How are you going to plan your investments for the upcoming year of 2023 in the companies you wish to invest in? Are you interested in the best stocks to invest in 2023?
I am sure that if this is the case, then keep reading because the point of this post will be to provide you with some helpful tips on how you can find some promising potential stock market investments that are expected to be profitable during the next economic boom in the near future.
Netflix Inc (NASDAQ: NFLX)
Netflix
There is a very good chance that you have heard of or subscribe to the famed Netflix streaming company if you haven’t yet. Through this streaming platform, consumers are able to subscribe to entertainment services that include movies, documentaries, and television series that are offered on a subscription basis.
According to how many devices you intend to use for your Netflix account, the company offers different subscription plans depending on how many devices you want to use. With a user base that stretches across 190 countries and a variety of languages and genres, they offer entertainment services that cater to a variety of interests.
During the past decade, Netflix has grown in a very rapid manner, thanks in part to the fact that its business model is scalable. As a result of the Company’s efforts over the past few years, the Company has been able to achieve a compounded annual growth rate of 27.7%. In addition, with the increase in profit margins from 4.3% in 2016 to 18.3% in 2020, the Company has been able to achieve a compounded annual growth rate of 27,7%.
This is all a very good indication that the company is stable and continuing to grow, which is why you should invest in it now as it is one of the best stocks you can invest in at the moment. There were 642.58 shares available for purchase at the time of the writing of this article.
Amazon.com
- Industry: Internet retail
- Market value: $1.7 trillion
- Dividend yield: N/A
Except for a few companies, such as Zoom Video (ZM), which have gone from relative obscurity to being a part of the daily routine for many companies in corporate America, few companies have benefited from the lockdown economy more than Amazon.com (AMZN, $3,354.72). The vast majority of items you can imagine buying can be fulfilled by Amazon in less than 24 hours and will be delivered to your doorstep as soon as you request it.
I’m going to tell you something, however. While it is clear that Americans are returning to the malls, it is likely that they will continue to make a much larger percentage of their purchases online than they did prior to the pandemic. The pandemic simply accelerated what was already an established trend, and it only served to accelerate it even further.
In a report submitted by Wedbush, which rates Amazon at Outperform (equivalent to Buy), the firm writes that the company’s revenue growth will slow slightly in 2021, but it will remain above 2019 levels – in other words, despite the slowing growth, Amazon’s revenue will surpass pre-pandemic levels in 2021. As a result, Amazon’s profitability should continue to expand because the company is growing operating expenses more slowly than revenues. AWS, Fulfillment by Amazon, and ads are expected to contribute to steady margin expansion, and Prime memberships will contribute to overall growth in retail revenue.
For the rest of 2021 … and likely for many years to come … Amazon appears to be one of the best stocks you can buy.
Kinder Morgan
- Industry: Midstream oil and gas
- Market value: $38.8 billion
- Dividend yield: 6.2%
There is no doubt that if you like the bullish thesis of Enterprise Products Partners, you should also be thrilled with Kinder Morgan’s (KMI, $17.14) prospects for the rest of this year and beyond.
There are approximately 83,000 miles of pipelines and 144 terminals in North America operated by Kinder Morgan, one of the largest energy infrastructure companies in the world. As a result of Kinder Morgan’s pipelines, approximately 40% of all natural gas consumed in the United States is transported through the country.
Since years, pipeline stocks have been a no-man’s land for investors, and Kinder Morgan is no different. The stock price of this company has been rising since November 2020, but it remains below its pre-pandemic levels and is still more than 60% lower than its 2015 highs. As a shareholder in Kinder Morgan, you could get the opportunity to own a cheap stock in a sector that, after years of declines, has finally started to trend upward after years of declines. It’s all a matter of waiting, and while you’re waiting, you’ll receive a dividend paying 6% or more!
Bringing the stock prices back to the levels they were before the pandemic would mean an upside of nearly 30% from current levels, not taking into account the dividend. In a market that is becoming increasingly difficult to identify value in, that’s not too shabby when it comes to buying real estate.
Ryder System
- Industry: Rental and leasing services
- Market value: $4.1 billion
- Dividend yield: 3.0%
A Ryder System (R, $75.40) truck crisscrossing America’s highways is perhaps what it is best known for. There are more than 235,000 Ryder trucks and other commercial vehicles, in a wide variety of shapes, sizes and functions, available for rent and for purchase.
There are also many other things that the software does in addition to that. Ryder offers turn-key logistics services that include e-commerce fulfillment, logistics, and supply-chain management. Ryder offers a ready-to-go logistics operation as a service to help businesses that are unable to build out a logistical operation on their own, because it takes time and money that most companies do not have.
There is no company on earth that is truly “Amazon-proof,” but Ryder seems to be as close as you can get to being “Amazon-proof.” Ryder might be a stock for the economy, but the services it provides are vital to the functioning of the new economy.
The current dividend yield for Ryder is 3%, which is more than double the historically modest yield for the S&P 500 index. There is even better news: Ryder has proven to be a dividend growth stock since 2011, having more than doubled its payout over the last few years.
While the price of R shares have remained at 2013 levels, the stock has enjoyed an incredible run over the past year. Nevertheless, if the trend continues towards value stocks, then this pick could have even more room to run.
Vale
- Industry: Industrial metals and mining
- Market value: $109.3 billion
- Dividend yield: 4.0%
Throughout the first half of 2021, commodities have enjoyed some of the best pricing conditions in decades, thanks to rising demand from a reopening economy and curtailed supply due to pandemic-related bottlenecks to create some of the best price conditions in decades. Vale (VALE, $21.69), the Brazilian mining company, likely won’t see any significant improvement in these conditions for a while yet, which is good news for Vale. As a matter of fact, Vale happens to be one of the world’s largest producers of iron ore as well as a large producer of a wide variety of other industrial metals and precious metals, as well.
During the years that led up to 2020, Vale had a rough run, which was common among miners. It has been off and on during the past decade that the share price has been in free fall.
There is nothing particularly wrong with what Vale did, it is just that they made a mistake. The main problem with this house was that it was in a bad neighborhood, and it was a nice house in a nice neighborhood. Emerging market stocks and commodity stocks never recovered from the 2008 crisis. Well, Vale is both a stock on the resource sector as well as a stock on the emerging market sector. The chances of it succeeding were never in its favor.
As a result, conditions finally improved in 2020, and things began to look up. There has finally been a bottoming out in both emerging markets and commodities. In the past year, Vale stock has more than tripled since hitting lows in March 2020, and there may be more gains to come.
As a result of extraordinarily high iron ore prices, free cash flow, and dividends throughout the period, Jefferies analyst Christopher LaFemina (Buy) believes that the major iron ore producers should be the standout performers. We do not believe this is a surprise given that these companies have pristine balance sheets and have a track record of generating large capital returns over the years, but we do believe that the market still underestimates the magnitude of these capital returns in the future.”
According to LaFemina, Vale, along with BHP (BHP), Rio Tinto (RIO) and Fortescue (FSUGY), are likely to announce strong results and dividend yields that are expected to be well above the industry average. He forecasts Vale to return annualized capital returns of 18.5%, including its ongoing buyback program.
There is no doubt that mining stocks can be wildly volatile at times. In spite of this, Vale may be one of the best stocks to buy in 2021, and even in the years beyond, given the fact that industry conditions have improved for the first time in years.
Zoom (NASDAQ: ZM)
In the event you have not heard of Zoom by now, it is highly likely that you have heard of it since it has become a staple meeting tool for many people since the pandemic hit in 2020. It is important to describe Zoom in a brief manner if you are unfamiliar with the concept. With Zoom, users are able to participate in audio conferences, virtual video conferences, webinars, and live chat meetings through a cloud-based application that allows them to communicate via video and audio.
Despite the very favorable profit margins demonstrated by the stock since it went public in 2019, market analysts continue to predict favorable outcomes for the stock. One stock opened at $65.75 in 2019 and by 2020, the price of one stock had almost reached $100.
There has also been an increase in Zoom stock since March of 2020, which amounted to around 490% between March and October of 2020. The analysts are expecting the Zoom stock to continue to do well over the next few years with the company expected to keep growing. There is a current stock price for Zoom stock of $251.26 at the time of writing, with a 52-point earnings multiple and a 22-point trailing sales multiple for the stock.
Conclusions
There are several stocks that are going to be a good investment for 2021, especially if the market is rising. Do you think they will be able to continue performing despite the downturn in the economy? In conclusion, you must know what you are going to get for your hard-earned money before investing it in stocks.