Amid stock market volatility fueled by economic uncertainty, long-term investors have the chance to acquire high-quality stocks at favorable prices. While it’s unclear how much lower the major indices might drop, several excellent stocks stand out as prime buying opportunities at this moment. My top five picks include Intel (NASDAQ: INTC), AT&T (NYSE: T), International Business Machines (NYSE: IBM), Berkshire Hathaway (NYSE: BRK.B), and Paycom (NYSE: PAYC).
1. Intel
With a new outsider CEO at the helm, Intel is embarking on another effort to revitalize its operations. As semiconductor veteran Lip-Bu Tan takes charge, the company is expected to implement layoffs and cost-saving measures to enhance competitiveness in both foundry and product segments.
The Intel 18A process node is prepared for production, although scaling up will take time. A crucial part of Tan’s leadership is to attract more foundry clients to ensure that Intel’s extensive manufacturing investments yield results. Featuring advanced transistors and backside power delivery, the Intel 18A could provide a competitive edge over Taiwan Semiconductor. As the stock trades at historically low book values, even minor positive developments could boost its price significantly.
2. AT&T
Telecom leader AT&T has steadily increased its wireless and fiber client base in recent years. Although challenging economic conditions might dampen demand, AT&T is banking on bundling its services to retain customers. Roughly 40% of its fiber users also utilize AT&T’s wireless services, leading to lower customer churn and higher lifetime values.
With an expectation to generate at least $16 billion in free cash flow by 2025 (excluding DirecTV payments), and priced at approximately 12 times this forecast, AT&T shares remain attractive, especially given the strong dividend yield exceeding 4% and the planned resumption of stock buybacks.
3. International Business Machines
IBM has undergone a significant evolution over the last decade, transitioning from being caught off-guard by cloud computing to focusing on hybrid cloud and AI for sustainable growth. By shedding legacy ventures, the company has now poised itself for renewed profitability.
In 2025, IBM anticipates at least 5% revenue growth, bolstered by over $5 billion in generative AI contracts propelled by its consulting division. With an expectation to generate a remarkable $13.5 billion in free cash flow for 2025, IBM stocks, trading at about 17 times its forecasted cash flow, offer an appealing investment, particularly during turbulent economic times.
4. Berkshire Hathaway
Berkshire Hathaway is sitting on a substantial cash reserve of $334 billion, making it well-positioned to seize investment opportunities amid rising economic uncertainty. While some of its operations may face challenges during downturns, Berkshire’s liquidity enables it to pursue acquisitions or strategic stock purchases that could benefit shareholders in the long run.
5. Paycom
Paycom has faced stock pressure recently due to its focus on automated payroll solutions, which, while cost-efficient for clients, resulted in slower overall revenue growth. Given that Paycom’s business performance is closely tied to hiring trends, its projection for just 8% revenue growth in 2025 isn’t surprising.
Nevertheless, Paycom remains a compelling option as firms look to reduce costs in difficult economic conditions. Though its stock price is not as low as in mid-2024, trading at approximately 25 times 2025 adjusted earnings offers a fair entry point for long-term investors.
Don’t Miss a Lucrative Opportunity
If you’ve ever felt you missed out on investing in top-performing stocks, this could be your chance. Our analysts occasionally issue a “Double Down” stock recommendation for promising companies. If you’re worried you missed your chance to invest, now is a pivotal time to act.
*Stock Advisor returns as of March 18, 2025
Timothy Green has positions in AT&T, Berkshire Hathaway, Intel, International Business Machines, and Paycom Software. The Motley Fool recommends several positions, including Berkshire Hathaway, Intel, International Business Machines, and Paycom Software. They also endorse shorting May 2025 $30 calls on Intel. For more information, refer to their disclosure policy.
The perspectives expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
