Here is a basket of the top 25 best US stocks to invest in 2020. These are the best stocks to buy right now if you are looking for the best companies to grow your portfolio for long term. These companies have solid track records and are expected to continue growing year by year.
We compiled these US stocks picks with the following criteria: strong fundamentals, great profit return, index inclusion, and innovative potential. Many of the stocks from our picks also pay out dividends. That’s a big bonus!
Note that we included the TP (Target Price) and BBP (Buy-Below-Price) of each stock at the end section of the article. The target price is our valuation based on price movement, momentum, and average financial analysts’ target. The BBP is the margin to buy the stock to earn a profit of 10% or more. Let’s start!
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Top 25 Best US Stocks to Invest Right Now:
- JPMorgan Chase
- Beyond Meat
- Advanced Micro Devices
- NextEra Energy
- Home Depot
- Berkshire Hathaway
Best Stocks to Invest in the USA in 2020:
Microsoft (Ticker: MSFT) is also one of the Big 4 Trillion Market Cap companies in the USA. Having a 1.519 trillion market cap, Microsoft is also the Top 1 from Forbes Just 100 Companies. It truly deserves the number one spot among the Best US Stocks to Invest in 2020. MSFT pays out regular dividends to its stockholders four times a year. Yay!
Microsoft was founded by Bill Gates and Paul Allen, two of the richest men in the world. The company is also one of the most successful software companies in the world with many famous subsidiaries, including Skype, LinkedIn, Xbox Game Studios, GitHub, and many more tech companies.
Do not miss reading: “Top 5 Reasons Why We Invest in Microsoft Stocks.”
MasterCard (Ticker: MA) is one of the best global payment technology companies in the world. The company provides financial solutions in more than 210 countries around the world—MasterCard processes around $3.6 trillion transactions per year.
This credit card giant continues to innovate technology to serve faster digital payments. MasterCard has over 295 billion market capitalization. It is listed in the S&P 500 index. As of June 2020, MasterCard has a dividend yield of 0.52%. We love this stock as it rewards dividends four times a year.
Alphabet (Ticker: GOOG) is a holding company and mainly known as the parent company of Google and its many businesses and product lines including Android, Google Search, YouTube, apps, maps, ads, Nest, Google Ventures, Google Capital, cloud, healthcare, and many more.
Simply put, choose Alphabet if you want a “bet” on “Alpha” investments. Alphabet is one of the largest companies in the USA in terms of revenue. The company ranked 11th at the Fortune 500 companies in 2020. It is the fourth US company that achieved 1 trillion market capitalization.
Amazon (Ticker: AMZN) is the second-largest company in the US in terms of revenue in 2020. This giant retail and cloud services company has over 137 million active customers contributing to its $75.5 billion revenue in the first quarter of 2020. Amazon was founded by Jeff Bezos, who is also its CEO and the owner of The Washington Post.
AMZN is listed in the Nasdaq 100 and S&P 500 index. It is also one of the Big Four Tech Companies alongside Google, Apple, and Microsoft. Amazon is the second US company to have reached the trillion market cap.
Apple (Ticker: AAPL) is one of the most iconic brands in the world. It is a giant tech company that invented the Macintosh, iPhone, iPad, Mac, Apple Watch, Apple TV, and many more innovative products and services. Apple Inc. created notable software platforms including iOS, macOS, watchOS, tvOS, and online services App Store, Apple Music, iCloud, and Apple Pay.
Apple Inc. is the first US company that reached the trillion market cap in history. Just recently, it crossed the 1.5 trillion market cap. In 2020, it is the fourth-largest company in the US in terms of revenue. Despite the coronavirus, Apple has recovered and continued its rising trend this month. AAPL is currently among the top stocks listed in the Dow Jones, Nasdaq 100, and S&P 500.
Tesla (Ticker: TSLA) is the highest valued car manufacturer in the world. This earth-friendly company specializes in the production of all-electric vehicles and sustainable energy ecosystem. Tesla is currently listed in the Nasdaq 100 index and has over 178 billion market capitalization.
Is it too late to invest in Tesla? TSLA hit 1,000 stock price despite the pandemic in 2020. It is one of the most controversial stocks. Its skyrocketing trend could dive any time its CEO Elon Musk makes an awkward tweet. TSLA also became the most shorted stocks in the US, taking the place of Apple. Nonetheless, buying on the dip and market crash could be profitable while applying some trailing stops.
Visa (Ticker: V) is the No. 1 payment processor in the world. Dating back to 1958, Visa has become a reputable payment brand providing digital currency solutions in more than 200 countries worldwide. Last year, Visa processed 138.3 billion transactions. V stock is included in the S&P 500 and Dow Jones Industrial Average index.
Visa is one of our favorite fintech stocks for long term because of its continuous payment innovation, the growing volume of Visa cardholders, and increasing partner networks. Despite the covid19 pandemic, Visa’s net income rose 4% to $3.08 billion in Q2 of 2020. V also rewards regular dividend payments to its stockholders four times a year.
Starbuck (Ticker: SBUX) is a prominent coffee company and the world’s largest coffeehouse chain with over 32,050 stores worldwide. It is one of the World’s Most Admired Companies and one of the World’s Most Valuable Brands. Starbucks has more than 85 billion market cap and currently listed among the S&P 500 companies.
Why should you invest in Starbucks stocks? Number reason, it’s because it has a solid dividend yield (currently 2.29%). SBUX dividend is growing consistently regardless of the stock performance. The company pays dividends to its shareholders four times a year.
NVIDIA (Ticker: NVDA) is a cutting-edge computer company that designs, manufactures, and markets graphics processing units (GPUs) used in gaming, data centers, and artificial intelligence (AI). The company was founded in 1993. For decades, NVIDIA led the field of visual computing by reinventing and transforming computer graphics.
NVDA stocks also pay dividends four times every year. NVIDIA is currently among the top stocks listed in the NASDAQ 100. The growth potential of this stock is as positive as to how cloud computing is forecasted to grow in the years to come.
Walmart (Ticker: WMT) is the No. 1 company in the US in 2020 in terms of revenue. It is one of the largest retailers in the world. The giant retailer recorded $524 billion in revenue, surpassing Amazon. It has more than 337 billion market capitalization. Walmart is one of the top components of the S&P 500 and Dow Jones 30.
Walmart is also generous in terms of dividends. The company pays its stockholders dividends every quarter of each year. Walmart has been steadily growing, and the potential of eCommerce is a significant venture.
11. JPMorgan Chase
JPMorgan Chase & Co. (Ticker: JPM) is one of the oldest financial institutions in the US and one of the largest banks in the world. With a history dating back over 200 years, its assets under management are now worth more than $2.6 trillion. JPMorgan Chase operates around the world with more than 100 global markets. JPM’s hedge fund unit is also one of the biggest hedge funds in the world.
JPM is ranked 8th at Fortune’s Most Admired Companies in 2020 and 17th at Fortune 500 in 2020. With over 286 billion market cap, JPM stock is among the top components of the S&P 500 and Dow Jones Industrial Average index. JPM pays dividends quarterly.
International Business Machines (Ticker: IBM) was founded in 1911, and it continues to contribute innovation and progress with its state-of-the-art inventions. IBM is a global tech company that develops and manufactures hardware and software solutions, hosting and consulting services, and many more services involving super-computers.
IBM has more than 107 billion market cap and is among the top components of the Dow Jones index. The company pays consistent dividends four times a year. IBM stock price is below its 52-week high, so there is a potential gain if you make an excellent entry. The company ranked 8th in the Most Innovative Companies of 2020 presented by Boston Consulting Group (BCG).
13. Beyond Meat
Beyond Meat (Ticker: BYND) is a plant-based meat substitute provider founded by Ethan Brown in 2009. The company produces and sells vegan alternatives for beef, chicken, and pork, including plant-based burger patties, sausages, ground beef, and beef crumbles. BYND products are available in more than 58,000 grocery stores and many countries.
Beyond Meat has earned praise from notable people and received venture funding from Bill Gates, Leonardo DiCaprio, Tyson Foods, and many more. BYND has a decent balance sheet and revenue but needs to make more profit. It has an over 8.34 billion market cap. Its stock price tends to spike and swing, so we better choose a good entry point.
Netflix (Ticker: NFLX) is the world’s leading streaming entertainment service, with 183 million paid memberships in over 190 countries. The company reported additional global paid net subscribers of 15.77 million in Q1 2020 during the pandemic lockdown.
The streaming entertainment giant currently ranked 164th in Fortune 500 Companies. NFLX has over 200 billion market cap and is listed in the S&P 500 and NASDAQ 100 index.
Adobe (Ticker: ADBE) is an American company founded in 1982. It creates multimedia and creativity software products, including Photoshop, Acrobat Reader, Creative Cloud, Document Cloud, and Experience Cloud. According to Adobe, over 90% of the world’s creative professionals use Adobe Photoshop, more than 250 billion PDFs were opened using Adobe last year.
Adobe is among the top stocks listed in the NASDAQ 100 and S&P 500. The company has over 209.70 billion market capitalization. Adobe makes recurring income from paid subscriptions to its products. It is also showing a growing trend in the charts year by year.
Paypal (Ticker: PYPL) is a digital payment platform with over 277 million active account holders in more than 200 markets around the world. It has product segments, including Braintree, Venmo, and Xoom. Paypal lets consumers and merchants receive money in more than 100 currencies, withdraw funds in 56 currencies, and hold balances in their PayPal accounts in 25 currencies.
PYPL has over 204.50 billion market cap and is listed both in the S&P 500 and NASDAQ 100 index. This digital and mobile payment platform continues to expand its services.
McDonald’s (Ticker: MCD) has been here since 1940. It is one of the world’s leading fast-food chain company with more than 36,000 restaurants in more than 100 countries, serving over 69 million customers daily. The food chain giant has more than 137 billion market capitalization.
MCD pays dividends every quarter of each year. With a dividend yield of 2.71% and an annual dividend of $5, it’s one of the favorite stocks of dividends investors. McDonald’s has also been affected by the coronavirus, as many restaurants temporarily closed. But long-term investors take this opportunity to buy more stocks while MCD stock is priced below 200 SMA.
18. Advanced Micro Devices
Advanced Micro Devices (Ticker: AMD) is the only company in the world that has both high-performance graphics and high-performance computing technology. Founded in 1969, AMD is now one of the world’s leading semiconductor companies. AMD stock belongs to both NASDAQ 100 and S&P 500 index.
AMD has over 61.5 billion market cap. The high-end chip maker recorded Q1 2020 a revenue of $1.79 billion and a net income of $162 million.
Boeing (Ticker: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners, defense, space, security systems, and service provider of aftermarket support. The company has more than 102 billion market cap and is among the top components of Dow Jones and S&P 500.
In every crisis, there is an opportunity. That’s what long term investors of BA stocks have been doing when the price of BA stock dropped down during the pandemic. While air travel is not back to normal, a weekly price return of BA stock is around 2.05%, and monthly is approximately 19.11%. Always trade with caution.
ServiceNow (Ticker: NOW) was founded in 2004. It offers digital cloud-based solutions and serves more than 6,200 enterprise customers around the world. 80% of the Fortune 500 companies use ServiceNow. It is named among the list of Most Admired Companies in 2020 by Fortune.
From the Q1 2020 report, ServiceNow already made $995 million subscription revenue. That is 34% YOY growth. Cloud computing is a very resilient business, and it continues to grow. NOW is currently listed in the S&P 500. It has more than 79 billion market cap.
Facebook (Ticker: FB) is a social-network company founded in 2004. With more than 1 billion daily active users, Facebook now owns other successful platforms, including Instagram, WhatsApp, Messenger, Oculus, Workplace, Portal, and Novi.
Facebook ranks No. 10 in the Most Innovative Companies in 2020, presented by Boston Consulting Group and No. 46 in Fortune 500 Companies. FB has more than 677 billion market cap and listed among the top stocks in the NASDAQ 100 and S&P 500.
22. NextEra Energy
NextEra Energy (Ticker: NEE) is the world’s largest producer of wind and solar energy, with more than 45,500 megawatts of net generating capacity. The company is one of America’s largest capital investors in infrastructure, with $50-55 billion planned investments through 2022. It ranked No.1 in the electric and gas utility industry on Fortune’s list of Most Admired Companies in 2020.
With over 120 billion market cap, NEE stock is among the components of the S&P 500. The company also pays quarterly dividends. The annual dividend for 2020 is $5.60.
UnitedHealth Group (Ticker: UNH) is the largest healthcare company in the world in terms of revenue. The company offers health care insurance, software, and data consultancy services. UNH has over 282 billion market cap. It is among the top stocks listed in the S&P 500 and Dow Jones index.
UNH rewards quarterly dividends to its shareholders. The annual dividend is $5 in 2020.
24. Home Depot
Home Depot (Ticker: HD) is the largest home improvement retailer in the US. Founded in 1978, the company has more than 2,200 stores across North America. It ranked No. 26 on Fortune 500 companies. It was also named among the Most Admired Companies by Fortune.
HD has over 267 billion market cap in 2020 and is listed among the selected stocks in the S&P 500 and Dow Jones Industrial Average index. The company also pays quarterly dividends. The annual dividend in 2020 is $6.
25. Berkshire Hathaway
Berkshire Hathaway (Ticker: BRK.B) is the giant holding company of legendary investor, Warren Buffett. It is one of the favorite stocks of millennials. The company ranked No. 6 in Fortune 500 Companies in 2020 among the largest companies in the USA in terms of revenue. Berkshire Hathaway also has a stock portfolio of popular companies like Apple, Coca-Cola, American Express, Bank of America, Wells Fargo, among others.
BRK.B has over 432 billion market cap and is among the finest stocks listed in the S&P 500. Berkshire Hathaway also manages well-known brands, including Dairy Queen, Fruit of the Loom, NetJets, GEICO, Helzberg Diamonds, Pampered Chef, and Kraft Heinz and many more.
|JPMorgan Chase (JPM)||95||105|
|Beyond Meat (BYND)||127||140|
|Advance Micro Devices (AMD)||77||85|
|NextEra Energy (NEE)||286||315|
|Home Depot (HD)||271||298|
|Berkshire Hathaway (BRK.B)||205||225|
Disclosure: I am a long term investor of some of the stocks mentioned. I wrote this article myself, and it expresses my own opinion. This content is for information purposes only and should never be considered as professional advice. Every investor has different risk tolerance and goals. Always do your own research to meet your goals. All investments have risks. Risk only capital you’re not afraid to lose. I have no business relationship with the companies whose stocks have been mentioned.