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? Shopify (SHOP), HubSpot (HUBS), TJX (TJX), Goldman Sachs (GS) and Royal Caribbean (RCL) are prime candidates.
The market confounded expectations for difficulties and turned in an outstanding performance in 2023 and 2024. Donald Trump’s election victory boosted stocks, though traders are now weighing 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.
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What Stocks Should You Be Buying? Try Mike Webster’s Weekend Watchlist Routine To Find Out
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, though a more cautious outlook from the Fed on interest rates is weighing on stocks.
The stock market is off recent highs, but fighting back. The S&P 500 has rallied past its 50-day moving average while the Nasdaq composite is also back above the key benchmark despite Monday’s sell-off.
Investors should be looking to buy high-quality issues with good growth prospects. The selections below are among the best stocks to buy or watch now. The IBD 50 is also a rich hunting ground.
Nevertheless, it remains 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
- Shopify
- HubSpot
- TJX
- Goldman Sachs
- Royal Caribbean
Now let’s look at Shopify stock, HubSpot, TJX, Goldman Sachs and Royal Caribbean in more detail. An important consideration is that these best stocks to buy and watch all boast impressive relative strength.
Shopify Stock
The e-commerce stock is in the buy zone above a double-bottom base entry of 115.37. This is a second-stage pattern. IBD research shows such early-stage bases are more likely to net good gains for investors. The left-side high of its base, 120.72, could serve as an alternate entry.
Shares have rallied above the 50-day line, MarketSurge analysis shows. Shopify stock is also clear of its short-term moving averages. 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.
Shopify is outpacing the benchmark S&P 500 so far this year. It’s already up more than 12% so far in 2025.
The stock is an excellent all-around performer, with its IBD Composite Rating coming in at a best-possible 99.
Earnings performance is key here, with its EPS Rating coming in at a rare, perfect 99.
Earnings have grown a remarkable 718% over the past three quarters. This is comfortably clear of the 25% growth levels sought by investors following The IBD Methodology.
In the most recent quarter, earnings per share spiked by 167%, accelerating vs. the prior quarter’s gain.
Strong earnings are expected by Wall Street, with full-year EPS seen rising 75% in fiscal 2024 before slowing to 21% growth in 2025.
Big Money Holds Firm On SHOP
Big money has been mostly standing pat on holdings of Shopify of late. The stock’s Accumulation/Distribution Rating coming in at C+ reflects slightly more buying than selling. In total, 46% of SHOP stock is currently held by funds, according to MarketSurge data.
Shopify sets up e-commerce websites for small businesses, and partners with others to handle digital payments and shipping. But while Shopify’s roots are in catering to small and midsize businesses, it has expanded into the “enterprise” market targeting large companies.
The fourth quarter is usually Shopify’s best annually because of the holiday shopping period.
In December, Shopify preannounced e-commerce data following the Thanksgiving holiday.
“Shopify’s Black Friday Cyber Monday sales of $11.5 billion (up 24% year-over-year) signals that the company can achieve, and is likely to exceed, consensus Q4 gross merchandise volume growth expectations of +23.5% ($92.8 billion),” Deutsche Bank analyst Bhavin Shah said in a research note.
Strong performance has earned the stock a place in the prestigious IBD Leaderboard list of top stocks.
The company’s quarterly report is due Feb. 11. 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.
HubSpot Stock
The enterprise software company’s stock is in the buy zone above a flat base with an ideal entry point of 762.47, according to MarketSurge analysis.
Shares got support at the 50-day moving average during the base-building period, a positive sign.
In addition, the relative strength line has been rising in recent weeks during a period of sideways action. Overall performance is excellent, which is reflected in HubSpot’s perfect IBD Composite Rating of 99.
Earnings performance for the stock is also top-notch, which is reflected in its best-possible EPS Rating sitting of 99.
Recent growth has been very strong, with earnings rising by an average of 38% over the past three quarters.
Analysts expect HubSpot to report a 25% EPS gain in the most recent quarter. The firm is set to post results on Feb. 12 after the close, a potential risk for investors in the very short term.
Wall Street analysts see earnings per share rising 28% in fiscal 2024 before slowing to 14% growth in 2025.
Institutions have been loading up on the stock of late, which is reflected in an Accumulation/Distribution Rating coming in at B+.
In total, 66% of HubSpot stock is held by funds, according to MarketSurge data. This is stout backing.
HubSpot Offers AI Products
Based in Cambridge, Mass., HubSpot specializes in helping businesses automate marketing and sales operations. It serves more than 238,000 customers across 14 global offices.
Its cloud-based technology serves clients across an integrated ecosystem of hubs targeting marketing, sales, commerce, operations and customer service operations.
At its Inbound customer conference in September, HubSpot unveiled “Breeze,” its new AI engine powering copilots and agents. Many software companies are shifting to AI agents.
Also, Breeze Agents offer end-to-end task automation. Other Breeze AI features include customer engagement scoring, AI-assisted reporting and automation, data entry suggestions and translation for email.
Excellent overall performance has also won HubSpot a place on the Leaderboard list.
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TJX Stock
The off-price apparel stock is another of the best stocks to buy now. TJX is eyeing a flat-base buy point of 128. In addition, its last week’s high of 126.48 could be used as an early entry by aggressive investors.
The relative strength line is turning higher again, though shares remain off 12-month highs. The stock formed the bulk of its new pattern above its 50-day line, a positive. It also sits clear of its short-term moving averages.
Very good, but not ideal, all-around performance is reflected in TJX’s IBD Composite Rating of 92 out of 99.
Earnings performance is a key strength for the retail play, with the stock holding an EPS Rating of 89 out of 99. Earnings have grown by an average of 15% over the past three quarters.
TJX is among the top 18% of issues in terms of price performance over the past 12 months. The stock is up over 3% so far this year.
Best Stocks To Buy: Top Fund Owns TJX
Institutions have been adding to their holdings of the retail stock of late, with its Accumulation/Distribution Rating coming in at B+.
At the moment, 48% of its shares are held by funds, according to MarketSurge data. The lauded Fidelity Contrafund (FCNTX) is among the noteworthy holders of the stock.
The multinational retail operator owns the TJ Maxx and Marshalls brands. The off-price apparel and home goods retailer gets most of its merchandise from other chains.
Gimme Credit senior analyst Carol Levenson praised the firm’s ability to generate higher revenue after the firm beat sales and earnings views back in November.
“Investors have been hearing from retailers for two years that a cautious customer was pulling back on the purchase of discretionary items in favor of essentials,” Levenson said in a note to clients. “TJX flouts this trend; it sells nothing but discretionary items, primarily apparel and home fashions. Yet aside from the pandemic, when it was forced to close its stores, it has grown sales in all macro environments.”
Goldman Sachs Stock
Banking play Goldman Sachs is in a buy zone after clearing a flat base with an ideal buy point of 612.73, according to MarketSurge analysis.
In addition, the relative strength line has just hit fresh highs, a further bullish sign. This line compares a stock’s performance against the benchmark S&P 500.
Overall performance is strong, which is reflected in GS stock’s IBD Composite Rating of 93 out of 99. Earnings performance is solid, but not spectacular, with its EPS Rating sitting at 86 out of 99.
However, things are improving at quite the clip on the fundamental front. Earnings have grown an average of just over 117% over the past three quarters. This is well clear of the 25% growth sought by those following IBD investing principles.
The banking giant recently turned in better-than-expected earnings. This means a potential hurdle to gains has been cleared.
EPS popped to $11.95 compared with $5.48 in the same quarter of last year. Net revenue surged 23% to $13.87 billion.
Global Banking & Markets revenue jumped 33% while investment banking fees increased 24%. Equities revenue rose 32%. Asset & Wealth Management revenue climbed 8%.
Goldman Sachs lowered its provision for credit losses to $351 million for the quarter from $577 million a year earlier.
Wall Street sees further growth ahead for the company. Full-year earnings are seen rising 13% this year before turning in growth of 12% in 2026. Estimates have been revised upward, a positive sign.
Also positive: Other big bank stocks are rallying, breaking out or flashing buy signals after their own upbeat earnings and guidance.
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Royal Caribbean Stock
The cruising play is in a buy zone after clearing a cup-base entry of 258.70. This comes after shares cleared an early buy point of 250.11.
This is a fourth-stage pattern, according to MarketSurge analysis, which is a negative. However, the relative strength line has just bullishly hit fresh highs.
Excellent all-around performance is reflected in RCL’s near-perfect IBD Composite Rating of 98.
Earnings performance has not been ideal though, with Royal Caribbean holding an EPS Rating of 72 out of 99. However, the cruise operator is in the midst of an impressive turnaround, with earnings growing an average of 47% over the past three quarters.
The firm recently reported a 30% year-over-year EPS increase to $1.63, beating expectations for $1.50. Revenue jumped almost 13% to $3.76 billion, which matched views. Bookings also accelerated.
More progress is expected, with analysts seeing EPS growth of 28% in 2025 and 18% in 2026.
It is very strong on the technical front as well, as it sits in the top 6% of issues in terms of price performance over the past 12 months.
Additionally, it is now up more than 14% so far this year. This is much better than the benchmark S&P 500’s lift.
Institutions have been net buyers of the stock lately, with its Accumulation/Distribution Rating coming in at A-.
Currently, 66% of its shares are held by funds, according to MarketSurge data. This is an impressive level of institutional backing.
The stock is also showing leadership as it sits at the summit of the competitive Leisure-Services industry group. The group itself ranks a lofty 25th out of the 197 industries ranked by IBD.
Royal Caribbean is also branching out into fresh areas by offering new products, which is encouraging. The firm has announced the launch of Celebrity River Cruises. Celebrity Cruises, a subsidiary of Royal Caribbean, signed an order for 10 new ships that will begin sailing in 2027, with bookings to begin this year.
“With about half of our guests having experienced or intending to vacation on a river cruise, we know they will enjoy Celebrity’s elevated offering on the river,” Royal Caribbean CEO Jason Liberty said. “By leveraging our valuable loyalty programs across our three brands, we will deepen customer engagement and further our ability to keep guests within our ecosystem of vacation offerings.”
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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