phew The dreadful year 2022 for the S&P 500 is finally over. And analysts have picked their favorite spots to make money next year.
Analysts believe 10 stocks are included in the S&P 500 dish network (COURT), Tesla (TSLA) and Amazon.com (AMZN), will gain 60% or more over the next 12 months. These are the price targets of the stock analysts that show the greatest potential to make money in 2023, according to an analysis by Investor’s Business Daily using data from S&P Global Market Intelligence and MarketSmith.
The big question mark is whether the 2023 recession will hit. And the signs are gradually pointing to yes.
“Like a draining holiday lawn ornament… (Fed Chair Jerome Powell’s) press conference dashed investors’ hopes of avoiding a recession and showed that if they warned of a potential economic downturn, history could be proven right again.” warned,” said CFRA strategist Sam Stovall.
And that means it could be difficult to make money next year. But not impossible.
Looking for opportunities in the S&P 500
Analysts are turning bearish with every week in 2023. But they still claim some winners.
Hopes are highest for satellite communications company Dish Network. Analysts believe the S&P 500 stock, which has plummeted 57% this year, will surge 134.7% next year. That’s based on analysts’ 12-month average price target of 32.43 per share, versus Monday’s close of 13.82.
Dish Network is a deep value play. It is a member of the S&P 500 Pure Value Index, which owns only stocks that are considered fully value stocks. Investors only pay $4.79 to claim $1 of trailing 12-month earnings. That makes the stock very cheap compared to the S&P 500. Investors pay $20, or about four times that, for a $1 earnings claim from S&P 500 companies.
But being a value play comes with risks. Analysts expect Dish Network’s adjusted earnings to fall nearly 31% this year and another 36% in 2023.
Will Musk and Bezos redeem themselves in 2023?
Among all analyst calls for the top stocks of 2023, Tesla and Amazon.com are among the most surprising. Both formerly red-hot stocks went south quickly in 2022.
But could next year be any better for them? Analysts expect Tesla stock to surge nearly 80% over the next 12 months. That would be a welcome rally for a stock that’s down 58% this year. Tesla has also had a lot of growth behind it. Analysts expect the company’s adjusted earnings per share to rise more than 80% this year on revenue that’s up more than 50% to $83.3 billion.
And it’s not just a lucky year. Analysts expect Tesla’s adjusted earnings to grow another 37% in 2023. Finding S&P 500 companies that will grow in a year that may be headed for a recession isn’t easy.
Analysts are almost as bullish on Amazon.com stock. Yes, shares of the online retailer are down 49.2% this year to 84.61. But analysts believe it will rebound to 141.68 or almost 68% higher in 12 months.
But in that case, analysts are expecting a comeback year in 2023 after a dismal 2022. Amazon is expected to return to earnings of $1.69 per share in 2023 after losing 9 cents per share in 2022.
What’s Happening for the S&P 500 in 2023?
However, it is important to note that analysts are rapidly revising their expectations for 2023 downwards. And that means forecasts at this point are just educated guesses.
Analysts are now calling for an “imminent earnings recession,” Stovall said. For earnings guidance for the current fourth quarter of 2022 through the second quarter of 2023, “S&P 500 EPS estimates are flat to bearish, while their September 30, 2022 guidance showed earnings for all three quarters.”
This is not a great trend to trade.
2023 is looking bright for these S&P 500 stocks
Analysts see the biggest upside potential based on 12-month price targets
|Pursue||symbol||YTD % ch.||Implied top||sector|
|DISH network||(COURT)||-57.4%||134.7%||communication services|
|Warner Bros. Discovery||(WBD)||-61.2%||125.6%||communication services|
|Global Payments||(GPN)||-31.3%||62.4%||information technology|