In this article, we will take a look at the 8 good stocks to buy right now.
Stocks to Perform Well in 2025
On October 14, Tom Lee, Fundstrat Global Advisors managing partner and head of research, appeared in an interview on CNBC to discuss the latest market trends and share his expectations.
In a previous interview, Lee hinted that a period of market volatility is expected, as 2024 heads for a soft landing. However, in this interview, Lee revealed that he had underestimated the market and that it had been extremely resilient and confident, contrary to what he believed earlier. He adds that this indicates the decreasing importance of macroeconomic data to investors.
Lee also adds that for the past two years, investors have been expecting a recession and have held back. Henceforth, with all this cash on the sidelines, investors have been more than willing to invest. October so far has been a great month for the market, despite CPI data being higher than expectations.
Lee emphasizes the need for the Fed to be more supportive as concerns over the job market rise and the upcoming election draws closer. He suggests that despite the election results he expects stocks to perform well in 2025.
The Fed Should Go Slower, Strategist Says
The market rose to an all-time intraday earlier today and the Fed governor stressed the need for caution amid decreasing interest rates. On October 15, Warren Pies, from 3Fourteen, appeared in an interview on CNBC to discuss his market thesis for the rest of the year.
Pies suggests that rates are the biggest risk to the market at the moment, especially if drastic measures are introduced. He further adds that if the Fed decides to bring the rate down to 3% immediately, the long-term market outlook could be extremely volatile.
He explained that the concern is more about the rate of change and not the absolute level the Fed is trying to achieve. Pies adds that the market still has a lot of room to run before another drastic cut is implemented. He emphasized that the Fed must operate at a pace the market can digest. He also suggested that the market has started to reaccelerate, hinting that a soft landing is more likely.
Now that we have studied the market outlook up until the end of 2024, let’s take a look at some of the good stocks to buy right now.
A financial analyst looking at a monitor displaying the stocks of the public company.
Our methodology
We used a consensus-based approach and sifted through financial media reports to first compile a list of good stocks to buy right now. We then shortlisted and ranked these stocks by using Insider Monkey’s hedge fund data for the second quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
8 Good Stocks To Buy Right Now
8. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is a good stock to buy right now and we say that because at the end of Q2 2024, 84 hedge funds were bullish on PFE. Pfizer Inc. (NYSE:PFE) is a leading pharmaceutical and biotechnology company based in New York, United States.
Cost savings is a crucial goal for the company. The company is undergoing a Manufacturing Optimizing Program focused on enhancing efficiency that will deliver $1.5 billion in savings by the end of 2027. Overall, Pfizer Inc. (NYSE:PFE) is also fixated on improving its operations and access to healthcare. As a testament to this, the company recently launched a new and improved digital platform, PfizerForAll, that simplifies access to healthcare.
Speaking of its strategic investments, in March the company acquired Seagen, a biotechnology firm, for $43 billion. The acquisition is projected to deliver more than $10 billion in revenues by 2030. In August, Pfizer and its biotechnology partner were approved by the FDA to roll out their new shots before the flu season commences.
While the stock has experienced lower momentum recently, it has huge growth potential driven by its huge drug pipeline and solid strategic acquisitions. The company has commercialized nearly 19 products in the past 18 months, a huge feat for the company. Pfizer Inc. (NYSE:PFE) expects new launches to add $20 billion to its revenue in 2030.
Parnassus Investments’ Parnassus Value Equity Fund stated the following regarding Pfizer Inc. (NYSE:PFE) in its first quarter 2024 investor letter:
“During the quarter, we added new positions in Pfizer Inc. (NYSE:PFE), NICE and Charter Communications. We purchased Pfizer to capture the potential upside from any turnaround following the COVID-induced boom-bust cycle of the last few years. Pfizer’s stock price sank by more than 40% in 2023 as COVID-19 vaccine revenues rolled off, providing an attractive entry point for us. The company completed its acquisition of Seagen, which should strengthen Pfizer’s pipeline in antibody-drug conjugates (ADC). Pfizer also offers an attractive dividend yield.”
7. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 85
Citigroup Inc. (NYSE:C) is an investment banking giant that provides asset management services, risk management services, investment management services, mortgage loans, credit cards, and other banking commodities.
In the second quarter of 2024, the company logged $20.1 billion in revenue and $3.2 billion in net income, up from $19.4 billion in revenue and $2.9 billion in net income from Q2 2023. Citigroup Inc. (NYSE:C) is present in 90 countries, issues currencies in 144 countries, and has trading floors in 77 countries.
The company is now offering commercial banking services in other countries and is leveraging technology to deliver next-gen transaction banking services to its clients. On October 10, the company partnered with Mastercard to enable cross-border payments in 14 receiving markets from across the globe.
On April 24, Mike Mayo, Wells Fargo senior bank analyst, joined CNBC where he discussed his stance on Citigroup. Mayo revealed C as his dominant number-one pick and expects it to double its earnings in the next three years.
Citigroup Inc. (NYSE:C) is one of the most important names in the banking sector because of its expansive network and strong ecosystem. The company continues to grow due to its extravagant expansion strategy, as many analysts concur.
Patient Capital Management stated the following regarding Citigroup Inc. (NYSE:C) in its first quarter 2024 investor letter:
“Citigroup Inc. (NYSE:C) gained 24.1% in the quarter continuing its uptrend from 4Q. The company is on a multi-year journey to reorganize the business and reach return on tangible common equity of 11-12% by 2026 (and higher further out). Citigroup is finally taking the hard actions necessary, cutting unprofitable departments, taking out middle management layers, and reducing overall headcount. As of early March, the company was 70% done with its business exits and had reduced management layers by 1/4th. We have high confidence Citi will hit its targets. In the meantime, the company is returning cash to shareholders, which could meaningfully increase if the Basel III capital proposal is changed.”
6. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 87
PayPal Holdings, Inc. (NASDAQ:PYPL) ranks sixth on our list of good stocks to buy now. The company facilitates digital payments to consumers and businesses in 200 countries. The company generates its revenue from two major sources including transaction revenues and revenues from other value-added services.
For the year ended 2023, the company had 426 million active consumers and merchant accounts. During the same year, PayPal Holdings, Inc. (NASDAQ:PYPL) logged revenue worth $29.8 billion, processed 25 billion transactions, and generated $1.53 trillion in total payment volume. During the second quarter of 2024, the company generated $7.9 billion, up by 8% year-over-year. In addition to that, total payment volume increased by 11% and transaction margin in dollars by 8%.
PayPal Holdings, Inc. (NASDAQ:PYPL) is consistently working to provide premium customer experiences. On October 9, the company launched complete PayPal payments in China after engaging with 700 merchants in the country. In addition to that, Venmo, its product, recently introduced a new feature allowing people to schedule payments and send requests. Previously, in September the company launched a feature allowing business accounts to buy, hold, and sell cryptocurrency.
PayPal Holdings, Inc. (NASDAQ:PYPL) is a widely used service and why wouldn’t it be? It works around the clock to meet the needs of all types of customers, which explains why 87 hedge funds were bullish on the stock at the close of Q2 2024.
5. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 88
Spotify Technology S.A. (NYSE:SPOT) ranks fifth on our list of good stocks to buy right now. The audio streaming company has grown significantly. It allows people to discover music, listen to podcasts, stay on top of celebrity tours, and optimize listening profiles.
The company is present in 184 countries and has more than 626 million monthly active users, comprising 246 million premium subscribers. The company grew its monthly active users by 14% year-over-year. In the second quarter of 2024, the company logged $3.81 billion in revenue, generating most of it from two major segments, premium and ad-supported users. The two segments made up 88% and 12% of the total revenue, respectively.
The company is known for its algorithm that helps music fanatics discover music that suits them right. To improve and provide premium customer satisfaction, Spotify Technology S.A. (NYSE:SPOT) makes significant investments in research and development. The R&D expense is primarily allocated to products and features that improve the user experience.
Overall, Spotify Technology S.A. (NYSE:SPOT) has a sustainable business model that promises solid revenue growth for the foreseeable future. While competitors are springing up, Spotify has so far sustained a positive brand image, explaining why 88 hedge funds were bullish on the stock at the close of Q2 2024, according to the Insider Monkey database.
4. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 93
Oracle Corporation (NYSE:ORCL) is one of the good stocks to buy right now. The technology company is based in Austin, Texas, and specializes in providing businesses with a complete suite of cloud applications.
Its cloud applications cover financial management, project management, risk management, supply chain planning, and inventory management. Its cloud infrastructure segment, on the other hand, provides services in analytics, AI, machine learning, big data, compute, and DevOps, among others.
For the fiscal year ended 2024, the company logged $53 billion in revenue. Oracle Corporation (NYSE:ORCL) has spent more than $80 billion on research and development since FY 2012 and over $110 billion on 150-plus acquisitions so far. Oracle Corporation (NYSE:ORCL) currently boasts 430,000 customers and over 300,000 cloud community members.
On September 13, Alex Zukin, Wolfe Research managing director and head of software research, joined Yahoo Finance where he shared his view on ORCL and why he thinks the stock is at an advantage. He suggests that the stock has expertise in enterprise-class infrastructure and also has mission-critical skills on the software front. Zukin suggests that ORCL has a strong ecosystem that will result in growth and profitability.
Overall, Oracle has massive growth potential and is on track to leverage AI to its benefit over the next few years. Just last week, Oracle Corporation (NYSE:ORCL) announced its plan to invest over $6.5 billion in AI and cloud computing in Malaysia. According to our Insider Monkey database, 93 hedge funds were bullish on the stock at the close of Q2 2024.
3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 156
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a semiconductor company that makes chips for technology giants like NVIDIA and AMD. It ranks third on our list.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is expanding its presence across the world, especially in Europe. In addition to that, the company has huge bets on artificial intelligence. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) expects revenue from AI chips to increase at a compound annual growth rate (CAGR) of 50% by 2027.
On October 14, Reuters reported that the company is expected to report a 40% increase in revenue in FQ3 2024, due to soaring demand for AI and AI products. Analysts polled by Reuters expect third-quarter revenue to reach $9.27 billion.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) benefits from its partnerships with Nvidia, AMD, Qualcomm, and Apple. However, this is not the only thing that sets it apart from its competitors. TSMC owns cutting-edge technology to exploit the demand for AI chips. The AI chip market is expected to grow at a compound annual growth rate of 38% through 2032, and TSMC is on track to exploit it.
Diamond Hill Capital stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2024 investor letter:
“On an individual holdings’ basis, top contributors to return in Q2 included our long positions in Alphabet, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and Microsoft. Semiconductor manufacturer Taiwan Semiconductor’s (TSMC) fundamentals remain solid as demand for its chips continues growing — particularly as the machine learning and cloud computing trends gain more traction.”
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 216
Alphabet Inc. (NASDAQ:GOOGL) is one of the biggest technology companies in the world. It owns a range of products, including Google Search, Google Maps, YouTube, Google Cloud, and Wyamo.
Alphabet Inc. (NASDAQ:GOOGL) reported solid earnings in the second quarter of 2024. Its CEO, Sundar Pichai suggests that its performance was largely driven by its growing momentum in search and clod. The company logged nearly $85 billion in revenue, of which search and cloud exceeded $10 billion for the first time in quarterly revenue. The company highlights that it is investing to innovate every layer of the AI stack.
On the technology hardware front, its processing units currently account for almost 20% of the market, however, its advancements promise higher market shares in the future. In addition to that, its six-generation chips are 67% more energy efficient compared to the previous generation of processors and its new set of chips will be made available to Google Cloud users by the end of 2024.
Alphabet Inc. (NASDAQ:GOOGL) logged revenue worth $85 billion in the fiscal second quarter of 2024, driven by the growing momentum in cloud and search. The technology giant is well-positioned to benefit from the next wave of artificial intelligence and innovation, making it a solid investment. Overall, 216 investors held stakes worth $35.31 billion in Alphabet Inc. (NASDAQ:GOOGL) as of Q2 2024, according to the Insider Monkey database.
Patient Capital Management mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter“
“Alphabet Inc. (GOOGL) was a top contributor in the second quarter, finally catching up to its peers in the Magnificent 7. The company gained 20.8% in the period following strong first quarter earnings, a new $70B repurchase program (3% of shares outstanding) and the initiation of a cash dividend ($0.20 per share; 0.42% yield). We continue to believe the market underappreciates Google’s exposure to AI with its Gemini model being integrated into search results, YouTube advertising and its cloud offering. We continue to think that the cloud players will be the AI winners in the long-term, with Google being well positioned to take advantage. While the company trades at 24x 2024 earnings, if you remove the money-losing and under-earning businesses, you realize that you are paying below a market multiple for the core Google business. We do not believe there are many other AI winners trading at such an attractive multiple.”
1. Meta Platforms Inc (NASDAQ:META)
Number of Hedge Fund Holders: 219
Meta Platforms Inc (NASDAQ:META) is a technology conglomerate and is the company behind Facebook, Instagram, Threads, and WhatsApp. The company has a large user base of over 3.27 billion daily active users across all its platforms.
Meta Platforms Inc (NASDAQ:META) is a good stock to buy right now and we say that because of its advanced technological inventions. Over the past few months, the company has ventured into AI and augmented reality, having launched its debut AR glasses, Orion, in September. On the same day, the company released its most affordable mixed-reality headset, Meta Quest 36.
Meta Platforms Inc (NASDAQ:META) is pouring money into AI to become the best recommendation technology company. To align with this goal, the company recently launched new features, helping young adults explore their interests and find new people easily.
On September 10, Gil Luria, D.A. Davidson senior software analyst, appeared on CNBC where he named META as a top pick for AI and tech. Luria shares that the mega-cap tech stocks are expected to benefit from the AI boom, and while most of them are getting credit for it, META is not being talked about enough. He adds that META is the only company making significant investments in open platforms, concluding, that the stock is well-positioned to exploit the next two big waves of computing.
Overall, Meta Platforms Inc (NASDAQ:META) has a sustainable business model and owns crucial technology, making it difficult for competitors to take precedence. Its platforms are deeply integrated into the lives of users and the inclusion of AI and tech inventions makes it a powerful force.
Overall, META ranks first among the 10 good stocks to buy right now. While we acknowledge the potential of technology companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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