8 Best Stocks to Buy Now

Recently, it has been challenging to follow the movement on the stock market. Most financial analysts concur that there is a significant likelihood of an economic recession in the near future as the Federal Reserve, or Fed, takes action to battle inflation at levels we haven’t seen in more than four decades.

Naturally, the market is responding. The Dow Jones Industrial Average and Nasdaq composite have down more than 16% and 30%, respectively, while the S&P 500 is down more than 21% year to date.

In times like these, it’s hard to decide which stocks you should buy, if any. However, even when picking stocks feels like you’re swimming through a sea of red, there are lush, green opportunities to take advantage of.

Large corporations with a significant economic moat—a competitive advantage that prevents rivals from eroding their market share—are the best equities to purchase right now. Many of these are dividend-paying non-cyclical investments. Furthermore, there are a few cyclical hidden jewels that risk-taking investors would wish to invest in to get a deal on returns that appear to be virtually certain in the future.

1. Amazon.com, Inc. (NASDAQ: AMZN)

• Performance: Amazon.com’s stock price has fallen more than 33% year-to-date (YTD) and more than 38% over the past year.
• Dividend Yield: 0%
• Valuation Metrics: Price-to-earnings ratio (P/E ratio): ~53; price-to-book value ratio (P/B ratio): ~8; price-to-sales ratio (P/S ratio): ~2.3.
• Market Cap: ~$1.152 trillion.

Amazon.com and other tech stocks are perhaps the last choice you’d expect to see on this list. The firm, which operates in a very cyclical sector of the economy, has lost almost a third of its worth only this year. There is no doubt that some AMZN investors are beyond irritated right now, but that is frequently the perfect time to purchase.

The stock has remained a favourite among mutual funds and exchange-traded funds (ETFs) despite the current selloff.
What is this falling knife so exciting?

An e-commerce behemoth with a demonstrated ability to withstand economic turbulence is Amazon.com. The company’s stock price was unaffected by the COVID-19 epidemic, most likely because it profited substantially from orders placed at home and retail closings.

The firm has experienced crises before. The firm saw ups and downs, but its solid foundations helped it survive both the collapse of the dot-com boom and the Great Recession. The stock may now be trading lower, but that trend isn’t likely to continue indefinitely.

As worries pass, the business may likewise make a comeback to glory. Amazon.com has concentrated on e-razor-thin commerce’s margins for the vast duration of its history. Amazon Web Services (AWS), one of its more recent cloud computing offerings, is anything but a thin-margin product. The AWS business’s huge margins are driving the company’s average margins into the ceiling.

Overall, there are certain economic challenges that Amazon.com will need to overcome, but they are nothing new for the business. AMZN is a stock that’s worth your attention if you’re risk-tolerant enough to stick on through what may be a short-term rocky patch and astute enough to dollar-cost average in the bear market.

2. Devon Energy Corp (NYSE: DVN)

• Performance: DVN is up more than 12% YTD and 84% over the past year.
• Dividend Yield: ~9%.
• Valuation Metrics: P/E ratio: ~11; P/B ratio: ~4; P/S ratio: ~2.75.
• Market Cap: ~$33.9 billion.

A fantasy for income investors is Devon Energy. The corporation has the S&P 500’s top dividend-paying stock. With a long history of outstanding performance, Devon Energy is a powerhouse in the oil and gas industry. The share price increase is anticipated to continue after over 80% growth over the last year.

Veteran income investors may believe that DVR is only providing dividends now that gas and oil prices are so high. That’s not the case, though. Even during periods of low oil and gas prices during the past 29 years, the firm has continuously provided investors large dividends.

The largest oil cartel in the world, Organization of Petroleum Exporting Countries (OPEC), has revealed intentions to increase oil output. The statement caused DVN to lose a lot of its gains from this year, sending it down. The stock has lost more than 33% of its value in the last month, while being up 12% year to date.

3. Meta Platforms Inc (NASDAQ: META)

• Performance: Meta Stock has fallen more than 50% YTD and more than 52% over the past year.
• Dividend Yield: 0%.
• Valuation Metrics: P/E ratio: ~12; P/B ratio: ~3.5; P/S ratio: ~2.75.
• Market Cap: ~$453 billion.

The fourth most frequent stock in ETF portfolios is Meta Platforms, previously Facebook, which is a darling on Wall Street. However, the previous year was difficult.
Even though most investors would want to flee, there is an opportunity there.

Any definition of a growth stock would include Meta. The firm has had consistent sales growth for years, and up until the release of the most recent earnings report, EPS growth was remarkable. The stock’s price increase was also well-known, but earlier this year, inflation worries yanked the rug out from under the IT industry.

4. H&R Block Inc (NYSE: HRB)

• Performance: HRB is up nearly 50% YTD and more than 54% over the past year.
• Dividend Yield: ~3%.
• Valuation Metrics: P/E ratio: ~5; P/B ratio: ~123; P/S ratio: ~1.4.
• Market Cap: ~$5.8 billion.

H&R Block is a well-known company that provides both professional and full-service tax preparation services. It’s also one of the market’s most alluring bargain stocks.

Let’s start by talking about the 123 P/B ratio, the proverbial “elephant in the room.” That is certainly high by any measure. To HRB, it means nothing, though.
Due to the company’s position in the service industry, it has limited physical assets.

Just take a quick glance at the stock’s P/E and P/S ratios, which are now under 5 and 1.4, respectively, to get a genuine sense of the discount it trades at.
It’s a low number in any sector. It has a P/E ratio that is around one-fourth that of the S&P 500.

All people eat, sleep, and pay taxes. Increasing interest rates and dwindling consumer spending may have a negative impact on other businesses, but people still have to file their taxes regardless of the state of the economy. HRB’s business model fares well even if a recession were to set in.

5. ASML Holding NV (NASDAQ: ASML)

• Performance: ASML shares have fallen ~45% YTD and ~37% in the past year.
• Dividend Yield: ~1.4%.
• Valuation Metrics: P/E ratio: ~41; P/B ratio: ~18.5; P/S ratio: ~9.
• Market Cap: ~$184.28 billion.

Recently, there has been a lot of interest in semiconductor companies like Advanced Micro Devices (NASDAQ: AMD) and NVIDIA (NASDAQ: NVDA). A global scarcity of semiconductors is having a significant influence on almost every area, including healthcare, computing, and even the automotive sector.

However, businesses like ASML Holdings, a maker of semiconductor equipment that produces tools for the aforementioned brands and many more, couldn’t exist without businesses like NVIDIA and AMD.

These devices are also expensive. Every time one is sold, ASML earns roughly $150 million in revenue, and this figure is projected to rise. Analysts anticipate considerable profit growth for the remainder of 2022 and 2023, despite the possibility of an impending recession.

6. Exxon Mobil Corp (NYSE: XOM)

• Performance: Exxon Mobil stock is up ~33% YTD and ~38% over the past year.
• Dividend Yield: ~4%.
• Valuation Metrics: P/E ratio: ~13; P/B ratio: ~2; P/S ratio: ~1.2.
• Market Cap: $357 billion.

One of the largest brands in the oil and gas industry, Exxon Mobil is a terrific investment to fight inflation. The cost of petrol is frequently used by economists as a quick indicator of inflation. A domino effect starts when petrol prices start to climb. The cost of shipping rises, which raises prices for the final customer.

The corporation operates the nation’s largest chain of gas stations. Exxon benefits directly from rising prices and sees its sales and profits soar. The stock is an excellent bet right now, even though it is less remarkable when gas prices are low.

However, the price of XOM shares is more than reasonable. The company’s P/E ratio is significantly below the S&P 500 average, and its P/S ratio is very close to.
We have a winner, my friends, when we include a yield of about 4%.

7. UGI Corp (NYSE: UGI)

• Performance: UGI has fallen ~15% YTD and ~16% over the last year.
• Dividend Yield: ~3.75%
• Valuation Metrics: P/E ratio: ~15; P/B ratio: ~1.4; P/S ratio: ~0.9.
• Market Cap: ~$8 billion.

Since the bear market began, the attitudes of many investors toward risk have altered. UGI is an appealing choice if you’ve grown more risk-averse and need a reliable utilities play with excellent dividends to fill the gap in your portfolio.

The business has been distributing natural gas and propane under regulation for well over a century. For 138 years, it has continuously paid investors dividends, and for the past 35 years in a row, it has increased those dividend payments.

Furthermore, the business’s growth indicators indicate that recent reductions will be transient. UGI generated 34%+ revenue growth, 90%+ net income growth, 85%+ diluted earnings growth, and 42%+ net profit growth in the most recent quarter.

8. Duke Energy Corp (NYSE: DUK)

• Performance: DUK stock has grown ~2.75% YTD and ~6.5% over the last year.
• Dividend Yield: ~3.7%.
• Valuation Metrics: P/E ratio: ~20; P/B ratio: ~2; P/S ratio: ~3.
• Market Cap: ~$81.9 billion.

One of the biggest American suppliers of electric utilities is Duke Energy. More than 7.7 million electricity users and more than 1.6 million customers for natural gas are served by the corporation throughout six states.

Duke Energy is still committed to offering its clients high-caliber services at reasonable rates. As a result, regardless of the status of the economy or the general market, it offers its investors solid returns, reliably paid dividends, and a simpler time going to bed at night.