10 Best Companies To Invest In Now
If you were an investor in 2022, chances are you’ve got a lot of red ink on your statements. With the S&P 500 and Nasdaq both in bear markets — and some well-known stocks like Tesla and Meta Platforms down more than 50% each — it’s been hard to avoid losses on individual positions. The good news for investors with a long-term perspective and some dry powder is that there is no shortage of stocks to invest in now.
Best Companies To Invest In Now
Some of these are more defensive stocks that should continue to hold up well in a tough economy, while others are quality companies that have been pummeled and have elevated long-term return prospects.
1. Procter & Gamble (PG)
Procter & Gamble is always highly recommended as a long-term play for conservative investors, and it may be just what portfolios need going into 2023. Boasting a wide array of well-known consumer brands, Procter & Gamble has a relatively predictable cash flow, as its customers need its products even during recessions. Attesting to this, the company has raised its dividend for an astonishing 66 years in a row, and it currently sits at 2.40%. Its defensive nature has shone in an unsettling 2022, with the stock down just over 6% YTD.
2. Tesla (TSLA)
Tesla is one of the most controversial stocks in America, thanks in no small part to its quoteworthy CEO, Elon Musk. Lingering fears about Tesla meeting its production targets in 2022 were quickly overwhelmed by Musk’s $44 billion deal to buy Twitter, which has foundered in his short term as CEO and has dragged down Tesla stock along with it. However, many analysts are poking around the car wreck that Tesla stock has become. After suffering its worst year ever, Tesla is down about 65% year to date, making it a bounce candidate if nothing else. Important to note, however, is that Tesla’s main industries — electric vehicles and solar power — are widely seen as the wave of the future.
3. Berkshire Hathaway (BRK.A)
Berkshire Hathaway is the conglomerate and investment vehicle run by famed CEO Warren Buffett, the so-called “Oracle of Omaha,” and his partner Charlie Munger. The oft-quoted managers have dispensed uncountable tidbits of investment wisdom over the years and are famous for investing in value companies at deep discounts. Their long-term track record speaks for itself, having nearly doubled the S&P 500’s return since its founding in 1965. Some find Buffett and Munger’s investment style “old fashioned” for the current market, but even in recent years, the stock has edged past the S&P 500.
4. Disney (DIS)
Disney is another member of the Dow Jones Industrial Average that is widely seen as a “blue chip” stock, but it suffered tremendously in 2022, falling over 40%. However, big changes lie ahead for one of the most recognizable companies in the world. Bob Iger, who chaired the company for 15 of its best years, came back to the company in a surprise move in November 2022, charged with overseeing Disney’s return to its former glory. On top of potential recoveries in all of its business segments, the return of Iger could be the game-changer Disney investors need.
5. Costco (COST)
Costco has held up fairly well in 2022’s tough market, down just over 19%. But the stock seems likely to thrive on a relative basis going forward, whether the American economy experiences a full-blown recession or not. The company has a reputation as a low-price leader, and its members are always eager to pay an annual fee of between $60 and $120 just for the privilege of shopping at the store. Costco draws a large portion of its revenue from these recurring membership fees, which customers renew at rates of over 90% every year.
6. Alcoa (AA)
Alcoa might seem like a stock best bought in a booming economy, but the time to buy it has always been when it is cheap. When the economy recovers, demand for aluminum — to which Alcoa is directly tied — tends to jump, which should pull shares higher. Noted investment publication Barron’s recently recommended the stock, indicating it is cheap compared to next year’s estimated earnings. But beyond that, Barron’s notes that Alcoa, which is already a low-cost producer, is working on a potentially game-changing production process that could result in zero emissions.
7. Home Depot (HD)
Home Depot fell a bit over 22% in 2022, due in large part to slowing home sales and rising mortgage rates. High inflation didn’t help either. But the Fed’s battle to slow inflation is already showing signs of working, and by the time investors play for a housing slowdown, it may already be on its way toward recovery. Investment firm Cowen & Co. has Home Depot on its list of “best ideas” for 2023, and this member of the Dow Jones Industrial Average with the 2.4% yield could be another bounce candidate.
8. NextEra Energy (NEE)
If you’re looking to get defensive — but still want some potential growth — NextEra Energy may offer something for your portfolio. NextEra Energy is a utility stock, which normally means it’s defensive and somewhat boring. But NextEra, as its name implies, is moving in a different direction than many old-fashioned utilities that rely on recurring payments from existing infrastructure. The company has been investing heavily in next-generation power generation, especially renewable energy. As the world seems to be moving inexorably in that direction, NextEra Energy is well-positioned to reap long-term rewards.
9. Apple (AAPL)
Apple is by far the largest company in the S&P 500, and for much of 2022, investors and analysts alike were waiting for “the last shoe to fall,” as the company had held up much better than the overall market. But in December 2022, the hatchet has finally come for this market leader as well, with the stock now down about 27% on the year. However, some analysts see this as an opportunity. In many cases, the market leaders are the last to fall and can signal the approaching end of a bear market. Others simply see one of the best companies in the world down by a significant amount and see it as a recovery candidate going forward. Either way, it will be hard for the market overall to return to new highs without Apple participating, which could make it one of the top choices to buy.
10. Blackstone (BX)
Blackstone is an alternative-asset manager that is under the radar of many investors. But the company is well-positioned for a good 2023, and its generous 6.61% dividend pays investors to wait. The stock may be more aggressive than some of the blue chips on this list, but the higher risk may also offer a higher potential return. Down over 42% YTD, if Blackstone turns, it could provide outsized returns. Analysts are bullish on the company, with an average 12-month price target of $102.11, 37% above current levels.
While most of the market has been down this year, these companies are some of the best stocks to buy now because they show potential for growth in the future. Before investing in any new stock, you should consult with your financial advisor to determine which options might best match your objectives and risk tolerance.
- What are the top 10 stocks to buy right now?
- Some of the best stocks to buy right now are:
- Procter & Gamble (PG)
- Tesla (TSLA)
- Berkshire Hathaway (BRK.A)
- Disney (DIS)
- Costco (COST)
- Alcoa (AA)
- Home Depot (HD)
- NextEra Energy (NEE)
- Apple (AAPL)
- Blackstone (BX)
- Some of the best stocks to buy right now are:
- Which stock is best to buy?
- Defensive stocks like Procter & Gamble (PG) and Costco (COST) should continue to hold up well in tougher economic circumstances.
- What is the best thing to invest in right now?
- Some of the best stocks to invest in right now are defensive stocks because they should continue to hold up well in a tough economy.
Data is accurate as of Dec. 29, 2022, and is subject to change.
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- The Motley Fool. 2022. "3 Dividend Stocks That Should Pay You for the Rest of Your Life."
- New York Times. 2022. "Elon Musk Completes $44 Billion Deal to Own Twitter."
- Fox Business. 2022. "Costco puts off membership fee increase as renewals hit all-time highs."
- Barron's. 2022. "Alcoa Has a Plan for Zero Emissions. Buy the Stock While It’s a Bargain."
- BBC News. 2020. "Tesla: Soaring share price creates army of 'Teslanaires'."
- Reuters. 2022. "Disney brings back Bob Iger as CEO in surprise move to boost growth."
- U.S. News. 2022. "7 Dividend Stocks to Buy and Hold Forever."
- Barron's. 2022. "Berkshire Hathaway Stock Could Drop 99% and Buffett Would Still Beat the S&P 500."