These Are The 5 Best Stocks To Buy And Watch Now

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? Axon Enterprise (AXON), MongoDB (MDB), Expedia (EXPE), Lennar (LEN) and Synopsys (SNPS) are prime candidates.




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Inflation and the Federal Reserve tightening rates aggressively worried investors last year. But the market confounded expectations for difficulties and turned in an outstanding performance in 2023. More moderate gains are expected for 2024, though there is growing confidence the Fed will reach its goal of a soft landing. However the Russian invasion of Ukraine continues to cast a shadow over markets while the ongoing Israel-Hamas war adds more uncertainty.

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 CAN SLIM system 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.

CAN SLIM has a proven track record of significantly outperforming the 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 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 M When Buying Stocks

A key part of the CAN SLIM formula is the M, which stands for 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 will now look to build on those gains. Indexes are looking strong, with the Nasdaq and the S&P 500 remain above the key 50-day moving average. The S&P 500 also just hit a record high for the first time in two years.

The stock market is back in a confirmed uptrend, though there have been a number of distribution days lately. Now is a good time for investors to make stock purchases. It’s also a good time to add to existing holdings at follow-on opportunities. IBD is currently recommending 80% to 100% market exposure.

Investors should take care to invest in high-quality stocks. The selections below are among the best stocks to buy or watch now. The IBD 50 is also a rich hunting ground.

Despite the market going back into a confirmed uptrend 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.

Remember, there is still significant headline risk. Inflation could still be an issue while the Russia-Ukraine conflict is a wild card that has proved its ability to shake the market while the current issues in Israel adds even more uncertainty.

Things can quickly change 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

  • Axon Enterprise
  • MongoDB
  • Expedia
  • Lennar
  • Synopsys

Now let’s look at Axon stock, MongoDB stock, Expedia stock, Lennar stock and Synopsys stock in more detail. An important consideration is that these best stocks to buy and watch all boast impressive relative strength.

Axon Enterprise Stock

AXON stock is one of the best stocks to buy as it rebounds off its 10-week moving average. It is actionable as high as 10% above this key technical benchmark, though closer is better.

Investors also could treat the current consolidation as a flat base with a 260.69 buy point.

The relative strength line has been moving sideways of late however. This means it has largely been performing in-line with the benchmark S&P 500.

Strong overall performance is underlined by its perfect IBD Composite Rating of 99. Both earnings and stock market performance are stellar.

A strong Accumulation/Distribution Rating B underlines the fact institutions have been picking up shares. This is a positive for AXON stock.

Formerly known as Taser, Axon Enterprise has taken advantage of the business opportunity offered by public demands for more police oversight.

Its lines of body cameras and related software are market leaders. Analysts point to a high chance the company will beat its long-term revenue guidance.

Axon‘s products are an important tool for law enforcement agencies. Meanwhile, cloud-based software for managing police evidence, records and communications makes officers more productive.

However the firm is now making moves into other areas. On Jan. 25, the Scottsdale, Ariz., company announced the availability of Axon Body Workforce, an adapted version of the body camera used by law enforcement that’s designed for front line retail and health care workers.

Axon said trials involving large health care networks and global retailers have demonstrated “early success in deterrence and de-escalation.” One retailer saw 53% fewer incidents, Axon said. Another reported that 47% of active incidents were “effectively de-escalated after activating recordings on the camera.”

Axon then announced the Feb. 1 acquisition of Fusus as a catalyst for its growing retail and health care presence. Buying Fusus, which excels in aggregating live video, data and sensor feeds, provides Axon with new technology enabling seamless connections to video feeds from both fixed and body-worn cameras during unfolding incidents.

That will bolster Axon’s ability to equip law enforcement with real-time situational awareness via livestreaming. The goal is to facilitate rapid decision-making to deter or respond to escalating situations.

MongoDB Stock

MongoDB is in buy range after clearing a handle entry of 426.51, hitting a 22-month closing high on Feb. 2. It could also soon clear a consolidation pattern entry point of 442.84, MarketSmith analysis shows.

That current consolidation is next to a failed cup-with-handle breakout. So topping 442.84 would also involve clearing several months of resistance.

The relative strength line has been choppy of late during a period of consolidation. Nevertheless, MDB is in the top 5% of stocks in terms of price performance over the past 12 months.

It comes after has MDB stock made tremendous progress after breaking out of a first-stage consolidation, and then gapping sharply higher in early June following earnings. It is up more than 75% on this previous buy point.

Current action gives an opportunity for investors to climb on board with this potential market leader. Big Money has been snapping up shares, with its Accumulation/Distribution Rating a solid B.

MDB ranks No. 4 in IBD’s Computer Software-Database industry group, a sign of its impressive performance.

MongoDB provides an open-source database platform for businesses around the globe. Its products can be run in the cloud or in a hybrid environment.

MongoDB has a close relationship with Amazon.com. Amazon’s strong Q4 results helped trigger MDB stock’s Feb. 2 breakout.

Earnings have been booming, with 258% growth seen for fiscal 2024 ended in January. Growth is expected to slow to 12% in the current fiscal 2025, but MongoDB has crushed EPS views in recent quarters.

A strong earnings runway is important feature to consider when looking for the best stocks to buy.

Strong EPS and stock market performance have netted MDB stock a perfect IBD Composite Rating.

Last year CEO Dev Ittycheria touted the firm’s AI credentials, saying the “move to embed AI in applications requires a broad and sophisticated set of capabilities while enabling developers to move even faster to create a competitive advantage.

“We are confident MongoDB‘s developer data platform is well positioned to benefit from the next wave of AI applications in the years to come,” he added.

William Blair analyst Jason Ader said in a research note in December that he sees “a multiyear runway for growth as MongoDB establishes itself as the premier independent database for modern apps.”


Looking For The Next Big Stock Market Winners? Start With These 3 Steps


Expedia Stock

Expedia is forming a flat base with an ideal buy point of 155.84. The 5% buy zone here runs as high as 163.63.

The relative strength line has been mostly moving sideways during the base construction period.

It has recently been finding support at its 50-day and 10-week lines, rebounding from those key levels. MarketSmith analysis shows.

Investors could use the Jan. 25 high of 153.57 as an early entry.

Overall performance is very strong, with EXPE stock holding an IBD Composite Rating of 94.

Earnings are not ideal, but it is in the top 6% of stocks in terms of price performance over the last 12 months.

But profits performance looks to be improving, with Expedia comfortably beating Q3 estimates on Nov. 2 with 33% EPS growth.

The online travel website has succeeded in its earnings turnaround. It has gone from a net loss of $8.78 a share amid the Covid pandemic to earnings of $1.65 in 2021 and $6.79 in 2022.

Earnings are seen growing 29% to $8.78 in 2023 and by a further 31% to $11.49 per share in 2024.

Expedia reports Q4 results on Feb. 8, something for investors to consider.

Online travel play Expedia stock had previously underperformed rivals Airbnb (ABNB) and Booking (BKNG). However it now sits near the top of the Leisure-Travel Booking industry group amid improving recent performance.

The operator of multiple travel properties, including Vrbo and Hotels.com, got a big vote of confidence from Evercore ISI analyst Mark Mahaney on Nov. 17.

According to Mahaney, Expedia is approaching a “fundamental inflection point,” following the July launch of its One Key loyalty program across all its brands, which it recently consolidated on a single technology platform.

Underlining its quality, Expedia stock is currently a member of the IBD Leaderboard Watchlist.

Lennar Stock

Lennar stock is stalking a flat base ideal buy point of 156.01. It is also rebounding away from the 10-week moving average, and currently sits about 2% above this level.

The relative strength line has been taking a pause during the base-construction period. An upwards spike here could help drive a breakout.

Overall performance is very strong, with its IBD Composite Rating coming in at 95. Solid fundamental performance is reflected in its EPS Rating 82 of out of 99.

But its stock market prowess is currently its strongest suit, and helps solidify its status as being among the best stocks to buy or watch. It ranks among the top 9% of issues in terms of price performance over the past 12 months.

Stocks like Lennar are benefiting from a potential boom in business due to a lack of housing stock. The shortage is currently running at a deficit of about 5.5 million homes, according to the National Association of Realtors. The gap is so large it would take more than a decade to close, the NAR says, even if new-home construction accelerates.

One noteworthy name certainly has a bullish long-term view for homebuilders. For legendary investor Warren Buffett’s Berkshire Hathaway (BRKB)) has placed big bets on the supply-constrained U.S. housing market in Q2 of 2023.

Berkshire has opened positions in Lennar and fellow S&P 500 homebuilder stocks D.R. Horton (DHI)) and NVR (NVR) worth more than $800 million.

But the Oracle of Omaha is not the only big name betting on Lennar stock. For the Fidelity Contrafund (FNCTX) is also an investor in LEN. In fact, 53% of LEN stock is currently held by funds, MarketSmith data shows.

In 2023, new-home prices remained strong and demand steady as high mortgage rates left owners of existing homes holding tight — not wanting to sell and move up into more expensive mortgages. Mortgage rates soared for much of last year, moving with Treasury yields.

While Federal Reserve Chair Jerome Powell on Wednesday played down the chances of interest rate cuts in March, the central bank is still pivoting toward cutting rates.


5 Stocks In Buy Areas As Market Rally Continues


Synopsys Stock

SNPS stock has formed a cup-with-handle base. It currently sits just below the ideal buy point of 554.57. It’s already actionable from clearing downtrend within the handle or from the top of the base.

The stock found support at its 50-day moving average as it crafted the handle. It is also trading above its 21-day exponential moving average

The relative strength line is moving higher again after a recent dip. Nevertheless, it remains off 12-month highs.

SNPS stock has a perfect IBD Composite Rating of 99. Stock market performance a strength, reflected in its RS Rating of 91. This means it is in the top 9% of stocks in terms of market performance over the past 12 months.

Earnings performance is even better for the software design stock. It boasts a perfect EPS Rating of 99. Earnings are seen rising 24% this year and by a further 20% in 2025. Strong earnings an important factor when looking for the best stocks to buy.

Synopsys is set to report fiscal Q1 earnings on Feb. 21. Rival Cadence Design Systems (CDNS) reports Q4 2023 results on Feb. 12..

Last month the chip design software maker emerged as the winning bidder for Ansys (ANSS). It came just three weeks after the engineering simulation software company became a takeover target.

SNPS stock had tumble on the Ansys takeover buzz, but rallied on the actual deal.

Synopsys agreed to pay Ansys shareholders $197 in cash and a 0.345 share of Synopsys common stock for each Ansys share. The transaction, worth about $35 billion, is the biggest technology deal of 2024 so far.

The deal will combine Synopsys’ semiconductor electronic design automation technology with Ansys’ simulation and analysis portfolio to create a leader in silicon-to-systems design solutions.

“We see this as an attractive offer for Ansys shareholders, considering the upside premium, as well as potential strong growth for the combined company to be able to deliver a comprehensive silicon-to-systems portfolio of solutions to their customers,” CFRA Research analyst Janice Quek said research note.

Synopsys Chief Financial Officer Shelagh Glaser told IBD the combination of the two companies will merge the digital and physical aspects of the product design process. She think this fusion will be a boon to design productivity.

Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.

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