Identifying the best stocks to buy requires a strategy. Here, we explore promising candidates for investment or monitoring in 2025. These include Heico (HEI), Intercontinental Exchange (ICE), Tradeweb Markets (TW), GE Aerospace (GE), and Brown & Brown (BRO). While past performance isn’t indicative of future results, these stocks exhibit characteristics favored by growth investors.
In 2023 and 2024, the market defied expectations. As we move into 2025, factors like the potential economic impact of Donald Trump’s policies and the Federal Reserve’s decisions on interest rates add complexity to the investment landscape.
Key Ingredients for Selecting Top Stocks
With thousands of stocks available, identifying the best requires a systematic approach. The IBD Methodology emphasizes stocks with substantial recent earnings growth (at least 25% quarterly and annually). Companies offering innovative products or services, and even promising, high-growth IPOs still in their early stages are other considerations.
Adopting this approach can provide an advantage over simply mirroring the S&P 500’s performance. Consistent outperformance of benchmarks is essential for long-term investment success.
Monitoring supply and demand for a stock, focusing on leaders within strong industry groups, and seeking stocks with significant institutional support are also crucial elements.
Once a stock meets fundamental criteria, chart analysis can pinpoint advantageous entry points. Look for stocks forming bases and consider buying when the stock rises above a buy point, ideally with strong trading volume. This often occurs when the stock surpasses the highest point on the left side of the base pattern.
Stock Market Direction: A Critical Factor
Keeping abreast of the market’s overall direction is crucial. Even the strongest stocks are influenced by broader market trends. Investing during a confirmed uptrend and adopting a more conservative cash position during market corrections are prudent strategies.
While 2023 and 2024 saw impressive market gains, the market’s current position is well below recent highs and continues to experience pressure. With both the S&P 500 and Nasdaq showing bearish signals, caution is advised.
While investing in high-quality stocks with strong growth prospects is tempting, exercising caution is wise. Consider smaller pilot positions or focusing on developing a strong watchlist. The IBD 50 provides a solid source of potential candidates.
Furthermore, paying close attention to sell signals is essential. Consider exiting any stock that declines 7% or 8% from your purchase price. Monitor for significant drops below the 50-day or 10-week moving averages.
The market is dynamic. Continuously monitoring the market trend is a necessity.
Top Stock Candidates: A Closer Look
Here’s a look at the five stocks identified as potential buys or watchlist candidates. These stocks share a common trait: notable relative strength.
Heico (HEI)
Heico, an aerospace stock, was recently observed in a buy zone above a cup-with-handle base. The stock also sits comfortably above its 50-day line and has found support at its 21-day exponential moving average.
Heico holds a perfect IBD Composite Rating of 99, reflecting its strong overall performance. Its EPS Rating is also high at 95 out of 99. Earnings have risen significantly, averaging 35% growth over the past three quarters.
Analysts anticipate continued growth, with EPS projected to increase by 23% in 2025. Institutions have been increasing their holdings in HEI, as shown by its Accumulation/Distribution Rating of B. Funds hold a substantial 62% of the company’s stock.
Heico operates through two main segments. Its flight support group manufactures and repairs aircraft parts, serving both commercial and military clients. The electronic technologies group produces components for various industries, including aviation, electronics, medical, and telecommunications.
Intercontinental Exchange (ICE)
Intercontinental Exchange is a financial services company currently trading in a buy zone above a cup-base entry. The stock is above its 50-day moving average and has found support at the 21-day line.
The stock has outperformed the S&P 500 this year, with gains nearing 18% in 2025. Its IBD Composite Rating is a strong 96 out of 99.
Intercontinental Exchange’s EPS Rating stands at 82 out of 99. The most recent quarter saw EPS growth accelerate to 14%. Analysts anticipate continued improvement, projecting an 11% increase in EPS for fiscal year 2025, followed by 12% growth in 2026.
Institutional investors have been accumulating ICE stock, reflected in an Accumulation/Distribution Rating of B. Funds currently hold 51% of ICE stock.
Intercontinental Exchange operates global financial exchanges, including the New York Stock Exchange.
Tradeweb Markets (TW)
Tradeweb Markets, another financial services play, is in an actionable zone above a cup-with-handle base. The relative strength line is rising and has hit 12-month highs on a weekly chart.
The stock has broken above its 50-day line. Tradeweb boasts a strong IBD Composite Rating of 98.
Tradeweb’s EPS Rating is 97 out of 99. Earnings have grown by an average of 30% over the past three quarters. Analysts anticipate EPS growth of 17% this year and 13% in 2026.
Institutional investors have been net buyers of TW stock, with an Accumulation/Distribution Rating of B-.
Tradeweb benefits from the increasing electronification of bond markets. Its interest-rate and credit segments make up a significant portion of its revenue.
GE Aerospace (GE)
GE Aerospace is approaching a flat base entry point. The stock has rebounded after finding support at the 10-week line moving average.
The stock currently holds an IBD Composite Rating of 97 out of 99. Its EPS Rating is 95 out of 99.
Earnings spiked by 103% in the most recent quarter, with an average growth of 62% over the past three quarters. Wall Street projects further EPS growth of 18% in 2025 and 19% the following year.
GE Aerospace has seen a significant price increase in 2025, rising by more than 27%.
GE Aerospace emerged from the breakup of General Electric.
Brown & Brown (BRO)
Brown & Brown, an insurance company, is trading near the top of a buy zone above a cup-base entry.
BRO has a near-perfect IBD Composite Rating of 98. Earnings performance is strong, with an EPS Rating of 95 out of 99. Earnings have grown by an average of 18% over the past three quarters.
Analysts predict EPS growth of 9% for both this year and 2026. The stock has also performed well technically, being in the top 15% of issues regarding price performance over the past 12 months.
Institutions have increased their holdings of BRO stock, with an Accumulation/Distribution Rating of B. Funds currently hold 52% of shares.
Conclusion
Identifying the best stock to buy requires a robust strategy that considers factors beyond simple past performance. The stocks highlighted—Heico, Intercontinental Exchange, Tradeweb Markets, GE Aerospace, and Brown & Brown—demonstrate the characteristics of strong growth stocks and are worthy of further research and consideration for investment in 2025. Always remember to conduct thorough due diligence and align investment decisions with your personal risk tolerance and financial goals.
