What are the best stocks to invest in the stock market? In reality, there is no clear and direct answer since it depends on the moment of the market, your investment strategy, your financial objectives and, above all, your profile as an investor and the risk management policy you carry out.
2023 is a year marked by the risk of crisis, inflation and interest rate hikes. In this context and very general terms, some of the most solid options for investing in the stock market could be indicated.
Best companies to invest in the stock market
To select the best companies to invest in the stock market in 2023, we have taken into consideration the consistency in obtaining benefits and other factors, such as the growth prospects of the sector, the diversification of the business and the ability they have had to recover from the fall that the markets suffered in 2022.
These are the 5 alternatives of the best companies to invest in the stock market that are proposed.
Companies related to the energy sector are among the best stocks to invest in the stock market because they offer protection in inflationary environments.
In addition, Iberdrola is the most capitalized electricity company in Europe and one of the largest in the world. Not to mention its commitment to the transition to a more sustainable model.
Microsoft Corporation is the second most owned company by large investors in the United States. It is one of the leading technologies and a key value in developing Artificial Intelligence.
Your brand equity is already a valuable intangible asset. In addition, it has a well-diversified line of business (Office, LinkedIn, Bing, Windows, etc.) and constant income.
Despite the hard blow suffered by the technology sector during 2022, the company has managed to maintain itself.
Nvidia is the leader in the graphics processing unit (GPU) market and a key player in developing the metaverse and Web 3.0. In addition, the company is also engaged in integrated circuits.
In total, Nvidia is present in 4 end markets:
- Professional visualization.
- Data centres.
Tesla has become one of the best securities to invest in the stock market due to its profitability and sustainability of its profits.
In addition to the tremendous geographical diversification, the company has a business model with a vision of the future in which it has positioned itself as a leader: electric vehicles.
Nonetheless, Tesla shares hit a relative low in early 2023. After a first upward rebound, we must wait for consolidation. However, the company can grow in the medium term.
We close this list with the best securities to invest in the stock market with a company considered the “gold of the market”: Amazon.
Even though 2022 has suffered a sharp setback, Amazon shares always represent a good investment opportunity.
In principle, it closed the 4th quarter of that same year with higher-than-expected revenues. In addition, the company has shown in recent years a spectacular revaluation, and it is fair to expect it to correct.
This drop means that you can acquire the shares of a leading company in e-commerce and cloud services (through its Amazon Web Services division) at more affordable prices.
However, its daily chart shows that it is still close to relative lows, which may indicate that it has not yet confirmed its definitive recovery.