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Sep 2019
Sep 2024
Top 6 Stocks To Buy Right Now
Our repeated backtests have shown that high-quality companies outperform the market over the long term, period. This is a list of the highest-quality companies in our coverage. But we don’t just stop there. We also consider the timeliness of investing in these names by not only analyzing the companies in a vacuum but by looking at quality and valuation compared to peers using the latest available data.
ServiceNow (NOW)
Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) is a software provider helping companies automate workflows across IT, HR, and customer service.
Why We Like It:
ServiceNow’s best-in-class 31.3% free cash flow margins give it the resources it needs to beat the competition. Furthermore, its strong projected revenue growth suggests healthy demand for its products. This is one of our top software stocks.
Microsoft (MSFT)
Short for microcomputer software, Microsoft (NASDAQ:MSFT) is the largest software vendor in the world with its Windows operating system, Office suite, and cloud computing services.
Why We Like It:
Despite its massive scale, Microsoft has posted solid revenue growth over the last five years. It also boasts a rare competitive moat that materializes into durable pricing power and some of the best profit margins across all public companies.
Sterling (STRL)
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ:STRL) provides civil infrastructure construction.
Why We Like It:
Sterling is an unstoppable cash flow machine. Its blend of high revenue growth and profitability gives it attractive return potential. On top of that, its expanding operating margin shows it’s becoming a more efficient business. No coincidence the stock is up 1,113% over the last five years.
SPX Technologies (SPXC)
SPX Technologies (NYSE:SPXC) is an industrial conglomerate catering to the energy, manufacturing, automotive, and aerospace sectors.
Why We Like It:
SPX Technologies’s rising free cash flow margin gives it more chips to play with and its expanding operating margin shows it’s becoming a more efficient business. No coincidence the stock is up 237% over the last five years.
Broadcom (AVGO)
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Why We Like It:
Semiconductors are the lifeblood of technology and Broadcom produces some of the finest. Additionally, its impressive operating margins show it has a highly efficient business model. No coincidence the stock is up 500% over the last five years.
Robinhood (HOOD)
With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Why We Like It:
Robinhood’s excellent gross margins demonstrate the value and prominence of its products and its strong operating margins show it’s a well-run business. This is a splendid business you don’t see often.