4 Must-Own Stocks for Your Portfolio
The stock market has recently been on a wild ride, but fortunately, that means several bargains are available to add to your portfolio. Against a possible recession and sticky inflation, investors should search for stocks with significant growth, pricing power, and earnings potential.
Lucky for you, we’ve compiled a list of 4 stocks with significant potential for price appreciation. These companies have shown resilient market performance historically, are trending in their industries, and have the potential for serious growth. So, buckle up and prepare to take your portfolio to new highs.
Apple Inc.
Apple Inc. is down on its luck which may offer an attractive entry point. 2022 saw Apple shares pull back by 26.4% due to recession fears and rising interest rates. Apple remains one of the largest publicly traded companies in the world, boasting a market capitalization of over $2 trillion.
Despite a missed earnings report in early 2023, the company’s revenue in its high-margin services segment surpassed $20 billion and reported an active installed base of over 2 billion devices.
So far in 2023, AAPL stock has bounced back from its 2022 lows. This is partly due to the strong demand for Apple’s latest iPhone models and its ongoing expansion into new markets and product categories.
Apple’s strong brand recognition, loyal customer base, and innovative product portfolio make it a compelling investment opportunity for 2023. With a diverse range of hardware, software, and services offerings, Apple is well-positioned to continue its growth trajectory and deliver solid earnings for investors, which can weather volatile times.
Citigroup Inc
Citigroup Inc. is a compelling stock that investors should consider adding to their portfolio in 2023. With a market capitalization of approximately $100 billion, Citigroup is a multinational bank offering retail and investment banking services. The stock offers investors two attractive benefits: a healthy dividend yield and a value stock trading at a discount.
First and foremost, Citigroup’s dividend yield of 4% is an appealing draw for investors in the current economic climate. With rising interest rates and inflationary pressures, a reliable dividend yield can provide a buffer for shareholders.
Furthermore, the fact that Warren Buffett began buying Citigroup stock in the first quarter of 2022 is a decisive vote of confidence in the company’s long-term prospects. Berkshire Hathaway Inc. now owns a roughly $2.8 billion stake at the end of the third quarter of 2022.
Citigroup is a great investment for value investors. Like many other banks, the company trades below its book value but boosts an impressive dividend yield and a slightly lower Price to Earnings ratio than its main competitors.
Walt Disney Co
Walt Disney Co. deserves serious consideration for investors in 2023 due to the company’s strong management team led by CEO Bob Iger, who recently returned after some corporate drama. Iger has a track record of successful leadership and acquisitions, including Pixar, Marvel Entertainment, and Lucasfilm. Iger returned to the company and is responsible for a solid fiscal first quarter in which Disney exceeded earnings and revenue expectations.
The company’s streaming service, Disney+, saw lower-than-expected subscriber losses after a price hike, and its theme parks revenue soared by 21%. As a result, Disney’s shares rose in early 2022.
Dutch Bros Inc. (wild card)
Dutch Bros Inc. (BROS) is an exciting wildcard company to watch in 2023, but it is definitely a riskier bet than our other stocks. Dutch Bros is a small-cap stock in the food services sector, known for its drive-thru coffee shops.
This company has the potential to grow at a quick pace, as many wall street analysts have a price target between $36 – $43 on this relatively new stock. The company, which was listed publically in 2021, has experienced rapid expansion and impressive revenue growth, but like many new growth companies, it has significantly more risk and volatility, so it may only be suitable for some investors.
With a current market cap of about $6 billion, Dutch Bros is a tiny company compared to blue chip giants. However, the company has been making significant strides toward growth – currently having 671 locations in 14 states, primarily in the West and Southwest regions of the United States. The company’s small footprint and drive-thru model make its stores relatively cheap to open, allowing for faster expansion and growth opportunities.
Dutch Bros has experienced a year-over-year growth rate of 53% in the most recent quarter. This growth has been propelled by the company’s successful expansion efforts, opening 133 new stores in 2022 alone.
Conclusion
In conclusion, while the market may have experienced volatility in recent times, investors can still add undervalued stocks for the near to long-term future. These stocks offer different growth and return opportunities.From the technology sector to the restaurant industry and banking to entertainment, these stocks have shown outstanding market performance and positive trends in their respective industries. We believe they all show potential for growth and price appreciation.
Josh Dudick
Josh is a financial expert with 15+ years on Wall Street as a senior market strategist and trader. Josh graduated from Cornell University with a business degree in Applied Economics and has held numerous U.S. and European securities and brokerage licenses including FINRA Series 3, 7, 24, & 55. In addition to running an investment and trading firm, Josh is the founder and CEO of Top Dollar, where he teaches others how to build 6-figure passive income with smart money strategies that he uses himself.