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Catching Falling Knives? Smart Strategies for Buying Stocks in a Downturn.

As stock prices decline, you may feel as if you're at the world's biggest sale. Suddenly, stocks that seemed expensive weeks ago are trading at bargain valuations. You may be tempted to jump in and catch that falling knife, hoping you're buying at the best price. Of course, it's nearly impossible to time the market, so you're unlikely to buy a stock at its lowest and sell at its highest.

If you're a short-term investor, this could be a problem. In this case, it's risky to buy a stock as it's dropping because it may take a while for it to recover and go on to gain. Meanwhile, if you aim to sell in a few days or weeks, you may have caught the knife by the blade and find yourself recording a loss.

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However, if you're a long-term investor, the picture looks much different. You can buy stocks during a downturn because, by holding on for five years or more, you're giving those companies time to recover and grow and the share price an opportunity to reflect that progress. Now, let's check out some smart strategies for buying stocks during a downturn.

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Image source: Getty Images.

1. Invest with confidence

Although on the one hand, those bargain stock prices may have caught your eye, you might still worry about investing when the general environment seems uncertain. What if current problems persist? What if stocks fall even further? Those questions could be running through your mind.

This is when it's a good time to consider what history has to say. My colleague Adam Levy recently wrote about what has generally happened after stocks fall into a correction, and this offers us reason to invest with confidence during these periods. The S&P 500 index (SNPINDEX: ^GSPC) has slid into the correction zone 15 times since 2008, Adam wrote, citing Dow Jones Market Data, and in all but two of those times, the index was higher a year later.

This means that corrections offer us a fantastic buying opportunity, one that will generally start delivering in the not-too-distant future. It doesn't matter when you buy during the correction; even if stocks continue to decline, your gain may still be significant once shares recover and travel through stronger market environments. So, the message here is not to hesitate to buy stocks during a correction. History shows that it's been a great bet for long-term investors.

Finally, it's also a smart idea to look at buyback activity in the recent past. In the fourth quarter of last year, for example, S&P 500 buybacks increased by more than 7% to about $243 billion, suggesting companies are confident about the future. So, growth in share repurchases supports the idea of investing regardless of what the market is doing at the moment.

2. Focus on value players before a market downturn

It's impossible to know when the market will enter its next negative phase, but we know it will occur at some point. Markets go through bull and bear markets, as well as many other periods of gains and declines, from rallies to market downturns. Some are short, and some are long. But the good news is that difficult periods don't last forever, and certain types of stocks can help you weather the storm.

Generally, the sort of stock that will help your portfolio during a downturn is a value stock. These stocks are in well-established industries, such as energy, healthcare, or financials, and they generate a considerable amount of cash and pay dividends. They are strong, steady, and reliable, and that's why they tend to outperform during tough times. And, of course, investors are especially appreciative of their dividend payments when markets are down.

The MSCI World Value Index climbed 6.1% in 2022, a down year for the overall market, outperforming the MSCI World Growth Index by more than 26%, according to a report by Quilter Investors.

All this means that when markets are rallying and growth stocks are soaring, stock up on value stocks that may support your portfolio during the next tough period.

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Image source: Getty Images.

3. Consider lump-sum investing and cost averaging

If you have a certain amount of money to invest, you could deploy it all at once in a lump sum or use cost averaging, which involves investing the same amount of money in a particular asset on a regular schedule for a set period. So, for example, in lump-sum investing, you might invest $1,000 right now in Nvidia. In cost averaging, you might invest $100 in Nvidia every Monday for 10 weeks.

Which strategy will produce the best return? A study by Vanguard shows that lump-sum investing beats cost averaging 68% of the time. That said, the study also showed that in the worst market environments, lump-sum investing resulted in bigger losses.

So, which option should you choose? It depends on your relationship with risk. If you're a very cautious investor, you might try cost averaging, at least with certain investments, while aggressive investors may opt for deploying a lump sum right away.

In either case, though, investing is a better idea than just holding onto cash. The Vanguard study also found that both techniques outperformed cash at least 69% of the time. This means that, even in the most difficult of environments, if you're willing to hold on for the long term, you're better off investing than staying out of the market.

Should you invest $1,000 in S&P 500 Index right now?

Before you buy stock in S&P 500 Index, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

2 Buffett-Style Artificial Intelligence (AI) Stocks That Could Build Long-Term Wealth

Warren Buffett has proven his ability to deliver market-beating gains, and thanks to this, build wealth over the years. The billionaire investor, at the helm of Berkshire Hathaway, posted a 19.9% compounded annual increase over nearly 60 years -- and that's as the S&P 500 index recorded a 10.4% such gain. All of this helped his portfolio reach $258 billion as of the closing of the most recent quarter.

Though Buffett's biggest holding is Apple, the billionaire generally doesn't invest in technology stocks, so you might not think of turning to this top investor for inspiration when shopping for artificial intelligence (AI) players. But here's some good news: We actually can use some of Buffett's investing principles to identify smart buys in any industry.

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Here, I'll consider two elements that consistently drive Buffett's investment decisions, and these are valuation and competitive advantage. He aims to get in on stocks at a cheap or reasonable level, and he favors stocks that have what it takes to stay ahead of rivals over time. Let's check out two Buffett-style AI stocks that are winning in both of these areas -- and could build long-term wealth.

Warren Buffett is seen in close up at an event.

Image source: The Motley Fool.

1. Alphabet

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is a company that you probably have some interaction with on a daily basis. The company owns Google Search, the world's most popular search engine with about 90% market share -- and this business has driven Alphabet's revenue and net income into the billions of dollars. This is the result of advertisers paying to promote their products and services across the Google platform in order to reach us.

This search business has a solid moat, or competitive advantage, thanks to its performance and position as part of our daily routine -- when we don't know something, we don't just search for it, we "Google it." So, as long as Google Search continues to offer us the performance we expect, it's likely to maintain its leadership.

And here's how Alphabet is ensuring that happens: The company has invested heavily in AI, even developing its own large language model (LLM), Gemini, to improve and expand the capabilities of Google Search. This should please users, and as a result, keep advertisers coming back and potentially even spending more.

On top of this, the AI investment is helping Alphabet's Google Cloud business deliver double-digit revenue gains quarter after quarter. Google Cloud sells various AI products and services to customers, and demand is high as the AI boom continues.

Along with this solid competitive advantage, Alphabet offers a valuation that might even please the bargain-hunting Buffett. Alphabet, trading for 18x forward earnings estimates, is the cheapest of the Magnificent Seven tech stocks by this measure.

2. Nvidia

Nvidia (NASDAQ: NVDA) is clearly on every AI investor's radar screen. The company dominates the AI chip market, and this has helped it generate soaring earnings over the past few years -- with revenue and profit reaching record levels. But this stock doesn't look like it's in a bubble ready to burst. The company's solid reputation for excellence, along with its commitment to innovation, represents a moat. Nvidia aims to launch new AI chip updates on an annual basis, offering rivals little room to jump ahead.

And here's something else Buffett would like: the quality of Nvidia's leadership. Jensen Huang founded Nvidia more than 30 years ago and has successfully guided the company ever since. He's known for his resourcefulness, rapidly finding solutions to problems, and commitment to keeping Nvidia ahead of the pack.

Strong management is crucial for a company's long-term success, and Buffett has recognized the importance of this to him. "When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever," he wrote in his 1988 letter to shareholders.

Now, let's look at valuation. Nvidia isn't the cheapest AI stock around, but after recent declines across the sector, valuation has come down -- and today, it's at a very reasonable level considering the company's AI prospects. The stock trades for 31x forward earnings estimates, down from 50x earlier this year.

So, right now, Nvidia's moat, leadership, and reasonable price make it a Buffett-style stock that could help investors build significant wealth over the long term.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $828,224!*

Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, and Nvidia. The Motley Fool has a disclosure policy.

3 Artificial Intelligence (AI) Stocks to Buy If You're Bullish on a 2025 Rebound

The three major benchmarks struggled in the first months of the year as investors worried about the economic situation ahead. President Donald Trump set out a plan to impose tariffs on imports, a move analysts and economists said could weigh on growth. The concern is both businesses and consumers would face higher costs -- a scenario that might hurt corporate earnings.

Over the past few weeks, though, certain positive elements have helped the S&P 500 (SNPINDEX: ^GSPC), the Dow Jones Industrial Average (DJINDICES: ^DJI), and the Nasdaq Composite (NASDAQINDEX: ^IXIC) to rebound. The U.S. reached initial trade deals with the U.K. and China, and the U.S. temporarily exempted the high-growth area of electronics from import tariffs.

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Of course, uncertainty still remains. A federal court ruling recently halted Trump's tariffs, but an appeals court then ruled the U.S. could continue collecting duties. And this legal battle may continue. Meanwhile, tensions between the U.S. and China just intensified again as the U.S. said China breached their trade agreement.

But these latest events could be temporary disturbances and might not hold indexes back for very long. And artificial intelligence (AI) stocks could be the first to benefit, considering the growth potential of that market -- analysts expect it to surpass $2 trillion by the early 2030s. So, if you're bullish on a 2025 rebound, consider these three AI stocks to buy.

An investor looks at something on a phone while sitting on a couch.

Image source: Getty Images.

1. Advanced Micro Devices

Nvidia dominates the AI chip market, but that doesn't mean there isn't room for other winners. And one that's showing potential is Advanced Micro Devices (NASDAQ: AMD). This chip designer is on the way up, offering an AI chip -- MI300X -- that may not beat Nvidia's top chip, but still offers customers quality performance.

Customers are realizing this, helping AMD's data center revenue to soar 57% in the recent quarter. Year-over-year growth accelerated for the fourth straight quarter, even against the backdrop of a complex economic environment, CEO Lisa Su said. This was done at increasing profitability on sales, with non-GAAP (generally accepted accounting principles) gross margin expanding to 54% from 52% in the year-earlier period.

AMD also is a leader in the central processing unit (CPU) market -- these are the main processors found in standard computers -- and recently gained more than 16% in CPU market share, bringing it close to beating Intel in that market, according to Wccftech.

AMD trades for 27x forward earnings estimates, down from 54x less than a year ago, yet revenue has climbed significantly -- so now looks like a great time to buy.

AMD PE Ratio (Forward) Chart

AMD PE Ratio (Forward) data by YCharts

2. Broadcom

Broadcom (NASDAQ: AVGO) is a networking expert, selling a wide range of products used anywhere from your smartphone to data centers. And speaking of data centers, they're driving growth for the company now as demand from AI customers soars.

In the most recent quarter, the company's AI revenue surged 77% to $4.1 billion, and consolidated revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached record levels. Importantly, the momentum looks set to continue. Broadcom forecast $4.4 billion in AI semiconductor revenue for the second quarter, saying this will be driven by big cloud service providers as they pile into connectivity solutions.

Broadcom also predicted its three major cloud customers will result in a serviceable addressable market of $60 billion to $90 billion in fiscal 2027. And this doesn't even include four other big customers working with Broadcom to develop AI accelerators.

Broadcom stock is trading close to its all-time high, but considering the AI growth ahead and its valuation of 36x forward earnings estimates, there still is room for the stock to run -- and it may gather momentum as the indexes rebound.

3. Oracle

Oracle (NYSE: ORCL) once was mainly known for its database management platform, but in recent times, it's become a significant player in the AI story. This tech giant offers a broad and flexible range of cloud solutions and has seen AI cloud infrastructure revenue take off in recent quarters -- in the most recent period, it soared nearly 50%.

The company's record level of sales contracts in the quarter offer us visibility on what's ahead, and there's reason to be optimistic: This $48 billion in contracts helped remaining performance obligations, or revenue to expect from these deals, to climb 63% to $130 billion.

On top of this, Oracle is involved in the Stargate project to build out AI infrastructure in the U.S., and the company also is playing a key role in an international Stargate effort. Along with partners including AI chip giant Nvidia, Oracle will help build a Stargate campus in the United Arab Emirates.

As for valuation, Oracle looks reasonably priced, trading at 27x forward earnings estimates, considering these catalysts for growth that could push the stock higher in the months and quarters to come. So, if indexes rebound in 2025, Oracle may be one of the big winners.

Should you invest $1,000 in Advanced Micro Devices right now?

Before you buy stock in Advanced Micro Devices, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $828,224!*

Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Adria Cimino has positions in Oracle. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Oracle. The Motley Fool recommends Broadcom and recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.

Billionaire CEO Jamie Dimon Says a Recession Isn't "Off the Table at This Point," Despite Lowering Tariffs. 5 Ways to Help Protect Your Stock Portfolio in Any Market Environment.

In recent days, investors have breathed a sigh of relief. After weeks of concerns about the impact of President Donald Trump's import tariffs, a reason for optimism emerged. The U.S. and China -- the country subject to the highest tariffs -- reached an initial agreement, and one that was better than expected. As a result, the three major benchmarks climbed, with the S&P 500 (SNPINDEX: ^GSPC) even returning to positive territory for the year.

However, amid this excitement about a better situation ahead, billionaire Jamie Dimon remains somewhat cautious. The chief executive officer of JPMorgan Chase in a Bloomberg interview said despite the tariff deal, a recession isn't "off the table at this point." Though the bank's economists lowered their U.S. recession risk forecast to below 50% from 60%, Dimon said current uncertainties such as large deficits and high interest rates could weigh on the economy -- and that market volatility probably isn't over.

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"I think it's a mistake to think we can go through all the things we're going through, and the volatility itself will come down," Dimon told Bloomberg during the bank's conference in Paris.

As CEO since 2005, Dimon has accompanied JPMorgan as its market value soared more than 400% to $743 billion, and he's often looked to for his comments on the general stock market environment to come.

Moving forward, if Dimon is right, the market still may face some challenges even after this week's landmark agreement between the U.S. and China. And that's why it's important to prepare your portfolio to handle any environment. Here are five ways to do just that.

A person's hand holds a pen and traces a stock chart on a computer screen.

Image source: Getty Images.

1. Favor diversification

If your portfolio is heavily exposed to just one company or industry -- even if it's a winning one today -- now is a great time to adjust your strategy. We've seen in recent weeks that even the strongest companies -- such as artificial intelligence (AI) chip giant Nvidia -- saw their shares drop amid general tariff and economic concerns. So it's never a good idea to place narrow bets when investing in stocks.

Instead, include at least a few industries and eventually several stocks in your portfolio, so if one faces troubled times, the others may compensate. And if you're not as knowledgeable as you'd like to be about a certain industry that you'd like to invest in, don't worry: There's a simple solution. Try an exchange-traded fund (ETF) revolving around that particular industry. It will offer you immediate diversification and exposure to top companies in the field.

2. Invest in companies that have proven themselves

Well-established companies with a long track record of earnings growth over the years are your best friends during uncertain times. They've proven their ability to handle challenges -- so if their financial situations and strategies haven't significantly changed, there's reason to be confident they can do it again.

An example is Amazon (NASDAQ: AMZN). The e-commerce and cloud computing giant struggled with higher inflation a few years ago and even shifted to an annual loss. But the company didn't sit still, and instead used this as an opportunity to revamp its cost structure -- a move that led it back to profitability a year later and continues to make this market giant more efficient.

So, it's worth looking at how a company has managed past difficulties, and those that have excelled may be great candidates for your buy list.

AMZN Net Income (Annual) Chart

AMZN Net Income (Annual) data by YCharts

3. Buy dividend stocks

No matter what the market is doing in a given year, your portfolio still could deliver some gains if you invest in dividend stocks. These players offer you passive income just for owning the shares. This is something you'll particularly appreciate when the market is down.

How to choose a top dividend company? Look to the list of Dividend Kings, which includes companies such as Coca-Cola, Johnson & Johnson, and many others across sectors. These companies have boosted their dividend payments for at least the past 50 years, a sign that rewarding shareholders is important to them. So you can buy with confidence that these payments likely will continue well into the future.

4. Commit to an asset that's always won over time

It's impossible to predict the future with 100% accuracy. But one particular asset always has won over time, suggesting it could continue along this path. And this is the stock market as a whole -- from the S&P 500 to the Dow Jones Industrial Average (DJINDICES: ^DJI) and the Nasdaq Composite (NASDAQINDEX: ^IXIC). After each past decline, the indexes have gone on to advance over time.

^SPX Chart

^SPX data by YCharts

To benefit from this, commit to an asset that tracks one of the three major benchmarks. An example is the Vanguard S&P 500 ETF (NYSEMKT: VOO). The purchase will offer you instant diversification as well as a great chance of scoring a win -- as long as you hold on for the long term.

5. Focus on the long term

It may be very tempting to get in on the trendy stock of the moment and sell it a few weeks later for a profit. But it doesn't always work out that way. In many cases, a few weeks after your purchase, instead of gains, you may see losses -- at least on paper. That's all part of the short-term investing routine, and that puts the pressure on you to "time the market."

But I've got good news for you: You don't have to worry about all of that when you invest for the long term -- and through long-term investing, you may set yourself up for an even bigger win. How to do it? Buy quality stocks with bright future stories when they're trading for reasonable prices -- and hold on for at least five years.

You may experience ups and downs, but you won't have to worry about an economic downturn or recession wiping out your gains. By sticking with solid players throughout business and market cycles, you're likely to position yourself for a win over the long run.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $349,648!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $40,142!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $635,275!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of May 12, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of Motley Fool Money. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, JPMorgan Chase, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

Here's How Artificial Intelligence (AI) Is Driving Profit Growth for These 2 Tech Stocks

Everyone has been talking about artificial intelligence (AI) over the past couple of years -- and it's easy to understand why. AI has the potential to revolutionize everything from the way you plan your day, thanks to AI assistants, to the way companies run factories and develop products thanks to a wide range of AI tools. Over the past quarters, to help make this happen, companies aiming to benefit from the AI boom have invested billions of dollars in the technology.

Some are makers of AI products and services and will gain by selling these to customers. Others are users of AI and will win as the technology streamlines and improves operations, saving them money. And some companies will reap the rewards in both ways.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

In fact, two in particular already are winning in AI. Let's check out how, today, AI is driving profit growth for the following technology companies.

An investor smiles while sitting in a conference room.

Image source: Getty Images.

1. Amazon

Amazon (NASDAQ: AMZN) has established itself as a leader in two major growth areas: e-commerce and cloud computing. In e-commerce, it has more than 200 million members in its Prime subscription service, and it's been using AI to better serve these and other customers. For example, Amazon harnesses the power of AI to design faster and cheaper delivery routes for packages and to streamline operations in fulfillment centers.

All of this is helping it reduce cost to serve, which in turn paves the way to higher profitability.

And through Amazon Web Services (AWS), its cloud computing unit, Amazon sells premium AI products from partners such as Nvidia, as well as its own in-house developed chips and platforms, to customers. These products and services help others easily apply AI to their own businesses, so as more and more companies decide to use AI, AWS, the world's No. 1 cloud services provider, may see more and more demand.

Demand from AI customers already is driving growth at the company, with AWS reaching a $115 billion annual revenue run rate last year. So, as the AI boom continues, this momentum should too.

Amazon already is a highly profitable company, delivering nearly $60 billion in net income last year. Now, the company's use of AI to improve efficiency and its sales of AI products in this high-demand market both could spur a new phase of growth in the years to come.

All this makes Amazon a fantastic buy right now for investors interested in betting on future AI winners.

2. Alphabet

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is a lot like Amazon when it comes to AI, as this technology is making an already strong business even better -- and Alphabet's Google Cloud, like AWS, sells AI products and services to customers.

Let's talk about Alphabet's use of AI first. The company has developed Gemini, its own large language model, to power its AI efforts. And you may know Gemini well, as it's one of today's popular AI assistants, popping up on your phone to help you with any of your daily tasks. Importantly, Alphabet also uses Gemini to improve its biggest profit driver: Google Search, the world's most-used search engine.

Advertisers pay to reach their target audience -- you and me -- on the Google platform, and advertising revenue makes up most of the company's total revenue. AI is helping Alphabet improve Google Search, and it's also helping advertisers as they plan their campaigns on the platform.

Like AWS, Google Cloud offers AI to its customers, and thanks to AI infrastructure and generative AI solutions demand, cloud revenue in the most recent quarter jumped 30% to $12 billion. The company said AI offerings have been driving new client wins, and last year, the number of first-time deals doubled from the previous year. And the number of deals greater than $250 million also doubled year over year.

These strengths in AI use and AI development position Alphabet well as growth in this technology continues, making this stock another top AI buy to hang on to for the long term.

Should you invest $1,000 in Amazon right now?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy.

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