As executive editor for Kiplinger's Personal Finance Magazine, I have authored Kiplinger's investing outlooks, which include the best stocks to buy now, since 2012, surveying the stock market and economy and synthesizing my findings into key takeaways.
That's no small task, given the broad and dynamic nature of the market. Along with conducting plenty of research, I rely on my experience to draw out the most important trends and likely winners for the best stocks to buy.
I've covered this story for over a decade now, but I've been an investing writer for far longer. I've seen investors through a lot of bull markets and bear markets.
How you can choose the best stocks to buy
When investors are attempting to find the best stocks to buy now, they should look beyond factors such as company size (small-cap stocks and large-cap stocks, for instance) or investing style (such as growth or value) and search for stocks of companies with consistent profits, good cash flow and other indicators that reflect quality.
"If a company generates more cash than it needs to run its business, it can do a number of useful things with it, such as pay dividends, buy back its stock, acquire other companies, expand its business and knock out its debts," writes Kiplinger contributor Will Ashworth on the importance of good cash flow.
While Kiplinger's outlook provides context and advice related to general market trends, it's important for individual investors to consider their own risk tolerance and time horizon when deciding what works best for them and their financial goals.
With that in mind, here are five of the best stocks to buy now.
When assembling this list of Kiplinger's best stocks to buy, we seek out high-quality companies that boast solid fundamentals such as strong earnings and revenue growth as well as free cash flow. Free cash flow is the money left over after operating expenses and spending on assets.
Additionally, we will often look for names considered some of the best value stocks as measured by their forward price-to-earnings (P/E) ratios.
Our list of the best stocks to buy varies by size and industry and the picks are not meant to make up a diversified portfolio. But all, for one reason or another, are stocks we feel are well positioned to benefit over the next 12 months.
Ticker symbol |
Company |
|---|---|
ABNB |
Airbnb |
CMG |
Chipotle Mexican Grill |
EWBC |
East West Bancorp |
ETN |
Eaton |
STX |
Seagate Technology |
- Sector: Consumer discretionary
- Market value: $84.7 billion
- Dividend yield: N/A
Travel stocks might not come to mind when oil and gas prices are crimping vacation budgets. But Oppenheimer analysts recently upgraded Airbnb (ABNB) to Outperform, the equivalent of Buy, with a 12- to 18-month price target of $180 and an estimated 2026 earnings-per-share gain of nearly 30%.
"We see Airbnb better positioned to absorb travel-corridor dislocations," they say. Hotel-room rentals, "reserve now, pay later" policies and AI-assisted search should drive revenue gains.
The World Cup is helping, with demand for rentals running ahead of 2025 levels in host cities, according to Oppenheimer.
- Sector: Consumer discretionary
- Market value: $41.8 billion
- Dividend yield: N/A
Shares of Chipotle Mexican Grill (CMG) are down a cumulative 52% over the past two years, thanks to slower sales and skimpier profit margins.
Traffic at the restaurants is picking up, however, and Chipotle is working on ways to improve quality and consistency (by testing automatic sensors for apportioning ingredients in its bowls, for example).
Oppenheimer analyst Brian Bittner recently reiterated his Outperform rating on the stock; it's his top pick for 2026. The consumer discretionary stock trades at 30 times earnings, far below its five-year median P/E of 46.
- Sector: Financials
- Market value: $17.4 billion
- Dividend yield: 2.5%
Regional bank stock East West Bancorp (EWBC) garners research firm CFRA's highest rating, a Strong Buy.
CFRA sees record revenue, earnings per share, deposits and loans in 2026 and 2027 for the well-capitalized, California-based bank, in contrast to more uneven growth among peer banks.
Over the past 25 years, the shares have outperformed peers by 7%-plus annually, yet they trade in line with peer valuations, notes CFRA. Its 12-month price target is $165 per share; the financial stock yields 2.5%.
- Sector: Industrials
- Market value: $163.8 billion
- Dividend yield: 1.0%
Demand has never been higher for the mission-critical components that Eaton (ETN) makes for use in data centers, utilities, aircraft and cars to manage electrical, hydraulic and mechanical power. Data center orders were up 240% in the most recent quarter.
Argus Research analyst Kristina Ruggeri rates the stock a Buy. Analysts expect sales and earnings growth of 10% and 16%, respectively, for the year ahead.
The industrial stock is up 36% for the year to date and trades at 33 times forward earnings estimates, so snap it up on dips.
- Sector: Technology
- Market value: $240.2 billion
- Dividend yield: 0.3%
Seagate Technology (STX), the maker of hard disk drives, is "firing on all cylinders," say Morgan Stanley analysts, who name it a "top pick."
AI applications are fueling accelerating data growth, and with it, data-retention needs. Hard disk drives continue to capture roughly 80% of cloud storage demand, they note, and Seagate's product pricing, gross profit margins and earnings power are exceeding already high forecasts.
Morgan Stanley's price target for the tech stock of $1,035 is 29 times its estimated earnings of $35.38 per share in fiscal 2027.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
