Top Stocks to Buy Now
When the bears control the market, it’s simple to regret your investing choices and challenging to uncover anything you’d be eager to invest in. Yet no matter how dark the market seems to be, there is always a hint of hope.

What has become of those glimmers?

Large corporations with a significant economic moat—a competitive advantage that prevents rivals from eroding their market share—are the best equities to purchase right now. Several of these are dividend-paying non-cyclical investments. Moreover, there are a few cyclical hidden jewels that risk-taking investors would wish to invest in to get a deal on returns that seem to be almost certain in the future.

The top stocks to think about purchasing at this time are listed below. Every sort of investor can find a few things. Check out The Motley Fool Stock Adviser on our list of the top stock selecting services for further suggestions.

Investing Ideas: 8 Top Stocks to Buy Today (March 2023)

1. Amazon.com, Inc. (NASDAQ: AMZN) Ideal for investors who are willing to take on risk.

Performance: Year-to-date (YTD) and over the last year, the stock price of Amazon has dropped by more than 33% and more than 38%, respectively.
0% dividend yield
Valuation Metrics: Price-to-earnings ratio (P/E ratio), price-to-book value ratio (P/B ratio), and price-to-sales ratio (P/S ratio) all stand at 53, 8, and 2.3 respectively.
$1.152 trillion is the market cap.
Amazon and other IT companies are perhaps the last choice you’d expect to see on this list. The firm, which works in a very cyclical sector of the economy, has lost almost a third of its worth only this year. There is no doubt that some AMZN investors are beyond irritated right now, but that is often the perfect time to purchase.

The stock has remained a favorite among mutual funds and exchange-traded funds (ETFs) despite the current selloff. What is this falling knife so exciting?

The e-commerce behemoth Amazon has shown it can withstand economic downturns. The company’s stock price was unaffected by the COVID-19 epidemic, most likely because it profited substantially from orders placed at home and retail closings.

The firm has experienced crises before. The firm saw ups and downs, but its solid foundations helped it survive both the collapse of the dot-com boom and the Great Recession. The stock may now be trading lower, but that trend isn’t likely to continue indefinitely.

The corporation will quickly be cruising toward all-time highs once again if history is any guide.

As worries pass, the business may likewise make a comeback to glory. Amazon has prioritized e-razor-thin commerce’s margins for the vast duration of its existence. Amazon Web Services (AWS), one of its more recent cloud computing offerings, is anything from a thin-margin product. The AWS business’s huge margins are driving the company’s average margins into the ceiling.

Overall, Amazon will confront certain economic challenges, but nothing that the firm hasn’t previously shown it is more than capable of addressing. AMZN is a stock that’s worth your attention if you’re risk-tolerant enough to stick on through what may be a short-term rocky patch and astute enough to dollar-cost average in the bear market.

The best option for income investors is Devon Energy Corp (NYSE: DVN).2

Performance: During the last year, DVN has increased by 84% and over 12% YTD.
9% dividend yield.
Evaluation Parameters: P/E ratio is 11, P/B is 4, and P/S is 2.75.
$33.9 billion is the market cap.
A fantasy for income investors is Devon Energy. The corporation has the S&P 500’s top dividend-paying stock. With a long history of outstanding performance, Devon Energy is a powerhouse in the oil and gas industry. The share price increase is anticipated to continue after over 80% growth over the last year.

Veteran income investors may believe that DVR is only providing dividends now that gas and oil prices are so high. That’s not the case, however. Even during periods of low oil and gas prices during the last 29 years, the firm has continuously provided investors large dividends.

It has a solid credit rating and balanced sheet. The corporation has access to the funds it needs to pay dividends even when the oil and gas sector isn’t doing so well.

The moment to purchase may also be right now.

The biggest oil cartel in the world, Organization of Petroleum Exporting Countries (OPEC), has revealed intentions to increase oil output. The statement caused DVN to lose a lot of its gains from this year, sending it down. The stock has lost more than 33% of its value in the last month, while being up 12% year to date.

These decreases won’t continue indefinitely.

Throughout the next year, it is anticipated that more than two-thirds of Russian oil imports would be prohibited by European countries, which may bring oil prices back to record highs. For DVN and its investors, this is fantastic news.

Yet, if you’re an income investor, it’s likely that you’re more interested in the quarterly dividend check than price appreciation. When you make an investment in Devon Energy, you can be confident that, as they have for over 30 years, significant dividend payments will be made on time.

The best option for growth investors is Meta Platforms Inc (NASDAQ: META).3

Performance: During the last year, Meta Stock has dropped more than 52% and more than 50% YTD, respectively.
0% dividend yield.
Evaluation Parameters: P/E ratio is 12, P/B is 3.5, and P/S is 2.75.
$453 billion is the market cap.
The fourth most frequent stock in ETF portfolios is Meta Platforms, previously Facebook, which is a darling on Wall Street. But, the previous year was difficult. Even though most investors would want to flee, there is an opportunity there.

Any definition of a growth stock would include Meta. The firm has had consistent sales growth for years, and up until the release of the most recent earnings report, EPS growth was remarkable. The stock’s price increase was also well-known, but early this year, inflation worries yanked the rug out from under the IT industry.

The falls have given rise to a rare opportunity: a growth company that can make value investors salivate. Although the P/E of the S&P 500 is above 19, Meta’s P/E is now at 12. The stock’s P/B ratio is at a five-year low as well.

Indeed, there are a few immediate challenges to take into account, such as:

Expenditure on e-commerce is weak. E-commerce and consumer spending would certainly decline as prices increase and recession worries grow, which might have an impact on the company’s advertising income.
Step up to the Metaverse. Facebook’s name was recently changed to Meta in an attempt to position the business as the hub of the metaverse. In the near future, this transformation can include some growing pains.
Economic Challenges. A future recession is being foreseen by several analysts, and this might shorten the company’s sales and profitability.
Notwithstanding these challenges, Meta presents a rare chance to invest in a company that has consistently beaten the market significantly while doing so at a significant discount to the current market value.

4.H&R Block, Inc. (NYSE: HRB)
Favorable to value investors.

Performance: HRB has increased by more than 54% over the last year and almost 50% YTD.
3% dividend yield.
Evaluation Parameters: P/E ratio is 5, P/B is 123, and P/S is 1.4.
$5.8 billion is the market cap.
H&R Block is a well-known company that provides both professional and full-service tax preparation services. It’s also one of the market’s most alluring bargain stocks.

The 123 P/B ratio is the proverbial “elephant in the room,” so let’s address it first. It is certainly high by any measure. To HRB, it means nothing, however. Due to the company’s position in the service industry, it has limited physical assets.

Just take a quick glance at the stock’s P/E and P/S ratios, which are now under 5 and 1.4, respectively, to get a genuine sense of the discount it trades at. It’s a low number in any industry. It has a P/E ratio that is around one-fourth that of the S&P 500.

Notwithstanding the sharply reduced value, HRB stock is quite appealing in the present financial climate.

All humans consume food, rest, and pay taxes. Even if declining consumer spending and rising interest rates may hurt other firms, consumers must still submit their taxes regardless of the health of the economy. Even if a recession were to occur, HRB’s business model would still function successfully.

As the economy enters a recession, other businesses are attempting to reduce expenses, while HRB is reworking its small-business offering to boost profitability.

If you still feel like you need more, the corporation offers a decent 3% dividend yield as a beautiful, thick layer of icing on top.

5. ASML Holding NV (NASDAQ: ASML) The best company to profit from the lack of microchips.

Performance: ASML shares have dropped 37% over the last 12 months and 45% year to date.
1.4% dividend yield.
Evaluation Parameters: P/E ratio is 41, P/B is 18.5 and P/S is 9.
Market capitalization: $184.28 billion.
Recently, there has been a lot of interest in semiconductor companies like Advanced Micro Devices (NASDAQ: AMD) and NVIDIA (NASDAQ: NVDA). A global scarcity of semiconductors is having a significant influence on almost every area, including healthcare, computing, and even the automotive sector.

Nevertheless, businesses like ASML Holdings, a maker of semiconductor equipment that produces tools for the aforementioned brands and many more, couldn’t exist without businesses like NVIDIA and AMD.

The equipment used for extreme ultraviolet (EUV) lithography, which creates the minuscule patterns seen on microchips, are exclusively owned by ASML Holdings. They provide more than simply visual appeal. A chip can process more data the smaller and more intricate these patterns are.

These devices are also expensive. Every time one is sold, ASML earns roughly $150 million in revenue, and this figure is projected to rise. Analysts anticipate considerable profit growth for the remainder of 2022 and 2023, despite the possibility of an impending recession.

The conclusion is simple. In a situation where there is a worldwide supply constraint, ASML has a monopoly on a tool needed to produce in-demand goods. The microchips that automakers, producers of medical equipment, and internet businesses can’t get enough of are made using its tools. Not to add that the share price has reached a more than acceptable value as a result of previous stock falls.

Exxon Mobil Corporation (NYSE: XOM) is the best company to fight inflation.6

Performance: The share price of Exxon Mobil is up 33% year to date and 38% year to date.
4% dividend yield.
Evaluation Parameters: P/E ratio is 13, P/B is 2, and P/S is 1.2.
$357 billion is the market cap.
One of the largest brands in the oil and gas industry, Exxon Mobil is a terrific investment to fight inflation. The cost of petrol is often used by economists as a quick indicator of inflation. A domino effect starts when petrol prices start to climb. The cost of shipping rises, which raises prices for the final customer.

Exxon Mobil is one of the greatest stocks you can purchase to fight inflation because of this.

The corporation operates the nation’s biggest network of gas stations. Exxon benefits directly from rising prices and sees its sales and profits soar. The stock is an excellent bet right now, even though it is less remarkable when gas prices are low.

Exxon is more than simply a network of petrol stations. The business is involved in every stage of the production chain, from the extraction of crude oil to selling the finished product to customers directly.

A significant amount of free cash flow is being added to the company’s balance sheet as petrol prices rise to well over $4 per gallon.

Yet, the price of XOM shares is more than reasonable. The company’s P/E ratio is significantly below the S&P 500 average, and its P/S ratio is very close to 1. We have a winner, my friends, when we include a yield of around 4%.

The best option for risk-averse investors is UGI Corp (NYSE: UGI).7

Performance: UGI has decreased by 16% over the last 12 months and 15% YTD.
Yield to Dividend: 3.75%
Evaluation Parameters: P/E ratio is 15, P/B is 1.4, and P/S is 0.9.
$8 billion is the market cap.
Since the bear market began, the attitudes of many investors toward risk have altered. UGI is an appealing choice if you’ve grown more risk-averse and need a reliable utilities play with excellent dividends to fill the gap in your portfolio.

The business has been distributing natural gas and propane under regulation for well over a century. For 138 years, it has continuously paid investors dividends, and for the last 35 years in a row, it has increased those dividend payments.

This implies that UGI investors received dividend increases even after the dot-com boom burst in 2001, the Great Recession began in 2008, and COVID-19 raised its ugly head in 2020.

While the stock price has suffered a harsh downturn over the previous year, its losses still represent a significant improvement above those of the S&P 500.

Nevertheless, the business’s growth indicators indicate that recent reductions will be transient. UGI generated 34%+ revenue growth, 90%+ net income growth, 85%+ diluted earnings growth, and 42%+ net profit growth in the most recent quarter.

You invest in UGI when you do so because it has been around for more than a century, has never missed a dividend payment to investors, and has a track record of outperforming the S&P 500 during bear markets.

8.Duke Energy Corp. (NYSE: DUK)
Excellent for protecting your assets from a recession.

Performance: The DUK stock has increased by 2.75% YTD and 6.5% annually.
3.7% dividend yield.
Evaluation Parameters: P/E ratio is 20, P/B is 2, and P/S is 3.
$81.9 billion is the market cap.
One of the biggest American suppliers of electric utilities is Duke Energy. More than 7.7 million electricity users and more than 1.6 million customers for natural gas are served by the corporation throughout six states.

In a bear market, there are three strong reasons to think about buying DUK:

Purchase habits. Consumers may spend less when the economy is struggling, but they almost always make their utility payments. DUK is therefore a fantastic investment during a downturn.
History. In the past, despite several economic setbacks, the corporation has beaten the S&P.
Growth Over Stability. While the firm has recently had some excellent growth, management’s primary concern is with the continuity of the operation, making it a low volatility option.
There isn’t really much to say about Duke Energy, to be honest. It’s not a glamorous company, there aren’t many opportunities for expansion, and you won’t get wealthy quick with it. Nevertheless, what it isn’t doing merely helps to describe what it is.

Duke Energy is still committed to offering its clients high-caliber services at reasonable rates. As a result, regardless of the status of the economy or the general market, it offers its investors solid returns, reliably paid dividends, and a simpler time going to bed at night.