations for difficulties and turned in an outstanding performance in 2023 and 2024. Donald Trump’s election victory initially boosted stocks, but stocks have been walloped due to the Trump administration’s tariff agenda. The market has now come off lows, however. The Federal Reserve outlook is unclear amid elevated inflation and Trump policy uncertainty.
↑
X
Major Progress For The Bulls, But Here’s The Catch; MercadoLibre, Spotify, Palantir In Focus
Best Stocks To Buy: The Crucial Ingredients
Remember, there are thousands of stocks trading on the NYSE and Nasdaq. But you want to find the very best stocks right now to generate massive gains.
The IBD Methodology offers clear guidelines on what you should be looking for. Invest in stocks with recent quarterly and annual earnings growth of at least 25%. Look for companies that have new, game-changing products and services. Also consider not-yet-profitable companies, often recent IPOs, that are generating tremendous revenue growth.
Using such an approach can help give you an edge over the benchmark S&P 500. Outdoing this industry benchmark is key to generating exceptional returns over the long term.
In addition, keep an eye on supply and demand for the stock itself, focus on leading stocks in top industry groups, and aim for stocks with strong institutional support.
Once you have found a stock that fits the criteria, it is then time to turn to stock charts to plot a good entry point. You should wait for a stock to form a base and then buy it once it reaches a buy point, ideally in heavy volume. In many cases, a stock reaches a proper buy point when it breaks above the original high on the left side of the base. More information on what a base is, and how charts can be used to win big on the stock market, can be found here.
Don’t Forget The Stock Market Direction When Buying Stocks
A key part of investing is to keep track of the market. Most stocks, even the very best, follow the market direction. Invest when the stock market is in a confirmed uptrend and move to cash when the stock market goes into a correction.
The stock market turned in stunning gains in 2023 and 2024. The major indexes surged to record highs in the wake of Donald Trump’s presidential victory, but tariff worries and a more cautious outlook from the Fed on interest rates are now weighing on stocks.
The stock market is well off recent highs, but is trying to fight back despite being under considerable pressure. The S&P 500 is trading below its 50-day moving average and 200-day line while the Nasdaq composite has undercut its 200-day moving average, a bearish look indeed. Recent gains have been impressive as stocks come off lows, however.
The current fightback means investors should be putting money to work, though they should still be on their guard in case of another pullback in this headline-driven market. The selections below are among the best stocks to buy or watch now. The IBD 50 is also a rich hunting ground.
In addition, it is now especially crucial to stay on top of sell signals. Any stock that falls 7% or 8% from your purchase price should be jettisoned. Also beware of sharp breaks below the 50-day or 10-week moving average.
Things can change quickly when it comes to the stock market. Make sure to keep a close eye on the market trend page here.
Best Stocks To Buy Or Watch
- Palantir Technologies
- Spotify
- Boston Scientific
- TJX
- MercadoLibre
Now let’s look at these five stocks to buy or watch. An important consideration is that these best stocks to buy and watch all boast impressive relative strength.
Palantir Stock
The data analysis play has formed a cup base with an ideal buy point of 125.41, according to MarketSurge analysis. It could also be interpreted as a double-bottom base which offered an earlier entry of 98.17. PLTR is extended from that buy point.
The relative strength line is hitting new highs, a positive. It is also pulling away from its 50-day moving average.
PLTR has a perfect IBD Composite Rating of 99 due to the stock’s excellent all-around performance.
Palantir provides data analytics tools to government customers for intelligence gathering, counterterrorism and military purposes.
It is also aiming to use generative AI to spur growth in the U.S. commercial market, such as health care and financial services.
Earnings performance is very strong, with Palantir stock holding an EPS Rating of 98 out of 99. There has been powerful progress of late, with earnings growing by an average 66% over the past three quarters.
Analysts see EPS surging 35% this year before slowing to still-impressive growth of 23% in 2026.
Q1 earnings are due May 5.
It is faring even better on the technical front as it sits in the top 1% of issues in terms of price performance over the past 12 months.
Additionally, it is now up more than 23% so far this year. This is much better than the benchmark S&P 500’s performance.
Institutions have been adding to their holdings of the stock lately, with its Accumulation/Distribution Rating coming in at B+.
PLTR boasts a decent level of institutional backing. Funds currently hold 35% of shares, MarketSurge data shows. Management holds a further 6%.
The company has been using forward deployed engineers (FDEs) to help customers utilize artificial intelligence.
“While many sell-side Wall Street analysts may be mixed on the merits of Palantir’s FDE model, Palantir’s customers are not,” UBS analyst Karl Kierstead said in a report. “The consensus customer view of Palantir’s FDEs is positive.”
Spotify Stock
The streaming stock is eyeing a double-bottom base entry of 621.20, MarketSurge analysis shows. The buy zone here runs as high as 5% above this level.
Shares are clearing the 50-day moving average, an encouragingly bullish sign. This could be used as an early buy point, though this carries even more risk than normal in the current market. The stock has held up relatively well amid the punishing recent stock market action.
The relative strength line is holding near highs despite slipping slightly amid the broader pullback. This line reflects a stock’s gains vs. the benchmark S&P 500.
Spotify is drastically outpacing the benchmark S&P 500 so far this year. It’s already up nearly 39% in 2025.
The stock is an excellent all-around performer, with its IBD Composite Rating coming in at a perfect 99.
Earnings performance is solid, with its EPS Rating coming in at 81 out of 99.
Earnings have been improving over the past three quarters. The firm swung from a loss of 40 cents per share to EPS of $1.82 in the most recent quarter.
Wall Street expects earnings performance to continuing to improve, with full-year EPS seen rising 100% in fiscal 2025 before posting still-impressive growth of 28% next year. This is in excess of the 25% growth levels sought by investors following The IBD Methodology.
Tariffs are not especially relevant for Spotify, while the service is recession resistant.
Big Money has been adding to their holdings of Spotify stock of late. The stock’s Accumulation/Distribution Rating of B reflects more buying than selling. In total, 63% of SPOT stock is currently held by funds, according to MarketSurge data.
A number of highly rated funds hold shares in the company. These include the MFS Growth Fund (MFEGX) and the Fidelity Contrafund Fund (FCNTX).
Earlier this year the firm moved to broaden its user base even further by offering a smattering of new products.
The Stockholm-based company has announced an initiative to provide self-improvement courses, starting with a venture with fitness brand Adidas.
“Whether you want to discover the benefits of meditation, hone a new skill, or progress your career, you can learn it through courses on Spotify,” the company said.
Earnings are due early April 29. An approach highlighted by Investor’s Business Daily is to use options as a strategy to reduce risk around earnings. It’s a way to capitalize on the upside potential of a stock’s move around earnings, while reducing the downside risk.
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Boston Scientific Stock
The medical products play is also one of the best stocks to buy now or watch. It is moving towards a double-bottom base buy point of 104.35.
A move above the April 23 high of 102.37 would offer a trendline entry.
The relative strength line is hitting fresh 12-month highs, an encouraging sign.
The stock bullishly reclaimed its 50-day line as well as its short-term moving averages. It comes after it found buying support at the 200-day line.
BSX stock has a strong IBD Composite Rating of 98 out of 99. This is a reflection of excellent all-around performance.
Earnings performance is a key strength, with the stock holding an EPS Rating of 96 out of 99. Earnings have grown by an average of 29% over the past three quarters, impressive growth indeed.
Wall Street see further progress ahead, with EPS expected to rise 16% in 2025 before slowing to 13% growth next year.
Price performance is also impressive, with Boston Scientific ranking among the top 8% of issues in terms of price performance over the past 12 months. The stock is up around 14% so far this year, which is much better than the S&P 500.
Institutions have holding firm in their holdings of Boston Scientific stock of late, with its Accumulation/Distribution Rating coming in at C.
The number of firms holding BSX shares at the moment is very strong, according to MarketSurge data. In total, 57% of stock is held by funds.
The MFS Growth Fund (MFEGX) and the Allspring Growth Fund (SGRAX) are among the noteworthy holders.
The firm recently posted better-than-expected quarterly results. Boston Scientific came in with $4.66 billion in first-quarter sales, growing 21% and beating calls for $4.57 billion, according to FactSet. Organically, sales climbed more than 18%. Adjusted earnings also topped projections at 75 cents a share, growing nearly 34%.
Sales of electrophysiology tools — which treat abnormal heart rhythms and includes Farapulse — grew 145% organically to $730 million. Analysts projected a significantly lower $647.4 million. U.S. sales grew 225%, Evercore’s Kumar said. Watchman sales also climbed 24% to $425 million, above forecasts for $414.8 million. Watchman sales also accelerated in the U.S.
Boston Scientific raised its outlook for the year and now projects 12%-14% organic sales growth, up from its three-months-ago outlook for 10%-12%. On a strict, as-reported basis, the medtech player guided to 15%-17% growth. The company also expects adjusted earnings of $2.87 to $2.94 per share, up 7 cents at the midpoint.
TJX Stock
TJX stock is closing back in on a double-bottom base ideal entry point of 127.58, according to MarketSurge analysis. It is buyable as much as 5% above this level.
Shares previously rallied back after falling below the buy point. It found buying support at the 50-day line amid the market retreat.
In addition, the relative strength line sits near 12-month highs and has been making good progress since mid-March. This is a bullish indicator.
TJX stock currently holds an IBD Composite Rating 88 out of 99. This means it boasts very strong, though not quite ideal, performance.
Earnings performance is a key strength for the stock. It has an EPS Rating of 88 out of 99.
In the most recent quarter EPS grew by 10%. Earnings have risen by an average 11% over the past three quarters.
Wall Street expects further growth ahead. EPS is projected to rise 6% in the current fiscal year before accelerating to 11% growth next year.
The stock has been making price progress in 2025 even as the broader market reversed, rising by nearly 4% so far this year.
Citigroup on recently upgraded TJX to buy from neutral, writing that now is the “time to shine” for off-price retailers.
According to the analyst note, President Donald Trump’s sweeping tariffs will create significant disruption in the market. That should greatly increase the availability of products to off-price retailers at “attractive prices.”
Meanwhile, a weakening consumer environment means that more customers will likely trade down to off-price channels in search of value.
Earnings Wave Due; These 7 Stocks Are Near Buy Points
MercadoLibre Stock
The e-commerce stock is breaking out from a double-bottom base, according to MarketSurge analysis. The buy point here sits at 2,202.
Meanwhile, the relative strength line has reached new highs, another positive. Overall performance is excellent, which is reflected in MELI’s near-perfect IBD Composite Rating of 97.
The stock is currently sits near the summit of IBD’s internet retail industry group.
Earnings performance is a key strength for the stock, with its EPS Rating sitting at 98 out of 99.
Recent growth has been very strong, with earnings rising by an average 134% over the past three quarters.
Q1 EPS is likely due on May 7.
Institutions have keeping hold of their holdings of the stock lately, which is reflected in an Accumulation/Distribution Rating of C-.
In total, 55% of MercadoLibre stock is held by funds, according to MarketSurge data. This is stout backing.
Noteworthy backers include the lauded Fidelity Contrafund (FCNTX) and the Allspring Growth Fund (SGRAX).
Often touted as the the Amazon.com (AMZN) of Latin America, MercadoLibre operates an e-commerce platform in Brazil, Mexico, Argentina and 15 other countries.
MercadoLibre also offers Mercado Pago, a fintech business that includes a Venmo-like digital wallet popular in the region.
Cantor Fitzgerald analyst Deepak Mathivanan reiterated a positive overweight call for MercadoLibre stock in an April 15 client note. He lowered his price target for the stock to 2,400 from 3,000, citing foreign-exchange changes and “credit margin moderation.” However, he said there was still “plenty of runway” for MercadoLibre stock following its strong start to the year.
“The macro environment is Latin America appears to be largely stable in many countries,” Mathivanan wrote. “MELI should benefit from ongoing initiatives to improve selection, user experience, and logistics in e-commerce.”
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
YOU MIGHT ALSO LIKE:
Is Trump Media A Buy After He Takes Office?
Seven Best Stocks For Magnificent Earnings Growth
Join IBD Live Each Morning For Stock Tips Before The Open
MarketSurge: Research, Charts, Data And Coaching All In One Place
This Is The Ultimate Warren Buffett Stock, But Should You Buy It?
