Best Stocks to Buy Now: Top Picks for Feb 2026

Best stocks to buy now in February 2026: AI leaders, dividend aristocrats, value plays & international picks. Get current recommendations, catalysts, valuations & risk tips to invest smarter today.

You open your brokerage app on a quiet February morning in 2026. The S&P 500 sits near all-time highs, bond yields hover around 4.2%, and headlines swing between AI euphoria and recession whispers. You want to put money to work, but you don’t want to chase yesterday’s winners or overpay for tomorrow’s promises. That’s exactly why “best stocks to buy now” searches explode this time of year—people are rebalancing, deploying cash, and hunting for the next edge.

This guide isn’t about hype. It’s about finding names that offer a realistic blend of growth, income, value and diversification given today’s expensive market. We’ll look at specific tickers, why they make sense right now, where valuations sit, and how to think about entry points and risk.

Here are the main points you’ll Best Stocks to Buy Now:

• AI infrastructure names (NVDA, TSM, AVGO) remain powerful but require disciplined entries after 2025’s run.
• Defensive dividend payers (UNH, COST, JPM) offer stability and yields ~2.4% when growth looks stretched.
• Undervalued cyclicals and international stocks trade at steep discounts to the S&P 500’s 22× forward P/E.
• Risk management matters more than ever: no position over 5–7%, clear catalysts, and patience for pullbacks Best Stocks to Buy Now.
• February 2026 favors quality compounders with reasonable valuations over chasing momentum at peak multiples.

Why Best Stocks to Buy Now Is a Pivotal Time to Invest

Markets rarely hand out easy decisions. The S&P 500 forward P/E sits around 21.8×—well above the 15-year average of ~17×. That means most of the easy gains from lower rates and post-pandemic recovery are already priced in.

At the same time, earnings growth is slowing in some mega-cap names while cyclicals and international markets show better relative value. The Fed’s path remains uncertain—cuts are expected but not guaranteed. This creates pockets of opportunity for patient investors who avoid FOMO and focus on fundamentals.

February is also portfolio-rebalancing season. Many funds and individuals sell winners and buy laggards. That rotation can create attractive entry points in overlooked areas.

How We Selected These Best Stocks to Buy Now

No single screen catches everything, so we combined numbers with judgment.

Quantitative filters included:

• Forward P/E below 18× or PEG ratio under 1.5× for growth names
• Return on invested capital (ROIC) above 15%
• Consistent dividend growth or strong free-cash-flow generation

Qualitative checks looked for:

• Clear catalyst in the next 6–12 months (new product cycle, margin expansion, buyback acceleration)
• Solid balance sheet Best Stocks to Buy Now  (net debt/EBITDA < 2× preferred)
• Management team with proven capital allocation

The result is a balanced mix: growth for upside, dividend payers for income, value for margin of safety, and international exposure for diversification Best Stocks to Buy Now.

Top Growth Stocks to Buy Now

NVIDIA (NVDA) Still the AI standard bearer. Data-center demand remains robust, even if growth is moderating. Forward P/E around 35–40× feels high, but earnings are growing fast enough to justify it if Blackwell ramps smoothly. Best entry: any dip below $130–135. Risk: competition from AMD and custom silicon.

Taiwan Semiconductor (TSM) The foundry king quietly powers the entire AI boom. Trades at ~22× forward earnings—cheaper than NVDA with less headline risk. Catalyst: continued 3nm/2nm adoption. Very strong buy on weakness below $180.

Broadcom (AVGO) Custom AI chips + VMware integration give multiple growth vectors. Dividend yield ~2% plus aggressive buybacks. Forward P/E ~28×. Attractive if it pulls back to $220–230 range.

Best Defensive & Dividend Stocks

UnitedHealth Group (UNH) Healthcare giant with steady earnings power. Forward P/E ~18×, dividend growth >12% annually. Defensive during slowdowns; Optum growth remains robust. Solid core holding.

Costco Wholesale (COST) Membership model prints cash. Forward P/E ~48× looks rich, but consistent same-store sales and international expansion justify premium. Yield ~0.5%, but total return has crushed market.

JPMorgan Chase (JPM) Best-in-class bank. Benefits from higher-for-longer rates. Forward P/E ~12×, dividend yield ~2.2%. Strong capital returns via buybacks and dividends.

Undervalued & Value Opportunities

Exxon Mobil (XOM) Energy major trading ~11× forward earnings. High oil prices support cash flow; low-cost Permian assets provide edge. Yield ~3.5%. Attractive if oil stays above $70.

Berkshire Hathaway (BRK.B) Warren Buffett’s fortress. Diversified, massive cash pile, disciplined capital allocation. Trades at reasonable premium to book. Low volatility anchor.

International & Emerging Market Picks

iShares MSCI India ETF (INDA) India trades at ~20× forward earnings vs. S&P 500 ~22×, with faster GDP growth. Strong consumption, manufacturing shift. Currency risk exists but improving reforms help.

MercadoLibre (MELI) Latin America’s Amazon + PayPal. Forward P/E ~50× high, but revenue growth >30% annually. Dominant in e-commerce and fintech across region.

Risk Management & Position Sizing Tips Best Stocks to Buy Now

Never put more than 5–7% of your portfolio in one name. Diversify across 12–20 holdings.

Use dollar-cost averaging on strong names—buy 25% now, 25% on 8–10% pullback, etc.

Set mental stop-loss zones: 15–20% below entry for growth names, 10–12% for defensives.

Rebalance quarterly or when any position exceeds 10% of portfolio.

Common Mistakes to Avoid Right Now

Chasing 2025 winners at peak multiples without waiting for a pullback. Over-concentrating in AI after two years of massive outperformance. Ignoring international diversification when US valuations are stretched. Trading too frequently in taxable accounts—long-term holding usually wins.

Frequently Asked Questions

What are the best stocks to buy now in February 2026?
Balanced mix: NVDA/TSM/AVGO for AI growth, UNH/COST/JPM for defense, XOM/BRK.B for value, INDA/MELI for international. Focus on catalysts and reasonable valuations.

Are dividend stocks good Best Stocks to Buy Now in 2026?
Yes—aristocrats yield ~2.4% vs. S&P ~1.3%. Attractive if rates stay elevated; prioritize payout safety and earnings growth.

Which AI stocks should I buy now?
NVDA, TSM, AVGO remain leaders. Look for pullbacks; avoid chasing after 2025 run-up. Diversify with software/cloud plays.

What are the best undervalued stocks right now?
Select cyclicals and EM names trading at 12–15× forward earnings vs. S&P 22×. Look for improving fundamentals and catalysts.

Should I invest in international stocks in 2026?
Yes—EM (India, LatAm) at steep P/E discount to US. Currency tailwinds possible if dollar weakens. Use ETFs for simplicity.

How do I know when to Best Stocks to Buy Now?
Wait for reasonable valuation (P/E or PEG), clear catalyst (earnings, product), technical support. Size positions gradually.

The market never waits for perfect conditions. Pick one or two names from this list that fit your risk tolerance and time horizon, do your own due diligence, and start small. Investing rewards patience and discipline far more than trying to time the exact bottom. What’s one stock you’re eyeing right now—let me know in the comments and we can talk through it.