How do you spell “opportunity”? For some investors, it’s spelled “B-E-A-R.”
A bear market is no time for your investment goals to hibernate. While the past year has brought its share of turbulence, the coming one hints at grand possibilities — for the right investor.
What are the best stocks to buy now? Here are some companies to consider as you set your investment goals for 2023.
Should You Buy Growth Stocks in 2023?
During a bear market, growth stocks are the most likely to see major price drops.
At first blush, that might make them sound like a risky investment. But growth stocks typically represent large-cap corporations with the resources to withstand economic instability, which could allow investors to grab growth stocks at low prices, then reap the rewards when the market rebounds.
This frequently happened during the 2020 pandemic. By March of that year, Coca-Cola’s stock had dropped to $36.27 per share. Today, the price has rebounded to $61.02. If you’d purchased $1,000 worth of Coca-Cola stock during the pandemic, your shares would now be worth $1,682 — a gain of 68% in less than three years.
As investors enter the 2023 earnings season, the stock market performance remains mixed. The only thing that seems certain is uncertainty. But this also represents a continued opportunity to snag undervalued stocks for the year ahead.
Best Stocks to Buy Now
What’s the best stock to buy right now? It’s hard to pinpoint just one, but the following options show much promise as investors look forward to the coming year.
Amazon may seem like an obvious choice, given that it’s become a leader in e-commerce. But did you know that Amazon offers a variety of business services that include cloud computing, warehousing, and fulfillment?
Add these services to a growing number of physical stores (including Whole Foods Market), and you have one of the best growth stocks of 2023.
In 2022, Amazon bought back $10 billion in common stock. With money left in its share purchase authorization budget, it’s possible that it could buy back even more, which would only cause the individual share price to climb even higher.
Additionally, Amazon is currently undervalued compared to historic highs. As such, it could be a perfect time for investors to snag shares of Amazon stock and watch their earnings grow over time.
The past year has been rough for the southwest fast-food chain. With the rising cost of ingredients and supplies, Chipotle’s stock has fallen by 15–20% in the last year. If inflation continues, the company could continue to see its stock decline, causing shares to hit historic lows.
Despite these challenges, Chipotle has continued to thrive among high-income customers, and younger generations in particular value the chain’s healthy ingredients. Chipotle continues to open new locations, even offering a new drive-thru that could make it a more convenient option for customers on the go.
With these new stores opening, Chipotle could be poised for a rebound, overcoming inflationary concerns and becoming a great stock to buy in 2023.
Having recovered from pandemic travel restrictions, the app-based company is showing amazing resiliency, even in the face of inflation. It owes its success to tapping into an unexpected market.
While Airbnb might be seen as a travel stock, the evolving nature of the American workplace has prompted users to use the service to look for places to live, not just vacation. This shift is opening up an entirely new market for the platform, which could push its earnings potential still further.
As 2022 drew to a close, Airbnb proudly reported continued gains, growing 46% year-over-year in its third quarter alone. If this trend continues, Airbnb shares could be a great addition to your portfolio, one that shows surprising resistance to inflation or a possible recession.
Procter & Gamble (PG)
Consumer staples stocks are always solid choices since consumers rarely make major adjustments to essential items, even in an unstable economy.
But what gives Procter & Gamble an edge is the sheer range of products and stores that carry its products. The company is already a household name, not to mention being the company behind brands such as Tide, Pampers, Febreeze, Crest, and many others.
Shares of Procter & Gamble can give your portfolio some stability and passive income. For 66 consecutive years, the company has increased its dividends, which might make it the single best stock to buy right now if you’re looking for dividends.
The Walmart corporation is almost synonymous with low prices, making it a popular consumer choice during record-setting inflation. And as a leading distributor of consumer staples, Walmart represents a stable investment choice in and out of a bear market.
However, the fact that groceries account for only a portion of its overall revenue is what gives Walmart an edge over other bargain distributors. The megastore is already known for selling a little of everything, and its growing e-commerce platform presents consumers with choices that often rival Amazon.
Most recently, Walmart has been selling its technology to third-party companies.
In early January of 2023, Walmart made a deal with Salesforce to increase its ability to deliver products to customers’ homes. Walmart has always been one of the best growth stocks on the market, but its business-to-business expansion may drive its value even higher.
Tech stocks aren’t always a sound investment in a bear market, and Shopify hasn’t exactly performed highly. But the company’s business model gives it an unexpected edge.
Shopify is a payment fulfillment service that helps small business owners process payments and offer convenient e-commerce platforms. This makes it a great option for those needing an integrated point-of-sale (POS) system, online shopping options, or both.
In fact, the platform’s lackluster performance may actually be due to internal decisions to focus on growing its core platform. As more small business owners seek payment services and e-commerce options, Shopify could see its revenue soar.
Eli Lilly (LLY)
Though the company may be most famous for manufacturing Prozac, Eli Lilly has recently made inroads on a number of other fronts. Most recently, the company has launched new options for type-2 diabetes (Mounjaro and Trulicity), breast cancer (Verzenio), and migraine headaches (Emgality).
Pharmaceuticals also tend to be recession-resistant, which may make Eli Lilly one of the better growth stocks of 2023, especially as it continues rolling out new products and treatment options.
The company also pays dividends of 1%. Though modest, it’s increased its dividends for the better part of the last decade, providing yet another reason to consider the pharmaceutical giant as a 2023 investment option.
Walt Disney Company (DIS)
Investors may already be familiar with Disney’s two segments: Disney Parks, Experiences and Products and Disney Media and Entertainment Distribution. Both segments have seen some hits and misses since the pandemic, but both offer room for substantial growth.
For one thing, consumers have grown increasingly comfortable traveling since the pandemic, which could spell higher revenue in the year ahead.
Admittedly, there have been some hits and misses with some of the recent content Disney has put out, to say nothing of the controversy surrounding Disney’s senior leadership. Even so, the streaming platform Disney+ continues to outperform Netflix.
The company plans to launch a more affordable Disney+ Basic option (featuring commercials), which could attract even more subscribers.
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