Best US Stocks to Buy Today

What are US Stocks?

The US stock market is one of the world’s oldest and largest stock markets. It has more than 6,000 domestic and international companies listed on its stock exchanges. The US stock market hosts some of the biggest global names across all sectors. The types of companies listed on the US stock exchanges are mega-cap, large-cap, mid-cap and small-cap.

Mega cap stocks are the largest companies with a market cap above USD 200 billion. Large-cap companies are stocks with a market cap of more than USD 10 billion. Mid-cap stocks belong to companies with a market cap in the range of USD 2 billion to USD 10 billion. While small-cap stocks belong to companies with a market cap between USD 300 million and USD 2 billion.

List of US Stocks to Buy in 2024

1) Apple Inc. (AAPL)

Apple Inc. (AAPL):  Founded in 1976 and headquartered in Cupertino, California, Apple designs, manufactures, and sells a wide range of electronic devices, computer software, and online services. Their products include the iconic iPhone, iPad, Mac computer, and Apple Watch, alongside software like the iOS operating system and services like the App Store and iCloud.

• Marketcap: 2.98T
• EPS: 6.43
• PE Ratio: 30.45
• Price/Book: 40.17
• Forward Dividend Yield: 1.00 (0.51%)
• Profit Margin: 26.31%
• Operating Margin: 30.74%

2) Microsoft Corporation (MSFT)

Microsoft is a multinational technology company established in 1975 and headquartered in Redmond, Washington. It develops, manufactures, licenses, supports, and also sells computer software, consumer electronics, personal computers, and related services. Their most well-known products are the Windows operating system and the Microsoft Office suite.

• Marketcap: 3.14T
• EPS: 11.53
• PE Ratio: 36.70
• Price/Book: 12.22
• Forward Dividend Yield: 3.00 (0.72%)
• Profit Margin: 36.43%
• Operating Margin: 44.59%

3) Amazon.com, Inc. (AMZN)

Founded in 1994 in Seattle, Washington, Amazon is an e-commerce giant and cloud computing company. They are the world’s largest online marketplace, offering a vast selection of products for sale. Additionally, Amazon Web Services (AWS) provides on-demand cloud computing platforms and APIs to individuals, companies, and governments.

• Marketcap: 1.88T
• EPS: 3.57
• PE Ratio: 50.75
• Price/Book: 8.61
• Forward Dividend Yield: N.A.
• Profit Margin: 6.38%
• Operating Margin: 10.68%

4) Tesla, Inc. (TSLA)

Incorporated in 2003 and is based out of Austin, Texas. Tesla is a well-known brand that designs and manufactures electric vehicles and clean energy solutions. They are a leading innovator in the electric car market, with their vehicles known for their long range and sleek design. Tesla also manufactures solar panels and battery storage systems for homes and businesses.

• Marketcap: 558.11B
• EPS: 3.91
• PE Ratio: 44.76
• Price/Book: 8.66
• Forward Dividend Yield: N.A.
• Profit Margin: 14.37%
• Operating Margin: 5.50%

5) Johnson & Johnson (JNJ)

Established in 1886 with headquarters in New Brunswick, New Jersey, Johnson & Johnson is a multinational pharmaceutical, medical devices and consumer packaged goods company. Their products span a wide range, including prescription drugs, over-the-counter medicines, medical devices, and baby care products.

• Marketcap: 351.32B
• EPS: 6.72
• PE Ratio: 21.72
• Price/Book: 5.08
• Forward Dividend Yield: 4.96 (3.36%)
• Profit Margin: 44.92%
• Operating Margin: 29.51%

6) Exxon Mobil Corporation (XOM)

Founded in 1880 and headquartered in Irving, Texas, Exxon Mobil is one of the world’s largest integrated oil and gas companies. The business is focused in oil and gas exploration, production, refining, transportation, and marketing.

• Marketcap: 507.31B
• EPS: 8.16
• PE Ratio: 13.86
• Price/Book: 2.46
• Forward Dividend Yield: 3.80 (3.37%)
• Profit Margin: 9.78%
• Operating Margin: 13.23%

7) Walmart Inc. (WMT)

Founded in 1962 in Bentonville, Arkansas, Walmart is the world’s largest retail corporation by revenue. It operates a chain of hypermarkets, discount department stores, and grocery stores. Walmart is known for its low prices and wide variety of merchandise.

• Marketcap: 540.89B
• EPS: 2.33
• PE Ratio: 28.80
• Price/Book: 6.60
• Forward Dividend Yield: 0.83 (1.25%)
• Profit Margin: 2.88%
• Operating Margin: 4.24%

8) Meta Platforms Inc. (META)

Established in 2004, Meta has its headquarters in Menlo Park, California. Meta Platforms is a multinational technology conglomerate. They connect people through their social networking platforms, including Facebook, Instagram, and WhatsApp. Additionally, Meta invests in virtual reality and augmented reality technologies.

• Marketcap: 1.25T
• EPS: 17.36
• PE Ratio: 28.52
• Price/Book: 8.09
• Forward Dividend Yield: 2.00 (0.42%)
• Profit Margin: 32.06%
• Operating Margin: 38.58%

9) JPMorgan Chase & Co. (JPM)

Founded in 1799 and headquartered in New York City, JPMorgan Chase is a leading global financial services firm and investment bank. They offer a wide range of financial services, including investment banking, consumer banking, commercial banking, and asset management.

• Marketcap: 566.46B
• EPS: 16.57
• PE Ratio: 11.90
• Price/Book: 1.86
• Forward Dividend Yield: 4.60 (2.31%)
• Profit Margin: 33.57%
• Operating Margin: 45.22%

10) Visa Inc. (V)

Founded in 1970 and headquartered in Foster City, California, Visa is a financial services company that facilitates electronic funds transfers. They are a major credit card network and their brand is used on millions of credit cards globally. Visa itself does not issue cards, but rather provides the payment processing network for transactions.

• Marketcap: 561.66B
• EPS: 8.94
• PE Ratio: 30.71
• Price/Book: 14.11
• Forward Dividend Yield: 2.08 (0.76%)
• Profit Margin: 53.87%
• Operating Margin: 66.56%

Who Should Invest in US Stocks?

Investors seeking international exposure should consider investing in US stocks. Diversifying internationally will help the investment portfolio in generating significant returns. Investing in US stocks will help you benefit from dollar appreciation as well.

However, you need to closely track the US economy and the markets. Furthermore, investing in US stocks has its own risks. The inherent volatility in the markets and also the forex risks are inevitable while investing internationally.

How to Invest in the Best US Stocks?

The US stock markets used to be out of reach for Indian investors. But now, things are different. There are many ways to invest in US stocks from India. You can invest in best US stocks right now in the following two ways:

• Direct investments: Own the stocks of US companies directly by opening an overseas trading account with a domestic broker or overseas trading account with a foreign broker
• Indirect investments: Put your money in mutual funds or ETFs that invest in the US market.

Benefits of Investing in US Stocks

Following are the benefits of investing in best US stocks now:

Access to Global Companies

US companies host the biggest tech companies and globally recognized brands. The US stock market also has companies from China, Germany, Japan, etc. listed on its exchanges. These companies are well-known all over the world. Because the US is a global power, its stock market is worth investing in.

Diversification

Through US stock, you can spread out and diversify your investments in the US economy to reduce economic risks. A country’s stock market is affected by political issues, elections, the budget, etc. Diversifying your money is a good way to protect your investments from a sudden impact. Even though gold and bonds are good investments, putting money into US stocks is a good way to diversify your portfolio. Also, it may have the potential to set you up for good returns.

Fractional Investing

You can do fractional investing in the US markets. To elaborate, 1 share of Apple is about USD 163, i.e., approximately INR 13,000. It may seem quite expensive to invest in the US stock market. However, Indians can invest in fractions. You can buy Apple shares in fractions for INR 2,000 or INR 5,000, as it may seem fit for you. Thus, investing in US stocks is for everyone who wishes to diversify their investments geographically.

Benefit From Dollar Appreciation

When you buy US stocks as an investment, you pay for them in dollars. While buying US stocks, you are betting not only on the stock’s value but also on the dollar. If the dollar goes up against the rupee, your investment goes up, too.

Being Part of the US Growth Story

The US is home to some of the biggest tech giants. Innovation comes every day. New companies, technologies, and products emerge from time to time. Having access to participate in the growth story of such companies and the economy will help you generate significant returns.

Things to Consider Before Investing in Best US Stocks

The following are the things to consider before investing in the top US stocks:

• Financial knowledge and expertise: You should know how the US market and global investing work. You should invest only if you have the time and knowledge to study the market.
• Cost of investment: Investing in the US market is more expensive than in the Indian market. You must pay bank charges, brokerage fees, and taxes on your investment. 
• Exchange rates: You face exchange rate risk when investing in foreign markets. This can have an adverse impact when you invest or withdraw your money. 
• Taxation of gains and dividends: You must pay taxes on your gains and dividends from US stocks. The dividends are taxed at 25%, and the long-term gains (holding period more than 24 months) are taxed at 20% in India. But they are not taxed in the US. The short-term gains (holding period less than 24 months) are taxed as per your income tax rate in India. If the US company deducts tax at source, you can claim it back when you file tax in India. This is because India has a DTAA agreement with the US and 88 other countries to avoid double taxation.