7 stocks to buy now
Undoubtedly, 2022 was a tough year for stocks. But here are seven that are poised to prosper in 2023.
Advanced Micro Devices (AMD). Analysts have mixed ratings on this leading semiconductor manufacturer, in part because an economic slowdown and negative investor sentiment are near-term obstacles. But analysts on average expect an 18% jump in annual earnings over the next three years — ahead of the company’s peers — fueled in part by market-share gains for its data-center chips.
Amazon.com (AMZN). Stock in this e-commerce and cloud-computing juggernaut is so cheap these days that the managers at Dodge & Cox Stock fund, who are sticklers about price, scooped up shares recently. The managers say they take the long view and are drawn to companies with “attractive fundamentals where expectations and valuations have declined.” Amazon.com fits the bill.
Amgen (AMGN). Many analysts are neutral about this bio-pharma firm. Though some new drugs are off to a good start and selling well, that’s been offset by slowing sales for its older treatments, which are under pressure from competitors. But Amgen is an 800-pound gorilla in its industry, with a diversified roster of 26 drugs on the market (and dozens in development). It boasts a robust cash flow. Morgan Stanley analyst Matthew Harrison upgraded the stock recently to “overweight,” citing the strength of the company’s pipeline and the stock’s undervalued price.
Deckers Outdoor (Deck). Deckers may be known for its Uggs brand of cozy sheepskin footwear, but analysts at BofA Securities believe that the small-midsize company’s crown jewel is its HOKA brand running shoes. BofA expects HOKA brand sales to double to $2.2 billion by fiscal year 2025. Total company revenues in fiscal 2022: $3.2 billion.
Haliburton (HAL). It’s one of the world’s largest energy-services companies with over 40,000 employees and operations in more than 70 countries, according to Argus Research. Halliburton supplies products and services to assist in energy exploration and production, from locating the oil to constructing and completing the well to managing geological data. Haliburton stands to benefit as oil companies ramp up production.
Real estate investment trusts, among the most interest-rate-sensitive industries, have fallen over the past year. “The recent selloff
Rexford Industrial Realty (REXR).
is overdone,” say analysts at investment firm Stifel.
You may still be reluctant to invest in office parks or shopping malls, but industrial REITs, which provide warehouse and logistics services, present an opportunity for growth at a reasonable price, according to Stifel. Rexford focuses on just one huge market — Southern California, which, according to Stifel, is the largest industrial market in the U.S. The scarcity of available space in the region allows Rexford to push above average rental rates.
T-Mobile (TMUS). The company is the second-largest wireless carrier in terms of U.S. market share. But it is sprinting ahead of the others in terms of growth, says analyst Keith Snyder at investment research firm CFRA. “Our ‘strong buy’ recommendation reflects our expectation that T-Mobile will continue to outgrow peers,” he says. The rollout of T-Mobile’s 5G network is at least 12 months ahead of both Verizon and AT&T, Snyder says. That, and aggressive phone-plan pricing, “has enabled T-Mobile to capture market share, while competitors struggle to keep up.”