Finding the best stocks to buy now is one of the hardest parts of investing. It's difficult to know which companies will outperform the market, and your portfolio may suffer if you choose poorly.
The good news is that there are many services available for providing stock recommendations. Some of these services have better track records than others, and it is important to ensure that the service you choose aligns with your investment goals.
In this guide we'll explain how to get stock recommendations and highlight three of the best services to use today.
Stock Recommendations: Tips vs. Research Tools
The first step to getting stock recommendations is to decide whether you want a stock advisory service or a stock research platform.
Stock advisory services, also known as stock picking services, recommend some specific stocks to buy. You don't need to do any of your own research — you can simply follow the sample portfolio and buy recommended companies.
Stock research services, on the other hand, provide lists of recommended stocks that are worth investigating further, and then leave it up to you to decide which ones to buy. These platforms include analysis tools to help you identify stocks with the most potential or the best risk-return profile.
These two types of services are very different and attract different types of investors.
Stock advisory services are very easy to use and don't require much effort, but you also may not know much about what you are buying. When using a stock picking service, it is extremely important to choose one that aligns with your investment goals and has a proven track record of beating the market.
Stock research platforms require more time and a deeper understanding of stock analysis. However, they also provide more freedom to create a portfolio fully tailored to your investment goals and risk tolerance. These platforms are likely to be more attractive if you enjoy the stock selection process and want to be able to clearly articulate why you own each stock in your portfolio.
Best stock recommendation services
Keeping in mind the distinction between stock advisory services and stock research platforms, let's take a look at the three best stock recommendation services that can be used today.
Best for Long-Term Stock Picks – Motley Fool Stock Advisor
The Motley Fool's Stock Advisor is a stock-picking service that offers two recommendations of stocks ready to buy each month. It has a truly impressive track record, outperforming the S&P 500 by 651% to 151% from the service's launch in 2002 through March 2024.
Stock Advisor focuses on explosive growth stocks. Examples of past picks include stocks like Amazon, Tesla, and Netflix. While the service is not limited to technology stocks, the vast majority of picks are in the technology sector.
Most importantly, this service is designed for long-term investors. You are expected to stick with your stock picks for at least five years and possibly much longer than that. There are several picks in the Stock Advisor portfolio that have been around for over 20 years.
Another great thing about Stock Advisor is that the service maintains a “best buy now” list of stocks already in the portfolio, but it would be nice to double that if you have some extra money to invest. This list makes it easy to transition into building a diversified portfolio without waiting for new stock picks to be announced for a few months.
Key Features:
🏆 Top rated services 🏆
Our team has reviewed more than 300 services. These are our favourites:
- Two new stock picks every month
- Focuses on long-term growth stocks
- Each selection includes an explanation of why it's worth investing in
- Our Best Buy Now list offers ideas on what to buy among the new selections
Pricing: $199 per year
Special for new member
Get Stock Advisor for just $99 for your first year
(Regular $199)
Best for Mid-Term Stock Picks – Alpha Picks
Alpha Picks is a stock advisory service offered by Seeking Alpha that works similarly to Stock Advisor, offering two new stock picks each month.
The main difference is that while a stock advisor focuses on long-term growth stocks, Alpha Picks focuses on momentum stocks that are outperforming their peers in their respective sectors. Alpha Picks tends to recommend stocks from a wide range of market sectors, which can be useful for building a more diversified portfolio.
Additionally, Alpha Picks aims for an investment time frame of approximately one year. Therefore, it can be a better option for active investors than a stock advisor.
Alpha Picks also rates all picks in the portfolio as Strong Buy, Buy, or Hold. So, if you have extra money to invest among the new recommendations, you can simply choose one of the picks with a Strong Buy rating.
Alpha Picks launched in July 2022 and has beaten the S&P 500 130% to 34.5% as of March 2024. Although the service's track record is rather short, these early results are promising.
Key Features:
- Two new stock picks every month
- Focuses on momentum stocks with a one-year investment horizon
- Invests in a wide range of market sectors
- Prices are strong Buy stocks already in the portfolio
Pricing: $199 per year
Get a discount on Alpha Picks
Best for Self-Directed Search – Search Alpha Premium
Seeking Alpha is our top pick for stock research platforms. This service provides a range of tools to help you decide which stocks to buy, including in-depth financial analysis, stock screening, and more.
One of the best ways to get started with Seeking Alpha Premium is to check out the platform's top stocks list, which contains about 30 stock recommendations for you to research further.
Seeking Alpha assigns several scores to each stock based on an algorithm, Wall Street analysts' price forecasts, and Seeking Alpha's shareholder ratings. It also scores companies based on their valuation, growth potential and profitability. You can screen stocks based on any of these ratings, making it easy to quickly find stocks that are likely to outperform the market.
🏆 Top rated services 🏆
Our team has reviewed more than 300 services. These are our favourites:
If you want to dig deeper into researching individual stocks, Seeking Alpha helps you compare companies with their peers and provides a detailed look at their inner financial workings. Additionally, you can read articles from professional stock analysts to learn more about why they recommend buying a stock or not.
Key Features:
- List of top stocks based on multiple ratings
- A wide range of financial metrics
- Stock screening tool to help you quickly find promising stocks
- Analytical articles from professional investors
Pricing: $239 per year
special offer
Try Search Alpha Premium for free for 7 days.
Instructions
Can I get free stock recommendations?
There are many services that offer free stock recommendations. For example, Zacks provides access to a small subset of its top-ranked stocks each day. However, always treat free stock recommendations carefully. Most stock picking services and stock research platforms require a paid subscription.
Are stock picking services worth it?
Stock picking services can be worth the subscription cost if they perform well. Look for services that have a long track record of outperforming the market. Additionally, keep in mind that these services provide more value the larger your wallet. That is, the $200 annual subscription fee represents a 10% fee for a $2,000 portfolio, but only a 1% fee for a $20,000 portfolio.
How do I use top stock lists?
Top stock lists, such as those provided by Seeking Alpha Premium, are not designed to be recommendations of stocks you should buy immediately. Instead, they highlight stocks that could be good picks and that you should research in more detail. Use these lists to find companies you're interested in, then conduct additional research to determine if the stock is worth buying.
