The stock market presents a dynamic landscape shaped by easing trade tensions, technological advancements, and shifting investor sentiments. With the S&P 500 and Nasdaq achieving notable gains, investors are keenly observing sectors like technology, fintech, and energy for promising opportunities. Companies such as Microsoft have demonstrated robust performance, reflecting strong earnings and strategic positioning in the AI space.
Meanwhile, the resurgence of fintech firms like Coinbase indicates renewed investor confidence in digital finance platforms. Energy stocks, including those in traditional and renewable sectors, are also drawing attention amid fluctuating oil prices and global energy demands. This article delves into the top stocks to consider now, highlighting those with strong fundamentals and growth potential in the current market environment.
Best Stocks to Buy
After two strong years with gains over 20% in 2023 and 2024, the S&P 500 has had a slow start in 2025. Investors are navigating several macroeconomic challenges, including a trade war, federal layoffs, slowing growth, high interest rates, and concerns about potential stagflation.
In this uncertain environment, careful stock selection is more important than ever. The 10 top stock picks listed below come highly recommended they’ve earned a “positive” consensus rating from Thomson Reuters, a “buy” rating from Argus’ A6 quantitative model, and a “long” rating from Market Edge.
Brown & Brown Inc
Brown & Brown offers insurance solutions, risk management, employee benefits, and managed health care services. With 31 consecutive years of dividend increases, the company demonstrates strong financial stability. Analyst John Staszak highlights consistent earnings growth driven by organic expansion and strategic acquisitions. He also notes Brown & Brown’s solid balance sheet and diversified business model, which position it to boost fee and commission revenue through new strategies.
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CME Group
CME Group, the world’s largest futures exchange, offers a broad range of futures and options products. Analyst Kevin Heal notes that 2025’s heightened market volatility is fueling demand. Shifting headlines on tariffs, geopolitics, and inflation are driving interest rate contract trading, while bond market turbulence adds momentum.
Heal also expects sustained high volumes in agricultural, equity index, cryptocurrency, and other contracts, boosting revenue potential. Argus holds a “buy” rating and a $285 price target for CME stock, which closed at $281.99 on May 8.
W. R. Berkley Corp
W. R. Berkley, a Connecticut-based insurer, provides commercial insurance and reinsurance globally. Analyst Kevin Heal highlights strong tailwinds for 2025, including persistent price increases and rising demand for property and casualty coverage.
Berkley’s fixed-income portfolio also stands to gain from higher interest rates as it reinvests in higher-yielding bonds. With a first-quarter operating return on equity of 19.3%, the company outperforms many peers. Argus maintains a “buy” rating and a $77 price target for WRB stock, which closed at $72.72 on May 8.
Zimmer Biomet Holdings Inc
Zimmer Biomet specializes in orthopedic and musculoskeletal implants. Analyst David Toung sees strong growth drivers for 2025, including leading large-joint orthopedic products, upcoming launches, and recent strategic acquisitions.
He highlights the Paragon 28 buyout as a key move to strengthen Zimmer’s position in the foot and ankle market. Long term, the company’s knee and hip replacement business is poised to benefit from an aging population across North America, Europe, and Asia. Argus has a “buy” rating and a $140 price target for ZBH stock, which closed at $95.11 on May 8.
Exelon Corp
Exelon, a U.S. electric and gas utility, serves major metro areas like Philadelphia, Chicago, and Baltimore. Analyst Marie Ferguson notes that Exelon’s shift to a pure-play transmission utility after spinning off its energy generation business positions it to benefit from stable wholesale prices, lower costs, and fewer generation-related risks.
The company’s focus on hydropower and clean energy transmission may also bring tax advantages. With a 5% to 7% earnings growth target from utilities, Ferguson sees strong potential ahead. Argus holds a “buy” rating and a $48 price target for EXC stock, which closed at $45.10 on May 8.
Lockheed Martin Corp
Lockheed Martin, a global leader in defense, security, and intelligence, also supplies NASA and other non-defense agencies. The company manufactures missile systems, targeting technology, and mission systems for naval and air platforms, including Black Hawk helicopters. Analyst Kristina Ruggeri says rising geopolitical tensions and a record government contract backlog position Lockheed for continued growth.
Management remains confident in the 2025 outlook, particularly for aerospace and missile defense programs. Argus maintains a “buy” rating and a $510 price target for LMT stock, which closed at $474.53 on May 8.
Kroger Co
Kroger, one of the largest U.S. supermarket chains, operates around 2,700 stores across 35 states. Analyst Chris Graja credits Kroger’s strong customer loyalty and brand value as key drivers of its success. The company uses data from 62 million households to deliver personalized discounts and targeted offers. Graja also highlights Kroger’s focus on fresh foods and its innovative, budget-friendly private brands. Argus has a “buy” rating and a $75 price target for KR stock, which closed at $71.81 on May 8.
Waste Management Inc
Waste Management offers environmental and waste services to residential, commercial, industrial, and municipal clients. Analyst John Eade highlights the company’s strong balance sheet and focus on shareholder returns. Waste Management is also investing in technologies to boost profits from its recycling business. With five years of solid bullish momentum, Eade believes the stock deserves a premium valuation due to its financial strength and consistent execution. Argus has a “buy” rating and a $245 price target for WM stock, which closed at $233.13 on May 8.
Frequently Asked Questions
What criteria should I use to identify top stocks to buy now?
Key factors include strong financial health, consistent earnings growth, positive analyst ratings, competitive advantages, and favorable market conditions.
How do I know if a stock is worth watching closely instead of buying immediately?
Stocks with upcoming product launches, potential market catalysts, or recent volatility may be worth monitoring for the right entry point.
What industries currently offer the best stock opportunities?
Growth sectors often include technology, healthcare, clean energy, and consumer staples, but market trends can shift rapidly.
How important are analyst ratings and price targets when choosing stocks?
Analyst insights provide valuable perspectives, but it’s essential to combine them with your own research and risk tolerance.
What role does dividend history play in selecting top stocks?
Consistent dividend growth can signal financial stability and shareholder value, especially for income-focused investors.
How can geopolitical events impact stock performance?
Political tensions, tariffs, and policy changes can affect market volatility and sector performance, influencing stock prices.
What tools or platforms are best for tracking top stocks and market trends?
Popular options include financial news websites, brokerage platforms, stock screeners, and market analysis tools like Bloomberg, Yahoo Finance, and Seeking Alpha.
Conclusion
Choosing the right stocks to buy or watch requires careful analysis of market trends, company fundamentals, and expert insights. By focusing on companies with strong financials, growth potential, and strategic positioning, investors can uncover valuable opportunities in today’s dynamic market. Staying informed through reliable sources and monitoring key developments will help you make smarter investment decisions and maximize your portfolio’s potential.
