These Are The 5 Best Stocks To Buy Now Or Watch

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? Boeing (BA), ASML (ASML), Construction Partners (ROAD), Amer Sports (AS) and Ralph Lauren (RL) are prime candidates.

The market confounded expectations for difficulties and turned in an outstanding performance in 2023, 2024 and 2025. The market moved back near highs as the Trump administration tariff agenda eased somewhat, though geopolitical tension has ramped up again. The Federal Reserve moved to cut rates amid a weakening labor market, however it looks like they may hold off on making cuts for the foreseeable future due to inflation and labor concerns coming into balance.

				    ↑
					X

This video file cannot be played.(Error Code: 102630)

								From AI Titans To Retail Giants: Decoding Nvidia, TJX And Medline Earnings
							

							

								See All Videos
							

						

					
					
						NOW PLAYING
						From AI Titans To Retail Giants: Decoding Nvidia, TJX And Medline Earnings

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.

IBD Newsletters

Get exclusive IBD analysis and actionable news daily.

		SIGN UP NOW!

IBD Newsletters

Get exclusive IBD analysis and actionable news daily.

										*   							
								How To Invest								
								
							
						
										*   							
								Market Prep								
								
							
						
										*   							
								Tech Report								

Please enter a valid email address

Please select a newsletter

			GO

Get these newsletters delivered to your inbox & more info about our products & services. Privacy Policy & Terms of Use

		x

Thank You!

You will now receive IBD Newsletters

			ALL DONE!

Something Went Wrong!

Please contact customer service

			CLOSE

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 has been moving sideways of late as the bulls and bears battle for supremacy. The S&P 500 and the Nasdaq composite have both slipped below the important 50-day moving average, a negative.

While it is a good time to buy exceptional stocks clearing proper buy points, recent volatility means a degree of caution remains warranted. The selections below are among the best stocks to buy or add to a watchlist now. The IBD 50 is also a rich hunting ground.

In addition, it is always 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

• Boeing
• ASML
• Construction Partners
• Amer Sports
• Ralph Lauren

Now let’s look at these five stocks to buy or watch. An important consideration is that these best stocks to buy and watch all boast impressive relative strength.

**Boeing **Stock

The aerospace stock is near the buy zone from a consolidation ideal entry point of 242.69, MarketSurge analysis shows. This is an early-stage pattern, which IBD research has found is more likely to net good gains.

The recent high of 254.35 also serves as a higher alternate entry as well. That could develop into a new flat base.

This stock sits comfortably above its 50-day moving average, but is now testing its 10-week line.

The relative strength line is just off 12-month highs. A spike could help fuel the breakout. The RS line gauges a stock’s performance vs. the S&P 500.

The all-around performance of Boeing stock is strong, but not quite ideal. This is reflected in its IBD Composite Rating of 92 out of 99.

Boeing stock made a strong start to 2026, rising around 8%. This is far better than the benchmark S&P 500.

Institutions have added shares recently, with its Accumulation/Distribution Rating coming in at B-.

In total, 40% of its shares are held by funds, according to MarketSurge data. The lauded Fidelity Contrafund (FCNTX) and the Janus Henderson Forty Fund (JARTX) are among noteworthy holders.

Fundamental performance is a major weakness at the moment, with its Earnings Per Share Rating sitting at 62 out of a best-possible 99.

However, strong progress is seen ahead, with per-share profits seen popping 29% this year before exploding to 217% growth in 2026.

Boeing’s long-awaited turnaround appears to be gaining steam. Revenue growth has been ramping up while 2026 is expected to be a year of profitability after seven years of losses.

There has been more good note of late for the firm. Saudi Arabia’s flagship airline, Saudia, is in talks with both Boeing and Airbus (EADSY) to buy at least 150 narrow-body and wide-body jets.

And India is preparing to place about $80 billion worth of orders with Boeing as part of a comprehensive free trade agreement with the U.S., according to its Commerce Minister Piyush Goyal.

**ASML **Stock

ASML is actionable as it clears a trendline entry near 1,444. It is also eyeing a three-weeks tight buy point of 1,493.48.

The stock sits comfortably clear of its 50-day line and has recently been getting support at the 21-day exponential moving average.

ASML stock is strong both fundamentally and technically, which is reflected in its near-perfect IBD Composite Rating of 98.

Fundamental performance is impressive, with its Earnings Per Share Rating sitting at 91 out of 99.

Analysts expect further strong growth ahead. Earnings are seen surging 21% in fiscal 2026 before accelerating to 29% growth the following year, MarketSurge data shows.

But technical performance is currently its strongest suit, as it ranks among the top 5% of equities in terms of price performance over the past 12 months.

Institutions have been adding to their holdings of the stock lately, with its Accumulation/Distribution Rating coming in at B.

The Franklin Growth Fund (FKGRX) and Fidelity Contrafund are among the Wall Street heavy hitters that have taken a stake in the company.

ASML is an alternative AI stock. Unlike more direct plays on the space, ASML sells equipment essential to produce the advanced chips that are key to the AI revolution. The Dutch firm’s extreme ultraviolet, or EUV, lithography system is extremely complex and enables the etching of tiny patterns onto silicon wafers.

The enterprise’s equipment is essential to the production of AI chips and other advanced semiconductors. ASML also has a strong moat, as it is the only company in the world that makes the EUV machines. Noteworthy customers include Taiwan Semiconductor Manufacturing (TSMC) and Intel (INTC).

In addition, demand for its machines among makers of DRAM memory chips is expected to rise amid the ongoing AI data center boom.

Underlining its quality, ASML is a newly-minted member of the prestigious IBD Leaderboard list of top stocks.

Stock Market Futures Fall Amid News Blizzard

Construction Partners Stock

The growth stock is near a cup base’s ideal buy point of 138.90, MarketSurge analysis shows.

This is a first-stage pattern for the stock, which is positive. IBD research has found that such patterns are more likely to accumulate strong gains for investors.

The stock bounded away from its 50-day line after decisively clearing earnings views on Feb. 5. It is currently holding support at its 10-day moving average.

The stock has seen its relative strength line surge to new highs. This is encouraging as it attempts a breakout. So far in 2026, the stock has climbed more than 25%.

All-around performance is exceptional, which is reflected in its IBD Composite Rating of 99.

Price performance is a strong attribute, with the stock sitting among the top 11% of equities in terms of gains over the past 12 months.

Big Money has been loading up on the stock of late, with its Accumulation/Distribution Rating standing at B+. In total, 59% of shares are held by funds.

Noteworthy backers of the growth stock include the Invesco Discovery Fund (OPOCX) and the Lord Abbett Developing Growth Fund (LAGWX).

Based in Dothan, Ala., the company focuses on roadway construction and maintenance. It has been expanding rapidly through acquisitions and now operates in eight states.

Wall Street analysts are currently bullish on Construction Partners’ prospects. The stock holds a consensus rating of buy, and has exceeded the average price target of 124.67, according to TipRanks.

Baird analyst Andrew Wittmann is even more bullish, rating it outperform with a 142 target. A “stronger-than-expected acquisition contribution” helped the company exceed expectations for its most recent quarter, Wittman said in a note.

“We remain long-term positive because of consistent/solid execution, above-average demand, and an outlook for value-enhancing (mergers and acquisitions),” he said in a Feb. 5 note to clients. “Shares are not cheap, to be sure, but growth remains impressive, and profits are falling to the bottom line.”

Wittman said Construction Partners’ acquisition stance “enhances a solid organic profile,” and that there is ongoing potential for regular growth to be “enhanced by accretive (mergers and acquisitions).”

Amer Sports Stock

The sporting goods stock is in the buy zone above a cup-with-handle buy point of 40, MarketSurge analysis shows.

The stock is has been finding support at its 21-day exponential moving average and is comfortably clear of its 50-day line.

The relative strength line is turning higher of late, but still has work to do to reach 12-month highs.

Overall performance is strong, but not ideal, which is reflected in its IBD Composite Rating of 90 out of 99.

Its offers a solid balance of fundamental performance and price accumulation. The stock ranks among the top 24% of issues in terms of relative price performance over the past 12 months.

It also holds a solid Earnings Per Share Rating of 80 out of 99. Earnings are projected to rise 98% in fiscal 2025 before slowing to 26% this year, according to MarketSurge data.

Amer Sports will report Q4 results on Feb. 24, something new buyers should be aware of.

Institutions have been adding slightly to their holdings of the stock of late, with its Accumulation/Distribution Rating sitting at C+. In total, 72% of shares are held by funds, a very robust level of sponsorship.

Founded in 1950, Amer Sports owns some of the most respected and iconic brands in the sports industry.

These include skiing and hiking specialist Salomon and tennis, football and basketball giant Wilson. Arc’teryx, noted for its extreme weather apparel, is also under its umbrella. It sells products across 100 countries.

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

Ralph Lauren Stock

Upscale clothing name Ralph Lauren is flirting with a consolidation ideal buy point of 380.

This is a second-stage pattern, which is a positive. A lower alternate entry of 377.07 is also in play.

Ralph Lauren’s relative strength line is also hitting new heights, which is encouraging for bulls.

The stock recently recaptured its 50-day moving average, an encouraging sign as it builds the right side of the base.

Overall performance is very strong, with its IBD Composite Rating sitting at 97 out of 99. Ralph Lauren ranks among the top 17% of equities in terms of price performance over the past 12 months.

Fundamental performance is its biggest strength though, with its EPS Rating also coming in at 97.

Big Money has been adding to holdings of the stock of late, with its Accumulation/Distribution Rating coming in at B-. In total, 65% of shares are held by funds, which is good.

Noteworthy Fund Backs Ralph Lauren

The Fidelity Contrafund is among the noteworthy backers of the stock, MarketSurge data shows.

While the consumer discretionary play has gained just over 4% so far this year, this is still better than the benchmark S&P 500.

Profits are seen spiking 31% in the 2026 fiscal year before slowing to 10% growth in 2027.

Known for its upscale Polo brand, Ralph Lauren also sells high-end furniture, bedding and lighting through its home division.

In the December quarter, Ralph Lauren reported same-store sales growth of 9%, just above the 8.9% analysts expected, according to FactSet. EPS popped 29% to $6.22 while revenue climbed 12% to $2.4 billion.

“This report should reinforce the market’s view (that) Ralph Lauren is one of softlines’ highest quality stocks and better able to navigate tariffs as well as choppy global macro trends than most,” UBS analyst Jay Sole wrote, using a retail industry term for apparel products.

Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.

YOU MIGHT ALSO LIKE:

Worth Grabbing Onto? This AI Stock Forms Rare, Powerful Pattern And Eyes Entry.

Just What The Doctor Ordered: This Medical Stock Offers Fresh Entry Amid 60% Rally

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?