Buckle up — the market is looking jittery right now. If it’s not the threat of further Federal interest rate hikes, its the possibility of a full-blown trade war with China and Europe. Most recently, President Donald Trump announced steep tariffs on steel and aluminum imports. The news saw the S&P 500 close down 2% last week. This is nearly twice as much as any decline in 2017.
However, for investors prepared to put in the work, there are still gems to be found. I set out to pinpoint the best stocks to buy right now using the Street as my guide. TipRanks tracks and measures the performance of over 4,700 analysts enabling investors to identify consistently outperforming experts.
Analysts are ranked based on two crucial factors: success rate and average return per recommendation. Following top analysts is an easy way to identify stocks that experts believe have strong investing potential. That’s why here I only include stocks with a ‘Strong Buy’ top analyst consensus based on the past three months of ratings. Using this consensus, investors can be reassured that these stocks are the crème de la crème as far as the Street is concerned.
Bearing this in mind, let’s dive in and take a closer look at these 2 screaming buy stocks to invest in right now:
Alibaba Group Holding Ltd
Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) has a “strong buy” analyst consensus rating with big upside potential of 23%. The Street is unanimous in its take on BABA as one of the best stocks to invest in right now. I say that because in the last ten months this stock has received no hold or sell ratings from the Street. Just 100% buy ratings.
On Feb. 2, top Oppenheimer analyst Jason Helfstein reiterated his “buy” rating and $220 price target. He doesn’t mince his words when he says: “Our positive thesis is based on the company’s unrivaled dominant position in its core business, its pioneer ecosystem that creates a long-standing barrier to entry, and numerous drivers including enhancing monetization and stable GMV (gross merchandise volume) growth outlook.”
Key growth drivers to keep a close watch on include rural/cross-border/cloud/logistics. For example AliCloud (Alibaba’s answer to Amazon Web Services) revenue is soaring with triple-digit y/y growth.
Social media giant Facebook Inc (NASDAQ:FB) is one of the best stocks to invest in right now. Shares are cheap at $182 down from $193 at the beginning of February. And now we have a clear buying opportunity on our hands according to two top analysts.
Five-star MKM Partners analyst Rob Sanderson says FB’s current valuation is “highly attractive.” Shares have pulled back as investors “debate the impact of an expected decline in engagement, revenue growth deceleration and an elevated spending outlook.” With another strong quarter of robust top-line growth in the bank, Sanderson sees prices spiking 32% to $240.
Meanwhile Top-100 analyst KeyBanc analyst Andy Hargreaves adds “We believe this provides an opportunity to purchase above-average growth at Facebook for a price that is well below average.” He believes investors are heavily discounting FB’s growth prospects and extraordinary core momentum. His $245 price target suggests even greater upside potential of 35%.
Over the last three months, this “Strong Buy” stock has scored 28 buy ratings, two hold ratings and one sell rating.