These Are The 5 Best Stocks To Buy Or 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? Viking (VIK), General Dynamics (GD), Ligand Pharmaceuticals (LGND), HCA Healthcare (HCA) and BWX Technologies (BWXT) are prime candidates.

The market confounded expectations for difficulties and turned in an outstanding performance in 2023, 2024 and 2025. 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. The conflict in Iran and the ongoing uncertainty over the Trump administration’s tariff agenda are other factors hanging over the market.

				    ↑
					X

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

								Volatility Soars As Wall Street Weighs U.S.-Iran War. How To Manage Risk When Geopolitics Flip.
							

							

								See All Videos
							

						

					
					
						NOW PLAYING
						Volatility Soars As Wall Street Weighs U.S.-Iran War. How To Manage Risk When Geopolitics Flip.

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 both slipped below the important 50-day moving average, a negative.

While buying exceptional stocks clearing proper buy points is an option, it makes sense to take a defensive posture at the moment due to recent volatility. 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

• Viking
• General Dynamics
• Construction Partners
• HCA Healthcare
• BWX Technologies

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.

**Viking **Stock

Cruise ship play Viking is just below a buy zone from a flat base buy point of 74.61, MarketSurge analysis shows. This is an early-stage pattern, which IBD research has found is more likely to net good gains.

The stock has undercut its 50-day moving average amid broader stock market and sector weakness.

The relative strength line is just off highs. An upward spike here could help drive the breakout. The RS line gauges a stock’s performance vs. the S&P 500.

The all-around performance of Viking stock is strong, but not ideal, which is reflected in its IBD Composite Rating of 87 out of 99.

The stock is up 1% so far in 2026. This is better than the benchmark S&P 500, which is slightly negative.

Institutions have been snapping up shares recently, with its Accumulation/Distribution Rating coming in at B+.

In total, 56% of its shares are held by funds, according to MarketSurge data. The lauded Fidelity Contrafund (FCNTX) and the T. Rowe Price New Horizons Fund (PRNHX) are among noteworthy holders.

Fundamental performance is a relative weakness at the moment, with its Earnings Per Share Rating sitting at 74 out of a best-possible 99.

Strong progress is seen ahead though, with per-share profits seen popping 28% this year before slowing to 23% growth in 2027.

The IPO cruise stock went public in May 2024 and has made strong gains on its offering price of 24. It has a global fleet of more than 100 ships, including 88 river vessels and 12 ocean ships. The firm has announced it expects to take delivery of two ocean ships and 10 river ships in 2026.

The company reported that its capacity passenger cruise days increased during the quarter by 14.7% from last year, driven by the expansion of its fleet, which added six river vessels and two additional ships. Occupancy increased to 95% from 92% the prior year.

Viking said that as of Feb. 15 it sold 86% of its capacity passenger cruise days for the 2026 season. That’s up from 70% in Q3.

Advanced bookings for the 2026 season are 13% higher from last season, with $5.96 billion in advanced bookings as of Feb. 15.

“We are seeing a strong booking environment characterized by robust demand across our products, from both repeat guests and new-to-brand customers,” CEO Leah Talactac said.

Underlining its quality, Viking is a member of the prestigious IBD Leaderboard list of top stocks.

**General Dynamics **Stock

The defense stock has formed a flat base with a 369.70 buy point. It already cleared a downward-sloping trendline, an early entry.

The stock is finding support at its 50-day moving average. In addition, its relative strength line is hitting fresh heights, which is bullish.

General Dynamics stock is strong both fundamentally and technically, which is reflected in its IBD Composite Rating of 89.

Its fundamental performance is a relative weakness, with its Earnings Per Share Rating sitting at 71 out of 99.

Earnings are seen rising 6% in 2026 before accelerating to 11% growth the following year, MarketSurge data shows.

In contrast, technical performance is currently its strongest suit, as it ranks among the top 19% 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 C+.

The Fidelity Contrafund is among the Wall Street heavy hitters that have taken a stake in the company.

The company is a defense contractor and business jet maker. It operates through four segments: aerospace, marine, combat systems, and technologies. Its products include the M1 Abrams tank, nuclear-powered submarines and Gulfstream business jets. It also has interests in cybersecurity and cloud computing.

In late January the firm cleared fourth-quarter earnings and revenue estimates amid a surge in orders and marine systems sales. CEO Phebe Novakovic during the investor call said it was a “strong quarter, bordering on exceptional.” Novakovic noted that Gulfstream deliveries “increased significantly,” while orders outpaced internal forecasts.

Stock Market Skids On Surging Oil Prices; Broadcom, Nvidia Rise

Ligand Pharmaceuticals Stock

The pharma stock is near a consolidation ideal buy point of 212.49, MarketSurge analysis shows.

This is a fourth-stage pattern for the stock, which is negative. However, it has bullishly cleared its 50-day line even as the broader market came under pressure.

It is also clear of its short-term moving averages, a further positive.

The stock has seen its relative strength line surge to new highs. This is encouraging as it eyes a potential breakout. So far in 2026, the stock has climbed more than 9%.

All-around performance is formidable, which is reflected in its IBD Composite Rating of 96 out of 99.

Price performance is a strong attribute, with the stock sitting among the top 9% of equities in terms of gains over the past 12 months.

It is even better from a fundamental perspective, with its EPS Rating sitting at 94 out of 99. Full-year earnings are seen rising 5% this year before accelerating to 14% growth in 2027.

Big Money has been loading up on the stock of late, with its Accumulation/Distribution Rating standing at B-. In total, 67% 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).

Wall Street analysts are currently bullish on the prospects of Ligand Pharmaceuticals. The stock holds a consensus rating of strong buy, and has exceeded the average price target of 245.86, according to TipRanks.

Citi analyst Yigal Nochomovitz is even more enthusiastic, rating it as a buy with a 270 target. In a Feb. 26 research note he said that as management continues to “emphasize discipline” that achievement of 23% year-over-year topline compound annual growth rate “appears feasible.”

“We believe Ligand offers an interesting value proposition for investors seeking to partake in biotech’s possible upsides while minimizing the inherent volatility of the sector,” he said. “LGND’s portfolio of royalty assets is diversified across mid-to-late-stage development and commercial products, limiting risks associated with concentrated investment exposure without restricting upside.”

HCA Stock

The hospital stock is in the buy zone above a cup-with-handle buy point of 520, MarketSurge analysis shows.

Shares also have a three-weeks tight entry of 552.90.

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 85 out of 99.

Its offers a solid balance of fundamental performance and price accumulation. It ranks among the top 11% of equities over the past 12 months. It is crushing the benchmark S&P 500 so far in 2026, rising more than 14%.

But fundamental performance is its strongest attribute, with its Earnings Per Share Rating sitting at 96 out of 99. Earnings are projected to rise 98% in fiscal 2025 before slowing to 26% this year, according to MarketSurge data.

HCA has been harnessing the power of artificial intelligence as it chases growth. The firm’s Chief Financial Officer, Michael Marks, outlined some of the firm’s initiatives in this area at a Raymond James investor conference on Wednesday.

Among its administrative initiatives is an effort with Palantir (PLTR) involving the use of a large language model to summarize and synthesize medical records, both to save time for physicians and to prepare materials for arbitration cases and appeals for when claims are denied.

HCA also developed its Timpani automated scheduling and staffing system in conjunction with Palantir. Timpani, now in about 80 hospitals, uses AI to predict demand and translate that into appropriate-level staffing.

Despite the expiration of enhanced subsidies for Affordable Care Act health coverage purchasers, who accounted for 10% of HCA’s revenue last year, “margins are expected above 20%, in line with '25,” wrote Jefferies analyst Brian Tanquilut in a Jan. 27 note.

Management “has focused immensely on finding cost/efficiency offsets,” he wrote, and he anticipates “resiliency” efforts to enable HCA to continue to weather government cuts to Medicaid coming down the pike.

Big Money has been adding to their holdings in recent weeks, earning HCA an Accumulation/Distribution Rating of B. Noteworthy backers include the Fidelity Contrafund (FCNTX) and the Fidelity Series Growth Company Fund (FCGSX).

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

BWX Technologies Stock

BWX Technologies has formed a consolidation with an ideal buy point of 220.57, IBD MarketSurge analysis shows.

This is an early-stage pattern, which is favorable. The relative strength line is sitting near new highs, which is also a bullish sign.

Shares came close to a breakout on March 2, but reversed below its 50-day line.

All-around performance is very strong, with its IBD Composite Rating sitting at 96 out of 99.

BWX Technologies ranks among the top 9% of equities in terms of price performance over the past 12 months.

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

Earnings have grown by an average 21% over the past three quarters, just shy of the 25% growth sought by The IBD Methodology investors. Full-year EPS is seen rising 14% this year before slowing to 12% growth in 2027.

Big Money has been adding to holdings of the stock of late, with its Accumulation/Distribution Rating coming in at C+. In total, 57% of shares are held by funds, a bullish indicator.

The Franklin Growth Fund (FKGRX) and the Lord Abbett Developing Growth Fund (LAGWX) are among the noteworthy backers of the stock, MarketSurge data shows.

The firm operates through its Government Operations and Commercial Operations segments. It designs and makes nuclear reactors for the U.S. Navy’s submarines and aircraft carriers.

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?