My 3 Favorite Stocks to Buy Right Now

If you own a good number of stocks, it's not easy picking your favorites. Do you go with your largest holdings or the ones you've bought recently? I like to go with a little bit of both. Target (NYSE: TGT), Baidu (NASDAQ: BIDU), and Disney (NYSE: DIS) are three of my favorite stocks right now.

I have recently added to my existing Target and Baidu positions. Disney is already one of my largest positions, but after the recent sell-off, it's high on my shopping list for December. Let's take a deeper dive into what I like about these three stocks in my portfolio.

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1. Target

This holiday shopping season, it's almost fitting that one of the better-known mass market retailers happens to be on sale itself. Shares of Target have plummeted more than 30% in 2025, chopped nearly in half over the past five years.

Target's fall from grace isn't a pricing error. The "cheap chic" retail stock is weaker now than it was before. Revenue and comparable store sales are declining for the third fiscal year in a row. It's losing market share. Target made some unsuccessful merchandising moves, and it somehow found a way to upset both political camps in recent years with moves that polarized its core shoppers.

Target is dealing with the new reality. It announced layoffs a month ago, eliminating 1,000 corporate positions and doing away with another 800 posts that were open at the time. Turning a retail giant around isn't easy, and Target clearly has its hands full with its shopping carts empty.

This may seem like a pretty bleak way to kick off my list of favorite stocks, but let me get into why I added to my position in early October. In a time when even the most high-yielding money market rates have fallen below 4%, Target's current dividend yield has risen to 5%. It's good for the money. It has increased its payouts in each of the past 55 years, making it a Dividend King.

Unlike many high-yielding stocks, this is a sustainable dividend -- at least in the short run. Analysts see a return to sales and earnings growth next year. The stock is trading for less than 12 times forward next year's earnings, giving it a conservative payout ratio.

Target has been singled out as one of the major retailers to avoid this holiday shopping weekend during the Mass Blackout protest, asking folks to refrain from spending money at major chains. The joke is on the organizers, because folks have been staying away from Target for three years now.

Seriously though, Target knows that it needs fixing. It's not just about the humbling layoffs in late October. It's shaking things up, and that starts at the top with a new CEO stepping up in February. Target is cheap because it's not so chic these days, but changes are coming.

2. Baidu

I don't need to look far to find my most recent stock purchase. I added to my Baidu stake last week. China's leading search engine is making some big moves outside of its core market, and it's turned this sleepy stock into a momentum play. Baidu shares have risen more than 30% over the past three months.

Baidu has always been about more than just its flagship search. It's been a player in artificial intelligence (AI), cloud computing, and self-driving cars before those areas became cool. Investors have warmed up to Baidu lately as its work on AI chips could start to pay off. Trade restrictions on AI chips between the U.S. and China have the latter encouraging homegrown solutions. After a ho-hum couple of years, Baidu is finally in the right place at the right time.

Despite the recent pop, Baidu stock is still surprisingly cheap. It's trading for less than 11 times trailing earnings. It's not putting up monster growth right now. Analysts see revenue and earnings growing 5% and 7% respectively next year. Baidu should hit the accelerator as its long-term bets on next-gen tech start to pay off. Along the way, its solid profitability and cash-rich balance sheet will serve Baidu well.

3. Disney

Like Target, Disney has been lagging the market in recent years. It's still a stock that I'm thankful to own. Disney owns the best-in-class content properties and theme parks. Its streaming business turned profitable last year, making it easier to deal with the gradual decline of its legacy media networks. It routinely has the year's highest grossing theatrical release. Disney also operates the fastest growing fleet in the cruise line industry.

All of these high marks haven't translated into stock upticks or healthy organic revenue growth. Disney is still is good shape. It has boosted its dividend in back-to-back years after reinstating distributions two years ago. You can buy an icon for a reasonable 16 times this new fiscal year's profit and just 14 times next year's earnings target. With a strong pipeline of movies, theme parks attractions, and cruise ships to boost its now thriving streaming operations, Disney continues to be one of my favorite stocks.

Rick Munarriz has positions in Baidu, Target, and Walt Disney. The Motley Fool has positions in and recommends Baidu, Target, and Walt Disney. The Motley Fool has a disclosure policy.