The 2022 economic story has one big headline: inflation. After an era of ultra-low inflation, the year-over-year growth in the touched as high as 9.06% this year. In response to those rising prices, the Fed raised the federal funds rate seven times, for a cumulative increase of 4.25%.
The sweet spot for 2023 may be the established company that's poised for growth in the year ahead. That growth may come from a renewed focus on efficiency, pricing power, favorable trends, product launches or some combination thereof.Below are seven stock picks for 2023 that fit that mold. All carry buy or higher ratings from the analyst community and consensus price targets representing upside of 5% to 56%.You know Amazon as the mega e-commerce retailer.
On top of those factors, Amazon's stock price looks cheap right now relative to its history. The consensus price target for Amazon is about $140, while the stock currently trades below $90.Chipotle owns and operates more than 3,000 fast casual restaurants serving made-to-order tacos, burritos and bowls. The chain has locations in the U.S., Canada, France, Germany and the U.K. All those locations are corporate-owned.Chipotle stock is down about 20% since the start of 2022.
Dollar General is feeling the pressures of higher costs, though. In response, company leaders are focused on streamlining their supply chain. Those efficiency efforts can help with the current inflation trend, but will also create long-term advantages. The pharma company's revenue grew 7% on a constant-currency basis in the third quarter. Earnings per share in the same quarter increased 12% on a non-GAAP basis.
Third-quarter revenues increased 4% over the prior year, while free cash flow increased 32%. Net income of $508 million in the third quarter was down 26.5% due to merger-related costs of $972 million. After Disney missed consensus earnings estimates in its September quarter by $0.20, the company announced the replacement of CEO Bob Chapek. Chapek had made some unpopular moves, including raising theme park prices and initially overlooking Florida's"Don't Say Gay" bill. Chapek's replacement is his predecessor, Bob Iger. Iger, now on a two-year contract, was well-liked as Disney's CEO between 2005 and 2020.
Disney's low stock price, along with recovering theme park revenues, a stronghold in streaming, and a respected CEO at the helm add up to a good 2023 buying opportunity. The consensus price target for Disney is $124.05. The stock currently trades at about $85.Wells Fargo provides banking and investment services to consumers and businesses. The financial services company serves 33% of U.S. households and 10% of U.S. small businesses.
1. Brand new CEO. 2. Owns cash. 3. No political players as fiduciaries. 4. No former FBI agents as employees. 5. Top execs know both English and how to think. 6. Execs never appear on MSNBC or CNN. 7. Company actually makes SOMETHING.
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