These Are The Five Best Stocks To Buy And Watch Now
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https://media.zenfs.com/en/ibd.com/d286311e6de86e24602ae294b1416a97Buying 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? Heico (HEI), Intercontinental Exchange (ICE), Tradeweb Markets (TW), Anglogold Ashanti (AU) and Brown & Brown (BRO) 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 gains have faded as traders weigh the pros and cons of his plans, such as levying tariffs, as we move deeper into 2025. The Federal Reserve is also seeing fewer interest rate cuts ahead amid ongoing labor market strength and stubbornly high inflation.
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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 is now weighing on stocks.
The stock market is well off recent highs and remains under considerable pressure. The S&P 500 has fallen below its 50-day moving average while the Nasdaq composite has undercut its 200-day moving average, a bearish look indeed.
Recent negative action means investors should be on their guard. Buying even high-quality issues with good growth prospects is risky. Taking smaller pilot positions is an option, though building a robust watchlist may be the wisest approach for now. 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
- Heico
- Intercontinental Exchange
- Tradeweb Markets
- Anglogold Ashanti
- Brown & Brown
Now let’s look at Heico stock, Intercontinental Exchange, Tradeweb Markets, Anglogold Ashanti and Brown & Brown in more detail. An important consideration is that these best stocks to buy and watch all boast impressive relative strength.
Heico Stock
The aerospace stock has formed a cup-with-handle base, according to MarketSurge analysis. The buy point here sits at 270.37.
The stock sits clear of its 50-day line and recently found support its 21-day exponential moving average.
Meanwhile, the relative strength line is near recent highs, an encouraging sign. Overall performance is excellent, which is reflected in HEI’s perfect IBD Composite Rating of 99.
The stock is currently displaying leadership, as it sits at the summit of IBD’s Aerospace/Defense industry group.
Earnings performance is a key strength for the stock, with its EPS Rating sitting at 95 out of 99.
Recent growth has been very strong, with earnings rising by an average 35% over the past three quarters. EPS has accelerated for the past five quarters.
Earnings growth is holding firm in the year ahead. Analysts seeing EPS rising 23% in 2025, which is just shy of the 25% growth sought by those following IBD investing principles. Earnings growth is then expected to slow to by 12% next year.
Institutions have added to their holdings of the stock lately, which is reflected in an Accumulation/Distribution Rating coming of B.
In total, 62% of Heico stock is held by funds, according to MarketSurge data. This is stout backing.
Heico’s flight support group designs, manufactures and repairs aircraft and engine replacement parts. Its products are used in commercial and military aircraft, turbines and missiles.
Additionally, its electronic technologies group makes power converters and accessories, microwave switches and lasers used in the aviation, electronics, medical and telecommunications industries.
Heico is a member of the high-flying IBD 50 list of leading growth stocks
Intercontinental Exchange Stock
The financial services stock is in a buy zone above a cup-base entry of 167.99, MarketSurge analysis shows. The buy zone here runs as high as 5% above this level.
Shares sit clear of the 50-day moving average. Intercontinental Exchange stock is also finding support at the 21-day line. These are encouragingly bullish signs.
The relative strength line is spiking again following a dip during its consolidation phase. This line reflects a stock’s gains vs. the benchmark S&P 500.
Intercontinental Exchange is drastically outpacing the benchmark S&P 500 so far this year. It’s already up almost 15% so far in 2025.
The stock is an excellent all-around performer, with its IBD Composite Rating coming in at a muscular 97 out of 99.
Intercontinental Exchange is a global financial exchanges company. Its operations include the New York Stock Exchange.
Earnings performance is solid, with its EPS Rating coming in at 82 out of 99.
Earnings have grown by an average of 9% over the past three quarters. While solid, it is far short of the 25% growth levels sought by investors following The IBD Methodology.
However, in the most recent quarter EPS accelerated to 14% growth. CEO Jeffrey Sprecher said this was a testament to the company’s “all-weather” business model.
Wall Street expects earnings performance to improve going forward, with full-year EPS seen rising 11% in fiscal 2025 before accelerating to 12% growth in 2026.
Big money has been loading up on Intercontinental Exchange stock of late. The stock’s Accumulation/Distribution Rating coming in at A reflects far heavier buying than selling. In total, 52% of ICE stock is currently held by funds, according to MarketSurge data.
A number of highly rated funds hold shares in the company. These include the Franklin Growth Fund (FKGRX) and the Janus Henderson Forty Fund (JARTX).
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Tradeweb Markets Stock
The financial services play is another of the best stocks to buy now or watch as it homes in on a cup-with-handle base buy point of 140.48.
The relative strength line is spiking, and has hit 12-month highs on a weekly chart.
The stock has burst above its 50-day line, a positive, and also sits clear of its short-term moving averages.
TW stock has a terrific IBD Composite Rating of 98. This is a reflection of excellent all-around performance.
Earnings performance is a key strength, with the stock holding a mighty EPS Rating of 97 out of 99. Earnings have grown by an average 30% over the past three of quarters, stout gains indeed.
Wall Street see further progress ahead, with EPS expected to rise 17% this year and a further 13% in 2026.
Price performance has also been solid, with TW ranking among the top 14% of issues in terms of price performance over the past 12 months. The stock is up more than 3% so far this year.
Institutions have been net buyers of Tradeweb stock of late, with its Accumulation/Distribution Rating coming in at B-.
The number of firms holding TW shares at the moment is very strong, according to MarketSurge data. The Allspring Growth Fund (SGRAX) and the Franklin Growth Fund (FKGRX) are among the noteworthy holders.
Tradeweb benefits from long-term tailwinds as it gains market share in increasingly electronic bond markets, according to Morningstar analyst Michael Miller. Tradeweb’s interest-rate and credit segments are “the heart of the company,” making up 79% of its revenue in 2024, he said.
With most fixed-income trading still primarily voice based, “Tradeweb has a long runway of growth ahead of it,” he wrote in a Feb. 6 note.
There is a consensus buy rating on Tradeweb stock, according to TipRanks. The average price target comes in at 143.40.
Anglogold Ashanti Stock
The gold stock is just above a double-bottom base ideal entry point of 31.46, according to MarketSurge analysis. It is buyable as much as 5% above this level.
Shares have rebounded off their 10-week line multiple times. AU stock may be working on a new consolidation forged around the top of the double-bottom base.
In addition, the relative strength line sits near 12-month highs after spiking sharply from late February. This is a bullish indicator.
AU currently holds an IBD Composite Rating 97 out of 99. Its overall performance is strong but not quite ideal.
Earnings performance is strong, though not ideal, for the stock. It has an EPS Rating of 80 out of 99.
In the most recent quarter EPS spiked by a remarkable 1371%. This came after the stock swung from losses to substantial profits in each of the two prior quarters,, a positive sign.
Wall Street expects further improvement ahead. EPS is projected to rise 68% in 2025 before slowing to 1% growth next year.
The stock has been making substantial price progress in 2025, rising by nearly 40% so far in 2025.
The South African company is one of the biggest gold miners in the world. It has operations in Africa, which accounts for the majority of its income, as well as Australia and the Americas.
It is certainly operating in a boom area, with gold futures rising more than 12% so far this year. The SPDR Gold Shares ETF (GLD) is itself up nearly 14%, and is currently trading above a buy zone.
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Brown & Brown Stock
The insurance play is in the buy zone above a cup-base entry of 114.15. This comes after shares cleared an early buy point of 109.06.
This is a second-stage pattern, according to MarketSurge analysis, which counts as early. This is a positive. The relative strength line is moving bullishly as it crafts the right side of the base.
BRO has a near-perfect IBD Composite Rating of 98 due to the stock’s excellent all-around performance.
Earnings performance is robust, with Brown & Brown holding an EPS Rating of 95 out of 99. Additionally, earnings have grown by an average of 18% over the past three quarters.
The firm recently reported a 25% year-over-year EPS increase to 86 cents, comfortably beating expectations for 77 cents. Revenue jumped 15% to $1.18 billion.
Analysts see EPS growth of 9% both this year and in 2026, reflecting the firm’s consistent performance.
It is also solid on the technical front as well, as it sits in the top 15% of issues in terms of price performance over the past 12 months.
Additionally, it is now up around 16% so far this year. This is much better than the benchmark S&P 500’s performance.
Institutions have adding to their holding of the stock lately, with its Accumulation/Distribution Rating coming in at B.
BRO boasts an impressive level of institutional backing. Funds currently hold 52% of shares, MarketSurge data shows.
The stock is also showing leadership as it sits at near the summit of the competitive Insurance-Brokers industry group.
At the end of January, RBC Capital analyst Scott Heleniak raised the firm’s price target on Brown & Brown to 120 from 118. Heleniak noted that the company’s organic growth trends remain strong and that overall new business trends remain healthy.
Bank of America also raised its price target on Brown & Brown to 117 from 116, maintaining a neutral rating on the S&P 500 stock. BofA analysts wrote that the price target is “rising modestly in line with higher forecasts.”
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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