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Looking for Stocks to Invest in Right Now? Here Are 3 Top Picks.

  • Enjoy collecting dividends? Here are three stocks to buy in May.
  • International Business Machines (IBM): The tech giant’s ongoing shift into hybrid cloud computing and artificial intelligence (AI) could prove to be a strong long-term investment.
  • Williams-Sonoma (WSM): The retailer recently announced a 10% increase in dividends, as well as a $1.5 billion stock buyback.
  • First Trust Rising Dividend Achievers ETF (RDVY): The fund focuses on companies with a history of raising their dividends.
a green button on a keyboard has an arrow pointing upward with the word "Buy". representing safe stocks to buy
Source: AdityaB. Photography/ShutterStock.com

Wall Street is trending lower. Since the beginning of 2022, the NASDAQ 100 Index has fallen over 21%, while the S&P 500 Index has lost more than 13%. As a result, finding stocks to invest in right now may not feel easy in such a choppy environment.

Analysts are debating whether we could see a recession in 2022 or 2023. Such a worry comes on top of the impact of inflation as well as geopolitical concerns. Therefore, markets still remain vulnerable to further choppiness.

However, seasoned investors also know that recent declines also mean great buying opportunities into some robust shares. Buying such shares at pull-back helps generate long-term wealth on Wall Street.

With that information, here’re three stocks to invest in right now.

IBM International Business Machines Corporation $135.48
WSM Williams-Sonoma, Inc. $131.62
RDVY First Trust Rising Dividend Achievers ETF $46.12

Stocks to Invest in Right Now: International Business Machines (IBM)

Photo of IBM (IBM) building as seen through the canopy of a tree. IBM logo is in large letters on side of building.
Source: shutterstock.com/LCV

The first stock to invest in is International Business Machines (NYSE:IBM), one of the foremost information technology companies. The company operates through diverse segments, including computer hardware, software, hosting, consulting and research.

IBM released its Q1 FY22 results on Apr. 19. Revenue increased 8% year-over-year (YOY) to $14.2 billion. Net income was $0.81 per diluted share, down nearly 24% from the prior-year quarter. Cash and equivalents ended the quarter at $10.8 billion.

Over the past few years, IBM has shifted its focus to hybrid cloud computing and artificial intelligence (AI). To that end, IBM has recently announced partnerships with the U.S. Department of Education, Recording Academy, Discover Financial Services (NYSE:DFS) and HSBC (NYSE:HSBC). The aim is to modernize IT operations in these organizations with the latest in cloud and AI computing capabilities.

IBM stock has gained about 1.5% year-to-date (YTD). Shares are trading at 13.46 times forward earnings and 2.07 times trailing sales. The stock generates a dividend yield of 4.8%. At present, the 12-month median forecast for IBM stands at $145.00.

Williams-Sonoma (WSM)

Williams-Sonoma (WSM) store in a shopping mall
Source: designs by Jack / Shutterstock.com

Next up on our list is Williams-Sonoma (NYSE:WSM), a specialty home furnishings retailer and one of the largest e-commerce retailers stateside. The brands under its umbrella include Williams-Sonoma, Pottery Barn, Rejuvenation, Mark and Graham and West Elm.

Williams-Sonoma issued Q4 FY21 results on March 16. Revenue increased 9% YOY to $2.5 billion. Net income was $5.41 per diluted share, up from $3.92 in the prior-year quarter. Cash and equivalents ended the year at $850 million.

Investors were pleased that the retailer announced a 10% quarterly dividend increase and a $1.5 billion stock buyback. In addition, WSM has partnered with a number of companies in the first quarter of 2022, including the NEST Ethical Handcraft Program, Lilly Pulitzer and LEGO.

WSM stock has lost over 22% YTD. Shares are trading at nine times forward earnings and 1.21 times trailing sales. The stock also generates a dividend yield of 2.24%. Meanwhile, the 12-month median price forecast for Williams-Sonoma is at $172.50.

Stocks to Invest in Right Now: First Trust Rising Dividend Achievers ETF (RDVY)

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The last one on our list is an exchange-traded fund (ETF), namely the First Trust Rising Dividend Achievers ETF (NASDAQ:RDVY). It invests in companies with a history of raising their dividends. Fund managers expect these names to increase dividends in the future as well.

RDVY, which tracks the NASDAQ US Rising Dividend Achievers Index, started trading in January 2014.. With regards to sub-sectors, we see financials leading at 29.15%, followed by technology at 19.42%, industrials at 16.90% and healthcare at 10.41%. The top 10 stocks in the portfolio account for 22.1% of its net assets of $9.53 billion.

Among those names are the agricultural commodities group Archer-Daniels-Midland (NYSE:ADM), seed and crop protection heavyweight Corteva (NYSE:CTVA), health benefits company Anthem (NYSE:ANTM), property-casualty insurer Cincinnati Financial (NASDAQ:CINF), and UnitedHealth Group Incorporated (NYSE:UNH).

RDVY is changing hands at 52-week lows and has declined almost 11% YTD. Potential investors may be interested to know that the fund is trading at 9.91 times trailing earnings and 2.17 times book value.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/looking-for-stocks-to-invest-in-right-now-here-are-3-top-picks/.

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