Purchasing a stock is simple, but selecting the best one without a tried-and-true plan is rather challenging. So which stocks are the best to buy right now or add to your watchlist? The top contenders are Caterpillar (CAT), Celsius (CELH), Insulet (PODD), Medpace (MEDP), and AbbVie (ABBV).

Market activity was difficult in 2022, and more difficulties are anticipated in 2023 as a result of rising inflation fears and the Federal Reserve's aggressive tightening of interest rates. Market pressure is also still present due to the Russian invasion of Ukraine.

The Top Stocks Today To Buy Or Watch

Let's now take a closer look at the stocks of Caterpillar, Celsius, Insulet, Medpace, and AbbVie. The fact that all of these stocks have excellent relative strength is a crucial factor. If you're moving away from forex trading, then investing in stocks is a great alternative!

1. Celsius Stock

Celsius wants to remove the base of a cup with a handle. It is aiming for a buy point of 122.34. The RS line has retreated from its highs, but an increase might spur a breakthrough.

Its most recent entry occurred when a breakout past a cup-base purchase mark at 118.29 in early December failed.

If Celsius stock decisively clears the 21-day line, an early entry may be available. A move above the high of 109.31 from December 27 serves as the precise trigger. The 50-day line needs to provide support first, though.

On the technical aspect, the stock is quite strong. In terms of price performance over the last 12 months, it ranks in the top 3% of stocks.

Celsius is a rapidly expanding distributor of beverages that burn fat and don't include sugar, aspartame, high fructose corn syrup, or preservatives. The Boca Raton, Florida-based company achieved its first yearly profit in 2019 after years of deficits.

The revenue growth over the previous four quarters varied from 117% to 192%. Celsius increased sales on the important sales platform Amazon (AMZN) in the third quarter.

PepsiCo (PEP) announced on August 1 that it is making a $550 million investment for an estimated 8.5% ownership position as part of a long-term distribution agreement with the manufacturer of energy drinks.

The giant of carbonated beverages has previously shown interest in the energy drink market by purchasing Rockstar Energy in 2020 for $3.85 billion.

2. Caterpillar Stock

The optimum buy target for CAT stock has formed a new flat basis at 239.95 next to a deep cup base. The price is currently in the buy zone.

Just below highs, the relative strength line is located. After a sudden upward jump from late September to early November, it had paused.

Investors may be perplexed as to why CAT stock is rising sharply at a time when the global economy may be headed for a recession in 2023.

Residential construction, which accounts for 25% of Caterpillar's construction industry revenues, may suffer even in a soft landing. In addition, China, which fuels most of the demand for commodities globally, is also struggling.

However, Caterpillar has a tonne of other advantages, starting with three significant Biden-era expenditure packages. Starting with the $500 billion in additional infrastructure funding that was approved in the fall of 2021, they might invest $1 trillion in earth-moving projects over the course of a decade.

Then, during the course of the summer, Congress approved the CHIPS Act, which authorised up to $250 billion in funding to increase domestic semiconductor manufacture. Additionally, $369 billion will be provided under the Inflation Reduction Act to hasten the development of green energy infrastructure and mining enterprises. This comprises facilities that produce solar cells, wind turbine blades, and EV batteries.

The push by Europe to secure non-Russian energy capacity, particularly the development of LNG shipping facilities, could be advantageous for Caterpillar's energy sector business.

3. Insulet Stock

The company that treats diabetes has established a flat basis with a 320.10 optimal buy point. It follows consolidation shortly after it passed a double-bottom base entry of 283.38.

A significant upward movement over the Dec. 29 high of 300.92 might present a risky entry.

The relative strength line is almost at an all-time high, and an upward surge might boost it once more to record-breaking heights.

In 2018, Insulet announced its first-ever yearly profit. EPS is currently starting to increase significantly. Analysts predict that full-year earnings will increase 88% in 2022 before skyrocketing 151% in 2023.

Due to the rising global prevalence of diabetes patients, Insulet manufactures insulin pumps for the treatment of the disease.

Diabetes comes in two different forms. Type 1 is usually genetically based and manifests in childhood. To survive, these people require insulin. In adults, type 2 is typically diagnosed. These people may deteriorate to the point where insulin is also required.

Because it can be difficult for parents to provide numerous shots a day to their diabetic children, insulin pumps are used increasingly frequently in type 1 diabetes treatment. However, Insulet has observed a rise in type 2 patient interest, particularly from Medicare.

4. AbbVie Stock

A cup base with a handle has been created from the ABBV stock. In this situation, 167.85 is the best buy point. A gain over the high of 164.69 from December 28 would provide an early entry. Just below this level, it is located.

Just recently, the relative strength line reached new heights. A bullish omen, this. The pharmaceutical blue chip stock was established in 2013 as an Abbott Laboratories subsidiary (ABT).

It displayed impressive accomplishments and sound financials. The debt of AbbVie is rated by S&P at (BBB+), and last month it changed its outlook from "stable" to "positive."

The recent stock market performance has been quite outstanding. It increased by 19.3% in 2022, outpacing the S&P 500's 20% decline.

Earnings are also exceptional. Currently, the stock has an outstanding EPS Rating of 95 out of 99.

Its most popular and financially successful medicine, Humira, which is used to treat rheumatoid arthritis, is the subject of some worry. In 2021, the treatment made a sizable 40% contribution to the total revenue.

But Humira no longer has a patent. The launch of generics in the American market the following year will be a significant test. Humira sales fell short of Q3 forecasts, increasing only 2.5% to $5.56 billion. 

However, third-quarter results demonstrate that other AbbVie medications are performing well. The most noteworthy is Skyrizi, a drug used to treat Crohn's disease. The drug's sales increased by 75% year over year to $1.39 billion thanks to a suggestion from the European Medicines Agency.

5. Medpace Stock

The stock of Medpace has developed a consolidation pattern with a 235.82 optimal purchase target. The relative strength line is once more moving forward, which is encouraging.

The 50-day moving average of the stock is where it is currently hunting for support. An early entrance was made possible by the Dec. 29 rebound, which also broke a trendline, although MEDP gave up some of those gains on Dec. 30.

The stock's overall performance has been good, as seen by its IBD Composite Rating of 96. It has an extremely unusual EPS Rating of 99.

Regarding price performance over the previous 12 months, Medpace also ranks in the top 5% of stocks. One of the businesses that serve as the foundation for the development of new medications and medical technology is Medpace. Its biotech division, which experienced rapid growth in the first few months of 2022 but has since seen a number of challenges, accounts for about 85% of its sales.

Investors were astonished, however, when Medpace outperformed forecasts for the quarter, increased its full-year guidance, and provided a promising prognosis for 2023.

According to UBS analyst John Sourbeer, Medpace will have sales growth of 18% in 2019.

The Q4 earnings announcement for Medpace could be the next significant driver for the stock. On $386 million in sales, analysts predict that Medpace will earn $1.86 per share, minus a few items. According to FactSet.com, earnings would increase by about 38% and sales would increase by about 25%.