Best Stocks to Buy in 2023

Tech stocks are known to fluctuate heavily due to market trends which means that in order to get the best deal one should look for buying opportunities at the bottom of the cycle – something that can be available only in the early months of the year.

Despite the potential recession, there are positive signs from history that indicate the best times for the stock market. In 2008, while the economy was in recession and a year away from being declared as such, the S&P500 had already decreased by more than 40%. However, it only dropped an additional 14% before beginning to pick up again. This suggests that the stock market may typically bottom out six months prior to economic activity.

With countless companies competing in the stock market, and individual investors having limited resources, it is wise to focus on industry leaders rather than lesser-known firms. It is advisable to prioritize research on industry leading companies in order to maximize returns.  While there may be potential returns from these second- or third-place businesses, it makes more sense to dedicate resources to the leading players in the market.

Global Economy at the Edge of a Cliff

Predictions show that the global economy may be in a difficult state in 2023, with the likelihood of an extreme downturn estimated to be as high as 65%. A hard landing appears to be unavoidable and could lead to significant strain on global financial markets.

Check Global Economy and What to Trade in 2023

When facing economic downturns and heightened market instability, individuals tend to purchase defensive assets like gold. Additionally, investors look for recession-resistant stocks and some of the top recession stocks to buy in order to secure their portfolios.

When faced with a recession, you have the option to trade the heightened market volatility by taking positions using spread bets and CFDs that can be done once you open a forex account. By investing in these financial derivatives, you can speculate on rising prices (by going long) and falling prices (by going short). Read more on Why Trade Stock CFDs？

Alternatively, investing in companies directly is also available through share dealing accounts. Noting that buying shares allows you to become a shareholder, and only making a profit if the share price rises above your buying price.

Best Stocks to Buy in 2023

During a recession, stocks have a tendency to drop drastically. Even the slightest news may cause market volatility with shares experiencing drastic shifts in prices. Investors may choose to take their money out of the stock market or to stay patient until prices recover again, which is inevitable as per market cycles. Some may follow the rule “Buy the Dip” that refers to buying when prices plunge since they become cheaper.

Amazon (AMZN)

Amazon is a premier digital retailer and an influential force in cloud computing, stocking everything from books to groceries and providing users with access to an array of services and tools. The rapidly expanding cloud computing industry is a key factor in Amazon‘s impressive rate of growth, with the company’s cash flow enabling them to invest in new projects and repay shareholders.

Despite some short-term issues in its e-commerce division as many Covid-19 customers have yet to return, Analysts strongly believe Amazons stock is poised to recover and deliver strong returns over the long term. Previous pandemic levels should be seen as a bottom for AMZN stock, indicating a very promising outlook for future growth.

Although a recession could impact Amazon‘s short-term results, the company’s position as a market leader will offer it ongoing protection, helping to ensure its place amongst the best stocks to buy in 2023. Some recent predictions reveal that AMZN shares would reach $140 within 12 months – offering an impressive upside of around 46% from current levels.

AMZN Stock Price over the past 5 years – 52.55% growth rate.

The cloud computing market is anticipated to grow significantly in the coming years, and is estimated to reach $1.6 trillion by 2030. Amazon, stands to benefit greatly from this growth and could generate over $544 billion in AWS revenue if its current market share is maintained. This would represent an incredible 611% rise from current levels.

Apple (AAPL)

Apple has been a trailblazer in tech innovation for many years, and its products are valued for their dependability and high standard quality. The companys excellent reputation is unassailable, and when you invest in Apple, you can benefit from its long-term success in the tech industry.

AAPL Stock Price over the past 5 years – 288% growth rate.

The stock has seen substantial returns over the years and has continued to be profitable with only a temporary dip recently. Apple continues to introduce new products and services each year. The iPhones have an extremely stable revenue with remarkable customer loyalty. This is an incredible competitive advantage that only Apple enjoys.

Abbott Laboratories (ABT)

Abbott Laboratories is well-positioned to continue delivering strong results despite the recessionary environment. Healthcare is widely seen as a defensive market sector, protecting companies such as Abbott from the worst impacts of economic downturns.

ABT Stock Price over the past 5 years – 93.7% growth rate.

Spanning nearly a century, Abbott Laboratories has had an unbroken streak of 396 quarterly dividends and has increased its dividend payouts for 50 years in a row. The macroeconomic backdrop is still challenging for medical supplies; however, outlook is generally constructive as improved volume trends, solid labor markets, and a potentially stabilizing cost of supply chain and inflation are all seen as positive signs for the sector.

Alphabet (GOOG, GOOGL)

Alphabet stocks are ideal for those looking for well-established tech stocks to invest in. The company provides a wide range of services, such as search functions, cloud computing and more.

Despite missing expectations, the company revenue totaled $76.05 billion which dragged the companys stocks lower on the short-term. However, the outlook for the tech giant is still promising and analysts are optimistic that the company will overcome the current economic challenges impressively.

GOOGL Stock Price over the past 5 years – 96.7% growth rate.

Alphabet, the parent company of Google and YouTube, is one of the most advanced tech companies in the world, making it an excellent long-term investment.

PayPal (PYPL)

Investing in PayPal is a smart choice even in the face of current market difficulties. Despite a 43% drop from its pre-pandemic stock prices, the company remains highly profitable and continues to grow. With an experienced management team and access to powerful digital payment options, as well as BNPL and cryptocurrency opportunities, PayPal is an excellent investment opportunity for those looking for long-term gains. Analysts reveal that current dips offer a good opportunity for buying.

PYPL Stock Price over the past 5 years – 10.14% growth rate.

Tesla (TSLA)

Tesla might appear to be a risky choice due to its recent 70% fall from its peak, but it has now reached highly oversold levels. Despite its high price to earnings ratio which some may consider to be overvalued, the profits are doubling each year as well as a consistent top-line growth of around 50%.

TSLA Stock Price over the past 5 years – 841% growth rate.

The magnitude of Teslas current selloff should not be expected to last for long given its strong financials and its status as a leading electric vehicle company. Therefore, TSLA is one of the best stocks to buy in 2023 as a potentially profiting investing opportunity. Once global economic conditions improve, Tesla could potentially experience significant growth.

Meta Platforms (META)

When it comes to Meta Platforms, the greatest concern for investors is its metaverse project which does not appear to be generating much interest. Additionally, its metaverse segment has not brought in much revenue with sales of only $285 million in the first three months of 2022. This has equated to $3.67 billion in operating losses.

Although this is an acute loss, it should not have resulted in such a sharp 68% drop as Meta owns highly successful apps such as Facebook, WhatsApp, Instagram and Messenger which combined have made $9.3 billion in the first nine months of 2022 with total operating income reaching $5.66 billion – demonstrating that they could be worth significantly more in the long run.

META Stock Price over the past 5 years – 5.65% growth rate.

Earlier this month, Meta reported fourth-quarter revenue of $32.2bn – a 4% decrease compared to the previous year yet remaining in line with its guidance and surpassing market predictions. Additionally, the company has revised its 2023 expenses outlook by $5bn and has allocated an extra $40bn for stock buybacks.

The fourth-quarter results support the more promising outlook for Meta, funded by the economic slump that has led to decreased spending among marketers and fierce competition from TikTok. In addition, Apples privacy changes also posed difficulties in customizing and tracking advertisement campaigns.

Netflix (NFLX)

Despite its large-scale selloff, Netflix is making an impressive comeback. The company has retained its pandemic subscribers and recorded a 6% growth, as well as additional measures such as introducing ads and reducing headcount to help generate more income.

NFLX Stock Price over the past 5 years – 44.9% growth rate.

On top of that, revenues have also exceeded expectations with a healthy margin. All these factors make for an attractive long-term investing opportunity – the stock price is nearly 20% below pre-pandemic levels while profits have more than doubled since then.

Microsoft (MSFT)

Microsoft is a prime leader in the computer software industry, providing a wide range of products from operating systems to business solutions. During the last quarter, revenue for the tech giant rose to $52.7 billion – a 2% year-on-year increase making it an ideal long-term investment for both novice and expert investors alike.

MSFT Stock Price over the past 5 years – 191% growth rate.

Even though Microsofts growth rate has been its slowest in six years, and further economic downturn is anticipated due to decreased consumer and business spending, the tech giant is investing heavily in OpenAI – the developer of ChatGPT and other AI-related technologies – and plans to integrate A.I. into multiple products. All of these contribute to the brighter outlook for the MSFT stocks.

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Disclaimer: This post is from Aximdaily and it is considered a marketing publication and does not constitute investment advice or research. Its content represents the general views of our editors and does not consider individual readers personal circumstances, investment experience, or current financial situation.