Choosing which stocks to buy may seem simple, but finding winners without a proven investment strategy is far more challenging. For investors seeking top opportunities in the current market, Valero Energy (VLO), Globus Medical (GMED), Kinross Gold (KGC), CME Group (CME), and TJX (TJX) stand out as compelling buys or additions to a watchlist.

The stock market delivered an unexpectedly strong performance throughout 2023 and 2024. Although Donald Trump’s election victory initially lifted equities, his tariff plans pressured the market soon after. However, sentiment has improved as the administration has eased some tariffs, and the Federal Reserve has shifted toward rate cuts amid signs of weakening employment data.

What Makes the Best Stocks to Buy? Key Principles

With thousands of stocks listed on the NYSE and Nasdaq, the challenge isn’t finding investments—it’s identifying the right ones. The IBD investing framework highlights several essential traits to look for:

Quarterly and annual earnings growth of 25% or more
New, market-shifting products or services
Fast-growing companies, including promising IPOs, even if not yet profitable
Strong institutional buying
Leadership within high-performing industry groups

Once a stock meets these criteria, investors should consult charts to determine a proper entry point. Patience is key—successful trades often involve waiting for a base to form, then buying as the stock breaks above a recognized buy point with strong volume.

Market Direction: A Crucial Factor

Even the strongest stocks tend to follow the broader market trend. The S&P 500 and Nasdaq recently dipped below their 50-day moving averages but have bounced back. Investors should:

Buy only during a confirmed uptrend
Move to cash in a market correction
Build a watchlist of stocks forming bases near buy points
Watch for sell signals, including a 7-8% decline from purchase price

Given current conditions, staying flexible and monitoring trend changes is more important than ever.

Top 5 Stocks to Buy or Watch Now

1. Valero Energy (VLO)

Valero is nearing a buy range after forming a flat base with a buy point of 178.43, and the stock recently found support at the 50-day line. Its relative strength line is approaching 12-month highs, signaling strong performance versus the S&P 500.

Composite Rating: 76
2025 performance: up ~42%
Institutional ownership: 49%
Recent earnings: Q3 earnings surged 216% YoY

Valero plans to shut down its Northern California refinery by 2026, a move expected to raise regional gasoline prices. Analysts have raised price targets due to global refining shifts, sanctions on Russia, and stronger refining margins.

2. Globus Medical (GMED)

Globus Medical has broken into the buy zone after clearing a cup-with-handle base with an ideal entry at 87.16. Though extended above key averages, its technical strength is undeniable.

Composite Rating: 98
EPS Rating: 95
12-month performance: among top 11% of all stocks

Q3 earnings climbed 42%, while revenue increased 23%. The company raised full-year guidance for 2025, reflecting strong demand in spinal and joint-reconstruction products, and growth from its ExcelsiusGPS robotic surgical platform.

3. Kinross Gold (KGC)

Kinross is rebounding off its 50-day moving average, giving investors an actionable entry around 24.20, with a secondary entry at 26.47.

Composite Rating: 99
EPS Rating: 96
2025 performance: up ~174%

Earnings are projected to jump 143% this year. Technically, the stock ranks in the top 3% for price performance. Institutional demand has risen, and funds now hold 50% of shares.

4. CME Group (CME)

CME Group has formed a cup-with-handle pattern with a buy point of 287.74, a first-stage base that often precedes strong moves.

Composite Rating: 82
EPS Rating: 80
2025 performance: up 19%

CME benefits from market uncertainty, which boosts derivatives trading volume. The company runs major exchanges such as CME, CBOT, NYMEX, and COMEX, and recently partnered with FanDuel to enter prediction-market trading.

5. TJX (TJX)

TJX has surged above a buy point of 145.58 from a flat base. The stock has shown strong support at key moving averages.

Composite Rating: 92
EPS Rating: 89
Fund ownership: 46%

As shoppers hunt for bargains, TJ Maxx, Marshalls, and HomeGoods continue to outperform. TJX raised its full-year 2026 outlook, expecting 4% revenue growth as consumers prioritize value. Analysts see the retailer taking market share from traditional department stores.