5 TOP stocks to invest in in 2023
There are thousands of different companies on the market that you can invest in. If you add ETFs or other markets (forex, commodities) there is a plethora of opportunities to get started. It can be confusing for many investors, but today we'll look at the top 5, according to analysts, best companies (stocks) that you shouldn't miss.
It's hard to pick the top 5 companies and in practice it's impossible. No one has a crystal ball to determine exactly which stocks will rise and which will fall.
Despite this, companies that I see the potential for long-term growth made it onto this list.
1. Pinterest ($PINS+0.8%)
Pinterest is a social network and web platform that allows users to share and discover inspiration in the form of shared content. The main principle of Pinterest is to create digital "boards" where users post images and videos that interest or inspire them.
These boards can be themed around various topics such as fashion, travel, culinary, design, gardening and many more.
Pinterest, Inc.
PINSPinterest saw a significant drop mainly because its user base shrank a bit when pandemic restrictions were lifted worldwide, but recent results show that growth has resumed. In addition, there is still great potential for long-term user growth.
The most interesting thing from a long-term investor's perspective is that Pinterest has a huge opportunity when it comes to monetizing its users, especially as the company moves away from its traditional ad-focused model and looks for other ways to monetize its app more.
Much larger companies like $GOOG+0.9% or $META-1.7% have tackled a similar problem and partially succeeded in solving it. Future monetization hides many hitherto untapped opportunities.
2. Block ($SQ+0.3%)
Block, formerly known as Square, has evolved from a specialized payment processing hardware company into a massive financial ecosystem for merchants and individuals.
On the merchant side, Block has processed approximately $186 billion in payment volume over the past four quarters and also offers a suite of other financial services for businesses.
Block also has its Cash app with 51 million monthly active users, as well as features that include personal money transfers, direct deposits and debit cards, the ability to buy and sell stocks, Bitcoins and other products.
Block, Inc.
SQBlock also acquired music app Tidal as well as Afterpay' s buy-now, pay-later platform, which is starting to reflect on the company's results. As its ecosystem evolves, the business should only get stronger.
The long-term trend towards accepting cashless payments still has a long way to go, but with many more improvements possible, it has huge potential for the future.
3. Realty Income ($O+0.1%)
Realty Income is a real estate investment trust, or REIT, and primarily invests in single-tenant, stand-alone retail properties.
Realty Income owns more than 11,700 properties in the U.S. and Europe. The firm is recession-proof and less prone to e-commerce disruption than many other retail companies. In addition, Realty Income's triple-net lease structure helps create a steady and predictable revenue stream.
Since its IPO on the NYSE in 1994, Realty Income has delivered 14.6% annual total returns, easily outperforming the S&P 500 Index. It has paid more than 600 consecutive monthly dividends. That's good news for investors, as it lands money in their account every month. (As of April 2023, its yield is about 4.9%.) The company has increased its dividend 119 times since 1994!
Realty Income is a company that I myself have owned in my portfolio for over 2 years. In all my holding time, I can't complain. The current situation may not be entirely favorable, but it has allowed me to buy in at lower prices. The monthly dividend reinvestment hasn't paid that much yet, but we'll see in a couple of years.
4. Shopify ($SHOP-1.7%)
Shopify runs a platform that allows businesses of all sizes to sell their products online. It's particularly focused on empowering smaller businesses and growing with them by establishing long-term relationships.
Shopify offers a subscription plan for businesses starting at $39 per month. You can choose from many adjacent services that help businesses run smoothly, such as payment processing solutions and logistics. Shopify's one-stop shop approach to enabling e-commerce has made it a top player in the market.
Shopify
SHOPItnow has more e-commerce revenue through its ecosystem than any other company except Amazon $AMZN-1.3%. However, Shopify might just be getting started. The platform generated $5.6 billion in revenue over the past four quarters, but that's just a fraction of the estimated $153 billion (and growing) market opportunity as more retailers focus on online sales.
E-commerce is still in its relatively early stages and accounts for less than 15% of retail sales in the United States. Shopify has the second largest share of this market, giving it a powerful ecosystem with advantages over competitors.
As the stock has fallen sharply during the recent market downturn due to recession fears and signs of slowing consumer spending, Shopify has become a company I've paused over.
5. MercadoLibre ($MELI+1.2%)
Mercado Libre is one of the largest e-commerce platforms in Latin America. It is an Argentine company that provides an online marketplace for selling and buying goods and services. Mercado Libre's platform is similar to companies like Amazon or eBay, but with a predominantly Latin American market focus.
It operates a fast-growing payment platform called Mercado Pago, a logistics service known as Mercado Envios, a business lending platform and more.
MercadoLibre, Inc.
MELIIn the fourth quarter of 2022, the company recorded a volume of $9.6 billion in goods sold, and Mercado Pago processes more than $140 billion in annual volume, with about two-thirds coming from outside the company's e-commerce platform.
The best part is that all of these parts of the company are in relatively early stages. MercadoLibre's merchandise volume is roughly 6% of Amazon's, and Mercado Pago's payment volume is less than 10% of what PayPal processes. This makes for great prospects for future growth.
MercadoLibre isn't just the Amazon of Latin America - it's Amazon, PayPal, Square, Shopify and more, all rolled into one. That's great diversification and an opportunity for this company to dominate other foreign markets while consolidating its existing position even more.
This is not a financial advisory business. I am providing publicly available data and sharing my views on how I would handle the situations myself. Investing is risky and everyone is responsible for their decisions.
