Through April 6, the ten best stocks to purchase for the 2023 list have increased by 13.3%, outpacing the S&P 500’s 6.9% growth.
2022 was a terrible year for the US stock market. Even after accounting for dividends, the S&P 500 lost 19.4% in those 12 months, while the tech-heavy Nasdaq composite lost 33.1%. The reasons behind Wall Street’s decline are well known.
Many previously high-flying stocks suffered as the “risk off” mentality took hold of the markets due to rising inflation, skyrocketing interest rates, persisting recession fears, and the Russia-Ukraine war. Thankfully, this opened up a window of opportunity for investors to buy fantastic firms at a bargain as the new year approached. The ten best stocks to buy for 2023 are discussed here.
Each year, experts choose the top 10 best stocks to purchase for the upcoming calendar year. The must known ten best stocks to buy in 2023 are listed below, along with an overview of how each has performed thus far based on total returns, which include dividends:
|STOCK NAME||YTD TOTAL RETURNS THROUGH APRIL 6TH, 2023|
|Apple Inc. (AAPL)||26.9%|
|Dutch Bros Inc. (BROS)||11.7%|
|Citigroup Inc. (C)||2.4%|
|Walt Disney Company (DIS)||15.1%|
|PayPal Holdings Inc. (PYPL)||5.3%|
|EOG Resources Inc. (EOG)||-6.4%|
|Grupo Aeroportuario del Sureste SAB de CV (ASR)||29.7%|
|Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)||5%|
|Diageo PLC (DEO)||13.3%|
Best Stock #1 – Apple Inc. (AAPL)
If you remove government-backed behemoths like oil giant Saudi Aramco, Apple is the largest publicly traded firm in the world. Like other IT firms, AAPL shares had a challenging year in 2022 as recession worries and skyrocketing interest rates alarmed investors in the industry.
Apple trades at 27 times earnings today after an unusual 26.4% decline in 2022, providing investors with a good entry point into the $2.5 trillion iPhone manufacturer. Although its most recent earnings report technically fell short of analysts’ estimates, supply chain bottlenecks rather than demand problems were the primary cause.
Apple reported a base of active installed devices of over 2 billion and revenue in its high-margin services division of over $20 billion.
Best Stock #2 – Dutch Bros Inc. (BROS)
Smaller businesses have more excellent room for expansion and can strengthen portfolios, while larger, more firmly established companies like Apple can provide investors with some certainty. Consider the quickly growing coffee chain Dutch Bros, which is approximately 0.2% the size of Apple while being valued at $5 billion. In 2022, revenue will increase by 48.4%, expanding like a plant.
With its origins on the West Coast, Dutch Bros has 671 sites throughout 14 states as of the end of last year. These locations are almost all in the West and Southwest. Its drive-thru stores have a modest footprint, making them very inexpensive to open and enabling quicker expansion. Numbers support this: In 2022, Dutch Bros. added 133 additional locations.
Best Stock #3 – Citigroup Inc. (C)
Citigroup is an approximately $90 billion international bank with investment and retail banking divisions. Citigroup gives investors two things: First off, in an environment of increasing rates and high inflation, its 4.5% dividend yield provides a decent cushion for owners. Significantly, Citigroup uses less than 30% of its earnings to cover its dividend payments, ensuring its sustainability over time.
In addition to paying a substantial dividend, Citigroup appears to be a valuable company, trading for just 0.49 times book value and seven times forward profits. Warren Buffett, the renowned investor and financial expert started purchasing Citigroup stock in the first quarter of 2022. Berkshire Hathaway Inc. (BRK.A, BRK.B) owns an approximately $2.5 billion investment in the corporation.
Best Stock #4 – Amazon.com (AMZN)
Following a horrible 2022 in which shares lost 50% of their value, dominant online retailer Amazon is one of the top ten companies to buy for 2023 as we enter the new year. Cost increases, a tight labor market, supply chain issues, and customer confidence decline were the main offenders.
Although Amazon Web Services, its sizable, quickly growing, and highly successful cloud services segment, is its crown jewel, the market was far too fast to write off Amazon. AWS generates more than $85 billion in sales each year. AWS’s worth is estimated at $850 billion using the exact multiple as Microsoft Corp. (MSFT), a competitor in the cloud services market, which trades for around ten times sales.
Best Stock #5 – Walt Disney Company (DIS)
A firm’s management team is among the most crucial factors to consider when choosing stocks to buy and hold for the long term. And Disney has that in spades with the recent return of longstanding CEO Bob Iger.
Before handing up the reins to Bob Chapek in February 2020, Iger—regarded as one of the best CEOs this side of the millennium—presided over a string of enormously profitable acquisitions, including Pixar, Marvel Entertainment, and Lucas film. Disney exceeded expectations for both earnings and revenue in its February earnings release, the first since Iger’s comeback.
Bob Iger doesn’t seem to have lost his magic touch. DIS stock is outperforming the S&P in 2023, with shares up 15.1% this year. While revenue from its theme parks increased 21% in the quarter following a price increase for the streaming service Disney+, subscriber losses were less severe than anticipated.
Best Stock #6 – PayPal Holdings Inc. (PYPL)
PayPal, a trusted and well-managed financial firm, is oddly trading for less than its epidemic lows from 2020 despite 2022 earnings per share of $4.13, more than any year from 2018 to 2020. Even though a five-year average of 36.5, shares currently trade for around 15 times anticipated 2023 earnings. A deteriorating macroeconomic environment and the end of its profitable partnership with eBay Inc. (EBAY) caused shares to drop 62% in 2022, a complete disaster.
The lowest price-earnings ratio for PayPal between 2015 and 2021 was 20.3. Applying that cautious multiple to the $4.88 average predicted 2023 earnings results in a price of $99.06 per share by early 2024, suggesting a gain of more than 32% from the closing price on April 6.
Recently announced agreements with Apple Pay to accept PayPal- and Venmo-branded cards should increase its footprint in brick-and-mortar retail. In addition, Amazon now takes Venmo, providing PayPal access to Amazon’s sizable online marketplace. Through April 6, 2023, PYPL stock has increased by 5.3%.
Best Stock #7 – EOG Resources Inc. (EOG)
EOG, a U.S. oil and gas producer, is a repurchase candidate from the best stocks to buy the list from last year. It is coming off a great 2022 in which shares gave a total return of 56.3%. Despite this, shares are still valued as a value company, trading at approximately eight times projected earnings. The hot energy market is unlikely to soar as it did in 2022, plagued by inflation and war, so growth will undoubtedly slow down in 2023.
However, investors shouldn’t discount the importance of having an inflation hedge in their portfolios. With a 2.8% dividend yield and a good payout ratio of around 23%, EOG has some credibility with income investors.
Best Stock #8 – Grupo Aeroportuario del Sureste SAB de CV (ASR)
This off-the-beaten-path investment is a $9 billion Latin American airport operator, another repeat choice from the list from the previous year. ASR, the only industrial firm on this list, offers geographic diversification, is a mid-cap company that few investors know, and is the only industrial company on our list.
With a total return of 17% in a bear market in 2022, the stock was a gem in the rough. Of course, the increase in passenger traffic is beneficial: March 2023 saw a 6.7% year-over-year increase, with Mexico accounting for 11.8% of that growth. Airport managers make money from various sources, including parking, ground transportation, airport retail, advertising, the leasing of gates, and payment of landing fees by airlines.
Best Stock #9 – Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
Next on the list is Taiwan Semiconductor Manufacturing, a $500 billion industry leader and the primary high-level foundry for cutting-edge chips. TSM has a substantial market share for chips 7 nanometers and smaller, and foundries produce chips for other businesses in the semiconductor sector.
With sales increasing by 43% and earnings per share increasing by 78%, the company’s fourth-quarter performance went above the expectations on both the top and bottom lines. One of TSM’s major customers is Apple, which has begun to move its supply chain away from China. TSM, which pays a 2% dividend and is another Buffett asset, trades at barely 14 times earnings. In the first quarter of 2023, its shares soared by 21.8%.
Best Stock #10 – Diageo PLC (DEO)
The $100 billion beverage juggernaut Diageo is the last to speak. Diageo, a consumer-defensive stock, should withstand a challenging macroeconomic climate, given that alcohol is often recession resistant. Alcohol customers, like those who use tobacco, have a good amount of brand loyalty, and the corporation enjoys an enviable position in the market thanks to its portfolio of premium brands, which includes Johnnie Walker, Tanqueray, Guinness, Smirnoff, Don Julio, Ciroc, Bulleit, and Baileys. Despite net sales increasing by 21.4% in the fiscal year 2022, the stock decreased by 17.4% last year, along with the overall market.
The above mentioned are the must-buy ten best stocks for the year 2023. Watch our other blogs, discussing the best stocks and their market price. For more information about banking, stocks, trading, and finance, visit our Home Page.
Who is the share market king of the USA?
Warren Buffett is the chairman and well as CEO of Berkshire Hathaway.
Which US best stock gives the highest return?
Apple Inc. (AAPL)
Is Apple stock a good buy now?
Apple’s analyst rating consensus is Best Buy. This is based on the ratings of 31 Wall Streets Analysts.
Which US stock gives the highest return?
Hippo Holdings Inc HIPO. The price is $17.29.
Riya Gote is the Founder of Scriberlee. A digital marketing firm features in Forbes 2020 for providing quality content to global clients. She is an enthusiastic writer who helps firms attract visitors with her writing style and marketing strategies. Having 4+ years in SEO-based content writing, Riya has worked with different content platforms for 18+ industry sectors. She was featured in more than 70+ global newspapers. She has expertise in academic writing as well. She is emerging motivational speaker and a tarot card reader.