Best stock to buy 2020

Your browser is not supported. Log In. Account Preferences Newsletters Alerts. Access insights and guidance from our Wall Street pros.

Best Stocks to Buy Now

I bought quite a few stocks in March and April. Am I now going to follow the old investing adage "sell in May and go away"? Absolutely not. However, there are still a lot of stocks that I like. Several tech stocks, dividend stocks, and financial stocks are on my watchlist.

But my top pick doesn't fall into any of these categories. Instead, it's a biotech stock that's already up by a solid double-digit percentage this year and has plenty of room to run.

Here are three reasons my top stock to buy in May is Some investors are concerned that the recent stock market resurgence could fizzle.

Although I don't pretend to know what will happen next with the market, I do share those concerns. There's a lot of pent-up desire among many to return to normal life quickly. Count me in that group. And the economic toll could be greater and last longer than some expect as well.

These factors weighed on my decision in picking Vertex as my top stock to buy in May. I think that Vertex is practically coronavirus-proof and recession-proof. The company markets drugs that treat the underlying genetic cause of cystic fibrosis CF. The likelihood that Vertex's product sales will fall off significantly because of the pandemic is therefore quite small. An economic recession won't hurt the biotech's revenue much, either.

Insurers will continue to pay for Vertex's drugs and patients will continue taking the drugs regardless of whether the economy is good or bad. Vertex reported its first-quarter results on Wednesday. There are two things that are remarkable about that sales figure. First, the huge sales were generated in the drug's first full quarter on the market. Second, the FDA's approval decision was originally scheduled for March 20, , which would have meant only minimal sales in Q1.

Trikafta's commercial success is another key reason why I think so highly of Vertex's prospects. I'm not expecting massive near-term sales growth in the U. However, Vertex should win European approval for the drug later this year -- and that will pave the way for tremendous growth. Also, Vertex plans to file for FDA approval of Trikafta in treating younger CF patients between the ages of six and 11 in the second half of this year.

Although this indication won't likely be approved until , it sets the stage for even more growth. While I think Vertex is a great stock to buy in May, it's not just because of what will happen for the biotech in the coming months or even the next year or two. My view is that Vertex has several exciting longer-term potential catalysts. The company is leveraging its expertise in CF to target other genetic diseases that are also caused by protein folding issues.

Its most promising pipeline candidate in this category is VX, which is being evaluated in a phase 2 study for treating alpha-1 antitrypsin deficiency AATD , a rare genetic disease that affects a similar number of patients worldwide that CF does.

The gene-editing therapy is currently in an early stage study targeting rare blood diseases beta-thalassemia and sickle cell disease.

If CTX is successful, it could potentially cure both of these diseases. Speaking of potential cures, Vertex also hopes to advance into clinical testing later this year or at least by early a gene-editing therapy just might cure type 1 diabetes. Vertex picked up the program with its acquisition of Semma Therapeutics last year.

I'm unabashedly a fan of Vertex, but I'll admit that there are two main knocks against the stock. One is its valuation. Shares trade at more than 33 times expected earnings.

The other is that the biotech doesn't have any late-stage pipeline candidates. Neither of these issues concerns me all that much, though. Although Vertex's forward earnings multiple is high, my view is that the company's longer-term growth prospects need to be taken into consideration. The stock's price-to-earnings-to-growth PEG ratio , which factors in five years of projected growth, stands at only 0. A PEG ratio below 1. Vertex's lack of late-stage programs might be worrisome if the company didn't have a clear pathway to growth over the next several years.

But it does have such a pathway. Winning these approvals and launching the drug for new approved indications will give Vertex plenty of room for growth while its pipeline programs advance. The company's management team has stated repeatedly that more business development deals are on the way to bolster the pipeline.

I'm confident that Vertex will have more growth drivers in place when the time comes that its CF franchise revenue growth begins to taper off. May 3, at AM. Author Bio Keith began writing for the Fool in and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries.

Follow keithspeights. Image source: Getty Images. Stock Advisor launched in February of Join Stock Advisor. Related Articles.

NRG Energy Inc. (NRG). ViacomCBS Inc. (VIAC).

They expect volatility to return in the midst of a U. Companies poised to outperform, they say, will be ones that can continue to grow their earnings even if the economy slows. Worried about the stock market?

I bought quite a few stocks in March and April.

Get your savings sorted. Take control of your money with the all-new Finder app.

20 of the Top Stocks to Buy in 2020 (Including the 2 Every Investor Should Own)

The coronavirus pandemic has erased all the gains stocks saw in early , officially ending an year bull run. Volatility isn't over, and the impact of the virus on daily life, markets, and the economy is just beginning to be felt. While the fallout from the global COVID outbreak in the coming months could be devastating — an increasing number of confirmed cases, school and business closings, wild market swings — the long-term investing picture is still the same. Global growth will continue. A decline in manufacturing and consumer spending over the next few months will cause growth to slow, but it will not stop completely.

What are the best shares to buy in 2020?

Choosing the best stocks to buy today depends so much on your individual financial situation. To get a good read on where you stand, read our How to Invest Guide. It walks you through topics like establishing an emergency fund, asset allocation, when it makes sense to buy stocks, etc. Now, onto the 20 stock ideas. Here's the entire list, followed by the summary buy thesis for each one. The first two are a bit of a cheat because they're actually exchange-traded funds ETFs. ETFs allow you broad exposure to a basket of stocks, and these two are some of the best low-cost index funds around:. Some combination of these two is an excellent foundation for the equity portion of just about anyone's portfolio. They allow you to match the performance of the U.

All rights reserved.

Last year was a rough one for investors, with markets turning in their worst performance in 10 years. And volatility promises to be a constant challenge for investors in But where there is upheaval there is also opportunity, and the drop in valuations means there are potential bargains to be had in Canadian stocks.

Stocks to Buy

We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. Our articles, interactive tools, and hypothetical examples contain information to help you conduct research but are not intended to serve as investment advice, and we cannot guarantee that this information is applicable or accurate to your personal circumstances. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. All reviews are prepared by our staff. Opinions expressed are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including any rates, terms and fees associated with financial products, presented in the review is accurate as of the date of publication. At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. We value your trust.

The Top 15 Stocks to Buy in 2020

When looking for the best stocks, investors should consider long-term performance, not short-term volatility. Are these the best stocks to invest in right now? Not necessarily. For more on index funds, jump to below this list. Picking individual stocks is difficult, which is why many investors turn to index mutual funds and exchange-traded funds, which bundle many stocks together. Likewise, investors can track the DJIA with an index fund tied to that benchmark. If you want to cast a wider net, you could purchase a total stock market fund, which will hold thousands of stocks. Make sure you have the right amounts in the right accounts because smart moves today can boost your wealth tomorrow.