As we saw the beginning of a new year come and go, markets seemed to retain their calm demeanor. However, despite this apparent lack of activity, some investors are likely taking advantage of the situation and reaping profits from it. With the start of the new year, investors with the insight to capitalize on the bear market will have abundant chances to avail themselves of lucrative returns. Therefore, if you are looking for the best stocks to buy, the time to strike is now.
With the right research and knowledge, you can identify stocks that have the potential to yield high returns. However, it is important to understand what stocks to buy and when to buy them. This article will discuss some of the best stocks to consider buying in 2023.
Since we are in a bear market right now, it’s best to be smart about where you invest and spend your money. Despite the pressure in today’s market, a few examples of stocks are doing well. The online bank SoFi Technologies (NASDAQ:SOFI) is a prime example. Despite the broader economic downturn, shares are surging as the company delivers on multiple fronts. Short-sellers are encircling the stock, but it is not giving away its gains.
It might look like the ideal time to load up on the stock. The cards are in their favor, and the underlying fundamentals are doing well. However, at a time when most quality stocks are available at juicy discounts to buy, the focus should be on battered companies. The following three businesses have exemplary standards and are fairly priced. Like SoFi, these stocks are up this year, albeit slower than the fintech. These are a good place to start if you are looking for stocks to buy.
Dutch Bros (BROS)
Dutch Bros (NYSE:BROS) is a great stock to buy for investors who want to capitalize on the growing popularity of coffee. The company has seen tremendous growth in the past few years, and its stock price has steadily increased. With its strong financials, Dutch Bros is an attractive option for long-term investors. Furthermore, buying Dutch Bros can provide investors with a diversified portfolio that includes high-growth and income-generating stocks. This makes it an ideal choice for building a well-balanced portfolio.
The stock has been on a tear since the start of 2023. It is up 27.72% and shows no signs of slowing down. Revenue skyrocketed in the third quarter, up 53% year-on-year. Dutch Bros coffee shops are primarily on the West Coast and Southwest, with 641 stores in 14 states.
Of its total network of around 641 stores, 370 are owned by the company, and franchisees operate 271. With such a solid base, the rapidly expanding coffee chain is set to achieve quite an ambitious goal – to raise its total store count to 800 by 2023. In 2018, Dutch Bros laid out this 800-unit target, and it appears it will have no difficulty hitting this mark.
Although the stock has been on a steady rise recently, Dutch Bros is still trading at significantly lower levels than its highest price from a year ago. For investors, this presents an opportunity to purchase the stock at lower prices. Those looking for stocks to buy should definitely check out this one – it has a rapidly increasing presence in the U.S., visible growth, and is fairly priced.
Walt Disney (DIS)
As an investor, it is important to consider the potential of stocks before investing in them. Walt Disney (NYSE:DIS) is one such stock that could be a great buy for investors. This entertainment giant has been around for almost a century and consistently provides excellent investment returns. Disney offers investors many opportunities to benefit from its vast range of products and services. Furthermore, its strong financials make it an attractive option for investors looking to invest in a safe and reliable stock.
Over the past few years, Disney’s streaming service has impressed investors and customers alike. This has become an important factor in the decision to invest in the company, which has gained a significant amount of attention. With 223 million paid subscribers worldwide, Netflix is leading the streaming service market. However, if you consider Disney’s ownership of Hulu and ESPN+, its total reaches 235.7 million subscribers by the end of the third quarter, making it the largest.
One of the main reasons to invest in Disney today is Bob Iger’s return to his CEO role. His experience and knowledge will ensure a profitable future for the company and its shareholders. Bob Iger is widely touted as one of the best CEOs of this millennium. Under his tenure, many major acquisitions, such as Pixar, Marvel Entertainment, and Lucasfilm, were successfully pulled off.
In February 2020, Bob Chapek replaced Bob Iger as CEO of Disney. Unfortunately, he had to battle numerous issues, such as the pandemic and escalating prices, along with criticism for his perceived lack of vision and mismanagement of resources toward content for Disney+. Hence, Iger’s return is hotly anticipated. Investors can finally breathe a sigh of relief, and the stock will keep gaining.
PayPal Holdings (PYPL)
PayPal Holdings (NASDAQ:PYPL) is an attractive stock for long-term investors. The company has a strong track record of delivering consistent financial performance, and its stock price has consistently outperformed the broader market in recent years.
The company also offers a wide range of services, from online payments to digital wallets and crypto trading, which makes it well-positioned to benefit from the ongoing shift to digital payments. Furthermore, PayPal’s strong balance sheet and cash flows make it an attractive option for investors looking for stocks to buy.
During the last few years, PayPal experienced many difficulties as it was affected by an unfavorable macroeconomic setting and the severance of its highly productive partnership with eBay (NASDAQ:EBAY). However, PayPal has several things going for it that set it apart. For example, by teaming up with Apple Pay and Amazon (NASDAQ:AMZN), PayPal can increase its reach in the physical retail space and through Amazon’s expansive online store. This opens up new opportunities to accept both PayPal- and Venmo-branded cards.
Although competition is growing, PayPal has been a leader in the digital payments space. In order to ensure continued growth and success, management has adopted a careful and deliberate approach to its strategy. Therefore, there is never a bad time to pick up shares of this financial services giant.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.