S&P 500: These will be the top 10 stocks in 2023, analysts say

Phew. The S&P 500 horrible year that was 2022 is finally about to end. And analysts picked their favorite places to make money next year.


Analysts believe that 10 stocks in the S&P 500, including net dish (PLATE), tesla (TSLA) Y amazon.com (AMZN), will earn 60% or more in the next 12 months. These are the price targets from stock analysts that show the most potential to make money in 2023, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and marketsmith.

The big question that looms is whether the recession will come in 2023. And the signs are beginning to point to yes.

“Like a deflating Christmas ornament…[Fed Chairman Jerome Powell’s]press conference dashed investors’ hopes of averting a recession and showed that history can be right again by pre-warning of a possible economic downturn,” said CFRA strategist Sam Stovall.

And that means making money could be tough next year. But not impossible.

Looking for opportunities in the S&P 500

Analysts turn more bearish on 2023 as each week goes by. But they’re still asking some winners.

Hopes are higher for satellite communications company Dish Network. Analysts believe S&P 500 stocks, which have plunged 57% this year, will rise 134.7% next year. That’s based on analysts’ 12-month average price target of 32.43 per share, down from Monday’s close of 13.82.

Dish Network is a deep value game. It is a member of the S&P 500 Pure Value Index, which only owns stocks that are fully aligned as value stocks. Investors only pay $4.79 for a claim of $1 in profit in the last 12 months. That makes the stock dirt cheap compared to the S&P 500. Investors are paying $20, or about four times as much, to claim $1 of earnings from S&P 500 companies.

But still a value game it also carries risks. Analysts believe Dish Network’s adjusted profit will fall nearly 31% this year and another 36% in 2023.

Will Musk and Bezos redeem themselves in 2023?

Among all the analyst calls for the top stocks of 2023, Tesla and Amazon.com rank among the most surprising. Both previously hot stocks were southern fast in 2022.

But could next year go any better for them? For Tesla, analysts believe that the shares will rise almost 80% in the next 12 months. That would be a welcome rebound for a stock that has fallen 58% this year. Tesla also has a lot of growth behind it. Analysts believe the company’s adjusted earnings per share will rise more than 80% this year on the back of a more than 50% increase in revenue of $83.3 billion.

And it’s not just a lucky year. Analysts believe Tesla’s adjusted profit will rise another 37% in 2023. It’s not easy to find the S&P 500 companies that plan to grow in a year possibly entering a recession.

Analysts are almost as bullish on Amazon.com’s stock. Yes, the online retailer’s shares are down 49.2% this year at 84.61. But analysts believe that within 12 months they will rise again to 141.68 or almost 68% more.

But in this case, analysts are banking on a comeback year in 2023 to follow a dismal 2022. Amazon is expected to return to a profit of $1.69 a share in 2023, after losing 9 cents a share in 2022.

What happens to the S&P 500 in 2023?

However, it is important to note that analysts are rapidly lowering their expectations for 2023. And that means that the forecasts are just educated guesses in this point.

Analysts are now calling for an “imminent earnings recession,” Stovall said. For earnings forecasts for the current fourth quarter of 2022 through the second quarter of 2023, “S&P 500 EPS estimates are flat or low, while its September 30, 2022 forecasts showed earnings for all three quarters.”

That is not a great trend to trade.

2023 is looking bright for these S&P 500 stocks

Analysts see the biggest upside based on 12-month price targets

Business Symbol Var. cumulative % of the year implied advantage Sector
DISH Network (PLATE) -57.4% 134.7% Communication services
Discovery by Warner Bros. (wbd) -61.2% 125.6% Communication services
tesla (TSLA) -57.6% 79.6% Discretionary Consumption
catalent (CTLT) -65.9% 71.3% Health care
amazon.com (AMZN) -49.2% 67.5% Discretionary Consumption
party group (MTCH) -69.7% 65.6% Communication services
Generac holdings (GNRC) -74.2% 65.5% industrial stocks
TEQ (TEQ) 65.5% 63.9% Energy
global payments (GPN) -31.3% 62.4% Information technology
signature bank (sbny) -65.0% 60.6% Finance
Sources: S&P Global Market Intelligence, IBD

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