3 Smart Stocks to Buy Now

If you're looking for some great buying opportunities, the market is fortunately providing a handful of them to smart investors. I think the best stocks to buy now are the ones that are beaten down for no reason and could easily turn around in the second half of 2026 as the market comes to its senses.

Three stocks that I think are smart buys now are Microsoft (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), and Nvidia (NASDAQ: NVDA). All three of these stocks are trading at relatively low valuations yet have growth and prospects that could turn today's price into an absolute bargain.

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Microsoft

Microsoft leads this list as it may be the most absurdly priced stock on this list. The company is a leader in artificial intelligence (AI) infrastructure, having close ties to OpenAI and growing its revenue at an 18% pace. With diluted earnings per share (EPS) growing at a 23% pace in its most recent quarter, you'd be right to assume that everything is going great for Microsoft. However, none of that has translated to any stock success.

MSFT PE Ratio (Forward) data by YCharts.

The stock is cheaply priced at 19.3 times forward earnings -- less than the S&P 500's forward multiple of 21.5. Deals like this on Microsoft's stock rarely come around, and a strong quarterly earnings result later in July could kick-start a rebound.

Meta Platforms

I could practically copy and paste Microsoft's results and market sentiment here, because they are eerily similar. However, they differ in one key area. Meta is actually growing quite rapidly, with revenue rising 33% year over year. This strength comes from Meta's advertising business, which comprises social media platforms such as Facebook, Instagram, WhatsApp, and Threads. Meta has used various AI tools it has developed to boost ad conversions, allowing it to generate more revenue per ad because the ads are more successful.

However, that's about it for the effects of Meta's AI spending on the business. The main reason why the market isn't in love with Meta's stock is that it's spending hundreds of billions on AI data centers and doesn't have a true, monetizable product to show for it yet. While Microsoft has products like Copilot and cloud computing, Meta is devoting all its resources to its own internal AI research. Until we see products emerge from this division that can generate mountains of cash for Meta, the stock will likely stay at a cheap valuation (right now, it trades for 17.5 times forward earnings).

The big product Meta is working on is its AI glasses, which aims to interact with the world around its users and contextualize what's going on, bringing AI from a computer screen into the real world. If Meta can accomplish that, it could have a major business. But until then, Meta will likely just be viewed as an advertising business.

Nvidia

Last up is Nvidia, which isn't getting the respect it deserves. The stock trades for 22.3 times forward earnings, which is just barely more expensive than the S&P 500. However, the company is growing at a pace that most companies could only dream of achieving.

Massive AI computing demand has allowed Nvidia's revenue and profits to spike over the past few years, and nothing looks like it's going to be able to slow it down. This year, Wall Street analysts expect 82% revenue growth. Next year, they expect 41%. However, none of that phenomenal 41% growth has been priced into the stock, so it would trade like an average S&P 500 company if it stays flat until the end of the year.

Nvidia is anything but an average company, and the growth it has put up over the past few years demonstrates that fact. As a result, I think Nvidia is a great buy now, as the market will likely rally behind Nvidia as we get closer to 2027 and data center capital expenditure plans are revealed.

Keithen Drury has positions in Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.