Nvidia, Walgreens, and Other Beaten-Down Stocks That Can Outperform This Year 

There was no shortage of beaten-down stocks in 2022, with the


Russell 1000 index


down 20% as high inflation caused market disarray. But some of those shares—that have strong fundamentals—could be big winners in 2023.

While the Federal Reserve has been battling inflation by lifting interest rates, its rate hike campaign could cause a recession, or at least a decline in expected economic activity and corporate earnings. Higher rates also make future profits less valuable, putting downward pressure on the multiple of near-term expected earnings that stocks trade at.