“What is the best stock to buy right now?”
Our editors are often asked this question, and their answer is always a definite, absolute, unequivocal, “It depends.”
Not surprisingly, that’s not the answer most people want to hear when they ask that question. But it is the correct one. No one stock, or even group of stocks, is right for every investor. Much depends on how much risk you can tolerate, how long you like to stay invested in a given position, and what you want your investments to do for you.
If you are a growth-oriented investor, you want your portfolio to grow, that is, you want the price of the stocks you own to appreciate. You will seek out companies whose earnings are growing faster than the market, have large potential for future growth, enjoy healthy profit margins and cash flow, are favored by professional institutional investors and have upward-trending charts.
Value-oriented investors want stocks that produce income in the form of dividends, or buy shares of a stock when it is undervalued. They may take the income as it is generated, or reinvest it in additional shares of the stock. The best stocks for these investors are those that may be temporarily out of favor, and are therefore cheap by traditional measures like price/earnings or price/book value. These may be little-known companies that have yet to enter a major growth phase, or they may be well-established companies that are going through a correction.
The best stocks to buy may not be the most active stocks, or the ones that are in the headlines. The best stocks are the ones that are best for you. By staying informed about the market, following trends and listening to the experts who study the market daily, you can identify the best stocks for you.
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• Cabot Wealth Advisory's Stock Picks:
The stocks featured in the Cabot Wealth Advisory with links to further chart details and articles.
• Get more good tips on what to buy for your portfolio:
Articles on risk, watching your positions, how to buy and sell, high dividend stocks, portfolio review and more...
• Read about the Best Stocks to Buy in the Cabot Wealth Advisory Archives:
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