3 Stocks to Follow in 2023

3 Stocks to Follow in 2023

As we approach 2023, now is a good time to review companies that are expected to demonstrate well-performing parameters, taking into account the potential of the sector they operate in to grow over the near future. 

Here’s a review of three stocks, each from a different industry, to look out for while keeping in mind the need to act with caution as markets are still volatile. 

Communications Services | Wireless Telecommunication Services

In 2022, the wireless telecommunications industry underwent a significant shift. The emergence of 5G technology and the associated quantum leap in speed, data rates, and communication capabilities allowed for innovations in consumer technologies. Wearable and implantable devices, smart home appliances, autonomous vehicles, and other such technologies became commonplace. The industry also saw a massive influx of new players, as more companies looked to capitalize on the growing demand for connected products and services. In turn, this increased the competition, forcing existing players to focus on developing better and more cost-effective services. All in all, the wireless telecommunications industry demonstrates a tendency to continue its positive trajectory in the years to come.

As the telecommunications industry is one of the fastest developing ventures in the business world, it is estimated to grow at a CAGR of 7.5% over the next decade, reaching $2705.6 million.

If we take a look at the review of T-Mobile US (TMUS) for instance, we can see that it released impressive Q3 results. Specifically, their growth and value factors indicate a well-planned and balanced effort, that is generating exciting growth. This relative strength should allow T-Mobile US to continue to perform well even in a tough market. We therefore gave T-Mobile US a total score of 83 out of 100 and a BUY recommendation.

Click here to read the full report 

IT | Cybersecurity

Corporations continue to face a number of cybersecurity challenges. According to IBM, in 2021, the cost for an organization experiencing a data breach was an average of $4.2 million. In a post covid world, with more companies abandoning physical servers and switching to the cloud and hosting services, coupled with a hybrid workforce in terms of working from home and on-premise - the cybersecurity challenge is becoming more and more complex.  

Due to these factors, the industry is predicted to grow to $280 billion by 2025, implying a CAGR of almost 15%

Palo Alto Networks (PANW), for example, released impressive Q3 results. Specifically, its growth and income factors indicate a well-planned and balanced effort, that is generating exciting growth. These results lead us to believe that there should be significant upside potential for the stock. We gave Palo Alto Networks an 81 rating and a BUY recommendation.

Click here to read the full report

Consumer | E-commerce

According to the report's analysis of e-commerce companies, by cross-referencing the information on the macro environment, we believe that the trend of volatility will continue in the near future, but this time the direction will be upwards.

The e-commerce stock price roller coaster began when COVID-19 spread around the world in 2020-2021, billions of people avoided leaving their homes and made most of their purchases online - and as a result, e-commerce stock prices began to rise sharply.

As of today, over the past year, the prices of those e-commerce stocks have plummeted. 

Among the main reasons for this were the removal of lockdowns and movement restrictions due to the pandemic, disruptions in global supply chains, a dramatic increase in shipping prices and even criticism from customers that everything is becoming computerized and that they prefer the "old shopping" experience in a store.

Nowadays, as shopping centers have become crowded, people have gotten back to work and have less time to spend, it seems that consumers are going back to shopping online. 

In light of the positive signs in the industry, the removal of restrictions caused by the pandemic in China, where most of the goods are produced, and after the stocks in the sector have reached pricing that already embodies most of the bad scenarios, we believe that there are stocks that offer a very attractive chance-risk ratio.

Pinduoduo (PDD), for example, had several impressive financial metrics that should make them more attractive than their peers going forward. Their growth, value and income factors performance indicate that company management is focused on the right targets and executing well. We expect that this positive performance will continue in the coming months, and anticipate that Pinduoduo will maintain good momentum even in a challenging environment. Therefore, the company earned a total score of 82 out of 100 and a BUY recommendation.

Click here to read the full report

As the outlook for equities in 2023 remains cautious, it's vital to conduct thorough research and a detailed stock analysis before investing in company shares. Thanks to AI-based research and stock fundamental analysis tools, finding profitable stocks has become easier. Research-backed investors who pick stocks from a variety of sectors can benefit from the current market conditions.

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