Top 5 Stocks for 2023 - Stock Market for Beginners!
Investing in the stock market is often a risky endeavor, as it can be hard to predict which stocks will be profitable in the future. Therefore, it is important to do your own research and consult with a financial advisor before investing. In this video, we discussed five stocks that investors may want to consider buying in 2023 when the bear market ends and the bull market begins. The first stock discussed was Amazon (AMZN). AMZN is a major player in the cloud, digital advertising, and e-commerce, which are expected to grow in the long term. The company has a wide economic moat, which may be even more important going forward. AMZN has a strong balance sheet with a debt rating of AA (S&P) and no net debt (debt net of cash). The current EV/EBITDA (NTM) ratio is about 12x, while the average in the past was over 20x, making it a reasonably priced stock. The second stock discussed was Becton Dickinson (BDX). BDX is a healthcare company that sells medical devices, hospital supplies, diagnostic equipment, and systems for keeping track of medications. The company has been doing very well since the pandemic, as it was the world's largest maker of syringes and needles and one of the largest providers of Covid-19 tests. BDX shares currently trade at 20.7x CY23 EPS, which is much higher than the S&P 500 but about the same as its Med Tech peers. The yield on the stock is 1.4%. The third stock discussed was Johnson & Johnson (JNJ). JNJ is a diverse healthcare company with revenue coming from three different areas: Pharmaceutical, Med Tech, and Consumer. The company has a rare balance sheet with a AAA rating and makes a lot of free cash flow, and it consistently makes above-average returns on equity. The stock trades at just 18x estimated CY2023 EPS, and the dividend yield of 2.5% makes it a good long-term investment. The fourth stock discussed was Mondelez International (MDLZ). MDLZ is a big company that makes food and drinks and operates in many different parts of the world. The company has been doing well lately thanks to investments in its brands to increase market share and a decentralized organizational structure that makes it easier to make decisions. The stock trades at 21.9x CY23E EPS, which is much cheaper than other multinational consumer packaged goods companies. The dividend yield of 2.3% is also attractive. The fifth stock discussed was Microsoft (MSFT). MSFT has changed from a Windows PC-first world to a cloud-first world, and it has become a strategic partner in the digital transformation of large businesses. The company has a strong balance sheet and steady cash flow, and the stock trades at 23 times the estimated EPS for CY23. The yield on the stock is 1.1%. Overall, these five stocks are all in a good position to make money when the bear market ends in 2023 and a bull market starts. However, it is important to remember that investing in the stock market always carries some level of risk, so it is essential to do your own research and consult with a financial advisor before making any investment decisions.
