The 5 Best Stocks to Buy Now

Today, we're bringing you the five best stocks to buy now from Money Morning Executive Editor Bill Patalon. He has picked over 185 stock winners since he launched his Private Briefing investing service just three years ago.

Some of his recent recommendations, like Celldex Therapeutics Inc. (Nasdaq: CLDX), have brought gains as high as 648% for his readers. Another one of his top stocks, Inovio Pharmaceuticals Inc. (Nasdaq: INO), brought a 456% profit in just 14 months.

Patalon is a 30-year veteran analyst of business, economics, and financial markets. In his daily column for Private Briefing, he gives his readers invaluable investment advice, contrarian investing views, and the top stocks to buy to maximize gains.

He holds closed-door sessions with our team of investing experts and spends hours analyzing and researching the market every week.

Here are Patalon's five best stocks to buy this week…

Patalon's 5 Best Stocks to Buy Now

• One of Patalon's top profit strategies is pinpointing areas of scarcity in the market — places where the supply of an item falls far short of the demand. That's what drove him to research railroad boxcars. You see, the number of these boxcars has plunged 41% in the last 10 years. That has created a freight-hauling crunch for shippers. And it's only going to get worse. Because of age limitations on these boxcars, another 75,000 could be out of service in the next 15 years. To cash in on this historic scarcity, you just need to find the beneficiary. That's exactly what Patalon has done…
• One of Patalon's favorite "Buy" indicators is strong buying from "knowledgeable outsiders." When he says knowledgeable outsiders, he means specialists – like a well-known biotech hedge fund investor taking a big stake in an emerging biotech firm… or a high-profile "activist" investor with a track record of identifying winners. One of his favorite specialists is the activist investment firm Trian Fund Management LP. They favor companies that – after years of profits and success – have gotten fat, lost their drive, and become overly cautious. But there's still a good business underneath it all, meaning there's money to be made when the firm is "refocused." And they just lit a fuse under this stock…
• Patalon first recommended this "drone" stock back in January, and it just spiked more than 6% last week. The price jump followed the release of encouraging financial numbers, but that's not the full story. According to MarketsandMarkets research, the drone market is projected to grow from $6.7 billion last year to an estimated $10.57 billion in 2020. And these numbers actually understate – dramatically – the real potential of this market. There will be commercial, governmental, and military drone markets. That will boost sales of software, sensors, control systems, motors, avionics, imaging devices, data transmission and storage, and even specialized materials. And this stock Patalon recommends is the perfect way to play that growth…
• A recent study from the IMS Institute for Healthcare Informatics found that total drug sales in America increased by more than $43 billion last year. On a dollar basis, that's the single-biggest one-year jump in history. The same report found that spending on prescription drugs hit $374 billion last year. A record-setting 4.3 billion prescriptions were also filled that year. So instead of focusing on one specific drug, Patalon recommends a behind-the-scenes company that provides essential ingredients to the drug-making process. It offers a broad way to profit on the whole industry's increase in spending. It's already up 107% in 2015, and that could just be the start…
• As part of the intensifying drumbeat about a S. Federal Reserve rate increase, we're seeing more bullish talk about bank stock investments. But instead of looking at traditional banking stocks, Patalon and Money Morning Capital Wave Strategist Shah Gilani have their eyes on specialized lenders, or "new lenders." There has been a disruptive new innovation in the market known as "peer-to-peer" (P2P) lending. P2P lending got its start in the "crowdsourcing" area. But big institutions have embraced it and are quickly turning this into a major subsector of the lending business. Now, these P2P banking companies are disrupting the field. Here's how we're capitalizing on that industry shift…

Follow us on Twitter @moneymorning, and Bill Patalon @PrivateBrief.