With stocks dropping, it hurts to look at my portfolio. But on the other hand, I also get excited about the better buying opportunities. I can invest more money into great companies trading at lower valuations. That’s why I’m sharing some of the best stocks to buy right now.
With many investors heading for the hills, it’s not easy to stay the course and keep buying. But going against the crowd is the only way to beat average returns. So, let’s dig into these companies and why they’re towards the top of my buy list…
Best Stocks to Buy Right Now
- Intel (Nasdaq: INTC)
- British American Tobacco (NYSE: BTI)
- V.F. Corp (NYSE: VFC)
- Stanley Black & Decker (NYSE: SWK)
- FedEx (NYSE: FDX)
- 3M (NYSE: MMM)
As one of the best stocks to buy right now, Intel is in the midst of a huge turnaround. It’s one of the best semiconductor companies. Over the past few years, it’s lost some ground to competitors such as Advanced Micro Devices (Nasdaq: AMD). Although, Intel is in a stronger financial position to innovate.
Intel’s largest segment is its Client Computing Group. The pandemic helped push forward a lot of demand for these products. But recently, demand has slowed down. And Intel’s other segments have helped pick up some of the slack. Its next two largest segments are Datacenter and AI, and Network and Edge.
On top of that, Intel has talked about a Mobileye IPO. By taking this autonomous driving tech company public, it can free up cash for Intel’s big expansion. The company is under new management with CEO Pat Gelsinger. And he’s pushing to build new fab capacity.
Pat Gelsinger is also personally buying shares. He recently invested close to $500,000 and it’s a good sign when a CEO further aligns interest with investors.
British American Tobacco
This investment might not be for everyone. Many investors consider it a sin stock due to the products it sells. However, it also has a reliable consumer base that leads to consistent cashflows.
There’s increased regulatory risk, but investors are rewarded with higher dividend yields. And another benefit for a tobacco company is that its revenue remains fairly stable during economic downturns. This is great for income investors and the company provides some diversification…
British American Tobacco is based in London, England and for foreign investments, there can be taxes withheld from dividend income. However, the U.K. doesn’t withhold dividend taxes for U.S. investors.
V.F. Corp is one of the smaller stocks to buy right now when looking at market cap. However, it owns some huge brands such as The North Face, Vans and Timberland.
Its diverse portfolio has helped the company produce stable cashflows. As a result, the board of directors keeps paying investors bigger dividends. V.F. Corp is a dividend aristocrat and that means it’s paid a larger dividend each year for the past 25 years in a row.
Similar to the others on this list, VF stock is down a lot over the past year. Investors are worried sales will drop as consumer spending drops. However, it’s during these downturns when some of the best buying opportunities come along. V.F. Corp should be able to weather a downturn and continue rewarding long-term investors.
Stanley Black & Decker
Stanley Black & Decker is around the same size as V.F. Corp. Although, it’s in a very different industry. Stanley Black & Decker builds industrial tools and household hardware. It also provides security products.
This company also has a long history of rewarding investors with larger dividends. It’s a dividend aristocrat and the dividend looks pretty safe. Its recent payout ratio comes in below 60%.
As one of the best stocks to buy right now, Stanley Black & Decker is also trading at a lower price. Its valuation metrics have come down and the company should easily survive through a recession.
FedEx is a leading transportation, e-commerce and business services company. It’s focused on long-term growth and building economies of scale. FedEx delivers to more than 220 countries and territories.
Thanks to growing cashflows, FedEx has also been rewarding investors with bigger dividends each year. On top of that, the recent dividend payout ratio is low with it coming in well below 50%. This provides good wiggle room as the economy takes a hit…
The CEO of FedEx recently said that he expects the economy to enter a worldwide recession. This will put downward pressure on FedEx’s sales and profitability. Although, investors have beaten down the share price and the company should be able to continue rewarding long-term investors.
3M is last on this list of the best stocks to buy right now. Investors have pushed down its share price due to litigation risk from some of its past products. And the company has roughly 60,000 different products, so it’s not new to legal troubles.
Although, fear is high for investors due to recent actions. As a result, 3M shares are likely oversold and the risk-to-reward is looking solid.
Similar to the other companies on this list, 3M has a long track record of rewarding investors. It’s also a dividend aristocrat and for long-term investors, right now might be one of the better buying opportunities.
More Investing Opportunities
There are thousands of different investments to choose from. However, I believe this list provides some of the best stocks to buy right now. All of these companies come with a different set of risks and the markets might continue to drop. So, always do your own homework, and consider both your ability and willingness to invest.
If you’re looking for more investing insight, check out these best investment newsletters. They’re packed with tips and tricks from investing experts. Here at Investment U, we strive to deliver the best investment research and ideas…recession pandemic nasdaq stocks consumer spending
The New York Fed DSGE Model Forecast— September 2023
This post presents an update of the economic forecasts generated by the Federal Reserve Bank of New York’s dynamic stochastic general equilibrium (DSGE)…
This post presents an update of the economic forecasts generated by the Federal Reserve Bank of New York’s dynamic stochastic general equilibrium (DSGE) model. We describe very briefly our forecast and its change since June 2023. As usual, we wish to remind our readers that the DSGE model forecast is not an official New York Fed forecast, but only an input to the Research staff’s overall forecasting process. For more information about the model and variables discussed here, see our DSGE model Q & A.
The New York Fed model forecasts use data released through 2023:Q2, augmented for 2023:Q3 with the median forecasts for real GDP growth and core PCE inflation from the Survey of Professional Forecasters (SPF), as well as the yields on ten-year Treasury securities and Baa-rated corporate bonds based on 2023:Q3 averages up to August 30. Moreover, starting in 2021:Q4, the expected federal funds rate between one and six quarters into the future is restricted to equal the corresponding median point forecast from the latest available Survey of Primary Dealers (SPD) in the corresponding quarter. The current projection can be found here.
The change in the forecast relative to June reflects the fact that the economy remains resilient in spite of the increasingly restrictive stance of monetary policy. Output growth is projected to be almost 1 percentage point higher in 2023 than forecasted in June (1.9 versus 1.0 percent) and somewhat higher than June for the rest of the forecast horizon (1.1, 0.7, and 1.2 percent in 2024, 2025, and 2026, versus 0.7, 0.4, and 0.9 in June, respectively). The probability of a not-so-soft recession, as defined by four-quarter GDP growth dipping below -1 percent by the end of 2023, has become negligible at 4.6 percent, down from 26 percent in June. According to the model, much of the resilience in the economy so far stems from the surprising strength in the financial sector, which counteracts the effects of the tightening in monetary policy. Inflation projections are close to what they were in June: 3.7 percent for 2023 (unchanged from the previous forecast), 2.2 percent for 2024 (down from 2.5 percent), and 2.0 percent for both 2025 and 2026 (down from 2.2 and 2.1 percent, respectively). The model still sees inflation returning close to the FOMC’s longer-run goal by the end of next year.
The output gap is projected to be somewhat higher over the forecast horizon than it was in June, consistent with the fact that the surprising strength of the economy is mainly driven by demand factors such as financial shocks, as opposed to supply factors. As in the June forecast, the gap gradually declines from its current positive value to a slightly negative value by 2025. The real natural rate of interest is estimated at 2.5 percent for 2023 (up from 2.2 percent in June), declining to 2.2 percent in 2024, 1.9 percent in 2025, and 1.6 percent in 2026.
|Date of Forecast||Sep 23||Jun 23||Sep 24||Jun 24||Sep 25||Jun 25||Sep 26||Jun 26|
|Core PCE inflation|
|Real natural rate of interest|
Notes: This table lists the forecasts of output growth, core PCE inflation, and the real natural rate of interest from the September 2023 and June 2023 forecasts. The numbers outside parentheses are the mean forecasts, and the numbers in parentheses are the 68 percent bands.
Forecasts of Output Growth
Forecasts of Inflation
Real Natural Rate of Interest
Marco Del Negro is an economic research advisor in Macroeconomic and Monetary Studies in the Federal Reserve Bank of New York’s Research and Statistics Group.
Pranay Gundam is a research analyst in the Federal Reserve Bank of New York’s Research and Statistics Group.
Donggyu Lee is a research economist in Macroeconomic and Monetary Studies in the Federal Reserve Bank of New York’s Research and Statistics Group.
Ramya Nallamotu is a research analyst in the Federal Reserve Bank of New York’s Research and Statistics Group.
Brian Pacula is a research analyst in the Federal Reserve Bank of New York’s Research and Statistics Group.
How to cite this post:
Marco Del Negro, Pranay Gundam, Donggyu Lee, Ramya Nallamotu, and Brian Pacula, “The New York Fed DSGE Model Forecast— September 2023,” Federal Reserve Bank of New York Liberty Street Economics, September 22, 2023, https://libertystreeteconomics.newyorkfed.org/2023/09/the-new-york-fed-dsge-model-forecast-september-2023/.
The views expressed in this post are those of the author(s) and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the author(s).
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Canada retail sales climb 2% The Canadian dollar has posted losses on Friday. In the European session, USD/CAD is trading at 1.3446, down 0.28%. Canada’s…
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The Canadian dollar has posted losses on Friday. In the European session, USD/CAD is trading at 1.3446, down 0.28%.
Canada’s retail sales jump
Canada’s retail sales rebounded in impressive fashion on Friday. Retail sales in July jumped 2% y/y, following a -0.6% reading in June and beating the 0.5% consensus estimate. On a monthly basis, retail sales rose 0.3%, up from 0.1% in June but shy of the consensus estimate of 0.4%. The good news was tempered by the August estimate, which stands at -0.3% m/m and would be the first decline since March. The Canadian dollar showed little reaction to the retail sales release.
The Bank of Canada doesn’t meet again until October 25th and policy makers will have plenty of data to monitor in the meantime. The BoC has been walking a tightrope that will be familiar to most central banks, that of trying to balance the risks of over and under-tightening. The difficulty in finding the right balance was highlighted in the BoC summary of deliberations of the policy meeting earlier this month.
The BoC decided to hold the benchmark rate at 5.0% after concluding that earlier rate hikes were having an effect and slowing economic growth. The summary indicated that policy makers were concerned that a pause might send the wrong message that rate cuts might be on the way. With inflation still above the BOC’s target, the central bank is not looking at rate cuts and stressed at the September meeting that rate hikes were still on the table and that inflation remained too high.
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- 1.3408 and 1.3323 are the next support lines
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