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? Fiserv (FI), Axon Enterprise (AXON), TJX (TJX), Bank of America (BAC) 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.
↑
X
How To Buy Stocks: 4 Factors For Finding Quality Trade Ideas
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 has also just moved back above the key benchmark.
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
- Fiserv
- Axon Enterprise
- TJX
- Bank of America
- Royal Caribbean
Now let’s look at Fiserv stock, Axon Enterprise, TJX, Bank of America and Royal Caribbean in more detail. An important consideration is that these best stocks to buy and watch all boast impressive relative strength.
Fiserv Stock
The payments stock is in the buy zone above a cup-base entry of 223.23. The 5% buy zone here runs as high as 234.39.
Shares have rallied above the 50-day line, MarketSurge analysis shows. Fiserv 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.
Fiserv is outpacing the benchmark S&P 500 so far this year. It’s already up nearly 13% so far in 2025.
The stock is an excellent all-around performer, with its IBD Composite Rating coming in at a stout 95 out of 99.
Fiserv is a global fintech and payments company with solutions for banking, global commerce, merchant acquiring, and billing and payments services.
Earnings performance is key, with its EPS Rating coming in at 94 out of 99.
Earnings have grown by an average of 17% over the past three quarters. While strong, it’s a bit short of the 25% growth levels sought by investors following The IBD Methodology.
Fiserv saw Q4 earnings per share pop 15% to $2.51 with revenue totaling $4.9 billion, up 6.5% compared with a year ago. Prior to the release, analysts expected EPS of $2.48 with sales of $4.96 billion.
Strong earnings are expected by Wall Street, with full-year EPS seen rising 16% in fiscal 2025 before accelerating to 17% growth in 2025.
Big money has been loading up on Fiserv stock of late. The stock’s Accumulation/Distribution Rating coming in at B- reflects more buying than selling. In total, 55% of FI stock is currently held by funds, according to MarketSurge data.
A number of highly rated funds are holders of the fintech play. These include the Fidelity Contrafund (FCNTX) and the MFS Growth Fund (MFEGX).
Excellent overall performance has won Fiserv a place on the prestigious IBD Leaderboard list of top stocks.
Axon Enterprise
Axon stock has formed a new cup base with an ideal buy point of 698.67, MarketSurge analysis shows. A new handle is in the works, which would offer a lower entry. Much of the pattern formed above the 50-day line, a positive trait.
Shares recently climbed back above the 50-day moving average, which offered an early entry for aggressive investors.
In addition, the relative strength line recently hit fresh heights, an encouraging sign. Overall performance is excellent for the police equipment play, which is reflected in AXON’s perfect IBD Composite Rating of 99.
Earnings performance for the stock is also top-notch, which is reflected in its 96 EPS Rating.
Recent growth has been very strong, with earnings rising by an average of 27% over the past three quarters. EPS accelerated in the most recent quarter.
Earnings growth is expected to continue, with analysts seeing EPS rising 22% in 2025. This is just shy of the 25% growth sought by those following IBD investing principles.
Institutions have added to their holdings of the stock lately, which is reflected in an Accumulation/Distribution Rating coming of B.
In total, 60% of Axon stock is held by funds, according to MarketSurge data. This is stout backing.
Axon Offers These Products
While it’s best known for its electroshock stun guns, the Scottsdale, Ariz., firm also specializes in body-worn cameras and offers a cloud-based digital evidence platform called Axon Evidence.
Wall Street analysts are bullish on the stock’s prospects. It is a strong buy according to analyst consensus, with an average price target of 622.92, according to TipRanks. The stock trades around 614.
Raymond James managing director Brian Gesuale is rating the stock as outperform with a 645 price target. He believes Axon’s recent pullback was driven by factors including profit-taking and caution due to tough comparisons ahead.
Still, he sees plenty of growth in the future due to artificial intelligence initiatives.
“We expect the AI era will become meaningful and measurable in (2025-26) and could produce more than $180+ million of (annual recurring revenue) and registering low double digits of the cloud mix,” he said in a Jan. 6 research note. “AI era is a tech game changer and extends the duration of 25%+ year-over-year ARR growth by a couple of years.”
Baird senior analyst Will Power is even more enthusiastic, rating Axon as overweight with an 800 target. In a Jan. 18 note to clients, he said this reflects “much better-than-average growth, continued strong operating momentum, a strong competitive moat and AI narrative tailwinds.”
Excellent overall performance has also won Axon a place on the IBD Leaderboard Watchlist and the Sector Leaders list.
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
TJX Stock
The off-price apparel retailer is one to watch as it eyes a flat-base buy point of 128. In addition, the Jan. 30 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.
TJX recently found fresh support off the 50-day line.
TJX has an IBD Composite Rating of 91 out of 99 due to its very good, but not ideal, all-around performance.
Earnings performance is a key strength for the retail play, with the stock holding an EPS Rating of 88 out of 99. Earnings have grown by an average of 15% over the past three quarters.
TJX is among the top 20% of issues in terms of price performance over the past 12 months. The stock is up nearly 4% 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 A-.
Funds hold 48% of TJX shares at the moment, MarketSurge data shows. 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.”
Bank Of America Stock
The banking stock is just below a cup-with-handle ideal entry point of 47.51, according to MarketSurge analysis. It is actionable as much as 5% above this benchmark.
Shares have received buying support resistance at the 50-day moving average after previously testing the buy point. A rebound from here would be an encouraging sign.
In addition, the relative strength line has moved off recent lows as the stock attempts to break out, which is a bullish indicator.
BAC currently holds an IBD Composite Rating 90 out of 99. Its overall performance is strong but not quite ideal.
Earnings performance is solid for the stock. It has an EPS Rating of 80 out of 99. However, earnings have grown by an average of 40% over the past three quarters, which is comfortably in excess of the 25% growth sought by those following IBD investing principles.
In the most recent quarter, earnings more than doubled to 82 cents per share while revenue increased 15% to $25.3 billion.
FactSet analysts expected earnings of 77 cents per share on $25.12 billion in revenue.
Net interest income rose 3% to $14.4 billion, primarily driven by global markets activity, fixed-rate asset repricing and loan growth.
Bank of America’s provision for credit losses increased to $1.5 billion from $1.1 billion last year.
UBS analyst Erika Najarian is rating the stock as a buy with a 53 price target. She said the “core story” was still intact following Bank of America’s quarterly report.
She said in a Jan. 17 research note that hitting net interest income targets and showing sequential growth “will of course cement confidence in the outlook.”
Najarian also thinks that the company “needs to avoid more upward revisions on expenses.”
Market Rally Just Below Highs, 3 ‘A’ Stocks Near Buy Points
Royal Caribbean Stock
The cruising play is back in the buy zone above 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.
RCL has a near-perfect IBD Composite Rating of 98 due to the stock’s excellent all-around performance.
Earnings performance has not been ideal, 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.
Analysts see EPS growth of 28% in 2025 and 17% in 2026.
It is very strong on the technical front as well, as it sits in the top 5% 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.
RCL boasts an impressive level of institutional backing. Funds currently hold 66% of shares, MarketSurge data shows.
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.
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?
