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| Meta Title | These Are The 5 Best Stocks To Buy Now Or Watch In April | Investor's Business Daily |
| Meta Description | Here are five of the best stocks to buy now or put on a watchlist. Buying an equity is easy, but buying the right stock is incredibly hard. |
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| Boilerpipe Text | Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist?
Caterpillar
(
CAT
),
Johnson & Johnson
(
JNJ
),
TJX
(
TJX
),
Lattice Semiconductor
(
LSCC
) and
Sociedad Quimica
(
SQM
) are prime candidates.
The market
confounded expectations for difficulties
and turned in an outstanding performance in 2023, 2024 and 2025. The Federal Reserve moved to cut rates amid a weakening labor market. However it looks like they may hold off on making cuts for the foreseeable future due to inflation and labor concerns coming into balance. The conflict in Iran and the ongoing uncertainty over the Trump administration's tariff agenda are other factors hanging over the market.
↑
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NOW PLAYING
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Best Stocks To Buy: The Crucial Ingredients
Remember, there are thousands of stocks trading on the NYSE and Nasdaq. But you want to find the very best stocks right now to generate massive gains.
The IBD Methodology
offers clear guidelines on what you should be looking for. Invest in stocks with recent quarterly and annual earnings growth of at least 25%. Look for companies that have new, game-changing products and services. Also consider not-yet-profitable companies, often recent IPOs, that are generating tremendous revenue growth.
Using such an approach can help give you an edge over the benchmark S&P 500. Outdoing this industry benchmark is key to generating exceptional returns over the long term.
In addition, keep an eye on supply and demand for the stock itself, focus on leading stocks in top industry groups, and aim for stocks with strong institutional support.
Once you have found a stock that fits the criteria, it is then time to turn to stock charts to plot a
good entry point
. You should wait for a stock to
form a base
and then buy it once it reaches a
buy point
, ideally in heavy volume. In many cases, a stock reaches a
proper buy point
when it breaks above the original high on the left side of the base. More information on what a base is, and how charts can be used toÂ
win big on the stock market, can be found here
.
Don't Forget The Stock Market Direction When Buying Stocks
A key part of investing is to keep
track of the market
. Most stocks, even the very best, follow the market direction. Invest when the stock market is in a
confirmed uptrend
 and move to cash when the stock market goes into a correction.
The stock market has been moving sideways of late as the bulls and bears battle for supremacy. The S&P 500 and the Nasdaq composite both slipped below both the important
50-day moving average
and the 200-day line, both negatives.
It makes sense to take a defensive posture at the moment due to recent volatility. However, it is important to stay engaged and build up a robust watchlist of potentially actionable stocks for when the next uptrend begins. The selections below are among the best stocks to buy or add to a watchlist now. The
IBD 50
is also a rich hunting ground.
In addition, it is always crucial to stay on top of
sell signals
. Any stock that falls 7% or 8% from your purchase price should be jettisoned. Also beware of
sharp breaks below the 50-day or 10-week moving average
.
Things can change quickly when it comes to the stock market. Make sure to keep a close eye on the
market trend page here
.
Caterpillar
Johnson & Johnson
TJX
Lattice Semiconductor
Sociedad Quimica
Now let's look at these five stocks to buy or watch. An important consideration is that these best stocks to buy and watch all boast impressive relative strength.
Caterpillar
Stock
Construction equipment play Caterpillar is crafting a cup base with an ideal buy point of 789.81.
The stock has been finding support at its
50-day moving average
amid the broader stock market malaise, a positive sign.
Investors could use the April 1 high of 740.01 as an early entry, still close to the 50-day line.
The relative strength line
is moving higher again, though it sits off recent highs. The RS line gauges a stock's performance vs. the S&P 500.
The all-around performance of Caterpillar stock is strong, netting it an
IBD Composite Rating of 93 out of 99
.
The stock is up around 25% so far in 2026. This crushes the performance of the benchmark S&P 500, which is down about 4%.
In total, 33% of its shares are held by funds,
according to MarketSurge data
. The lauded Fidelity Contrafund (FCNTX) and the MFS Growth Fund (MFEGX) are among noteworthy holders.
Fundamental performance is a relative weakness at the moment, with its Earnings Per Share Rating sitting at 69 out of a best-possible 99. However it is seen rebounding strongly by Wall Street, with full-year EPS seen rising 20% this year before accelerating to 21% growth in 2027.
CAT Stock Is An AI Play
The Texas-based company operates across four segments: construction, resources, energy and transportation. It has positioned itself as an important player in the development of AI, battery power and rare earths. The firm is currently in turnaround mode as its order backlog swells.
A streak of declining sales ended with gains of 10% and 18% in the two most recent quarters. Sales are pegged to increase 15.3%, 10.6%, 8.3% and 6.1% over the next four quarters, according to FactSet.
Citigroup recently hiked its price target to 785 from 760 and kept a buy rating after it indicated a "significant pipeline of mega projects" at the CONEXPO 2026 trade show. Oppenheimer reiterated its outperform rating while raising its target to 817 from 729 following the event.
While the buildout of data centers and related power plants is seen as a boon, Caterpillar's products are also needed for rare-earth mining. The firm's influence also extends into the Battery Belt — the emerging corridor of lithium, graphite and battery production stretching from the American Southeast through the Midwest.
Johnson & Johnson
Stock
The pharmaceutical stock has formed a
flat base
with a 369.70 buy point. It previously cleared a
downward-sloping trendline
, which offered an early entry. That also coincided with a rebound off its
10-week moving average
. In addition, its
relative strength line
is holding near recent highs.
Johnson & Johnson stock boasts good, but not ideal, technical and fundamental performance. This is reflected in its
IBD Composite Rating of 91
.
Its fundamental performance is a relative weakness, with its
Earnings Per Share Rating sitting at 86 out of 99
.
Earnings are seen rising 7% in 2026 before accelerating to 9% growth the following year,
MarketSurge data shows
.
A member of the Dow Jones Industrial Average, the firm's shares have climbed 43% over the past 12 months. So far this year alone the stock has rallied more than 17%.
Respected Funds Back JNJ
In total, 37% of shares are held by funds, according to MarketSurge data. Noteworthy holders include the Fidelity Contrafund (FCNTX) and the JPMorgan Large Cap Growth Fund (SEEGX).
The company currently has a number of promising products in development. It recently unveiled the results of a study showing nearly 60% of adolescents with plaque psoriasis had clear skin after a year of treatment with its drug Icotyde. In a separate study it said 89% of patients responded to its experimental treatment for a form of bladder cancer.
Meanwhile, the European Commission approved Johnson & Johnson's pill Akeega for patients with a type of prostate cancer. And the FDA gave its nipocalimab a Fast Track designation for patients with a type of lupus. The Fast Track designation will allow for a speedier review period.
Look For This Bullish Market Signal After Strong Week
TJX Stock
The off-price retail play has formed a flat base with an
ideal buy point
of 162.68,
MarketSurge analysis shows
.
This is a
first-stage pattern
for the stock, which is a plus. In addition, it has bullishly held support at its
50-day line
despite the broader pressure hitting the market.
TJX shares have also cleared an alternative early entry of 160.33.
The stock has seen its relative strength line surge to new highs. This is encouraging as it attempts a breakout. So far in 2026, the stock has climbed more than 8%.
All-around performance is formidable, which is reflected in its
IBD Composite Rating of 91 out of 99
.
TJX stock sits among the top 19% of equities in terms of gains over the past 12 months. Since the start of the year it has risen 5% while the S&P 500 has given up ground.
Earnings Performance Is Solid
Fundamental performance is its strongest attribute though, with its EPS Rating sitting at 89 out of 99. Full-year earnings are seen popping 8% this year before accelerating to 11% growth in 2027.
In total, 46% of shares are held by funds, according to
MarketSurge data
. The well-regarded T. Rowe Price U.S. Equity Research Fund (PRCOX) and the Fidelity Contrafund (FCNTX) are among the noteworthy backers.
With the war in Iran driving up fuel and freight costs, TJX is seen as a potential beneficiary. This is because disruptions could increase unwanted or closeout inventory among full-price retailers.
On Feb. 25, TJX beat earnings expectations for its fiscal fourth quarter. Comparable store sales grew 5% for both Q4 and the full year. On March 30, management announced a 13% dividend increase and plans for $2.5 billion to $2.75 billion in stock buybacks.
The parent of the T.J. Maxx, Marshalls and Home Goods chains tied the actions to confidence in sustained profitability, strong cash flow and overall business growth.
More growth is seen ahead. Analysts project full-year per-share earnings will pop 8% in 2026 before accelerating to 11% growth next year.
Lattice Semiconductor
Stock
The semiconductor stock is forming a
consolidation
with an ideal buy point of 108.08,
MarketSurge analysis shows
. Investors can use the March 25 high of 101.64 as an early entry.
This is an early-stage pattern for the stock. The
relative strength line
is hitting new highs, a bullish sign.
Overall performance is top-notch, with its
IBD Composite Rating coming in at 95 out of 99
.
Its offers a strong balance of fundamental performance and price accumulation. It ranks among the top 6% of equities over the past 12 months. It is leaving the benchmark S&P 500 for dust so far in 2026, rising more than 29%.
But fundamental performance is also muscular, with its
Earnings Per Share Rating sitting at 82 out of 99
.
Strong Growth Seen Ahead
Wall Street sees substantial earnings growth ahead, with full-year EPS projected to rise 49% in 2026 before rising a further 33% next year,
according to MarketSurge data
.
Big Money has standing pat on LSCC holdings of late, with its Accumulation/Distribution Rating sitting at C. The well-respected T. Rowe Price New Horizons (PRNHX) is among the noteworthy holders.
The artificial intelligence play recently landed a partnership with
Nvidia
(
NVDA
).
The company has joined the Nvidia Halos AI Systems Inspection Lab ecosystem. Its expertise will help build Halos-certified high-speed sensor data designs used in cameras, Lidar and radar.
In addition, this semiconductor stock's products are also found in smart factories, advanced driving systems, telecom infrastructure and connected homes.
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Sociedad Quimica Stock
Lithium and fertilizer play Sociedad Quimica has formed a
consolidation
with an ideal buy point of 86.13,
IBD MarketSurge analysis shows
.
This is an early-stage pattern, which is favorable. The relative strength line is sitting near new highs, which is also a bullish sign.
Shares came close to a breakout on March 30 before backing off slightly. However, it continues to sit well above the 50-day line.
All-around performance is very strong, with its
IBD Composite Rating sitting at a near-perfect 98
.
Sociedad Quimica ranks among the top 4% of equities in terms of price performance over the past 12 months. It has already risen nearly 21% so far this year
Fundamental performance is not as strong though, with its
EPS Rating coming in at 73 out of 99
.
Earnings have grown by an average 10%
over the past three quarters, which is shy of the 25% growth sought by
The IBD Methodology
investors. However, EPS accelerated to 52% growth in the most recent quarter
More growth is seen ahead, with full-year per-share earnings seen rising 184% this year before slowing to 11% growth in 2027.
Big Money has been adding to holdings of the stock of late, with its
Accumulation/Distribution Rating coming in at B-
.
Iran War Boosts Stock
The Chilean chemical company's products are used by health, food, technology and clean energies industries. Lithium is a component in hybrid and electric vehicle batteries.
Its Nova Andino Litio lithium partnership is running at full capacity. Further, Sociedad is increasing its exposure to lithium carbonate refining in China.
The agricultural chemicals play is also benefiting from the fact shares of fertilizer stocks have been soaring due to the Strait of Hormuz closing amid the U.S.-Iran war. More than a quarter of the oil-and-gas derivative components used in fertilizer products ship through the waterway,
according to Goldman Sachs
.
Please follow Michael Larkin on X at
@IBD_MLarkin
for more analysis of growth stocks.
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# These Are The 5 Best Stocks To Buy Or Watch Now
[](https://www.investors.com/#facebook "Facebook")[](https://www.investors.com/#x "X")[](https://www.investors.com/#linkedin "LinkedIn")[](https://www.addtoany.com/share)
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- [MICHAEL LARKIN](https://www.investors.com/author/larkinm/ "Posts by MICHAEL LARKIN")
- Updated 09:34 AM ET 04/06/2026
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist? **Caterpillar** ([CAT](https://research.investors.com/quote.aspx?symbol=CAT)), **Johnson & Johnson** ([JNJ](https://research.investors.com/quote.aspx?symbol=JNJ)), **TJX** ([TJX](https://research.investors.com/quote.aspx?symbol=TJX)), **Lattice Semiconductor** ([LSCC](https://research.investors.com/quote.aspx?symbol=LSCC)) and **Sociedad Quimica** ([SQM](https://research.investors.com/quote.aspx?symbol=SQM)) are prime candidates.
The market [confounded expectations for difficulties](https://www.investors.com/news/stock-market-forecast-2023-challenges-abound-for-sp500-dow-jones-stock-pickers-can-shine/) and turned in an outstanding performance in 2023, 2024 and 2025. The Federal Reserve moved to cut rates amid a weakening labor market. However it looks like they may hold off on making cuts for the foreseeable future due to inflation and labor concerns coming into balance. The conflict in Iran and the ongoing uncertainty over the Trump administration's tariff agenda are other factors hanging over the market.
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## Best Stocks To Buy: The Crucial Ingredients
Remember, there are thousands of stocks trading on the NYSE and Nasdaq. But you want to find the very best stocks right now to generate massive gains.
[The IBD Methodology](https://www.investors.com/ibd-university/can-slim/) offers clear guidelines on what you should be looking for. Invest in stocks with recent quarterly and annual earnings growth of at least 25%. Look for companies that have new, game-changing products and services. Also consider not-yet-profitable companies, often recent IPOs, that are generating tremendous revenue growth.
Using such an approach can help give you an edge over the benchmark S\&P 500. Outdoing this industry benchmark is key to generating exceptional returns over the long term.
In addition, keep an eye on supply and demand for the stock itself, focus on leading stocks in top industry groups, and aim for stocks with strong institutional support.
Once you have found a stock that fits the criteria, it is then time to turn to stock charts to plot a [good entry point](https://www.investors.com/how-to-invest/investors-corner/chart-reading-basics-how-a-buy-point-marks-a-time-of-opportunity/). You should wait for a stock to [form a base](https://www.investors.com/how-to-invest/investors-corner/investor-basics-why-learning-base-patterns-gets-the-ball-rolling/) and then buy it once it reaches a [buy point](https://www.investors.com/how-to-invest/investors-corner/chart-reading-basics-how-a-buy-point-marks-a-time-of-opportunity/), ideally in heavy volume. In many cases, a stock reaches a [proper buy point](https://www.investors.com/how-to-invest/investors-corner/chart-reading-basics-how-a-buy-point-marks-a-time-of-opportunity/) when it breaks above the original high on the left side of the base. More information on what a base is, and how charts can be used to [win big on the stock market, can be found here](https://www.investors.com/how-to-invest/investors-corner/how-to-trade-stocks-base-stock-charts/).
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## Don't Forget The Stock Market Direction When Buying Stocks
A key part of investing is to keep [track of the market](https://www.investors.com/ibd-university/can-slim/market-direction/). Most stocks, even the very best, follow the market direction. Invest when the stock market is in a [confirmed uptrend](https://www.investors.com/how-to-invest/investors-corner/how-to-find-next-stock-market-bottom/) and move to cash when the stock market goes into a correction.
The stock market has been moving sideways of late as the bulls and bears battle for supremacy. The S\&P 500 and the Nasdaq composite both slipped below both the important [50-day moving average](https://www.investors.com/how-to-invest/investors-corner/50-day-moving-average-identifies-buy-sell-signals/) and the 200-day line, both negatives.
It makes sense to take a defensive posture at the moment due to recent volatility. However, it is important to stay engaged and build up a robust watchlist of potentially actionable stocks for when the next uptrend begins. The selections below are among the best stocks to buy or add to a watchlist now. The [IBD 50](https://research.investors.com/stock-lists/ibd-50/) is also a rich hunting ground.
In addition, it is always crucial to stay on top of [sell signals](https://www.investors.com/ibd-university/how-to-sell/). Any stock that falls 7% or 8% from your purchase price should be jettisoned. Also beware of [sharp breaks below the 50-day or 10-week moving average](https://www.investors.com/how-to-invest/investors-corner/when-to-sell-stocks-big-break-below-50-day-line-can-mark-end-of-a-huge-run/).
Things can change quickly when it comes to the stock market. Make sure to keep a close eye on the [market trend page here](https://research.investors.com/markettrend.aspx).
## Best Stocks To Buy Or Watch
- **Caterpillar**
- **Johnson & Johnson**
- **TJX**
- **Lattice Semiconductor**
- **Sociedad Quimica**
Now let's look at these five stocks to buy or watch. An important consideration is that these best stocks to buy and watch all boast impressive relative strength.
## **Caterpillar** Stock
Construction equipment play Caterpillar is crafting a cup base with an ideal buy point of 789.81.
The stock has been finding support at its [50-day moving average](https://www.investors.com/how-to-invest/investors-corner/50-day-moving-average-identifies-buy-sell-signals/) amid the broader stock market malaise, a positive sign.
Investors could use the April 1 high of 740.01 as an early entry, still close to the 50-day line.
[The relative strength line](https://www.investors.com/how-to-invest/investors-corner/relative-strength-rating-stock-chart-analysis-helps-pick-outstanding-growth-stocks/) is moving higher again, though it sits off recent highs. The RS line gauges a stock's performance vs. the S\&P 500.
The all-around performance of Caterpillar stock is strong, netting it an [IBD Composite Rating of 93 out of 99](https://www.investors.com/how-to-invest/investors-corner/the-ibd-composite-rating/).
The stock is up around 25% so far in 2026. This crushes the performance of the benchmark S\&P 500, which is down about 4%.
In total, 33% of its shares are held by funds, [according to MarketSurge data](https://get.investors.com/marketsurge/). The lauded Fidelity Contrafund (FCNTX) and the MFS Growth Fund (MFEGX) are among noteworthy holders.
Fundamental performance is a relative weakness at the moment, with its Earnings Per Share Rating sitting at 69 out of a best-possible 99. However it is seen rebounding strongly by Wall Street, with full-year EPS seen rising 20% this year before accelerating to 21% growth in 2027.
## CAT Stock Is An AI Play
The Texas-based company operates across four segments: construction, resources, energy and transportation. It has positioned itself as an important player in the development of AI, battery power and rare earths. The firm is currently in turnaround mode as its order backlog swells.
A streak of declining sales ended with gains of 10% and 18% in the two most recent quarters. Sales are pegged to increase 15.3%, 10.6%, 8.3% and 6.1% over the next four quarters, according to FactSet.
Citigroup recently hiked its price target to 785 from 760 and kept a buy rating after it indicated a "significant pipeline of mega projects" at the CONEXPO 2026 trade show. Oppenheimer reiterated its outperform rating while raising its target to 817 from 729 following the event.
While the buildout of data centers and related power plants is seen as a boon, Caterpillar's products are also needed for rare-earth mining. The firm's influence also extends into the Battery Belt — the emerging corridor of lithium, graphite and battery production stretching from the American Southeast through the Midwest.
## **Johnson & Johnson** Stock
The pharmaceutical stock has formed a [flat base](https://www.investors.com/how-to-invest/investors-corner/chart-patterns-flat-base-dull-trade-positive-action/) with a 369.70 buy point. It previously cleared a [downward-sloping trendline](https://www.investors.com/how-to-invest/investors-corner/how-to-draw-trendlines-and-find-lower-buy-points-in-stock-charts/), which offered an early entry. That also coincided with a rebound off its [10-week moving average](https://www.investors.com/how-to-invest/investors-corner/how-to-buy-stocks-why-the-10-week-moving-average-offers-new-entry-points/). In addition, its [relative strength line](https://www.investors.com/how-to-invest/investors-corner/relative-strength-line-gives-crucial-clues-about-stocks-ready-to-make-big-gains/) is holding near recent highs.
Johnson & Johnson stock boasts good, but not ideal, technical and fundamental performance. This is reflected in its [IBD Composite Rating of 91](https://www.investors.com/how-to-invest/investors-corner/the-ibd-composite-rating/).
Its fundamental performance is a relative weakness, with its [Earnings Per Share Rating sitting at 86 out of 99](https://www.investors.com/how-to-invest/investors-corner/eps-rating-is-key-to-picking-great-stocks/).
Earnings are seen rising 7% in 2026 before accelerating to 9% growth the following year, [MarketSurge data shows](https://get.investors.com/marketsurge/).
A member of the Dow Jones Industrial Average, the firm's shares have climbed 43% over the past 12 months. So far this year alone the stock has rallied more than 17%.
## Respected Funds Back JNJ
In total, 37% of shares are held by funds, according to MarketSurge data. Noteworthy holders include the Fidelity Contrafund (FCNTX) and the JPMorgan Large Cap Growth Fund (SEEGX).
The company currently has a number of promising products in development. It recently unveiled the results of a study showing nearly 60% of adolescents with plaque psoriasis had clear skin after a year of treatment with its drug Icotyde. In a separate study it said 89% of patients responded to its experimental treatment for a form of bladder cancer.
Meanwhile, the European Commission approved Johnson & Johnson's pill Akeega for patients with a type of prostate cancer. And the FDA gave its nipocalimab a Fast Track designation for patients with a type of lupus. The Fast Track designation will allow for a speedier review period.
***
**[Look For This Bullish Market Signal After Strong Week](https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-oil-prices-tesla-jobs-report/)**
***
## TJX Stock
The off-price retail play has formed a flat base with an [ideal buy point](https://www.investors.com/how-to-invest/investors-corner/chart-reading-basics-how-a-buy-point-marks-a-time-of-opportunity/) of 162.68, [MarketSurge analysis shows](https://get.investors.com/marketsurge/).
This is a [first-stage pattern](https://www.investors.com/how-to-invest/investors-corner/do-you-know-how-to-count-bases-in-leading-stocks-do-it-to-assess-risk/) for the stock, which is a plus. In addition, it has bullishly held support at its [50-day line](https://www.investors.com/how-to-invest/investors-corner/50-day-moving-average-identifies-buy-sell-signals/) despite the broader pressure hitting the market.
TJX shares have also cleared an alternative early entry of 160.33.
The stock has seen its relative strength line surge to new highs. This is encouraging as it attempts a breakout. So far in 2026, the stock has climbed more than 8%.
All-around performance is formidable, which is reflected in its [IBD Composite Rating of 91 out of 99](https://www.investors.com/how-to-invest/investors-corner/the-ibd-composite-rating/).
TJX stock sits among the top 19% of equities in terms of gains over the past 12 months. Since the start of the year it has risen 5% while the S\&P 500 has given up ground.
## Earnings Performance Is Solid
Fundamental performance is its strongest attribute though, with its EPS Rating sitting at 89 out of 99. Full-year earnings are seen popping 8% this year before accelerating to 11% growth in 2027.
In total, 46% of shares are held by funds, according to [MarketSurge data](https://get.investors.com/marketsurge/). The well-regarded T. Rowe Price U.S. Equity Research Fund (PRCOX) and the Fidelity Contrafund (FCNTX) are among the noteworthy backers.
With the war in Iran driving up fuel and freight costs, TJX is seen as a potential beneficiary. This is because disruptions could increase unwanted or closeout inventory among full-price retailers.
On Feb. 25, TJX beat earnings expectations for its fiscal fourth quarter. Comparable store sales grew 5% for both Q4 and the full year. On March 30, management announced a 13% dividend increase and plans for \$2.5 billion to \$2.75 billion in stock buybacks.
The parent of the T.J. Maxx, Marshalls and Home Goods chains tied the actions to confidence in sustained profitability, strong cash flow and overall business growth.
More growth is seen ahead. Analysts project full-year per-share earnings will pop 8% in 2026 before accelerating to 11% growth next year.
## **Lattice Semiconductor** Stock
The semiconductor stock is forming a [consolidation](https://www.investors.com/how-to-invest/investors-corner/shopify-stock-consolidation-pattern-led-to-beautiful-gains/) with an ideal buy point of 108.08, [MarketSurge analysis shows](https://get.investors.com/marketsurge/). Investors can use the March 25 high of 101.64 as an early entry.
This is an early-stage pattern for the stock. The [relative strength line](https://www.investors.com/how-to-invest/investors-corner/relative-strength-line-gives-crucial-clues-about-stocks-ready-to-make-big-gains/) is hitting new highs, a bullish sign.
Overall performance is top-notch, with its [IBD Composite Rating coming in at 95 out of 99](https://www.investors.com/how-to-invest/investors-corner/the-ibd-composite-rating/).
Its offers a strong balance of fundamental performance and price accumulation. It ranks among the top 6% of equities over the past 12 months. It is leaving the benchmark S\&P 500 for dust so far in 2026, rising more than 29%.
But fundamental performance is also muscular, with its [Earnings Per Share Rating sitting at 82 out of 99](https://www.investors.com/how-to-invest/investors-corner/eps-rating-is-key-to-picking-great-stocks/).
## Strong Growth Seen Ahead
Wall Street sees substantial earnings growth ahead, with full-year EPS projected to rise 49% in 2026 before rising a further 33% next year, [according to MarketSurge data](https://get.investors.com/marketsurge/).
Big Money has standing pat on LSCC holdings of late, with its Accumulation/Distribution Rating sitting at C. The well-respected T. Rowe Price New Horizons (PRNHX) is among the noteworthy holders.
The artificial intelligence play recently landed a partnership with **Nvidia** ([NVDA](https://research.investors.com/quote.aspx?symbol=NVDA)).
The company has joined the Nvidia Halos AI Systems Inspection Lab ecosystem. Its expertise will help build Halos-certified high-speed sensor data designs used in cameras, Lidar and radar.
In addition, this semiconductor stock's products are also found in smart factories, advanced driving systems, telecom infrastructure and connected homes.
***
****[Looking For The Next Big Stock Market Winners? Start With These 3 Steps](https://www.investors.com/research/how-to-invest-in-the-stock-market-start-with-a-simple-routine/)****
***
## Sociedad Quimica Stock
Lithium and fertilizer play Sociedad Quimica has formed a [consolidation](https://www.investors.com/how-to-invest/investors-corner/shopify-stock-consolidation-pattern-led-to-beautiful-gains/) with an ideal buy point of 86.13, [IBD MarketSurge analysis shows](https://get.investors.com/marketsurge/).
This is an early-stage pattern, which is favorable. The relative strength line is sitting near new highs, which is also a bullish sign.
Shares came close to a breakout on March 30 before backing off slightly. However, it continues to sit well above the 50-day line.
All-around performance is very strong, with its [IBD Composite Rating sitting at a near-perfect 98](https://www.investors.com/how-to-invest/investors-corner/the-ibd-composite-rating/).
Sociedad Quimica ranks among the top 4% of equities in terms of price performance over the past 12 months. It has already risen nearly 21% so far this year
Fundamental performance is not as strong though, with its [EPS Rating coming in at 73 out of 99](https://www.investors.com/how-to-invest/investors-corner/eps-rating-is-key-to-picking-great-stocks/).
[Earnings have grown by an average 10%](https://research.investors.com/stock-checkup/nyse-sociedad-quimica-adr-sqm.aspx) over the past three quarters, which is shy of the 25% growth sought by [The IBD Methodology](https://www.investors.com/how-to-invest/investors-corner/stock-market-investing-ibd-methodology/) investors. However, EPS accelerated to 52% growth in the most recent quarter
More growth is seen ahead, with full-year per-share earnings seen rising 184% this year before slowing to 11% growth in 2027.
Big Money has been adding to holdings of the stock of late, with its [Accumulation/Distribution Rating coming in at B-](https://www.investors.com/how-to-invest/investors-corner/how-to-buy-stocks-accumulation-distribution-rating-shows-professionals-moves/).
## Iran War Boosts Stock
The Chilean chemical company's products are used by health, food, technology and clean energies industries. Lithium is a component in hybrid and electric vehicle batteries.
Its Nova Andino Litio lithium partnership is running at full capacity. Further, Sociedad is increasing its exposure to lithium carbonate refining in China.
The agricultural chemicals play is also benefiting from the fact shares of fertilizer stocks have been soaring due to the Strait of Hormuz closing amid the U.S.-Iran war. More than a quarter of the oil-and-gas derivative components used in fertilizer products ship through the waterway, [according to Goldman Sachs](https://www.goldmansachs.com/insights/articles/how-the-conflict-in-the-strait-of-hormuz-could-affect-global-agriculture-prices).
***Please follow Michael Larkin on X at [@IBD\_MLarkin](https://twitter.com/IBD_MLarkin) for more analysis of growth stocks.***
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| Readable Markdown | Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist? **Caterpillar** ([CAT](https://research.investors.com/quote.aspx?symbol=CAT)), **Johnson & Johnson** ([JNJ](https://research.investors.com/quote.aspx?symbol=JNJ)), **TJX** ([TJX](https://research.investors.com/quote.aspx?symbol=TJX)), **Lattice Semiconductor** ([LSCC](https://research.investors.com/quote.aspx?symbol=LSCC)) and **Sociedad Quimica** ([SQM](https://research.investors.com/quote.aspx?symbol=SQM)) are prime candidates.
The market [confounded expectations for difficulties](https://www.investors.com/news/stock-market-forecast-2023-challenges-abound-for-sp500-dow-jones-stock-pickers-can-shine/) and turned in an outstanding performance in 2023, 2024 and 2025. The Federal Reserve moved to cut rates amid a weakening labor market. However it looks like they may hold off on making cuts for the foreseeable future due to inflation and labor concerns coming into balance. The conflict in Iran and the ongoing uncertainty over the Trump administration's tariff agenda are other factors hanging over the market.
↑ X NOW PLAYING Rally Attempt Underway, But This Signal Is Missing; Dell, Sphere, Teradyne In Focus
## Best Stocks To Buy: The Crucial Ingredients
Remember, there are thousands of stocks trading on the NYSE and Nasdaq. But you want to find the very best stocks right now to generate massive gains.
[The IBD Methodology](https://www.investors.com/ibd-university/can-slim/) offers clear guidelines on what you should be looking for. Invest in stocks with recent quarterly and annual earnings growth of at least 25%. Look for companies that have new, game-changing products and services. Also consider not-yet-profitable companies, often recent IPOs, that are generating tremendous revenue growth.
Using such an approach can help give you an edge over the benchmark S\&P 500. Outdoing this industry benchmark is key to generating exceptional returns over the long term.
In addition, keep an eye on supply and demand for the stock itself, focus on leading stocks in top industry groups, and aim for stocks with strong institutional support.
Once you have found a stock that fits the criteria, it is then time to turn to stock charts to plot a [good entry point](https://www.investors.com/how-to-invest/investors-corner/chart-reading-basics-how-a-buy-point-marks-a-time-of-opportunity/). You should wait for a stock to [form a base](https://www.investors.com/how-to-invest/investors-corner/investor-basics-why-learning-base-patterns-gets-the-ball-rolling/) and then buy it once it reaches a [buy point](https://www.investors.com/how-to-invest/investors-corner/chart-reading-basics-how-a-buy-point-marks-a-time-of-opportunity/), ideally in heavy volume. In many cases, a stock reaches a [proper buy point](https://www.investors.com/how-to-invest/investors-corner/chart-reading-basics-how-a-buy-point-marks-a-time-of-opportunity/) when it breaks above the original high on the left side of the base. More information on what a base is, and how charts can be used to [win big on the stock market, can be found here](https://www.investors.com/how-to-invest/investors-corner/how-to-trade-stocks-base-stock-charts/).
## Don't Forget The Stock Market Direction When Buying Stocks
A key part of investing is to keep [track of the market](https://www.investors.com/ibd-university/can-slim/market-direction/). Most stocks, even the very best, follow the market direction. Invest when the stock market is in a [confirmed uptrend](https://www.investors.com/how-to-invest/investors-corner/how-to-find-next-stock-market-bottom/) and move to cash when the stock market goes into a correction.
The stock market has been moving sideways of late as the bulls and bears battle for supremacy. The S\&P 500 and the Nasdaq composite both slipped below both the important [50-day moving average](https://www.investors.com/how-to-invest/investors-corner/50-day-moving-average-identifies-buy-sell-signals/) and the 200-day line, both negatives.
It makes sense to take a defensive posture at the moment due to recent volatility. However, it is important to stay engaged and build up a robust watchlist of potentially actionable stocks for when the next uptrend begins. The selections below are among the best stocks to buy or add to a watchlist now. The [IBD 50](https://research.investors.com/stock-lists/ibd-50/) is also a rich hunting ground.
In addition, it is always crucial to stay on top of [sell signals](https://www.investors.com/ibd-university/how-to-sell/). Any stock that falls 7% or 8% from your purchase price should be jettisoned. Also beware of [sharp breaks below the 50-day or 10-week moving average](https://www.investors.com/how-to-invest/investors-corner/when-to-sell-stocks-big-break-below-50-day-line-can-mark-end-of-a-huge-run/).
Things can change quickly when it comes to the stock market. Make sure to keep a close eye on the [market trend page here](https://research.investors.com/markettrend.aspx).
- **Caterpillar**
- **Johnson & Johnson**
- **TJX**
- **Lattice Semiconductor**
- **Sociedad Quimica**
Now let's look at these five stocks to buy or watch. An important consideration is that these best stocks to buy and watch all boast impressive relative strength.
## **Caterpillar** Stock
Construction equipment play Caterpillar is crafting a cup base with an ideal buy point of 789.81.
The stock has been finding support at its [50-day moving average](https://www.investors.com/how-to-invest/investors-corner/50-day-moving-average-identifies-buy-sell-signals/) amid the broader stock market malaise, a positive sign.
Investors could use the April 1 high of 740.01 as an early entry, still close to the 50-day line.
[The relative strength line](https://www.investors.com/how-to-invest/investors-corner/relative-strength-rating-stock-chart-analysis-helps-pick-outstanding-growth-stocks/) is moving higher again, though it sits off recent highs. The RS line gauges a stock's performance vs. the S\&P 500.
The all-around performance of Caterpillar stock is strong, netting it an [IBD Composite Rating of 93 out of 99](https://www.investors.com/how-to-invest/investors-corner/the-ibd-composite-rating/).
The stock is up around 25% so far in 2026. This crushes the performance of the benchmark S\&P 500, which is down about 4%.
In total, 33% of its shares are held by funds, [according to MarketSurge data](https://get.investors.com/marketsurge/). The lauded Fidelity Contrafund (FCNTX) and the MFS Growth Fund (MFEGX) are among noteworthy holders.
Fundamental performance is a relative weakness at the moment, with its Earnings Per Share Rating sitting at 69 out of a best-possible 99. However it is seen rebounding strongly by Wall Street, with full-year EPS seen rising 20% this year before accelerating to 21% growth in 2027.
## CAT Stock Is An AI Play
The Texas-based company operates across four segments: construction, resources, energy and transportation. It has positioned itself as an important player in the development of AI, battery power and rare earths. The firm is currently in turnaround mode as its order backlog swells.
A streak of declining sales ended with gains of 10% and 18% in the two most recent quarters. Sales are pegged to increase 15.3%, 10.6%, 8.3% and 6.1% over the next four quarters, according to FactSet.
Citigroup recently hiked its price target to 785 from 760 and kept a buy rating after it indicated a "significant pipeline of mega projects" at the CONEXPO 2026 trade show. Oppenheimer reiterated its outperform rating while raising its target to 817 from 729 following the event.
While the buildout of data centers and related power plants is seen as a boon, Caterpillar's products are also needed for rare-earth mining. The firm's influence also extends into the Battery Belt — the emerging corridor of lithium, graphite and battery production stretching from the American Southeast through the Midwest.
## **Johnson & Johnson** Stock
The pharmaceutical stock has formed a [flat base](https://www.investors.com/how-to-invest/investors-corner/chart-patterns-flat-base-dull-trade-positive-action/) with a 369.70 buy point. It previously cleared a [downward-sloping trendline](https://www.investors.com/how-to-invest/investors-corner/how-to-draw-trendlines-and-find-lower-buy-points-in-stock-charts/), which offered an early entry. That also coincided with a rebound off its [10-week moving average](https://www.investors.com/how-to-invest/investors-corner/how-to-buy-stocks-why-the-10-week-moving-average-offers-new-entry-points/). In addition, its [relative strength line](https://www.investors.com/how-to-invest/investors-corner/relative-strength-line-gives-crucial-clues-about-stocks-ready-to-make-big-gains/) is holding near recent highs.
Johnson & Johnson stock boasts good, but not ideal, technical and fundamental performance. This is reflected in its [IBD Composite Rating of 91](https://www.investors.com/how-to-invest/investors-corner/the-ibd-composite-rating/).
Its fundamental performance is a relative weakness, with its [Earnings Per Share Rating sitting at 86 out of 99](https://www.investors.com/how-to-invest/investors-corner/eps-rating-is-key-to-picking-great-stocks/).
Earnings are seen rising 7% in 2026 before accelerating to 9% growth the following year, [MarketSurge data shows](https://get.investors.com/marketsurge/).
A member of the Dow Jones Industrial Average, the firm's shares have climbed 43% over the past 12 months. So far this year alone the stock has rallied more than 17%.
## Respected Funds Back JNJ
In total, 37% of shares are held by funds, according to MarketSurge data. Noteworthy holders include the Fidelity Contrafund (FCNTX) and the JPMorgan Large Cap Growth Fund (SEEGX).
The company currently has a number of promising products in development. It recently unveiled the results of a study showing nearly 60% of adolescents with plaque psoriasis had clear skin after a year of treatment with its drug Icotyde. In a separate study it said 89% of patients responded to its experimental treatment for a form of bladder cancer.
Meanwhile, the European Commission approved Johnson & Johnson's pill Akeega for patients with a type of prostate cancer. And the FDA gave its nipocalimab a Fast Track designation for patients with a type of lupus. The Fast Track designation will allow for a speedier review period.
***
**[Look For This Bullish Market Signal After Strong Week](https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-oil-prices-tesla-jobs-report/)**
***
## TJX Stock
The off-price retail play has formed a flat base with an [ideal buy point](https://www.investors.com/how-to-invest/investors-corner/chart-reading-basics-how-a-buy-point-marks-a-time-of-opportunity/) of 162.68, [MarketSurge analysis shows](https://get.investors.com/marketsurge/).
This is a [first-stage pattern](https://www.investors.com/how-to-invest/investors-corner/do-you-know-how-to-count-bases-in-leading-stocks-do-it-to-assess-risk/) for the stock, which is a plus. In addition, it has bullishly held support at its [50-day line](https://www.investors.com/how-to-invest/investors-corner/50-day-moving-average-identifies-buy-sell-signals/) despite the broader pressure hitting the market.
TJX shares have also cleared an alternative early entry of 160.33.
The stock has seen its relative strength line surge to new highs. This is encouraging as it attempts a breakout. So far in 2026, the stock has climbed more than 8%.
All-around performance is formidable, which is reflected in its [IBD Composite Rating of 91 out of 99](https://www.investors.com/how-to-invest/investors-corner/the-ibd-composite-rating/).
TJX stock sits among the top 19% of equities in terms of gains over the past 12 months. Since the start of the year it has risen 5% while the S\&P 500 has given up ground.
## Earnings Performance Is Solid
Fundamental performance is its strongest attribute though, with its EPS Rating sitting at 89 out of 99. Full-year earnings are seen popping 8% this year before accelerating to 11% growth in 2027.
In total, 46% of shares are held by funds, according to [MarketSurge data](https://get.investors.com/marketsurge/). The well-regarded T. Rowe Price U.S. Equity Research Fund (PRCOX) and the Fidelity Contrafund (FCNTX) are among the noteworthy backers.
With the war in Iran driving up fuel and freight costs, TJX is seen as a potential beneficiary. This is because disruptions could increase unwanted or closeout inventory among full-price retailers.
On Feb. 25, TJX beat earnings expectations for its fiscal fourth quarter. Comparable store sales grew 5% for both Q4 and the full year. On March 30, management announced a 13% dividend increase and plans for \$2.5 billion to \$2.75 billion in stock buybacks.
The parent of the T.J. Maxx, Marshalls and Home Goods chains tied the actions to confidence in sustained profitability, strong cash flow and overall business growth.
More growth is seen ahead. Analysts project full-year per-share earnings will pop 8% in 2026 before accelerating to 11% growth next year.
## **Lattice Semiconductor** Stock
The semiconductor stock is forming a [consolidation](https://www.investors.com/how-to-invest/investors-corner/shopify-stock-consolidation-pattern-led-to-beautiful-gains/) with an ideal buy point of 108.08, [MarketSurge analysis shows](https://get.investors.com/marketsurge/). Investors can use the March 25 high of 101.64 as an early entry.
This is an early-stage pattern for the stock. The [relative strength line](https://www.investors.com/how-to-invest/investors-corner/relative-strength-line-gives-crucial-clues-about-stocks-ready-to-make-big-gains/) is hitting new highs, a bullish sign.
Overall performance is top-notch, with its [IBD Composite Rating coming in at 95 out of 99](https://www.investors.com/how-to-invest/investors-corner/the-ibd-composite-rating/).
Its offers a strong balance of fundamental performance and price accumulation. It ranks among the top 6% of equities over the past 12 months. It is leaving the benchmark S\&P 500 for dust so far in 2026, rising more than 29%.
But fundamental performance is also muscular, with its [Earnings Per Share Rating sitting at 82 out of 99](https://www.investors.com/how-to-invest/investors-corner/eps-rating-is-key-to-picking-great-stocks/).
## Strong Growth Seen Ahead
Wall Street sees substantial earnings growth ahead, with full-year EPS projected to rise 49% in 2026 before rising a further 33% next year, [according to MarketSurge data](https://get.investors.com/marketsurge/).
Big Money has standing pat on LSCC holdings of late, with its Accumulation/Distribution Rating sitting at C. The well-respected T. Rowe Price New Horizons (PRNHX) is among the noteworthy holders.
The artificial intelligence play recently landed a partnership with **Nvidia** ([NVDA](https://research.investors.com/quote.aspx?symbol=NVDA)).
The company has joined the Nvidia Halos AI Systems Inspection Lab ecosystem. Its expertise will help build Halos-certified high-speed sensor data designs used in cameras, Lidar and radar.
In addition, this semiconductor stock's products are also found in smart factories, advanced driving systems, telecom infrastructure and connected homes.
***
****[Looking For The Next Big Stock Market Winners? Start With These 3 Steps](https://www.investors.com/research/how-to-invest-in-the-stock-market-start-with-a-simple-routine/)****
***
## Sociedad Quimica Stock
Lithium and fertilizer play Sociedad Quimica has formed a [consolidation](https://www.investors.com/how-to-invest/investors-corner/shopify-stock-consolidation-pattern-led-to-beautiful-gains/) with an ideal buy point of 86.13, [IBD MarketSurge analysis shows](https://get.investors.com/marketsurge/).
This is an early-stage pattern, which is favorable. The relative strength line is sitting near new highs, which is also a bullish sign.
Shares came close to a breakout on March 30 before backing off slightly. However, it continues to sit well above the 50-day line.
All-around performance is very strong, with its [IBD Composite Rating sitting at a near-perfect 98](https://www.investors.com/how-to-invest/investors-corner/the-ibd-composite-rating/).
Sociedad Quimica ranks among the top 4% of equities in terms of price performance over the past 12 months. It has already risen nearly 21% so far this year
Fundamental performance is not as strong though, with its [EPS Rating coming in at 73 out of 99](https://www.investors.com/how-to-invest/investors-corner/eps-rating-is-key-to-picking-great-stocks/).
[Earnings have grown by an average 10%](https://research.investors.com/stock-checkup/nyse-sociedad-quimica-adr-sqm.aspx) over the past three quarters, which is shy of the 25% growth sought by [The IBD Methodology](https://www.investors.com/how-to-invest/investors-corner/stock-market-investing-ibd-methodology/) investors. However, EPS accelerated to 52% growth in the most recent quarter
More growth is seen ahead, with full-year per-share earnings seen rising 184% this year before slowing to 11% growth in 2027.
Big Money has been adding to holdings of the stock of late, with its [Accumulation/Distribution Rating coming in at B-](https://www.investors.com/how-to-invest/investors-corner/how-to-buy-stocks-accumulation-distribution-rating-shows-professionals-moves/).
## Iran War Boosts Stock
The Chilean chemical company's products are used by health, food, technology and clean energies industries. Lithium is a component in hybrid and electric vehicle batteries.
Its Nova Andino Litio lithium partnership is running at full capacity. Further, Sociedad is increasing its exposure to lithium carbonate refining in China.
The agricultural chemicals play is also benefiting from the fact shares of fertilizer stocks have been soaring due to the Strait of Hormuz closing amid the U.S.-Iran war. More than a quarter of the oil-and-gas derivative components used in fertilizer products ship through the waterway, [according to Goldman Sachs](https://www.goldmansachs.com/insights/articles/how-the-conflict-in-the-strait-of-hormuz-could-affect-global-agriculture-prices).
***Please follow Michael Larkin on X at [@IBD\_MLarkin](https://twitter.com/IBD_MLarkin) for more analysis of growth stocks.***
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