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Best Stocks to Buy Now? How to Pick Them, and What History Shows

No honest page can hand you a list that fits everyone. This one gives you the method instead: five screening steps, the historical evidence for each, dated examples that went well and badly, and the mistakes that cost investors most.

Published Updated 8 min readHow we research

Key takeaways

  • No single list of “best stocks to buy now” fits everyone. The evidence favors shortlists that combine a profitable business at a sane price, agreement among analysts with strong records, and a position size you can hold through a crash.
  • Start from the base rate: only 155 of 422 (36.7%) of today’s largest US stocks beat the S&P 500 over the 10 years to Sep 30, 2026, and that sample includes survivors only.
  • Even top analysts miss: the median 5-star analyst’s calls were not higher 12 months later 31.4% of the time (Exent analyst data, 7 years to Oct 20, 2026).
  • Hot stocks often reversed: ARK Innovation (ARKK) gained 152.7% in 2020, then lost 23.4% in 2021 and 67.0% in 2022.
  • Decide the size and the reason to sell before you buy. Most damage comes from one oversized position, not from a missed winner.

What are the best stocks to buy right now?

No single list of “best stocks to buy now” fits everyone; the shortlists that held up best historically combined a fair benchmark, a profitable business at a sane price, agreement among analysts with strong records, and a position size the owner could hold through a crash. Here is the evidence for each step and how to build your own.

A list is the wrong starting point for three reasons. It goes stale within weeks as prices and ratings move. It ignores what you already own, so the same stock can diversify one portfolio and double the main risk of another. And it hides the base rate: most stocks do worse than a plain index fund. In Exent’s data, 155 of 422 of today’s largest US-listed companies beat the S&P 500 index over the 10 years to Sep 30, 2026; the median one gained 239.9% against 312.9% for the index fund.

Professionals face the same odds. According to S&P Dow Jones Indices’ SPIVA U.S. Year-End 2025 scorecard, 79% of active large-cap US funds trailed the S&P 500 in 2025. And over the long run, Hendrik Bessembinder’s 2018 study found that 1,092 companies, 4.3% of nearly 26,000 US stocks, accounted for all the market’s wealth creation above Treasury bills from 1926 to 2016. Picking stocks is a hunt for a small minority, so the method matters more than any single name.

How do I pick stocks to buy? A 5-step method

Run every idea through the same five steps, in order. Each row shows what to check and what the data says about that criterion on its own. Figures marked “our data” are as of Sep 30, 2026 unless dated otherwise.

StepWhat to checkWhat the data showsSource
1. Benchmark firstWould an S&P 500 index fund do the same job with less risk?36.7% of 422 large US stocks beat the index over 10 years (survivors only); 79% of active large-cap funds trailed it in 2025Our data; SPIVA 2025
2. Business qualitySeveral years of revenue growth, steady or rising margins, free cash flow behind the earnings, debt it can carry180 of 794 companies scored in the Altman Z-score distress zone; 10x winners of 2009–2024 skewed toward profitable firms with a high free cash flow yieldOur data; Yartseva (2025)
3. Price and trendValuation against its own history and peers; how far it has already runCheapness or trend alone did not beat the index: a value fund returned 11.4% a year and a momentum fund 16.2%, vs 15.3% for the S&P 500 (Jul 2016 to Sep 2026)Our data (fund returns)
4. Who agreesWhich analysts rate it, and their past accuracy, not the average rating70.8% of ratings were Buys; upgrades by 5-star analysts beat the S&P 500 over 3 months 60.0% of the time vs 49.8% for unranked analystsOur analyst data
5. Fit and sizeCorrelation with your largest holdings, the weight you start at, its worst past fallNvidia fell 85% in 2007–09 and 62% in 2022; the median uploaded portfolio held 77% in its top five positionsOur data

The pattern in the third column is the point: no single criterion was enough. A quality fund returned 14.2% a year over the same period, also below the index, and the momentum fund’s worst fall was 30.2% against 23.9% for the S&P 500. The steps work as filters that remove weak ideas, not as a formula that finds winners. A step-by-step checklist for one idea is in how to evaluate a stock idea.

What did past big winners look like before they ran?

Mostly profitable, growing and not obviously expensive, though plenty of companies with the same traits went nowhere. A 2025 working paper by Anna Yartseva, “The Alchemy of Multibagger Stocks”, studied 464 US stocks that rose at least tenfold between 2009 and 2024. Small, profitable companies at modest valuations with a high free cash flow yield did best; price momentum helped but reversed quickly. It is a working paper, not yet peer reviewed.

The balance sheet is the quickest filter. In our data, 180 of 794 US companies with the needed figures scored in the Altman Z-score “distress” zone, a classic warning of financial strain. A stock can still rise from there, but it is a different bet from a cash-rich business. The full research summary is in what the biggest stock winners had in common, and the odds of finding the next one in how to find the next Nvidia.

What stocks are analysts saying to buy, and how often are they right?

Analysts say “buy” to most stocks, so the rating alone tells you little; their track record tells you more. In Exent analyst data covering 921,573 calls from 1,121 ranked analysts over 7 years (statistics as of Oct 20, 2026), 70.8% of ratings in the last 12 months were Buys and 2.9% were Sells.

Analyst groupAnalystsPrice targets reached (median)Calls higher after 12 months (median)Calls not higher after 12 months
5 stars14260.5%68.6%31.4%
4 stars96654.4%63.2%36.8%
All calls pooled1,12153.6%64.6%35.4%
Analyst group5 stars4 starsAll calls pooled
Analysts1429661,121
Price targets reached (median)60.5%54.4%53.6%
Calls higher after 12 months (median)68.6%63.2%64.6%
Calls not higher after 12 months31.4%36.8%35.4%

So even the best-rated analysts were wrong about direction roughly three times in ten, and after the average call the stock fell 22.5% below the rating-day price at its lowest point in the following year. Star ratings come from those same past calls, so the gap between groups describes history, not a forecast, and the window was mostly a rising market.

Fresh moves by strong analysts carried a little more information. Across 11,514 upgrades from 2019 to Sep 15, 2026, stocks upgraded by 5-star analysts beat the S&P 500 over the next three months 60.0% of the time, against 49.8% for analysts outside the ranking. Details in did analysts see the biggest winners coming and on the analyst rankings; the method behind “where top analysts agree” is on what top analysts are recommending.

What happened to past picks? Dated examples, good and bad

Both, often in the same stock. The table mixes outcomes on purpose. Calendar-year total returns are from our data as of Sep 30, 2026.

ExampleWhenWhat happenedLesson
NVIDIA (NVDA)10 years to Sep 30, 2026+13575% in total, yet −50.3% in 2022 aloneWinners fell hard on the way; size decided who held on
ARK Innovation ETF (ARKK)2020 to 2022+152.7% in 2020, then −23.4% and −67.0%Buying after the hot year was the costly part
Zoom (ZM)2020 to 2022+395.8% in 2020, then −45.5% and −63.2%A real business boom does not protect the price
PayPal (PYPL)2020 to 2022+116.5% in 2020, then −19.5% and −62.2%A well-known leader can still halve
Intel (INTC)2023 to 2024+94.5% in 2023, then −59.6% in 2024A rebound year is not a trend
BioMarin Pharmaceutical (BMRN)Targets set from 2019Only 23.0% of 586 analyst price targets were reached within 12 months (median stock: 68.6%)Persistent analyst optimism can be wrong for years
12 past Gems shown on /radarFlagged Jan 8, 2026 to Apr 1, 2026+47% to +226% from flag date to the exit date shownSelected winners only; says nothing about the misses

Read the last row with care. It is the public sample of 12 past Gems on the Stocks Radar page: Exent’s recorded figures, not independently audited, chosen to show stocks that worked. A selected set of winners cannot tell you a hit rate. Judge any picks service, ours included, on a complete time-stamped record with losses, as explained in has following top analysts’ consensus picks worked.

What should I avoid when picking stocks?

Avoid the habits that turn a reasonable idea into a large loss. Several popular signals also looked weaker in the data than their reputation suggests:

Popular signalWhat happened next, in our data
Insider buying17,865 open-market insider buys since Feb 2012: 51.4% beat the S&P 500 over 12 months; median +1.0% vs the index
Joining the S&P 500277 additions since 2013: median −6.4% vs the index over the next 12 months; 39.8% beat it
Beating earnings estimatesAcross 12,015 quarterly reports, the stock fell after 43.3% of earnings beats
  • Chasing a stock because it already went up. The attention arrives after the gain; see stop chasing hot stocks below.
  • Single-stock concentration. In 145 anonymized portfolios uploaded for analysis, the median top position was 26.3% of the money.
  • Buying a theme several times. Three AI chip stocks and a Nasdaq-100 fund are one bet, not four.
  • Trusting a rating count. With most ratings a Buy, who agrees matters more than how many.
  • Having no exit. Write what would prove the idea wrong before the price makes the decision for you.

More on the first two in how to stop chasing hot stocks and is it too late to buy a stock after it doubled.

How do I build my own shortlist this weekend?

  • Write the job each new stock should do in your portfolio: growth, income, or a hedge against what you already own.
  • Start from 10 to 20 ideas from sources with a track record, not from headlines.
  • Drop any idea that fails step 2: weak cash flow, debt it cannot carry, or a shrinking margin.
  • Compare valuation with the stock’s own history and peers; note how far it has run in the past year.
  • Check which analysts rate it and their past hit rates, not the number of Buys.
  • Look up its worst fall in 2020 and 2022, and size it so that fall would be a loss you can hold through. Illustrative: on a $500,000 portfolio, a 3% position is $15,000; a 60% fall costs $9,000, or 1.8% of the portfolio.
  • Keep three to five names on a watchlist and revisit them after earnings, not after price spikes.

How Exent helps with the shortlist

  1. Gems are Exent’s top picks: stocks where several of the best‑rated analysts (4★ and above on past accuracy) independently agree, each with a written thesis. Our hunt for the next big winners, not a promise.
  2. Stocks Radar ranks thousands of Wall Street analysts by past accuracy, so you can see who rates a stock and how their earlier calls played out.
  3. Upload your holdings (a screenshot, CSV, Excel, PDF or Google Sheet; no brokerage login) and add an idea in the what‑if simulator to see its effect on concentration, correlation clusters and crash replays before you trade.

Exent is our product. Educational content, not investment advice.

Frequently asked questions

No list fits everyone, and most stocks lag the index: 36.7% of today’s largest US stocks beat the S&P 500 over the 10 years to Sep 30, 2026. A sounder approach is to screen for a profitable business at a reasonable price, check which analysts with strong records agree, and size each position so you can hold it through a crash.

Most of them: 70.8% of analyst ratings in the past 12 months were Buys and 2.9% were Sells. More useful is where analysts with strong past records agree; even so, the median 5-star analyst’s calls were not higher a year later 31.4% of the time.

Nobody can know. Nvidia returned about 13,575% over the 10 years to Sep 30, 2026 and +22.4% over the last year, but it also fell 85% in 2007–09 and 62% in 2022. 47 of 49 covering analysts rated it a Buy. The better question is how large a position you could hold through another fall of that size.

A classic 1987 study by Meir Statman found a well-diversified portfolio of randomly chosen stocks needs at least 30 stocks, or 40 for some investors. Stocks that move together count as one bet, so correlation matters as much as the count.

Any current list would be a guess dressed as a fact. Past AI winners such as Nvidia also had falls of more than half, and buying several AI stocks often means owning one theme several times. The same five steps apply: business, price, who agrees, fit and size.

Only weakly. In Exent’s data, 51.4% of insider buys since 2012 beat the S&P 500 over the next 12 months, and stocks fell after 43.3% of earnings beats.

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Educational content, not investment advice. Examples are illustrative; past performance does not guarantee future results.

DISCLAIMER: Exent AI is an informational research platform and does not provide investment advice, financial advice, or act as an investment adviser, broker-dealer, or fiduciary. All content, analytics, and model outputs are provided for educational and informational purposes only and should not be relied upon as a recommendation to buy, sell, or hold any financial instrument. Investing involves risk, including the possible loss of principal. Exent AI does not execute trades, hold customer funds, or provide brokerage services. Past performance and hypothetical results are not indicative of future results. Third-party data and AI-generated outputs may be incomplete or inaccurate.