The Stocks you need to watch in 2023
The Stocks you need to watch in 2023
Written by the Millennial Trader
The market is already up in 2023, almost to the point of erasing last year’s losses. Despite rising inflation and a looming recession, the markets are still alive and strong. The S&P came in strong this year, demonstrating a 5% increase in January. With many individual stocks beginning to see their prices climb back up, the position for February should be looking at an even more considerable increase. That said, many established, significant company shares are still down over the past year, allowing investors to take advantage and consider their positions. In this article, I will review my top 7 stocks you should watch out for in 2023.
1.) Air B&B (ABNB): Given the painstaking declines hostels and hotels saw due to the pandemic in 2020, Air B&B has demonstrated an incredible comeback. It has proven to be a steady indicator of success, remaining profitable despite immense hardships along the way; it continues to have future potential in the industry. Air B&B has successfully tapped into the hospitality market and is thriving on rental accommodations many larger hotel chains cannot meet. Shockingly, this stock has decreased 33% in the last year, so the time is better than ever to buy. In January alone, it is already back on the rise (23%), so you better act fast.
2.) Apple (AAPL): Apple has been a staple investment for decades as a classic buy-and-hold stock, in which people buy a small number of shares to have a stake in this multibillion-dollar empire, rightfully so. Although plenty of smaller-level stocks show more movement and action currently in the market, buying shares like AAPL is a good stock to buy and hold onto for the time being. “Apple reported an active installed base of over 2 billion devices, and revenue in its high-margin services segment surpassed $20 billion. AAPL stock is bouncing back from its 2022 woes, with shares up 16.1% in 2023 through Feb. 9” (Divine, 2023).
3.) Dutch Bros: Unlike the more massive, well-established companies like AAPL, which offer more stable shares with consistent returns over time, smaller companies on the rise, like Dutch Bros, can help boost your portfolio in 2023 because they have more room for expansion. DB is a rapidly growing coffee chain that is expanding coast to coast. Even though DB is essentially 0.25% the size of AAPL, this company is seeing consistent profits multiply in front of their eyes, seeing a 53% revenue increase just in the last quarter. (Sabil, 2023) Who knows? At this rate, Dutch Bros might be in the early stages of reaching Starbucks-level notoriety.
4.) Chipotle (CMG): Although most of these stocks present a good buying opportunity because they are in a limited-time dip, Chipotle is the exception, as it has been on a steady rise for quite some time now. According to Sabil 2023, investing in CMG may be a great opportunity as their stock has risen 16% over the past year, with that value increasing 15% in January alone. Therefore, this is a stock you should consider buying sooner rather than later to enjoy a more significant return on your investment.
5.) Netflix (NFLX): NFLX will be the comeback kid of 2023. They have gone from one of many streaming sites to one of the most successful streaming services, offering award-winning original series and movies year after year. Jim Cramer listed NFLX in his top 10 stocks in 2023, stating, “I believe Netflix has turned itself around because they were so confident on that last conference call. You know, for almost two years, their conference calls were funereal, even when Squid Game took the world by storm,” he said, adding, “And lots of growth-oriented money managers want to find improving franchises, and that fits Netflix to a tee” (Hur, 2023).
According to the latest long-term forecast, Netflix’s price will be a wise investment to hold onto over the next decade, predicting it will hit $400 by the middle of 2023 and then $700 by the end of 2024. After that, Netflix will rise to $900 within 2025 and $1,100 in 2026… resulting in an approximate estimate of $2,000 in 2034. (Coin Price Forecast, 2023).
6.) Lululemon Athletica (LULU): Despite lulu changing the game regarding athleisure and the chic styling of everyday athletic wear, their stock has gone flat over the past year. Their premium branding and high-quality pricing have proven their product a worthy investment, yet investors were disappointed by the 2022 fourth-quarter returns. The stock has since dropped, dropping another 3% in January and the outlook for 2023.
However, Lululemon’s premium athleisure wear will stay alive as the company’s unique formula of patented fabrics and classic styles inspires customers trying to commit to an active lifestyle. Given their lucrative pricing model and premium branding, their sales will continue to grow double digits each quarter, ensuring this stock is a safe investment. Investors suggest taking advantage of this unusual dip ASAP to get shares for a better valuation; this apparel stock is a powerhouse with exponential growth and success on its horizon.
7.) Walt Disney (DIS): Despite the magic behind their brand, DIS has remained stagnant, like most prominent companies such as AAPL. However, things have taken a turn, recently demonstrating an opportunity given its new change in management. The buy-and-hold technique investors use when buying larger company stock shares like AAPL and Disney is impacted by significant company changes, usually indicating changes in the stock price and, therefore, returns. With the return of CEO Bob Iger to the main stage, the team at Disney studios had anticipated this sudden change to evoke profit loss by enacting a preemptive damage control plan. However, the first report after Iger’s return shows a more robust fiscal first quarter than analysts had expected for earnings and revenue.
In conclusion, there are many factors to consider when deciding what stocks to focus on this year. This year will present new opportunities for growth and potentially lucrative returns if you know where to focus. Overall, the 2023 market has a hopeful outlook, which can distract us from other disasters. So don’t let fear of what’s to come with the economy derail your focus from the good still to come from the market this year.