As 2025 draws to a close, many investors are likely starting to consider which stocks to remove from their portfolios and which to add. I know I am.
I can think of many stocks that look attractive. But some especially stand out. Here are my three favorite stocks to buy right now.
Image source: Getty Images.
1. Amazon
Investing legend Peter Lynch popularized the idea of buying what you know. And boy, do I know Amazon (AMZN 1.27%). From packages arriving at my front door seemingly every day to reading books on Kindle and watching streaming TV via Fire TV Stick, my family and I use Amazon's products frequently.
Amazon isn't one of my favorite stocks to buy solely because I like and use its products, though. It earned a spot at the top primarily because of two factors: a formidable moat and multiple avenues for growth.
NASDAQ: AMZN
Key Data Points
Actually, Amazon doesn't just have one moat; it has several. The company's e-commerce platform enjoys significant network effects. The more sellers there are on Amazon, the more buyers use it, and vice versa. Amazon's logistics network and sheer size give it impressive economies of scale. A key moat for Amazon Web Services (AWS) is the switching costs associated with moving to another cloud provider.
Speaking of AWS, the unit is Amazon's most important growth driver. Advertising is another fast-growing business for the company. Amazon still has plenty of room to expand in global e-commerce. And it continually looks for new markets to move into, with satellite internet services being the latest example.
2. Enbridge
Enbridge (ENB +0.61%) is another artificial intelligence (AI) stock I like. You might be thinking, "Wait a second -- Enbridge isn't an AI stock!" However, it sort of is one.
The data centers that host AI systems require massive amounts of power. Many of the power plants that serve those data centers burn natural gas to generate electricity. Enbridge's pipelines transport roughly 20% of the natural gas used in the U.S. The company is also the largest natural gas utility in North America based on volume.
NYSE: ENB
Key Data Points
This AI connection isn't the only reason Enbridge is one of my favorite stocks to buy. I also like the company's stability. Over the last 20 years, Enbridge's volatility has been comparable to that of utility stocks while delivering a double-digit total shareholder return.
Enbridge's dividend contributed a significant chunk of that total shareholder return. The energy company's forward dividend yield is a juicy 5.5%. Enbridge has also increased its dividend for 30 consecutive years. I expect that streak to continue.
3. Vertex Pharmaceuticals
The football teams I've cheered on sometimes had great defenses but a weak offense. At other times, they had a pretty good offense, but the defense struggled. Using the football analogy, Vertex Pharmaceuticals (VRTX +0.55%) has a fantastic offense and defense.
Defensively, Vertex's business is recession-resistant and protected from inflation. The big biotech company markets the only approved drugs that treat the underlying genetic cause of cystic fibrosis (CF). Those CF therapies currently generate 94% of Vertex's total revenue. Neither an economic downturn nor other negative macroeconomic conditions will prevent physicians from prescribing these drugs or patients from taking them.
NASDAQ: VRTX
Key Data Points
What about the offensive side? Vertex has two non-CF drugs on the market that are gaining momentum in the stock market. Casgevy is the first approved CRISPR gene-editing therapy. It treats (and essentially cures) two rare blood disorders: sickle cell disease and transfusion-dependent beta-thalassemia. Journavx is the first new type of pain medication approved by the U.S. Food and Drug Administration in over 20 years. It's not an opioid but effectively relieves acute pain.
Vertex could add more winners soon. The company hopes to file for regulatory approvals in 2026 for zimislecel in the treatment of severe type 1 diabetes and povetacicept for the treatment of IgA nephropathy (a disease that causes kidney inflammation).
