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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 bountiful free cash flow gives it the ability to invest in many ventures. On top of that, its robust profit margins provide the capacity to reinvest or return capital to shareholders. This is a prime example of a "high-quality" business.
Datadog (DDOG)
Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) is a software-as-a-service platform that makes it easier to monitor cloud infrastructure and applications.
Why We Like It:
Datadog excels in its market and is the envy of competitors. Its elite revenue growth and efficient sales engine give it piles of cash that can be plowed back into growth initiatives. We believe this is one of the best software stocks in the world.
Chart (GTLS)
Installing the first bulk Co2 tank for McDonalds’s sodas, Chart (NYSE:GTLS) provides equipment to store and transport gasses.
Why We Like It:
Chart stands out in what is generally considered a mature sector. Its sales have grown wonderfully and analysts predict its winning ways will continue. Additionally, its expanding operating margin shows it’s becoming a more efficient business. No coincidence the stock is up 354% over the last five years.
Vertiv (VRT)
Formerly part of Emerson Electric, Vertiv (NYSE:VRT) manufactures and services infrastructure technology products for data centers and communication networks.
Why We Like It:
Vertiv stands out in what is generally considered a mature sector. Its sales have grown wonderfully and analysts predict its winning ways will continue. Furthermore, its rising free cash flow margin gives it more chips to play with. No coincidence the stock is up 630% over the last five years.
Nvidia (NVDA)
Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.
Why We Like It:
Nvidia’s deep technical expertise empowers it to create some of the most innovative semiconductor products. On top of that, its impressive operating margins show it has a highly efficient business model. No coincidence the stock is up 1,458% over the last five years.
Philip Morris (PM)
Founded in 1847, Philip Morris International (NYSE:PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.
Why We Like It:
Philip Morris produces substantial cash profits from its investments and funnels them into further investments that enhance returns. Additionally, its unparalleled brand awareness makes it a household name consumers consistently turn to. Any surprise this is one of our favorite stocks?