10 Best Stocks to Buy Now: Top Investment Picks in December 2024

The S&P 500 Index continues to impress, having reached an all-time high above 6,000 points earlier today. The index surged following the re-election of Donald Trump as the next president of the United States, based on investors' belief that he will be good for the economy. In addition, the Fed is expected to bring down the rates by an additional 25-50 bps in December, which should provide additional monetary relief needed for continued economic growth.

With the investor sentiment across traditional and cryptocurrency markets close to its multi-year peak, it can be difficult to decide whether it's worth pulling the trigger and investing in the market while asset valuations are this high. Well, the simple answer is that nobody really knows. However, you can hardly go wrong by investing in proven companies that have stood the test of time, especially if you're a long-term investor.

In this article, we will list the best stocks to buy in December 2024, examine their past business performance, and look into how they are projected to perform in the coming months.

10 best stocks to buy now: Examining top stock investment picks for December 2024

If you are wondering what the best stock to buy right now is and what our reasoning is for including these companies on our list, read the following sections.

1. Tesla (NASDAQ: TSLA)

• TSLA Stock Price (1-year change): $375.11 (+56.98%)
• TSLA 1-Year Prediction: $756.13 (+101.66%)

Tesla is the world's most valuable automaker by market cap, with a valuation of over $1.09 trillion at the time of writing. The high market cap does put a ceiling on potential growth. However, TSLA has shown in the past that it is capable of trading considerably above its current price. Tesla is known for its innovative and high-performance electric vehicles, such as the Model S, Model 3, Model X, Model Y, and Cybertruck. 

Buy Tesla Stock

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Why Tesla?

Tesla also has a growing business in battery storage, solar panels, and software, which raises its stock as a potentially lucrative long-term investment. Tesla is led by its charismatic founder and CEO, Elon Musk, who has a loyal fan base and a borderline cult-like following. While Musk has been criticized for his suspected drug use, controversial opinions, and curious decisions after the Twitter takeover, there's no denying that investors are drawn to his business vision.

Following the re-election of Donald Trump, Tesla's stock surged as investors anticipated favorable policies for the electric vehicle (EV) industry under the new administration. In addition, many see TSLA as a way to get exposure to privately held SpaceX (although the logic behind such moves is dubious at best), which is also expected to benefit from the administration change. In the third quarter of 2024, Tesla reported earnings per share of $0.62, surpassing Wall Street's expectations of $0.51. Despite slightly lower-than-expected revenue of $25.18 billion, the company's gross margin improved to 19.8%.

2. Microsoft Corporation (NASDAQ: MSFT)

• MSFT Stock Price (1-year change): $443.77 (+20.16%)
• MSFT 1-Year Prediction: $679.61 (+53.99%)

Microsoft is one of the world's largest software companies, with a dominant position in operating systems, productivity software, cloud computing, and gaming. The company has been benefiting from the digital transformation trends that have accelerated during the pandemic, such as remote work, online education, and e-commerce. Recently, Microsoft has emerged as the global leader in AI, primarily thanks to its multi-billion dollar investment in OpenAI.

Buy Microsoft Stock

Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Microsoft guide.

Why Microsoft?

Microsoft has consistently demonstrated robust financial health. In the fiscal year ending June 2024, the company reported record revenues of $245.1 billion, marking a nearly 16% increase from the previous year. The operating margin reached 44.6%, the highest since 2001, indicating efficient cost management and profitability.

These impressive market results are, in large part, due to the success of OpenAI's ChatGPT chatbot, of which Microsoft owns a 49% share. In fact, Microsoft seems best positioned to benefit from the AI boom if it reaches the wide-scale broader social-economic impact that many predict. It's hard to imagine that Microsoft would relinquish its first-moved advantage in the AI space anytime soon, which is why we believe it's a worthwhile investment right now. For a longer-term look, check the MSFT stock forecast for 2040-2050.

3. Alphabet (NASDAQ: GOOG)

• GOOG Stock Price (1-year change): $176.39 (+34.57%)
• GOOG 1-Year Prediction: $283.22 (+61.81%)

Alphabet is the parent company of Google, the world's largest search engine and online advertising platform. The company also owns other popular and profitable businesses, such as YouTube, Gmail, Google Cloud, Google Maps, Google Play, and Waymo. Alphabet has a dominant market share and a strong competitive advantage. 

Buy Alphabet Stock

Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Alphabet guide.

Why Alphabet?

Alphabet reported 14% revenue growth in the second quarter, bolstered by a 28% increase in Google Cloud revenue. Its integration of AI features is expected to further enhance its advertising business. However, it's worth noting that the company is facing its biggest challenge to date, with the recent launch of OpenAI's SearchGPT. So far, no company has managed to make a dent in Google's internet search supremacy, but that could change in the future.

It's worth noting that Alphabet has two stocks listed on the stock market, which can sometimes lead to confusion about which stock is a better investment. To learn more about this, feel free to check our deep dive into the differences between GOOG and GOOGL. Earlier this year, Google rolled out so-called AI previews for users from the US. The new feature is arguably the biggest change in SERPs (search engine search results) ever and could play a pivotal role in how Google's core business evolves in the coming years.

4. Nvidia Corporation (NASDAQ: NVDA) 

• NVDA Stock Price (1-year change): $141.65 (+211.41%)
• NVDA 1-Year Prediction: $122.29 (-14.24%)

Nvidia is the world's leading supplier of graphics processors for gaming, artificial intelligence, and data center applications. The company has been growing its revenue at a double-digit rate for years – giving early investors a very good average stock price on their investment – and has a loyal customer base of gamers, developers, and cloud providers. Nvidia also has a diversified portfolio of businesses, including automotive, health care, and edge computing, making NVDA one of the better growth stocks out there.

Buy Nvidia Stock

Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Nvidia guide.

Why Nvidia?

Experts expect Nvidia to post earnings of $0.73 per share during the next earnings report, which would be a massive increase compared to the same period last year when the company reported an EPS of "just" $0.40. The spike in interest in artificial intelligence (AI) technology has contributed to a massive +200% 12-month increase in the price of NVDA, making it one of the biggest beneficiaries of the AI boom spearheaded by OpenAI’s ChatGPT.

The company's recent financials reflect this strength, with a 30% increase in revenue in the latest quarter, driven by high demand for its AI-focused GPUs. Nvidia's strategic partnerships with tech giants like Microsoft, Alphabet, and Meta Platforms, who have placed substantial orders for its upcoming Blackwell chips, underscore its pivotal role in the AI industry. It's worth noting, however, that NVDA stock has been one of the better performers in the past couple of years, which could mean that it's a bit pricey at current rates.

5. Meta (NASDAQ: META)

• META Stock Price (1-year change): $627.05 (+97.54%)
• META 1-Year Prediction: $661.05 (+8.31%)

Meta Platforms (formerly known as Facebook) is a tech giant that owns major social media platforms like Facebook, Instagram, and WhatsApp. Pioneering in virtual and augmented reality (VR/AR), Meta aims to create a comprehensive "metaverse" – a unified virtual community for users to work, play, and socialize. The company emphasizes innovation in digital connectivity and immersive experiences.

Buy Meta Stock

Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Meta guide.

Why Meta?

The company reported a 22% revenue growth in the second quarter, attributed to increased user activity and advertising revenue. Meta's investment in AI-driven content recommendations and virtual assistants is expected to further enhance user experience and open new revenue streams. The company posted 34.24% higher earnings per share in April 2024 than the year prior, 3 out of 4 biggest social media platforms are a part of Meta's portfolio, and the metaverse division is slowly starting to head in the right direction.

In addition, this year, Meta started paying out dividends to every Class A and Class B shareholder. This was the first time in the company's history that Meta distributed a dividend, indicating a level of maturity and stability for the company that has been solely focused on maximizing its growth since its inception.

6. Amazon.com, Inc. (NASDAQ: AMZN)

• AMZN Stock Price (1-year change): $225.56 (+55.54%)
• AMZN 1-Year Prediction: $241.77 (+9.36%)

Amazon is the undisputed leader in e-commerce, cloud computing, and digital entertainment. The company has been growing its revenue at a double-digit rate for years and has a loyal customer base of over 200 million Prime members. Amazon recently acquired One Medical, expanding its portfolio of income streams to the rapidly growing healthcare sector.

Buy Amazon Stock

Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Amazon guide.

Why Amazon?

Amazon's net income grew to $13.48 billion in the second quarter of 2024, an increase of a whopping +99.8% compared to the same period last year. The massive increase was driven by a diversified portfolio of businesses, including online advertising, grocery delivery, health care, and streaming video.

Analysts expect Amazon to earn a total of $3.27 per share in 2024, up from $-0.27 in 2022. In addition, Amazon seems poised to perform well in the long term, especially if it manages to maintain its dominant position in the e-commerce sector. If you want to estimate what future EPS might be, make sure to use our earnings per share calculator.

7. Apple (NASDAQ: AAPL)

• AAPL Stock Price (1-year change): $244.82 (+26.79%)
• AAPL 1-Year Prediction: $328.15 (+35.02%)

Apple has been the world's most valuable publicly traded company for the past decade, owing its success to an impressive lineup of highly popular hardware and software solutions. The company has transformed the tech landscape with iconic products like the iPhone, iPad, Mac computers, and Apple Watch, as well as services like the App Store, Apple Music, and iCloud. 

Buy Apple Stock

Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Apple guide.

Why Apple?

In its fiscal fourth quarter, Apple reported adjusted earnings of $1.64 per share on $94.93 billion in sales, surpassing Wall Street expectations. This performance was driven by strong iPhone and services sales, with iPhone revenue alone rising to $46.22 billion, accounting for 49% of total sales.

Apple is not only known for its innovative products and services, such as the iPhone, iPad, Mac, Apple Watch, AirPods, Apple TV, Apple Music, and iCloud, but also has an extremely loyal and growing customer base of over 1 billion active devices and over 660 million paid subscriptions. These factors make it a good investment for the long term. Analysts expect Apple to earn a total of $6 per share in 2024, compared to $6.13 in 2023. It's worth noting that Apple handily beat experts' expectations last year, not to mention that 2025 is projected to see an increase to $6.52 in EPS.

8. Intel (NASDAQ: INTC)

• INTC Stock Price (1-year change): $20.99 (-49.08%)
• INTC 1-Year Prediction: $20.75 (-0.90%)

Intel Corporation, founded in 1968, is a leading multinational technology company specializing in semiconductor chip manufacturing, particularly known for its x86 series of microprocessors used in most personal computers. Based in Santa Clara, California, it also produces motherboard chipsets, network interface controllers, flash memory, and other computing and communication-related devices. Intel has been pivotal in the personal computer revolution.

Buy Intel Stock

Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Intel guide.

Why Intel?

Intel is actively pursuing a turnaround strategy, focusing on cost-cutting measures and restructuring efforts. The company has announced plans to sell a minority stake in its Altera programmable chip unit, aiming to raise approximately $17 billion. This move is part of a broader effort to streamline operations and enhance financial stability. Additionally, Intel's CEO, Pat Gelsinger, has emphasized the company's commitment to transforming into a foundry business, competing with industry leaders like Taiwan Semiconductor Manufacturing Co. This strategic shift is intended to diversify revenue streams and capitalize on growing demand in the semiconductor industry.

While Intel's recent financial results and strategic initiatives indicate potential for recovery, the company faces significant challenges, including intense competition and the need for successful execution of its turnaround plan. At this point in time, an investment in INTC should be considered a high-risk, high-reward play.

9. Johnson & Johnson (NYSE: JNJ)

• JNJ Stock Price (1-year change): $148.59 (-5.17%)
• LMT 1-Year Prediction: $154.90 (+3.47%)

Johnson & Johnson (J&J) is a multinational corporation headquartered in New Brunswick, New Jersey, renowned for its diverse portfolio of healthcare products and services. Established in 1886, J&J has grown into one of the world's largest and most trusted names in healthcare, with a presence in over 175 countries.

Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Johnson & Johnson guide.

Buy Johnson & Johnson Stock

Why Johnson & Johnson?

The stock has recently entered oversold territory, suggesting a potential undervaluation and a possible opportunity for investors to acquire shares at a discounted price. In the third quarter of 2024, JNJ reported robust financial performance, with sales increasing by 5.2% to $22.5 billion and adjusted earnings per share surpassing analyst expectations. 

The company also raised its full-year revenue guidance, reflecting confidence in its ongoing operations. JNJ's commitment to innovation is evident in its recent acquisitions, including the purchase of Shockwave Medical for $13.1 billion in April 2024, aimed at enhancing its cardiovascular device offerings. Additionally, the company has secured multiple new drug approvals, bolstering its pharmaceutical pipeline.

10. Lockheed Martin (NYSE: LMT)

• LMT Stock Price (1-year change): $510.44 (+13.83%)
• LMT 1-Year Prediction: $465.90 (-10.01%)

Lockheed Martin is the world's largest defense contractor, with a leading position in aerospace, military, and security systems. The company has a diversified and global customer base, with roughly 70% of its revenue coming from the U.S. government and about 30% from international customers. 

Buy Lockheed Martin Stock

Your capital is at risk. Other fees may apply. For more information, check out our How to Invest in Lockheed Martin guide.

Why Lockheed Martin?

In the third quarter of 2024, Lockheed Martin reported earnings per share (EPS) of $6.80, surpassing Wall Street expectations of $6.50. The company generated revenues of $17.1 billion, slightly below the anticipated $17.4 billion. Notably, the company raised its full-year EPS guidance to $26.65, indicating confidence in its financial trajectory.

Over the last two decades, LMT has been one of the consistent and best-performing stocks, growing from $49 to $500+ with relatively low volatility – if the trend continues, Lockheed Martin stock might be a good buy for those seeking low-risk, long-term investment returns. It is worth noting that Lockheed's earnings in Q3 2024 beat investors's expectations by a margin of 4.62%, which is quite significant.

The bottom line: These are the best stocks to buy now

After a bearish 2022 and a somewhat unexpected turnaround in 2023, 2024 has brought a return to positive and stable market activity. The decrease in interest rates in the second half of this year has introduced some much-needed relief to the markets and provided a dose of bullish optimism that could help stocks reach new heights. The relaxation of the monetary policy is slated to continue into 2025, which means that the bullish sentiment could continue next year.

Hopefully, the stocks included in our article will prove to be worthy of investment and generate solid returns for investors in the coming months. However, it's worth noting that the selection consists of mostly conservative options. If you are prepared to stomach higher risk in exchange for potentially higher returns, we suggest you check out our selection of the best stocks under $5 or look into the best AI penny stocks if you want to gain exposure to the AI industry.

If you prefer to focus on long-term growth and building a portfolio that’s centered around dividend-yielding stocks, check our selection of the best long-term dividend stocks.