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? Toast (TOST), Palantir Technologies (PLTR), Shopify (SHOP), JPMorgan Chase (JPM) and EQT (EQT) 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 they then got walloped due to the Trump administration’s tariff agenda. The market has now come off lows, however, as Trump has eased tariffs, at least temporarily. The Federal Reserve outlook is unclear amid elevated inflation and Trump policy uncertainty.
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Stocks Bounce Back, S&P Reaches 6,000; Shopify, Cisco, IBKR 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 has fought back with aplomb after coming under considerable pressure. The S&P 500 has moved above its 50-day moving average as well as the 200-day line, as has the Nasdaq composite. Recent gains have been impressive as stocks come off lows.
The current fight-back 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
- Toast
- Palantir Technologies
- Shopify
- JPMorgan Chase
- EQT
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.
Toast Stock
The payments stock is actionable above an alternate buy point of 43.47, following a bullish rebound after pulling back to the 21-day line. It previously gapped above a 36.75 cup-with-handle entry, MarketSurge analysis shows.
The relative strength line is bending higher again and is near recent highs, a positive. It is clear of its 50-day moving average.
TOST is an excellent all-around performer, which is reflected in its best-possible IBD Composite Rating of 99.
Price performance is its strongest feature, and Toast is among the top 5% of issues in terms of gains over the past 12 months. So far in 2025 it is up nearly 21%.
Fundamental performance is also solid, with its EPS Rating coming in at 85 out of 90.
There has been powerful progress of late, with the firm swing from losses to profits in each of the past four quarters.
Analysts see EPS rising 2,207% this year to 92 cents before rising a further 18% next year.
Institutions have been adding to their holdings of the stock lately, with its Accumulation/Distribution Rating coming in at B+.
TOST boasts a strong level of institutional backing. Funds currently hold 59% of shares, MarketSurge data shows.
Toast’s products range from point-of-sale hardware, kitchen displays, payment processing, supplier and invoice management to payroll, delivery management, menu consultation and marketing programs.
Toast’s main competitors include Square-parent Block (SQ), Fiserv’s (FI) Clover, Shift4 (FOUR), Lightspeed, TouchBistro and SpotOn.
In 2024, Toast announced an artificial intelligence-based tool called Sous Chef. It provides restaurant managers with customer insights to drive sales growth.
It also recently announced recently announced that it has won deals with Applebee’s and Topgolf. In the most recent quarter live customer locations increased 25% to 140,000, above estimates of 137,100.
Palantir Stock
The data analysis play cleared a cup-with-handle base entry of 125.26. The stock is actionable as high as 131.52, exceeding that on May 30. A higher alternate entry of 133.49 is also in play, though this carries additional risk.
It is currently almost 17% above its 50-day line, according to MarketSurge analysis, though the 50-day is gaining ground. It got support at its 21-day exponential moving average last week, a good sign.
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 60% over the past three quarters.
Analysts see EPS surging 42% this year before slowing to still-impressive growth of 25% in 2026.
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 nearly 69% so far this year. That is one of the top S&P 500 performers after leading the benchmark index in 2024.
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.”
The New York Times recently reported that Palantir is a key player in President Trump’s effort to share data across government agencies. The Times also said that the firm is in contract talks with the Social Security Administration and Internal Revenue Service.
Palantir is a member of the IBD Sector Leaders list and Tech Leaders lists.
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Shopify Stock
The e-commerce play is also one of the best stocks to buy now or watch. It is nearing a cup-with-handle base entry of 112.38. It is also clearing a trendline within the handle which yields an alternate entry around 109.
The stock recently got support at the 200-day line as it constructed the right hand side of the pattern. This is an early-stage base, a bonus.
SHOP stock has a mighty IBD Composite Rating of 97 out of 99. This is a reflection of excellent all-around performance.
The RS line is OK, but some distance from highs.
Earnings performance is a key strength, with the stock holding an EPS Rating of 95 out of 99. Earnings have grown by an average 35% over the past three quarters, impressive growth indeed.
Wall Street sees further progress ahead, with EPS expected to rise 11% in 2025 before accelerating to 28% 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 5% so far this year, which is better than the S&P 500.
Institutions have been adding to their holdings of SHOP stock of late, with its Accumulation/Distribution Rating coming in at B-.
The number of firms holding shares in Shopify is solid at the moment, according to MarketSurge data. In total, 46% of its stock is held by funds.
The MFS Growth Fund (MFEGX) and the Franklin Growth Fund (FKGRX) are among the noteworthy holders.
Shopify sets up e-commerce websites for small businesses, and partners with others to handle digital payments and shipping.
For the current June quarter, Shopify said it expects “revenue to grow at a mid-twenties percentage rate on a year-over-year basis and gross profit dollars to grow at a high-teens percentage rate.”
The firm’s Chief Financial Officer Jeff Hoffmeister said during the firm’s most recent earnings call that the firm is focusing on long-term growth and profitability.
“We will continue to prioritize investing in key areas like our core platform, international, business-to-business, enterprise and offline, as opposed to driving for higher free cash flow margins in the near-term,” he said. “It’s simply the right thing to do with the immense opportunities we see ahead, but delivers a profitability level that we are proud of and believe we can maintain without compromising future growth.”
JPMorgan Chase Stock
The bank stock has been trading in the actionable zone above a double-bottom buy point stock of 254.67, according to MarketSurge analysis. It is also offering up an alternative handle entry point of 269.52.
Shares have rallied clear of the 50-day line as well as its short-term moving averages. In addition, the relative strength line is turning higher again and is closing in on 12-month highs.
JPM stock currently holds a strong IBD Composite Rating 94. This means it boasts excellent, if not quite ideal, all-around performance.
Earnings performance is a key strength for the bank stock, with its EPS Rating sitting at 90 out of 99.
After rising 25% in Q4 and 4% in Q1, analysts expect JPMorgan current-quarter earnings to climb 2% to $4.49 a share. For the full year, earnings are seen rising 2% this year before accelerating to 6% growth in 2026.
The stock has been making good price progress in 2025, rising by nearly 11% so far this year. It held up well even as the broader market reversed lower.
With assets of $3.9 trillion, JPMorgan is the nation’s largest bank. JPMorgan stock also has the largest market cap of any bank, at $740 billion.
While an economic downturn threatens JPMorgan stock and others, some trends now favor banks. For example, a steepening yield curve could boost banks’ profit margins. Sector earnings have been solid, too.
Positive surprises reported by JPMorgan, Bank of America (BAC), Goldman Sachs (GS), Wells Fargo (WFC) and Morgan Stanley (MS) helped expand the financial sector’s earnings growth, according to FactSet.
Funds have been adding to their holdings of JPM stock of late, with its Accumulation/Distribution Rating coming in at B-. The lauded Fidelity Contrafund (FCNTX) is among its noteworthy backers.
S&P 500 Near Highs: Trump Vs. Musk, China Talks In Focus
EQT Stock
The energy stock is just above a double-bottom base buy point of 55.34. Recent tight action has yielded a possible alternate entry of 57.37, according to MarketSurge analysis.
Meanwhile, the relative strength line is near highs, another positive. Overall performance is excellent, which is reflected in EQT’s strong, but not ideal, IBD Composite Rating of 94.
The stock sits at the summit of IBD’s highly competitive oil and gas – integrated industry group.
Earnings performance is a key strength for the energy stock, with its EPS Rating sitting at 97 out of 99.
Recent performance has been improving, with earnings accelerating in each of the past two quarters.
Growth is seen ramping up in the coming years, with EPS seen surging 112% in the current fiscal year before slowing to growth of 44% the next.
In total, 62% of EQT stock is held by funds, according to MarketSurge data. This is stout backing. Noteworthy stockholders include the lauded Fidelity Contrafund (FCNTX).
EQT is currently a member of the prestigious IBD Leaderboard list of top growth stocks.
EQT is the largest producer of natural gas in the U.S., based on average daily volumes. It focuses on the Marcellus and Utica Shales, which are located in the northeast.
The firm could benefit from higher energy demand due to AI. EQT has been focusing on efficiency, announcing a 15% reduction in its workforce back in October.
The cuts aim to eliminate around $80 million in annualized costs. Last July the firm acquired Equitrans Midstream, and it identified more than $425 million of annual synergies associated with the combination.
CFRA analyst Stewart Glickman recently upgraded the stock to buy from hold, partially due to its “strategic positioning in Appalachia.” He gave it a 61 price target.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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