The stock market has been volatile and unpredictable in 2023, as investors grapple with rising interest rates, a potential recession, and a banking crisis. In such an environment, it is important to focus on high-quality stocks that can deliver consistent earnings and dividends, and have strong growth prospects.
In this article, we are going to list the best stocks to buy in June 2023, examine their past business performance, and look into how they are projected to perform in the coming months.
Here are 10 of the best stocks to buy now, based on the recommendations of various analysts and experts:
| Stock | Stock Price | Market Cap | EPS (2022) | Projected EPS (2023)* |
|---|---|---|---|---|
| Nvidia | $374.75 | $925 bln | $1.74 | $7.78 |
| Apple | $177.80 | $2,800 bln | $4.45 | $5.97 |
| Microsoft | $323.40 | $2,400 bln | $6.71 | $9.65 |
| Amazon | $121.20 | $1,240 bln | $-0.27 | $1.58 |
| UnitedHealth Group | $482.10 | $449 bln | $18.39 | $24.99 |
| Ford Motor | $13.60 | $54 bln | $0.41 | $1.77 |
| Tesla | $224.55 | $703 bln | $1.93 | $3.44 |
| Alphabet | $122.50 | $1,560 bln | $4.56 | $5.33 |
| Exxon Mobil | $108.55 | $439 bln | $3.08 | $9.88 |
| Lockheed Martin | $461.75 | $117 bln | $26.59 | $27.16 |
*Source: CNBC, Yahoo Finance
Top 10 best stocks to buy now: Examining top stock investment picks for 2023
If you are wondering what is the best stock to buy right now and what our reasoning is for including these companies on our list, give the following sections a read.
1. Nvidia Corporation (NASDAQ: NVDA)
Nvidia is the world’s leading supplier of graphics processors for gaming, artificial intelligence, and data center applications. The company has been growing its revenue at a double-digit rate for years, and has a loyal customer base of gamers, developers, and cloud providers. Nvidia also has a diversified portfolio of businesses, including automotive, health care, and edge computing, making NVDA one of the better growth stocks out there.
According to Yahoo Finance’s report, experts expect Nvidia to earn $$7.78 per share in 2023, up from $1.74 in 2022. Nvidia is also nearing the elite trillion-dollar market cap club of Apple, Microsoft, Alphabet, and Amazon. What’s more, the spike in interest in artificial intelligence (AI) technology has contributed to a massive +159% YTD increase in the price of NVDA, making it one of the biggest beneficiaries of the AI boom spearheaded by OpenAI’s ChatGPT.
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2. Apple (NASDAQ: AAPL)
Apple is the world’s most valuable publicly traded company, boasting a market cap of over $2.8 trillion. Apple has shown strong growth in the first 6 months of the year, gaining over +37%. The recent announcement of Vision Pro, a revolutionary VR headset, could create new market opportunities for Apple and solidify its position as the leading tech company.
Apple is known for its innovative products and services, such as the iPhone, iPad, Mac, Apple Watch, AirPods, Apple TV, Apple Music, and iCloud. The company also has a loyal and growing customer base of over 1 billion active devices and over 660 million paid subscriptions, which makes it a good investment in 2023. Analysts expect Apple to earn $5.97 per share in 2023, up from $4.45 in 2022.
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3. Microsoft Corporation (NASDAQ: MSFT)
Microsoft is one of the world’s largest software companies, with a dominant position in operating systems, productivity software, cloud computing, and gaming. The company has been benefiting from the digital transformation trends that have accelerated during the pandemic, such as remote work, online education, and e-commerce.
Microsoft also has a strong balance sheet, with over $130 billion in cash and equivalents as of March 31, 2023. Experts believe Microsoft could earn $9.65 per share in 2023, up from $6.71 in 2022. Meanwhile, Microsoft handily beat EPS expectations in Q1 2023 – the company posted an EPS of $2.45, nearly +10% higher than what the analysts initially expected. For a longer-term look, check the MSFT stock forecast for 2040-2050.
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4. Amazon.com, Inc. (NASDAQ: AMZN)
Amazon is the undisputed leader in e-commerce, cloud computing, and digital entertainment. The company has been growing its revenue at a double-digit rate for years, and has a loyal customer base of over 200 million Prime members. Amazon saw its net income grow to $3.17 billion in the first quarter of 2023, up a whopping +182% compared to the same period last year.
Amazon has a diversified portfolio of businesses, including online advertising, grocery delivery, health care, and streaming video. Analysts expect Amazon to earn $1.58 per share in 2023, up from $-0.27 in 2022. In addition, Amazon seems poised to perform well in the long term, especially if it manages to maintain its dominance in the online shopping sector.
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5. UnitedHealth Group Inc (NYSE: UNH)
UnitedHealth Group is the largest healthcare company in the U.S., with operations spanning health insurance, healthcare services, pharmacy benefits management, and health technology. The company has been delivering consistent earnings growth and cash flow generation for years and has a track record of raising its dividend annually.
UnitedHealth also has a diversified and global customer base, serving over 142 million individuals in more than 130 countries. It is worth noting that the healthcare sector is one of the quickest-growing sectors due to medicine and tech advancements that are leading to an ever-longer life expectancy. Analysts expect UnitedHealth to earn $24.99 per share in 2023, up from $18.39 in 2022.
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6. Ford Motor Company (NYSE: F)
Ford is one of the oldest and largest automakers in the world, with a strong presence in North America, Europe, and China. The company has been undergoing a turnaround under its new CEO, Jim Farley, who took over in October 2020.
Ford has been investing heavily in electric vehicles (EVs), autonomous driving, and connected services, aiming to become a leader in the future of mobility. In fact, Ford sold the second most EVs in 2022 (behind Tesla), leading some to believe that the company could revisit its historical price levels or perhaps even rally to $100. Ford also pays a solid dividend that yields 4% as of June 2, 2023. Analysts expect Ford to earn $1.77 per share in 2023, a more than 400% increase compared to $0.41 from last year.
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7. Tesla (NASDAQ: TSLA)
Tesla is the world’s most valuable automaker by market cap, with a valuation of over $703 billion at the time of writing. The high market cap does put a ceiling on potential growth. However, TSLA has shown in the past that it is capable of trading considerably above its current price. Tesla is known for its innovative and high-performance electric vehicles, such as the Model S, Model 3, Model X, Model Y, and Cybertruck.
Tesla also has a growing business in battery storage, solar panels, and software, which raises its stock as a potentially lucrative long-term investment. Tesla is led by its charismatic founder and CEO, Elon Musk, who has a loyal fan base and a borderline cult-like following. Analysts expect Tesla to earn $3.44 per share in 2023, up from $1.93 the year prior.
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8. Alphabet (NASDAQ: GOOG)
Alphabet is the parent company of Google, the world’s largest search engine and online advertising platform. The company also owns other popular and profitable businesses, such as YouTube, Gmail, Google Cloud, Google Maps, Google Play, and Waymo. Alphabet has a dominant market share and a strong competitive moat, as its products and services are widely used and integrated.
While the company has experienced some hardship this year with the rise of ChatPGT and AI-powered Bing search as any real competition the tech giant has seen in years, Alphabet is still by far the largest search company, controlling more than 93% of the market share. Alphabet also has a robust balance sheet, with over $135 billion in cash and equivalents as of March 31, 2023. Analysts are projecting Alphabet to earn $5.33 per share this year, up from $4.56 in 2022.
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9. Exxon Mobil (NYSE: XOM)
Exxon Mobil is one of the largest integrated oil and gas companies in the world, with operations spanning exploration, production, refining, chemicals, and marketing. The company has been recovering from the impact of the pandemic and lower oil prices on its profitability and cash flow. While the transition to renewable energy is in full swing, owning stocks of S&P 500 fossil energy companies might still be a very good diversification strategy.
The price of XOM rebounded sharply after the post-Covid slump in 2020, growing over +250% from $30 to more than $108, achieving the status of one of the best-performing S&P 500 stocks in the period. Exxon has also been focusing on reducing its debt, cutting costs, and increasing its dividend payout ratio. Analysts expect Exxon to earn $5.57 per share in 2023, up over +80% from the previous year, during which the oil giant had an EPS of just $2.72.
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10. Lockheed Martin (NYSE: LMT)
Lockheed Martin is the world’s largest defense contractor, with a leading position in aerospace, military, and security systems. The company has a diversified and global customer base, with over 70% of its revenue coming from the U.S. government and over 20% from international customers.
Lockheed Martin pays a generous dividend that yields 3% as of June 2023. Analysts expect Lockheed Martin to earn $27.16 per share in 2023, up from $26.59 in 2022. Over the last two decades, LMT has been one of the consistent and best-performing stocks, growing from $49 to $464 with relatively low volatility – if the trend continues, Lockheed Martin stock might be a good buy for those seeking low-risk, long-term investment returns.
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The bottom line: These are the best stocks to buy now
After a bearish 2022, this year has seen numerous companies recover from their lows and retrace toward their previous highs. Still, with the uncertainty surrounding the global economy due to high interest rates, the war in Ukraine, potential recession, and more, most stocks are still trading well below their previous highs. With that said, here’s a final look at the best stocks you can buy right now:
- Nvidia – The world’s most valuable semiconductor manufacturer
- Apple – The world’s leader in consumer electronics and entertainment
- Microsoft – A leading software, cloud computing, and web search company
- Amazon – The world’s leading e-commerce and cloud computing company
- UnitedHealth Group – One of the largest healthcare companies
- Ford Motor – One of the oldest automobile manufacturers transitioning to EVs
- Tesla – The leading electric vehicle manufacturer and renewable energy company
- Alphabet – The world’s biggest search engine and online advertising company
- Exxon Mobil – A leading fossil fuel company
- Lockheed Martin – The world’s largest defense contractor
If you prefer to focus on long-term growth and building a portfolio that’s centered around dividend-yielding stocks, check our selection of the best long-term dividend stocks.
Source: https://coincodex.com/article/28297/best-stocks-to-buy/