Best Stocks To Buy

As the economy improves, there are many American stocks that are worth buying. One thing to note is that with the economy in the upswing, the safety is shifting from the cyclical stocks or those that help sustain America to those best bargin stocks which were hurt during the recession. There are several areas that will be discussed: financials, medical, retail, technology, and those deemed appreciable for the long term.

First and foremost, the financial sector has been dragged through the mud throughout this entire economic crisis. However, there are many bank stocks worth taking a look at. The best bank stocks to buy in Bank of American (BAC), Citigroup (C), and JPMorgan Chase (JPM). All of these candidates are large institutions with prices that are quite low. They have acquired many of the fallen victims and over the long haul will increase in value exponentially. In many respects, these are all considered the best value stocks to buy in the financial sector.

Everyone needs medical care, and with the increase in demand for pharmaceuticals, there will always be a demand for cyclical companies. While the best biotech stocks to buy was Genetech until March 2009, investors now look to Roche (ADR) due to its diverse portfolio of medical products both biotech and traditional pharma based. Another company whose presence is considered among the best healthcare stocks to buy includes Eli Lily (LLY) and Proctor & Gamble (PG).

Retail is a rebounding sector in phases. As the economy improves and people have more money available in their accounts, they will use some of it for discretionary spending. That does not mean; however, that upscale retail is suffering. In fact, in down times, upscale retail often surges. That is the case Coach (COH) and Tiffany (TIF). Both have seen an increase in sales by as much as 30% year over year. These two stocks have performed well in 2008-2009; therefore, can be considered the best retail stocks to buy.

While companies such as Microsoft (MSFT), Dell (DELL), Intel (INTC), Apple (APPL), Research In Motion (RIM), and Oracle (ORCL) are often looked at as tech titans, the safeties in the economy are not these bellwethers. Look to government IT to be safe havens that offer sustainability and growth. Companies such as SRA International Inc. (SRX), Lockheed Martin (LMT), and ManTech (MANT) have increased between 10-15% year over year. Even though the there was a political shift in the White House in 2008, the technology agenda has not changed. The IT integrators such as SRA much purchase and build systems using tools from the likes of Microsoft. However, the government pays these firms to be the experts. As the government workforce retires rapidly (as much as 30% will by 2012), the government IT integrators will grow in size and strength. That is why the government IT integrators are the best tech stocks to buy.

Finally, long term investment should continue to be made into dividend yielding cyclical stocks which are currently yielding low values. The best American stocks to buy that offer value and a low price include Disney (DIS), Altria (MO), Ford (F), General Electric (GE), and Kellogg (K). Each of these stocks offer impressive dividends and have stood up fairly well in this economy; yet, these are the best stocks to buy low and hold onto for a while as these stocks will appreciate over time. Many of them yield 3-5% dividends.

Case and point, while there are many good stocks out there, it is important to diversify. The blend of stocks provided are representative of the best company stocks to buy when attempting to build a diversified portfolio. While not every category is covered, the best stocks to buy in this economy are often those who have a cyclical nature, are bellwethers in their industry, or have strong ties to the U.S. Federal Government.