As the market shows some stability, investors are looking for stocks to buy for the long term.
Some great stocks remain undervalued and look like bargains at their current prices, but for how long? With the benchmark S&P 500 index up 8% on the year and the technology-laden Nasdaq index up 16%, a recovery in the stock market is taking hold.
While we’re not yet in a bull market, the best stocks to buy are on the mend after a brutal selloff last year. Even famed Wall Street bear Michael Burry has turned positive on stocks to buy.
He recently took to Twitter to congratulate investors who have had the foresight to buy the dip in stocks, some of which have risen more than 100% over the last six months.
With the market on the recovery trail, we suggest investors consider getting in now on the following three stocks to buy that look set to soar.
It’s been a rough ride for Amazon (NASDAQ:AMZN) stock over the past year. While many technology stocks have rebounded strongly this year, the e-commerce giant has not shared in the recovery. AMZN stock remains 35% lower today than where it was trading 12 months ago, and it is 46% below a peak reached during the pandemic in November 2021 when people were still forced to shop almost exclusively online for items ranging from toilet paper to computer monitors.
The good news is that a growing chorus of Wall Street analysts are forecasting the worst is likely over for AMZN stock and that it is on the cusp of rebounding. In March, JPMorgan Chase (NYSE:JPM) named Amazon stock its “best pick” and said that investor sentiment towards the shares is now at multi-year lows, indicating that a bottom is close. The company has been aggressively cutting costs through staff layoffs, warehouse closures, and canceled projects. A strong first-quarter earnings print and the stock could take off.
Eli Lilly (LLY)
Shares of pharmaceutical giant Eli Lilly (NYSE:LLY) have been trending higher on expectations that its weight loss drug called Tirzepatide is about to be approved by the U.S. Food and Drug Administration (FDA). In the past month, LLY stock has gained 15%, bringing its 12-month advance to 23%. However, once the drug is officially approved for commercial sale in America, it could be like lighting a fuse on a firecracker. Some analysts are predicting that Tirzepatide will be the biggest blockbuster drug of all time.
For its part, Eli Lilly is wasting no time getting ready for the approval of Tirzepatide, which is also called Mounjaro. The company is expanding its manufacturing capacity and investing in a television advertising campaign in anticipation of getting the green light from the FDA. Tirzepatide is already approved for use as a diabetes treatment, and its approval for weight loss is viewed by many as a formality, potentially giving Eli Lilly a new revenue bonanza.
Another tech stock that could soar in coming months is consumer electronics giant Apple (NASDAQ:AAPL). The iPhone maker’s stock has been moving in fits and starts but has largely traded sideways over the last 18 months. AAPL stock is currently trading 4% below where it was at a year ago and is at the same level as in September 2022. Production problems in China, supply chain constraints, and waning demand coming out of the pandemic have all weighed on the stock.
However, like Amazon, a growing number of Wall Street analysts, including Wedbush Securities’ Dan Ives, have upgraded AAPL stock, noting that the share price is due for a strong rally. Analysts point to robust financials, an expected uptick in iPhone sales, and new product offerings such as an augmented reality headset as reasons to be bullish on Apple stock. The company has also gotten a vote of confidence from famed investor Warren Buffett who has continued buying the company’s shares throughout the current downturn.
On the date of publication, Joel Baglole held long positions in LLY and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.