3 Top Stocks to Buy That Continue to Lead the Markets

top stocks to buy - 3 Top Stocks to Buy That Continue to Lead the Markets

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Has the market and its leadership gone too far? Some investors are increasingly considering that reality. But it’s not the entire story. Some of the top stocks to buy today still hold notable promise in the long term.

Wall Street has been on a tear in recent months. Led by the large-cap, tech-heavy Nasdaq Composite, some investors have captured a return in excess of 61% from March’s novel coronavirus-driven, historic bottom. The scoreboard also reflects numerous record highs since early June and a commanding return of around 20% in 2020.

Mega-cap leadership from Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) has shined even brighter. Top stocks to buy of that stature have approached or even seen a full-blown doubling of their prices in recent days, helping power the Nasdaq higher.

Sounds crazy, right? It could be.

But market leadership doesn’t have to appear bloated. It doesn’t need to be part of an overly inflated look where three stocks are worth nearly $5 trillion in capitalization or the equivalent of Germany’s entire economy. Or where it represents an alarming one-third of the Nasdaq 100 or sports price action that’s more risky than friendly after a gratuitously favorable and extended rally. It doesn’t. Here are three of the top stocks to buy now that aren’t your typical choices:

  • Beyond Meat (NASDAQ:BYND)
  • Canopy Growth (NYSE:CGC)
  • Advanced Energy Industries (NASDAQ:AEIS)

These stocks are proving themselves as front runners in their respective industries or businesses. Rightfully, many of these companies have the potential to grow into tomorrow’s large-cap companies and maybe, even the kind of stock where the fear of the law of large numbers becomes a concern. And right now, the three top stocks to buy listed above are also developing key buying opportunities on their price charts now.

Top Stocks to Buy: Beyond Meat (BYND)

Beyond Meat (BYND) weekly chart shows emerging uptrend
Source: Charts by TradingView

Off the price chart, the big picture for the faux or substitute meat giant looks terrific. The $7.50 billion company is well-positioned within the growing trend of eating healthier foods. And that movement has taken on fresh importance during the Covid-19 pandemic as the negative consequences of a traditional meat-based diet and industrialized animal farming have become even more important.

Technically, BYND stock is also shaping up, which places it among the top stocks to buy now. Specifically, this market leader is in the process of building an emerging uptrend with a larger corrective cup-shaped base. My advice for a stock purchase is to wait for a weekly pivot low to form along with a firming of its stochastics indicator as BYND stock challenges Fibonacci support off its March bottom.

Canopy Growth (CGC)

Canopy Growth (CGC) monthly chart Fibonacci pattern bottom
Source: Charts by TradingView

Canopy Growth, Canada’s largest cannabis producer, has gotten smoked the past couple of years and fallen deeply out of favor. From overly ambitious expectations backfiring, longer-than-anticipated regulatory and distribution bottlenecks, oversupply and of course plenty of red ink, there are plenty of places to point fingers at what went wrong in CGC stock.

But there should be a new chapter on the horizon for Canopy investors.

The culmination of all those problems plays well into an eventual industry turnaround. And when conditions do begin to pick up, backed by Constellation Brands (NYSE:STZ), today’s $6 billion Canopy Growth should still be there to help lead the charge.

Technically, this market leader to buy has been ripe for purchase the past few months. Shares bottomed in March to confirm a slightly flawed, but symmetrically good-looking Fibonacci-based Gartley pattern.

Since completing the pattern, CGC stock has literally gone nowhere. In fact, shares are off by roughly 14%. Still, the bottoming formation hasn’t come close to failing. Furthermore, the past two months have carved out a pair of inside doji candlesticks. As such, I’d consider buying this stock on a breakout of the consolidation through $18.65.

Advanced Energy Industries (AEIS)

Advanced Energy (AEIS) bullish monthly cup forming at prior highs
Source: Charts by TradingView

Advanced Energy Industries is the oldest and smallest company on this list of top stocks to buy. The specialized semiconductor outfit has been public since well before the Dot.com bubble. AEIS stock is also valued at $2.65 billion, which despite its time as a business, makes AEIS a larger, small-cap company. But there are good reasons to have an eye on a stronger-looking and big future in the stock.

Advanced Energy is a big-time player in power solution technologies. The company’s products are necessary for data centers, telecommunications, semi equipment manufacturers and others. Moreover, AEIS is growing like crazy. Sales have jumped by about 120% the past two quarters, while earnings have smashed estimates over the past year by an average of 35%.

Technically, AEIS stock looks well-positioned to capitalize on the company’s good business fortunes and put a chunk of that into the pockets of shareholders.

The longer-term monthly chart shows a smaller corrective cup has formed in 2020, following a well-built, but ill-timed larger correction of the same type. Bullishly, a tighter monthly handle is now taking shape just beneath its former all-time-high from 2000, with stochastics looking supportive for purchases.

Ultimately, AEIS stock looks like a great way to lighten potentially top-heavy portfolios with less familiar market leadership.

Investment accounts under Christopher Tyler’s management do not own any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.


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