Best Stocks for 2027: Biagetti Method, Dividends and Growth

The best stocks for 2027 depend on which question you ask. We ran 24 of the world’s largest listed companies through three separate screens: the Biagetti Method (quality plus a disciplined Buy Limit), the expected 2027 dividend yield and the 2027 earnings growth forecast by Wall Street analysts. The top Biagetti pick is Alphabet (GOOGL): after a 12.6% weekly drop on a third-quarter earnings miss, it trades 20% below its Buy Limit. The headline finding is uncomfortable: only 9 of 21 companies we valued pass the price test, and none of the six classic dividend stocks we valued does.

Live quote for the top Biagetti pick, Alphabet (GOOGL):

The framework used here is the one described in The Biagetti Method for Stock Analysis and Valuation, the international edition of the method, also available in Italian as Il Metodo Biagetti per Azioni. For the Italian market, the companion ranking is Best Italian Stocks for 2027: The Biagetti Method Ranking.
For a dedicated ranking of the AI supply chain, from GPUs and memory to power and networking, see our best AI stocks for 2027.

Best stocks for 2027 at a glance: three rankings, three different answers

Each ranking answers a different investor question, and the three lists barely overlap. Value-disciplined investors, income investors and growth investors would build very different portfolios from the same universe of 24 global large caps. The table below shows the top five of each list before we explain them one by one.

Rank	Biagetti Method (quality + price)	2027 dividend yield	2027 EPS growth (consensus)
1	Alphabet (GOOGL) – 20% below Buy Limit	Verizon (VZ) – 6.8%	Micron (MU) – +134%
2	Meta Platforms (META) – 14% below	Altria (MO) – 6.3%	AMD – +108%
3	Nvidia (NVDA) – 12% below	PepsiCo (PEP) – 4.4%	Nvidia (NVDA) – +95%
4	TSMC (TSM) – 11% below	Chevron (CVX) – 3.2%	Broadcom (AVGO) – +67%
5	Amazon (AMZN) – 7% below	Procter & Gamble (PG) – 2.7%	Palantir (PLTR) – +45%

Economia Italiacom analysis. Growth refers to each company’s next fiscal year, which does not always coincide with calendar 2027 (details in the growth section). Dividend yields are forward 2027 estimates on current prices.

The 2027 backdrop: why AI spending shapes every ranking

The single variable that links most of the best stocks for 2027 is spending on artificial intelligence infrastructure. In August 2026 Morgan Stanley analyst Erik Woodring estimated that AI infrastructure spending could reach about $1.4 trillion in 2027, against a market expectation of roughly $1.2 trillion. His argument rests on what Amazon, Microsoft, Alphabet and Meta have told investors: demand for cloud and AI capacity exceeds what they can supply, and capital expenditure will rise again next year.

That forecast cuts both ways, and it explains the structure of our rankings. For chip makers and foundries such as Nvidia, Broadcom, TSMC, AMD and Micron, higher spending means higher revenue: they dominate the growth list. For the cloud platforms that pay the bill, it means more competitive strength but lower free cash flow in the short term: that is why Alphabet and Amazon look cheap on earnings while their cash generation is under pressure. Pillar 9 of the method, risk analysis, asks investors to own both sides of this trade with their eyes open.

How the Biagetti Method selects stocks: quality first, then the Buy Limit

The Biagetti Method is a sequence of 12 steps, called pillars, that every stock goes through before it can be bought. In order: setup, relative valuation, business quality, cost of capital, catalysts, explicit valuation, consensus gap, scenario analysis, risk analysis, management, analytical edge and, last, the margin of safety that sets the Buy Limit. Most “best stocks” lists stop at quality and growth; the method refuses to recommend even an outstanding company if the price leaves no margin for error. The full framework is described in the book The Biagetti Method for Stock Analysis and Valuation, linked at the top of this article.

The Buy Limit formula we used

The Buy Limit is the highest price at which a stock still offers enough margin of safety. For each company we built three scenarios from the dispersion of analyst views: a bear case (lowest target), a base case (median target) and a bull case (highest target). We weighted them 25%, 50% and 25% to obtain a probability-weighted value, then applied a margin of safety that grows with uncertainty.

Business profile	Margin of safety	Examples
Wide moat, low cyclicality	15%	Microsoft, Alphabet, Meta, Visa, consumer staples
Quality with execution or policy risk	20%	Amazon, Eli Lilly, AbbVie, Exxon Mobil
Semiconductor equipment and foundry	25%	TSMC, ASML
Cyclical chips or high narrative risk	30–35%	Nvidia, Broadcom, AMD, Oracle, Micron, Palantir

Analyst targets are used as scenario anchors, not as forecasts we endorse. The margins of safety are an editorial judgment of Economia Italiacom.

The hook explained: only 9 of 21 stocks pass the Buy Limit test

Of the 21 non-financial companies we valued, only 9 trade below their Buy Limit, and every one of them is a technology or internet name. Apple, Eli Lilly, Visa, Palantir and all six classic dividend payers we could value in full trade above it. Apple, Eli Lilly, AbbVie, Exxon Mobil and Palantir even trade above their probability-weighted value: at today’s prices the market already pays for the analysts’ optimistic case.

Company (ticker)	Price ($)	Weighted value ($)	Buy Limit ($)	Price vs Buy Limit
Oracle (ORCL)	126.06	240.00	168.00	-25.0%
Alphabet (GOOGL)	279.84	413.27	351.28	-20.3%
Meta Platforms (META)	≈615.05	844.76	718.05	-14.3%
Micron (MU)	903.70	1,615.25	1,049.91	-13.9%
Nvidia (NVDA)	204.64	331.25	231.87	-11.7%
TSMC (TSM)	424.37	638.75	479.06	-11.4%
Amazon (AMZN)	240.35	323.75	259.00	-7.2%
Broadcom (AVGO)	326.08	487.72	341.40	-4.5%
Microsoft (MSFT)	521.91	627.50	533.38	-2.1%
ASML (ASML)	1,590.90	2,074.45	1,555.84	+2.3%
AMD (AMD)	531.28	721.50	505.05	+5.2%
Procter & Gamble (PG)	161.57	171.25	145.56	+11.0%
PepsiCo (PEP)	137.34	139.00	118.15	+16.2%
Visa (V)	413.59	417.50	354.88	+16.5%
Coca-Cola (KO)	94.08	95.00	80.75	+16.5%
Johnson & Johnson (JNJ)	266.30	267.75	227.59	+17.0%
Apple (AAPL)	≈344.64	328.75	279.44	+23.3%
Exxon Mobil (XOM)	183.99	177.75	142.20	+29.4%
AbbVie (ABBV)	286.74	275.25	220.20	+30.2%
Eli Lilly (LLY)	1,417.54	1,332.50	1,066.00	+33.0%
Palantir (PLTR)	198.84	197.00	128.05	+55.3%

Green: below the Buy Limit. Yellow: between Buy Limit and weighted value. Red: above the weighted value. Prices: closes of 30 October 2026 for MSFT, GOOGL, AMZN, NVDA, AVGO, LLY, V, PG, PEP and KO; Meta and Apple (≈) derived from the 23 October close and the weekly change; other stocks closes of 26 October 2026. Analyst targets: S&P Global consensus via StockAnalysis, late October 2026. Alphabet’s base case uses the post-earnings average target ($406.55). Economia Italiacom calculations.

Two names below the Buy Limit do not make our final list, and the reason is the method itself. Oracle shows the widest discount, but its targets run from $110 to $400: when the bull case is almost four times the bear case, Pillar 7 (consensus gap) says the market does not know what the business is worth, and neither do we. Micron trades at only 5 times next year’s earnings, but those earnings follow an 811% jump in fiscal 2026: Pillar 5 warns that a memory maker looks cheapest exactly at the peak of the cycle.

Best stocks for 2027 according to the Biagetti Method: the top 10

The final Biagetti ranking combines the Buy Limit test with the quality test, which requires ROIC well above a 9% reference cost of capital. Ratings follow the method’s five-star scale, from one star (Strong Sell) to five (Strong Buy).

#	Company	Price vs Buy Limit	ROIC	Forward P/E	Rating
1	Alphabet	-20.3%	23.8%	20.3x	★★★★★ Strong Buy
2	Meta Platforms	-14.3%	29.6%	18.9x	★★★★★ Buy
3	Nvidia	-11.7%	92.0%	16.9x	★★★★★ Buy
4	TSMC	-11.4%	n/a	n/a	★★★★★ Buy
5	Broadcom	-4.5%	n/a	18.7x	★★★★★ Buy
6	Microsoft	-2.1%	25.4%	25.2x	★★★★★ Buy
7	Amazon	-7.2%	11.2%	24.3x	★★★★★ Hold
8	ASML	+2.3%	92.1%	25.1x	★★★★★ Hold
9	Visa	+16.5%	57.0%	27.5x	★★★★★ Hold
10	Micron	-13.9%	n/a	5.1x (next FY)	★★★★★ Hold

ROIC and forward P/E: StockAnalysis, latest available (n/a where the figure was not current). Ratings: Economia Italiacom editorial judgment based on the Biagetti Method; they are not personalized advice.

1. Alphabet: the market’s worst week becomes the method’s best entry

Alphabet is our top pick for 2027 because it is the only company that combines a 20% discount to its Buy Limit, a ROIC above 23% and net cash of about $115 billion. The shares closed at $279.84 on 30 October, down 12.6% in a week. That move erased roughly $490 billion of market value after a third quarter in which earnings per share came in at $2.12 against a consensus of $3.02, while revenue of $127.6 billion was only marginally below expectations.

The miss is real and must be explained, not ignored: free cash flow over the last twelve months has fallen to about $20 billion as AI infrastructure spending absorbs cash. That is the main risk in our scenario analysis. But the method asks how much of the bad news is already in the price. At 20 times forward earnings, with consensus three-year EPS growth of about 19%, the market is pricing Alphabet like an ordinary company, not like the owner of Search, YouTube and Google Cloud. Our Buy Limit is $351, about 26% above the current price.

2. Meta Platforms: growth at a fair price, with a capex question

Meta trades about 14% below its Buy Limit of $718 at roughly 19 times forward earnings, with a ROIC near 30%. Consensus expects EPS to grow about 17% in 2027 after a flat 2026, when heavy investment in AI compressed margins. Its PEG ratio of about 1 is the lowest among the large internet platforms. The risk to monitor is financing: Meta now carries about $32 billion of net debt, and any move to fund capex with new equity would dilute shareholders.

3. Nvidia: cheaper than it looks, even with a 30% margin of safety

Nvidia passes the test even after we apply the strictest margin of safety in the ranking, 30%. At $204.64 the stock trades at about 17 times forward earnings, with a ROIC of 92% and net cash of about $24 billion. Consensus EPS for the fiscal year ending January 2027 is $9.31, almost double the prior year, and the three-year growth forecast is about 65%. The reason for the high margin of safety is the cycle: a slowdown in hyperscaler spending would hit Nvidia first. For a deeper single-stock study, see our Nvidia analysis with the Biagetti Method (in Italian).

4. TSMC: the toll road of artificial intelligence

TSMC trades about 11% below a Buy Limit of $479 per ADR, even after a 25% margin of safety for geopolitical risk. Analysts expect earnings per share to rise about 35% in 2027, after a 67% jump in 2026, and revenue to approach 7.7 trillion Taiwan dollars. Every leading AI chip, from Nvidia to Broadcom and AMD, is manufactured by TSMC, which makes the company a structural winner whoever wins the chip race. The risk is concentrated in one word: Taiwan.

5. Broadcom: a 5% drop on Friday opens the door

Broadcom fell 5.5% on 30 October to $326.08, slipping about 4.5% below its Buy Limit. At about 19 times forward earnings, the market is paying a modest multiple for a company expected to grow EPS by roughly 67% in the fiscal year ending October 2027, driven by custom AI accelerators and networking. The wide dispersion of targets, from $216 to $660, justifies the 30% margin of safety.

6. Microsoft: quality at the edge of the Buy Limit

Microsoft trades just 2% below its Buy Limit of $533, so it qualifies, but with the thinnest margin in the ranking. The fundamentals are the strongest of the group: in the quarter to September 2026 revenue rose 19% to $92.3 billion, Azure grew 48% to $33.2 billion and commercial remaining performance obligations reached $677 billion, up 73%. The price of that growth is a capex bill that roughly doubled to $39.4 billion in the quarter. Microsoft is a stock to accumulate gradually below $533, not to chase above it.

7. Amazon: below the Buy Limit, but quality is the weak point

Amazon is 7% below its Buy Limit, yet it gets only three stars because its ROIC of about 11% barely exceeds the cost of capital and free cash flow is negative. Trailing free cash flow is about minus $47 billion as data-centre spending outruns operating cash. Consensus also shows EPS falling about 18% in 2027 after an exceptional 79% rise in 2026, a base effect that will make the headline numbers look weak next year.

8–10. ASML, Visa and Micron: excellent businesses waiting for a better price

ASML, Visa and Micron are Holds: high quality, but the price does not yet offer enough margin of safety. ASML is only 2% above its Buy Limit of about $1,556 per share: a modest pullback would turn it into a Buy. Visa has a ROIC of 57% and an operating margin above 66%, but at $413.59 it is 16% above its Buy Limit. Micron, discussed above, is cheap on paper but sits at the top of the memory cycle.

Rejected by the method: Apple, Eli Lilly and Palantir

Apple, Eli Lilly and Palantir are outstanding companies that fail the price test: all three trade above their probability-weighted value. Apple, at about 36 times next year’s earnings, is expected to grow EPS by only 8% in fiscal 2027 and trades above the average analyst target. Eli Lilly closed at $1,417.54, already above the consensus target of about $1,397. Palantir, at roughly 85 times next year’s earnings, is 55% above its Buy Limit. As the method’s closing theme puts it, festina lente, “make haste slowly”: a great company bought at the wrong price can still be a poor investment.

Best dividend stocks for 2027: the highest expected yields

Verizon and Altria offer the highest expected 2027 dividend yields in our universe, at 6.8% and 6.3%, but with the highest payout ratios. We estimated each company’s 2027 dividend from the consensus forecast where available, otherwise from the current annual dividend grown at its latest one-year rate. The yield is calculated on the latest price.

#	Company	Price ($)	2027e dividend ($)	2027e yield	Payout ratio	Years of increases
1	Verizon (VZ)	43.25	2.92	6.8%	72%	21
2	Altria (MO)	73.63	4.62	6.3%	94%	57
3	PepsiCo (PEP)	137.34	6.09	4.4%	74%	54
4	Chevron (CVX)	232.01	7.43	3.2%	68%	39
5	Procter & Gamble (PG)	161.57	4.42	2.7%	66%	70
6	AbbVie (ABBV)	286.74	7.11	2.5%	~50% adj.	54
7	Coca-Cola (KO)	94.08	2.22	2.4%	~65%	60+
8	Exxon Mobil (XOM)	183.99	4.31	2.3%	~31% (2026e)	40+
9	Johnson & Johnson (JNJ)	266.30	5.54	2.1%	~48% adj.	64

Payout ratios on reported earnings from StockAnalysis, except where marked “adj.”, which uses the 2026 adjusted EPS consensus (AbbVie: $6.88 / $13.95; J&J: $5.34 / $11.12; Exxon: $4.15 / $13.29; Coca-Cola: $2.13 / $3.31). Dividend estimates: Economia Italiacom elaboration on company and consensus data; dividends are never guaranteed.

What $10,000 in each dividend stock could pay in 2027

A $10,000 investment in Verizon would generate about $676 of gross dividends in 2027, against about $208 for the same amount in Johnson & Johnson. The table translates the estimated 2027 yields into annual income, before taxes and before any change in the dividend.

Stock	Shares bought with $10,000	2027e gross income
Verizon (VZ)	231.2	about $675
Altria (MO)	135.8	about $627
PepsiCo (PEP)	72.8	about $443
Chevron (CVX)	43.1	about $320
Procter & Gamble (PG)	61.9	about $274
AbbVie (ABBV)	34.9	about $248
Coca-Cola (KO)	106.3	about $236
Exxon Mobil (XOM)	54.4	about $234
Johnson & Johnson (JNJ)	37.6	about $208

Economia Italiacom calculation on the latest prices and the 2027 dividend estimates in the table above, fractional shares included. Non-US investors receive less after US withholding tax and local taxation.

Dividend safety: the yield is not the whole story

The highest yields come with the weakest safety margins, so we rank Procter & Gamble, Chevron and PepsiCo as the most balanced income picks for 2027. Verizon’s 6.8% is covered by about $22 billion of free cash flow, but it sits on roughly $184 billion of net debt. Altria pays out about 94% of earnings in a business with shrinking cigarette volumes: the dividend has grown for 57 years, but the yield partly reflects the market’s doubts about the next 57.

Chevron and Exxon Mobil look different in 2026. With Brent crude around $113 a barrel at the end of October, consensus expects Exxon’s EPS to nearly double this year, which brings its payout ratio down to about 31% on adjusted earnings. The risk is the opposite one: oil dividends are well covered at today’s prices, but the shares already discount a high oil price. Our analysis of the oil sector explains this trade-off in more depth (in Italian).

Why no dividend stock passes the Biagetti test

All six dividend stocks for which a full range of analyst targets is available trade above their Buy Limit, which means income investors are paying full price for safety. The closest is Procter & Gamble, 11% above its Buy Limit of about $146. For Verizon, Altria and Chevron only the average target is available: on that basis Verizon is the one income stock close to the threshold, with the average target about 17% above the price, while Altria already trades above it. Exxon Mobil and AbbVie even trade above the average analyst target. The practical consequence: for dividend investors, 2027 is a year to accumulate in instalments on weakness, not to build a full position at once.

Dividend growers: low yield today, more income tomorrow

Visa, Eli Lilly and Microsoft yield less than 1%, but they increased their dividends by 14%, 15% and 9% respectively over the last year. At those growth rates, the dividend doubles in about five to eight years. Visa pays out only 23% of its earnings, which leaves room for both buybacks and future increases. For a broader view, see our guide to high-yield dividend investing (in Italian).

Dividend grower	Current yield	1-year dividend growth	Years of increases
Eli Lilly (LLY)	0.5%	+15.3%	n/a
Visa (V)	0.8%	+14.3%	17
Microsoft (MSFT)	0.8%	+9.1%	20

Outside the scope of this ranking: banks, insurers, REITs and non-US income stocks

Several popular income ideas for 2027 are deliberately left out, because the Biagetti Method for stocks is built for non-financial operating companies. Banks and insurers are valued on capital ratios, credit quality and combined ratios rather than on ROIC, so Pillar 1 excludes them; real estate investment trusts are judged on funds from operations, not on earnings per share.

Income-focused competitors’ lists for 2027 often include names such as Realty Income, with its monthly dividend, VICI Properties, U.S. Bancorp and European payers like Allianz, Munich Re and Deutsche Telekom. They can play a role in an income portfolio, but they require a different toolkit, and for a euro-based investor the European names also remove currency risk on the dividend. For bank stocks, see our dedicated guide to banks with the highest dividends (in Italian).

Fastest-growing stocks for 2027 according to analysts

Analysts expect the fastest earnings growth from the AI semiconductor chain: Micron, AMD, Nvidia and Broadcom are all forecast to grow EPS by more than 60% in their next fiscal year. The ranking below uses the S&P Global consensus for each company’s next fiscal year. Fiscal calendars differ, so we show when each year ends: Nvidia’s fiscal 2027, for instance, closes in January 2027 and mostly covers calendar 2026.

#	Company	Fiscal year ends	Expected EPS growth	P/E on that EPS	P/E-to-growth
1	Micron (MU)	Aug 2027	+133.8%	5.1x	0.04
2	AMD	Dec 2027	+107.6%	33.7x	0.31
3	Nvidia (NVDA)	Jan 2027	+95.2%	22.0x	0.23
4	Broadcom (AVGO)	Oct 2027	+66.9%	16.7x	0.25
5	Palantir (PLTR)	Dec 2027	+45.0%	85.0x	1.89
6	Eli Lilly (LLY)	Dec 2027	+36.5%	30.0x	0.82
7	ASML	Dec 2027	+35.7%	25.1x (fwd)	0.70
8	TSMC (TSM)	Dec 2027	+34.9%	n/a	n/a
9	Meta Platforms (META)	Dec 2027	+16.9%	17.5x	1.03
10	Microsoft (MSFT)	Jun 2027	+14.4%	26.4x	1.84

EPS growth: S&P Global consensus via StockAnalysis, late October 2026. P/E = latest price divided by next fiscal year EPS (ASML: forward P/E, since EPS is reported in euros and the ADR trades in dollars). P/E-to-growth = P/E divided by growth rate; Economia Italiacom calculation.

Fast growth is not the same as a good investment

The growth ranking and the Biagetti ranking agree on only five names: Nvidia, Broadcom, TSMC, Meta and Microsoft. Those are the companies where strong expected growth comes with a price that still leaves a margin of safety. The rest of the growth list shows why the method refuses to rank on growth alone.

Micron’s P/E-to-growth of 0.04 is a statistical anomaly, not a bargain: it comes from an earnings recovery after a cyclical trough, and memory prices can reverse quickly. Palantir is expected to grow EPS by 45%, but at 85 times next year’s earnings the market is already paying for several years of that growth. AMD, with EPS expected to double, trades 5% above its Buy Limit: it is a Hold that becomes a Buy below about $505.

Amazon is the opposite case. It does not appear in the growth list because consensus EPS falls about 18% in 2027, but that decline follows a 79% jump in 2026 and says more about the comparison base than about the business. For a dedicated view on the theme, see our ranking of the best artificial intelligence stocks (in Italian).

How our picks compare with Wall Street’s 2027 lists

Morgan Stanley’s 15 “Vintage Values” for the next twelve months, published in September 2026, share only two names with our Biagetti Buys: Alphabet and Amazon. The bank’s analysts selected their highest-conviction picks with a tilt towards large-cap quality, and the list also includes Apple, Coca-Cola, Eli Lilly and Visa. That is precisely where the two approaches diverge.

Stock in Morgan Stanley list	Biagetti Method verdict	Why
Alphabet	Strong Buy (#1)	20% below the Buy Limit after the October sell-off
Amazon	Hold (#7)	Below the Buy Limit, but ROIC near the cost of capital
Visa	Hold	Exceptional quality, 16.5% above the Buy Limit
Coca-Cola	Not a buy at this price	16.5% above the Buy Limit, yield 2.4%
Apple	Not a buy at this price	Above the probability-weighted value
Eli Lilly	Not a buy at this price	33% above the Buy Limit, above the average target

Morgan Stanley list as reported by Stocktwits/Yahoo Finance on 21 September 2026. The other nine names on the list fall outside our universe of 24 large caps. Biagetti verdicts: Economia Italiacom.

The difference is not about quality, on which both approaches largely agree, but about price. Wall Street lists ask which companies will perform best; the Biagetti Method also asks how much of that performance is already paid for. This is Pillar 7, the consensus gap, applied in practice. The same reasoning explains why Micron and AMD, favourites of many AI-focused growth articles, appear in our growth ranking but not among our Buys.

Stocks that appear in more than one ranking

Microsoft is the only company that appears, in some form, in all three rankings: as a Biagetti Buy, as a dividend grower and among analysts’ growth names. Four more companies appear in two lists. For an investor who wants one portfolio rather than three, these are the natural building blocks.

Company	Biagetti Method	Dividend 2027	Growth 2027
Microsoft	Buy (#6)	Dividend grower	#10
Nvidia	Buy (#3)	–	#3
Broadcom	Buy (#5)	–	#4
TSMC	Buy (#4)	–	#8
Meta Platforms	Buy (#2)	–	#9

A model portfolio for 2027 built on the three rankings

A balanced 2027 portfolio can combine the Biagetti Buys for capital growth with three high-quality dividend payers for income, keeping 13% in cash to buy on weakness. The weights below are illustrative and reflect the ratings: larger positions where the margin of safety is wider, smaller ones where the price is close to the Buy Limit.

Block	Stocks and weights	Total
Biagetti core	Alphabet 12%, Meta 10%, Nvidia 10%, Microsoft 10%	42%
AI supply chain	TSMC 7%, Broadcom 7%, Amazon 6%	20%
Income	PepsiCo 8%, Chevron 7%, Verizon 5%, Procter & Gamble 5%	25%
Cash reserve	For ASML below $1,556, AMD below $505, Visa below $355	13%
Portfolio	Estimated 2027 dividend yield on the whole portfolio: about 1.4%	100%

Illustrative allocation, not personalized advice. A real portfolio must reflect each investor’s horizon, risk tolerance, tax position and currency exposure: for euro-based investors, all these stocks carry dollar risk.

For investors who prefer broad exposure instead of single stocks, the same themes can be accessed through ETFs: our Biagetti Method for ETFs applies the same discipline to funds. Readers building a US portfolio from Europe may also find useful our list of the best Nasdaq stocks (in Italian).

The main risks for these stocks in 2027

The biggest risk shared by most of our picks is the same: the AI investment cycle. All nine stocks below their Buy Limit are tied, directly or indirectly, to spending on data centres. If that spending slows, the hyperscalers (Alphabet, Meta, Microsoft, Amazon) would see higher free cash flow but lower growth expectations, while chip makers (Nvidia, Broadcom, TSMC) would face falling orders.

Risk	Most exposed	What to watch
Slowdown in AI capex	Nvidia, Broadcom, TSMC, Micron, AMD	Hyperscaler capex guidance for 2027
Free cash flow compression	Amazon, Alphabet, Meta	Cash flow after capex each quarter
Geopolitics and export controls	TSMC, ASML, Nvidia	US-China trade measures, Taiwan
Leverage and rates	Verizon, Altria, PepsiCo	Interest cost and dividend coverage
Oil price reversal	Chevron, Exxon Mobil	Brent, now around $113 a barrel
Currency	All stocks, for non-US investors	EUR/USD exchange rate

Investors outside the United States should also weigh withholding tax on US dividends, which reduces the net yield, and the cost of the broker used to access Wall Street. Our guide on how to choose an online broker covers the main points for European investors (in Italian).

Frequently asked questions about the best stocks for 2027

What are the best stocks to buy for 2027?

According to the Biagetti Method, the best stocks for 2027 are Alphabet, Meta, Nvidia, TSMC, Broadcom and Microsoft. They combine high returns on capital with a price below their Buy Limit. Alphabet ranks first after its 12.6% weekly drop, trading about 20% below its Buy Limit.

Which stocks will pay the highest dividends in 2027?

Verizon and Altria have the highest expected 2027 dividend yields among large caps, at about 6.8% and 6.3%. Both have high payout ratios, so PepsiCo (4.4%), Chevron (3.2%) and Procter & Gamble (2.7%) offer a better balance between yield and safety.

Which stocks are expected to grow the most in 2027?

Analysts expect the fastest earnings growth from Micron, AMD, Nvidia and Broadcom, all above 60%. Fiscal calendars differ, so these figures refer to each company’s next fiscal year, which for Nvidia ends in January 2027.

What is the Biagetti Method?

The Biagetti Method is a 12-step process, organised in pillars, for analysing and valuing a listed company before buying its shares. Developed by financial analyst Massimiliano Biagetti, it ends with a Buy Limit: the highest price at which the stock still offers an adequate margin of safety. It is described in the book The Biagetti Method for Stock Analysis and Valuation.

Is Apple a good stock to buy for 2027?

Not at the current price, according to the Biagetti Method: Apple trades about 23% above its Buy Limit. The company remains of excellent quality, but analysts expect EPS growth of only about 8% in fiscal 2027, and the share price is already above the average analyst target.

Is it better to buy dividend stocks or growth stocks in 2027?

For 2027 the Biagetti Method favours quality growth stocks, because none of the six classic dividend stocks we valued trades below its Buy Limit. Income investors can still own them, but it is wiser to buy gradually on weakness rather than all at once at today’s prices.

Why are banks and insurers not included in the ranking?

Because the Biagetti Method for stocks applies only to non-financial operating companies. Banks and insurers are analysed with different metrics, such as capital ratios and credit quality, so including them alongside technology and consumer companies would compare incompatible numbers.

Disclaimer

This article is for information and educational purposes only and does not constitute investment advice, a recommendation or a solicitation to buy or sell any financial instrument. Ratings, Buy Limits and model portfolio weights are editorial opinions of Economia Italiacom, based on the Biagetti Method and on publicly available consensus data from late October 2026; they may change at any time. Market prices, analyst targets and estimates change daily, and dividends are never guaranteed. Past performance is not a reliable indicator of future results. Before investing, read each company’s annual and quarterly reports, earnings releases and risk factors, available through the SEC EDGAR database, and consult the investor resources of Investor.gov. For personalized advice, contact a licensed financial adviser: in the United States you can verify a professional on FINRA BrokerCheck; in Italy, check the register kept by the Organismo di Vigilanza e Tenuta dell’Albo Unico dei Consulenti Finanziari (OCF).

Data sources: StockAnalysis (S&P Global consensus, prices and statistics), MarketBeat (Alphabet third-quarter 2026 results), Opening Bell Daily (weekly performance to 30 October 2026), Vested Finance (Microsoft first-quarter fiscal 2027 results), The Motley Fool via Yahoo Finance (Morgan Stanley AI spending forecast, 12 August 2026), Stocktwits via Yahoo Finance (Morgan Stanley Vintage Values, 21 September 2026). All derived values (weighted values, Buy Limits, yields, ratios) are Economia Italiacom calculations.