Best Stocks to Invest in 2023 for Long-Term
Top Stocks for Long-Term Investment in 2023
A planned and research-based strategy is essential to finding the best stocks to invest in in 2023 for long-term. We now have unheard-of access to information thanks to the internet era, which enables investors to make wise choices. The phrases “long-term stocks to invest in 2023 are crucial in this context.
The Subjectivity of ‘Best’ in 2023’s Financial Markets
The financial markets in 2023 will be marked by subjectivity regarding what qualifies as the “best” stocks. This notion can vary significantly from one investor to another, shaped by risk tolerance, financial objectives, and market insights. Nonetheless, some key trends and sectors hold promising opportunities for long-term investors.
Technology and Innovation
The technology sector maintains its status as a powerhouse, steering innovation and transformation across various industries. Companies focusing on disruptive technologies, such as artificial intelligence, electric vehicles, and renewable energy sources, present exciting prospects for long-term growth.
Healthcare Innovators: Meeting Ongoing Global Needs
The healthcare sector is a bastion of long-term potential due to the unceasing demand for medical advancements and services. Companies like Johnson & Johnson (JNJ), a diversified healthcare giant with a history of unwavering stability, and Moderna (MRNA), a leader in vaccine mRNA technology, emerge as standout options. These companies play pivotal roles in addressing global health challenges, setting the stage for sustained growth.
Renewable Energy: Riding the Clean Energy Wave
In the wake of the global push for clean energy solutions, the renewable energy sector offers compelling opportunities. Companies such as Enphase Energy (ENPH), a solar energy technology leader, and Brookfield Renewable Partners (BEP), a substantial renewable energy entity, are well-positioned. These companies are poised to reap the rewards of transitioning to sustainable energy sources.
Consumer Discretionary: Adapting to Changing Tastes
As consumer preferences evolve, companies that adapt tend to excel. Disney (DIS), for instance, has expanded its streaming services and diversified its entertainment offerings. Additionally, Nike (NKE) continues to lead in athletic wear, embracing digital sales channels and sustainability initiatives.
Diversified Portfolios for Prudent Investments
Constructing a diversified portfolio emerges as a prudent strategy for long-term investments. A mix of stocks from different sectors and industries can mitigate risk while capturing various growth opportunities.
Financial Services: Stability Amidst Market Fluctuations
The financial services sector remains a cornerstone of numerous investment portfolios. JPMorgan Chase (JPM) and Visa (V) are noteworthy choices. JPMorgan is one of the largest and most secure banks globally, while Visa benefits from the growing shift towards digital payments. Both companies hold significant positions in the financial industry.
Choosing the top stocks to invest in for the long term in 2023 necessitates thorough research and contemplation. While the stocks highlighted here present promising opportunities, it’s essential to acknowledge that all investments carry inherent risks. To mitigate these risks, diversify your portfolio across various sectors and conduct diligent due diligence.
What are the Benefits of Investing in Long-Term Best Stocks?
When investing in stocks, investors can employ many different strategies. One popular method is investing in long-term or blue-chip stocks. Blue-chip stocks are stocks of large, well-established companies with a history of strong financial performance considered leaders in their respective industries.
There are many benefits to investing in blue-chip stocks. First, they tend to be much less volatile than small-cap or penny stocks. This means they are less likely to experience sudden drops in value, making them more stable investments. Second, blue-chip stocks typically offer higher dividend yields than other stores.
This can provide investors with a steady income stream, even if the stock price isn’t increasing. Blue-chip stocks tend to hold up better during economic downturns than other investments. This makes them a good choice for investors looking for portfolio stability.
If you’re thinking about adding some of the best long-term stocks to your portfolio, consider these benefits and do your research before making any decisions.
Types of Stocks to Buy for Long-Term Investment
There are many different types of stocks to buy for long-term investment, each with its merits. Here are a few of the most popular styles:
- Growth stocks: These are stocks of companies that are expected to experience above-average growth in both their earnings and share price. They are often newer companies with innovative products or services.
- Value stocks: These are stocks of companies that trade at a discount to their intrinsic value. They may be out of favour with investors due to recent problems, but they have the potential to rebound over the long term.
- Dividend stocks: These companies pay regular dividends, providing income and potential capital gains when the stock price rises.
- Blue-chip stocks are large, established companies with a history of strong financial performance. They tend to be less volatile than other stocks and can stabilize a portfolio.
- Index funds: These funds track a specific market index, such as the S&P 500, and provide broad exposure to the market without picking individual stocks.
How do I choose the Right Stocks for Long-Term Investment?
When choosing stocks for long-term investment, remember a few key things.
First, you want to choose companies with a history of strong financial performance that are likely to continue performing well.
Second, you want to look for companies with a solid track record of dividend payments, as these stocks tend to be more stable and offer potential for growth.
You also want to consider the overall market conditions and sector trends before making final decisions.
By following these simple tips, you can help ensure that you choose the best stocks for long-term investment success.
Strategies for Buying Long-Term Best Stocks: When investing in stocks, there is no one-size-fits-all approach. However, a few key strategies can help you buy the long-term best stocks.
Look for companies with solid fundamentals.: This means companies with solid financials, a strong competitive position, and good management. These are the types of companies that are more likely to weather market downturns and continue growing over the long term.
Tips for Investing in Long-Term Best Stocks
If you’re looking to invest in the long-term best stocks, keep a few things in mind. First, it’s essential to have a clear investment strategy. What are your goals? What kinds of companies do you want to invest in? How much risk are you willing to take on? Once you understand your objectives and the level of risk you’re comfortable with, you can start researching specific companies.
It’s also important to remember that not all stocks are created equal. Some will perform better than others over the long term. It’s essential to consider each option carefully before investing. Pay attention to a company’s financial stability, growth potential, and competitive advantage. These factors can help you determine whether or not a stock is an excellent long-term investment.
Remember to diversify your portfolio. This means investing in different types of stocks from other industries. This way, if one sector or industry declines, your portfolio will still be diversified and potentially grow over time.
Common Mistakes People Make When Investing in Long-Term Best Stocks
When investing in the long-term best stocks, people make a few common mistakes. Here are a few of the most common mistakes:
Not Doing Their Research: One of the biggest mistakes people make when investing in long-term stocks is not doing research. Understanding the companies you’re investing in and the industries they operate in is essential. With this knowledge, it is easier to make informed investment decisions.
Investing Too Much Money Too Quickly: Another mistake people make is investing too much money too quickly. When you sponsor a large amount of money all at once, you’re more likely to experience losses if the stock market takes a turn for the worse. Instead, it’s best to slowly invest small amounts of money over time to better weather market volatility.
Failing to Diversify Their Portfolio: Investors should diversify their portfolios to reduce risk. This means investing in different types of assets, such as stocks, bonds, and mutual funds. By diversifying your portfolio, you’ll be less likely to experience significant losses if one asset class declines in value.
How to Invest in Long-Term Stocks in 2023
Investors are often told to buy stocks with a long-term view to benefit from growth that adds to themselves.
The power of compounding is essential if you want to understand how long-term investing can help you. Compounding is like a multiplier effect because the interest earned on the initial investment also earns interest.
This means that the value of the investment grows at a multiplicative rate rather than an additive rate—the growth curve and making money get steeper as the rate of return increases.
For example, if you invest 1 lakh in the first year at a rate of 10% and leave it alone for 20 years, it can grow to 6.72 lakh, which is a return on capital of 672%.
Companies are run with the primary goal of making money, and they work hard to keep growing their profits. However, the different plans and decisions they make shape their growth path.
This is what sets the good companies apart from the bad ones and the profitable ones apart from the ones that don’t make money. The ones that do well give their shareholders a lot of money back.
A company grows not just by getting more prominent but also by becoming better at what it does. This is a slow process. As investors, we should always look at a company’s business model.
This is because the way the company is run affects its growth. When running a business, it’s also essential to consider the big picture: government policy, interest rates, stakeholder claims (including debt and equity holders), etc.
The next step is to figure out what kind of business the company is in. An investor should look at how the industry will change to see if there will be enough demand in the future for the company to grow.
For example, the FMCG sector is a significant theme that has increased. India is a developing country with strong growth prospects, primarily due to infrastructure and human capital improvements and the fact that the government is becoming more urbanized.
As the country’s disposable income increased, more people bought processed foods suitable for companies like Britannia.
If a person had bought one share of Britannia for £196 in 2010, he would have returned £4,080% in just ten years. This is the power of adding things together.
So, if the industry is expected to grow, the strong companies in that industry will also do well if all the cards are laid out on the table. As India continues to do well in this area, the company grows based on its skills and ability to make money.
HDFC Bank is another company whose growth has been good. The financial sector has multiplied, with more people using banks in the country. As banking grew and became more official, bank stocks got a lot of money and multiplied.
HDFC Bank was part of this rally, and its charts showed an upward trend. Its sales have gone from 16,314 crore in 2010 to 1,22,189 crore in 2020, a growth of about 25% CAGR. Its stock price has gone from 210 per share to 1,385 per share, a gain of nearly 660% over ten years if dividends aren’t counted.
These are examples of how a company grows slowly to give its shareholders good returns. As an investor, you must be patient and stay with the rally through its ups and downs.
So, when a company starts up and grows, the value of its stock goes up, which is good for shareholders who stay with the company for a long time.
Let us see the best long-term stocks to buy.
Blink Charging Company, Inc. (NASDAQ: BLNK)
Blink Charging Co. (NASDAQ: BLNK) is the world’s most extensive equipment, technology, and services provider for charging electric vehicles (EVs). Blink Charging Co.
(NASDAQ: BLNK), which has a large installed base of electric vehicle (E.V.) charging stations and a growing network of E.V. charging locations, has a strong market position.
The company is in an excellent position to take advantage of the growth of the E.V. market. The stock could double by 2023; it is one of the stocks with that chance. It is one of the best stocks to buy in 2023.
Christopher Souther, a B. Riley analyst, changed his price target for Blink Charging Co. (NASDAQ: BLNK) from $15 to $14 on November 7 and kept his neutral rating on the stock.
At the end of the second quarter of 2022, seven hedge funds were bullish on Blink Charging Co. (NASDAQ: BLNK) and reported holdings worth $4.77 million. D.E. Shaw was the largest shareholder in the company and said he owned $2.05 million worth of shares.
Blink Charging Co. (NASDAQ: BLNK), like Marvell Technology Inc. (NASDAQ: MRVL), Cloudflare, Inc. (NYSE: NET), and Atlassian Corporation Plc. (NASDAQ: TEAM), has a lot of room to grow and could double by 2023.
Lithium Americas Corporation (NYSE: LAC)
Lithium Americas Corp. trades on the New York Stock Exchange under the “LAC.” It is a Canadian mining company aiming to develop and sell lithium deposits.
The Cauchari-Olaroz in Argentina and the Thacker Pass in Nevada are two of the best lithium deposits in the world. As the world moves toward a low-carbon economy, the demand for lithium is expected to grow a lot over the next ten years.
Lithium is a crucial part of the batteries that power electric cars. It is also used in many other ways, like storing energy in consumer electronics and industrial applications.
Lithium Americas Corp. (NYSE: LAC), one of the stocks that will double by 2023, is set up well to take advantage of the expected rise in demand for lithium.
As of November 8, the stock has given investors a 30% return over the past six months. This is one of the Top Stocks to Buy in 2023.
Canaccord analyst Katie Lachapelle changed her price target for Lithium Americas Corp. (NYSE: LAC) from C$50.50 to C$50 on October 28. She still gave the shares a speculative buy rating.
In November, B. Riley analyst Matthew Key changed his price target for Lithium Americas Corp. (NYSE: LAC) from $41 to $39. He also kept his buy rating on the shares.
At the end of the second quarter of 2022, nine hedge funds were interested in Lithium Americas Corp. (NYSE: LAC) and owned shares worth $110.8 million. Dimension Capital was the company’s biggest shareholder, with a stake worth $66.9 million.
Company Lovesac (NASDAQ: LOVE)
The Lovesac Company (NASDAQ: LOVE) is a one-of-a-kind furniture company that sells a wide range of stylish and comfortable pieces.
The furniture made by the company is made of high-quality, long-lasting materials. The Lovesac Company (NASDAQ: LOVE) has a good reputation as a brand and is in an excellent position to keep growing its business.
As of November 8, the stock’s price is low compared to its earnings, with a P.E. multiple of 8x. This gives investors a good chance to buy the stock. You can purchase this as the best stock for a long-term investment.
Canaccord analyst Maria Ripps changed his price target for The Lovesac Company (NASDAQ: LOVE) from $70 to $60 on September 9 and kept his buy rating on the shares.
The Lovesac Company (NASDAQ: LOVE) has increased by 27.6% in the last six months as of November 8. The stock is on the list of stores expected to double by 2023.
At the end of Q2 2022, 13 hedge funds were worth $45.4 million in The Lovesac Company (NASDAQ: LOVE). Marshall Wace LLP was the biggest investor in the company, with a $14 million position.
The company Riot Blockchain (NASDAQ: RIOT)
Riot Blockchain, Inc. (NASDAQ: RIOT) is one of the most important Bitcoin mining and blockchain technology companies. Riot Blockchain, Inc.
(NASDAQ: RIOT) has invested a lot of money into Bitcoin mining hardware and has a strategic partnership with Bitmain, making some of the world’s most popular Bitcoin mining hardware.
Riot Blockchain, Inc. (NASDAQ: RIOT) is a stock expected to double by 2023 and is well-positioned to benefit from the growth of the Bitcoin and blockchain industries. As of November 9, the company’s market value was $872.3 million.
On November 8, B. Riley analyst Lucas Pipes changed his price target for Riot Blockchain, Inc. (NASDAQ: RIOT) from $13 to $11, but he kept his buy rating on the shares.
At the end of Q2 2022, 13 investors had $13.6 million worth of Riot Blockchain, Inc. (NASDAQ: RIOT) shares in their portfolios.
As of June 30, Schonfeld Strategic Advisors owned the most Riot Blockchain, Inc. (NASDAQ: RIOT) shares worth $2.77 million. Con
App Harvest (NASDAQ: APPH)
AppHarvest, Inc. (NASDAQ: APPH) is a vertically integrated indoor farming company that can grow fresh, tasty, and healthy food every year.
The company’s infrastructure and technology can grow crops such as tomatoes, cucumbers, peppers, and leafy greens.
The stock is on the list of stores expected to double by 2023. This is one of the best long-term stocks.
AppHarvest, Inc. (NASDAQ: APPH) is a next-generation agriculture technology and services company changing how fresh food is grown and distributed.
The company is helping to solve the global food crisis by using its innovative, large-scale controlled environment agriculture (CEA) systems to grow food faster and more efficiently than traditional farming methods.
At the end of the second quarter of 2022, 16 investors had $36 million worth of AppHarvest, Inc. (NASDAQ: APPH) in their portfolios.
Inclusive Capital had the most significant stake in the company, worth $20 million, and was the biggest shareholder.
Standard Power, Inc. (NASDAQ: SLDP)
Solid Power, Inc. (NASDAQ: SLDP) is a leading maker of all-solid-state battery cells and solid electrolyte materials in battery-electric vehicles.
Since the global market for electric vehicles is expected to multiply in the next few years, Solid Power, Inc. (NASDAQ: SLDP) is in an excellent position to get a big piece of it.
The prices of the company’s products are comparable to those of other battery technologies, and they work better. Solid Power, Inc. (NASDAQ: SLDP) is on the list of stocks that will double in value by 2023.
As of November 8, the company is worth $920 million on the open market, and the stock is trading at a P.E. multiple of 3x.
Gabe Daoud, a Cowen analyst, started following Solid Power, Inc. (NASDAQ: SLDP) on October 31. He gave the stock a “Market Perform” rating and didn’t set a price target.
At the end of the second quarter of 2022, 17 hedge funds owned Solid Power, Inc. (NASDAQ: SLDP) worth $14 million. Yaupon Capital was the biggest investor in the company, with $3.72 million in shares.
The company EXACT Sciences (NASDAQ: EXAS)
Exact Sciences Corporation (NASDAQ: EXAS) is one of the biggest companies in the world that makes cancer screening and diagnostic tests. On November 3, EXACT Sciences Corporation (NASDAQ: EXAS) reported earnings for the third quarter of its fiscal year 2022.
These earnings were $0.31 more than expected per share (EPS). The company made $523 million in sales, 14.6% more than the previous year and $19.95 million more than expected. Exact Sciences Corporation (NASDAQ: EXAS) is one of the stocks with the best chance of doubling by 2023.
Mark Massaro, a BTIG analyst, changed his price target for EXACT Sciences Corporation (NASDAQ: EXAS) from $70 to $65 in November and kept his buy rating on the shares. Andrew Cooper, an analyst at Raymond James, changed his price target for EXACT Sciences Corporation (NASDAQ: EXAS) from $70 to $60 on November 7 and kept the shares’ outperform rating.
At the end of the second quarter 2022, 28 hedge funds had $1.09 billion worth of Exact Sciences Corporation (NASDAQ: EXAS) shares. As of September 30, ARK Investment Management was the company’s biggest shareholder, with a stake worth $570,500,000.
Transocean Limited (NYSE: RIG)
Transocean Ltd. (NYSE: RIG) is one of the best offshore drilling companies in the world. The company has a strong position in the market and a wide range of customers, including large oil and gas companies.
Transocean Ltd. (NYSE: RIG) is well-positioned to benefit from the continued growth in demand for offshore drilling services and is one of the top stocks that will double by 2023.
Transocean Ltd. (NYSE: RIG) reported earnings for the fiscal third quarter of 2023 on November 2, which were $0.12 better than expected.
The company made $691 million in sales during the quarter, up 10.38% from last year. This was $25.91 million more than what was expected. As of November 8, the stock has given investors a return of 34.78% so far this year.
On October 17, Charles Minervino, a Susquehanna analyst, changed his price target for Transocean Ltd. (NYSE: RIG) shares from $4.20 to $3.30 and kept his neutral rating on the stock.
At the end of the second quarter of 2022, 28 investors had positions in Transocean Ltd. (NYSE: RIG) worth $385,4 million. As of June 30, D.E. Shaw invested the most money in Transocean Ltd. (NYSE: RIG), with $81.7 million shares worth.
Ginkgo Bioworks Holdings (NYSE:DNA)
Ginkgo Bioworks Holdings Inc. (NYSE: DNA) is one of the most essential companies in synthetic biology. Its primary focus is on engineering microbes for use in different industries.
The company has a substantial intellectual property (I.P.) collection, a robust technology platform, and a strong group of scientists and engineers.
Ginkgo Bioworks Holdings Inc (NYSE: DNA) is well-positioned to exploit the growing demand for synthetic biology solutions in many industries, including food and beverage, pharmaceuticals, cosmetics, and agriculture. It is one of the stocks that will double in value by 2023.
As a Morgan Stanley analyst, Tejas Savant started following Ginkgo Bioworks Holdings Inc. (NYSE: DNA) on October 4, giving it an Equal Weight rating and a $5 price target.
At the end of the second quarter of 2022, 29 hedge funds were bullish on Ginkgo Bioworks Holdings Inc. (NYSE: DNA) and had $575.7 million shares.
Zscaler, Inc. (NASDAQ: Z.S.)
Forty people own shares in hedge funds.
Zscaler, Inc. (NASDAQ: Z.S.) is a cloud-based security company that offers a suite of security products, such as a next-generation firewall, web security, and sandboxing. The company is multiplying and has many customers, including many Fortune 500 companies.
Zscaler, Inc. (NASDAQ: Z.S.) is well-positioned to profit from the growing trend of companies moving to the cloud. The company is also adding more products, which should help it grow even more.
Zscaler, Inc. (NASDAQ: Z.S.) is one of the stocks with the best chance of doubling by 2023.
Baird analyst Shrenik Kothari started following Zscaler, Inc. (NASDAQ: Z.S.) on October 19, giving it an Outperform rating and a $220 price target.
In November, Macquarie analyst Frederick Havemeyer started covering Zscaler, Inc. (NASDAQ: Z.S.) with a neutral rating and a $155 price target.
At the end of the second quarter of 2022, 40 hedge funds had invested $1.02 billion in Zscaler, Inc. (NASDAQ: Z.S.). D.E. Shaw was the company’s biggest investor, with shares worth $208.7 million.
Smart money is pouring into Zscaler, Inc. (NASDAQ: Z.S.), Marvell Technology Inc. (NASDAQ: MRVL), Cloudflare, Inc. (NYSE: NET), and Atlassian Corporation Plc (NASDAQ: TEAM).
Regarding market share in the U.S., T-Mobile U.S. (TMUS, $146.10) is the second largest wireless carrier. But in terms of growth, it is way ahead of the others, says Keith Snyder, an analyst at the investment research firm CFRA.
“Our Strong Buy recommendation shows that we think T-Mobile will keep growing faster than its competitors,” he says.
Snyder says that T-Mobile is at least a year ahead of Verizon (V.Z.) and AT&T (T) when rolling out its 5G network.
He says that this and aggressive pricing for phone plans have helped T-Mobile gain market share while its competitors struggle to keep up.
Also, the carrier is on track to reach its goal of doubling its share of the significant business and government markets from less than 10% to nearly 20% over the next five years.
CFRA thinks that earnings per share will go from $2.27 in 2022 to $6.40 in 2023. Each share could be worth $175 in a year.
Matador Resources (MTDR, $59.97) is an oil and gas exploration and production company. Over the last 12 months, it has increased along with other energy stocks. In particular, MTDR stock is up more than 32% from the previous year’s time.
Analysts also believe that there is more room to run. S&P Global Market Intelligence says that the consensus price target is $71.77, which means the stock is expected to increase by nearly 20% over the next year.
MTDR is among the best values on this list of the best stocks to buy in 2023, even though its chart growth has been excellent. Shares are trading at just 6.4 times future earnings, a lot less than Matador’s average over the past five years, which is 11.7%.
Also, Matador’s natural gas business is a bridge to a time when most of the energy used to make electricity will come from renewable sources. For the next 20 or 30 years, we’ll need that gas.
Lululemon Athletica sells clothes for leisure time (LULU, $323.82). Even though same-store sales rose 22% in the last quarter compared to the same quarter a year ago, the stock decreased 3.3% in the previous year.
You can rarely buy such a great company at a price that seems so low.
At the moment, the price of a share is 28 times its future earnings. At first glance, this does seem expensive, but less than the 43-forward P/E ratio for the next five years.
John Staszak, an analyst at Argus Research, is sure that LULU is one of the best stocks to buy in the long run. The analyst notes, “Lululemon has a strong brand and growing direct-to-consumer sales, leading to higher margins over the next few years.
“Even though there are problems, we think the company will keep moving forward.” He also says that LULU’s drop in price is a “buying opportunity.” He gives the consumer discretionary stock a long-term buy rating.
Many analysts see biopharmaceutical company Amgen (AMGN, $269.42) as neither good nor bad.
Even though some new drugs are selling well and getting off to a good start, sales of their older treatments have slowed because of competition.
But Amgen is an 800-pound gorilla in its field. It has 26 drugs on the market, all different (and dozens in development). It has a strong cash flow and a reasonable dividend yield of 3.2%. In other words, it’s a defense.
Morgan Stanley analyst Matthew Harrison recently upgraded the stock to Overweight, the same as Buy. He did this because the company’s pipeline is strong and the stock is priced too low.
Over the past year, Amgen shares have increased by more than 12%, but they only trade at 15 times expected earnings for 2023, a small fraction of the typical P/E of 70 for biotech companies.
Considering all of this, it’s clear why AMGN is on this list of the best stocks.
Investing in the best long-term stocks is a great way to achieve financial freedom and reach long-term goals. With the right strategy, you can ensure your money works for you and not against you. We hope this guide has helped you better understand how to invest in the stock market and find the best investments for your financial situation. Make sure to do extensive research before committing to any investment so that you can be confident that it will help propel you toward success!