This Article Explores
Explore a multitude of publicly listed corporations open for investment, alongside a variety of exchange-traded funds (ETFs) and mutual funds ready for acquisition. This compilation, while not constituting a fully diversified portfolio, highlights steadfast investment choices for the extended period of 2023 and beyond.
Growth Stocks
YTD Total Returns: 53.17%
P/E ratio: 91.03
MercadoLibre, often dubbed the Amazon of Latin America, dominates the e-commerce marketplace in populous countries like Brazil and Argentina. However, it offers much more than just e-commerce, including a rapidly expanding payments platform called Mercado Pago, a logistics service called Mercado Envios, and a business lending platform.
In Q1 2023, MercadoLibre saw remarkable growth, with merchandise volume reaching $9.4 billion, a 43% increase from 2022. Mercado Pago processes about $150 billion annually, mostly from sources beyond the e-commerce platform. MercadoLibre's potential goes beyond a regional Amazon; it offers features similar to PayPal, Square, and Shopify, with promising growth prospects.
YTD Total Returns: 42.07%
P/E ratio: 79.43
ServiceNow stands as a prominent player in the development of cloud-based software, providing businesses with solutions to automate and manage workflows, comprising sequences of tasks crucial for achieving specific objectives. ServiceNow's past five-year average revenue growth was an impressive 30%, and analysts project 20% to 25% growth for the next five years, exceeding the 7% estimate for the global IT sector. Additionally, analysts expect a 29% annual earnings growth in the next three years, surpassing the software industry's 20% estimate. This makes ServiceNow an appealing choice for investors seeking above-average growth opportunities.
High-Performing Stocks
YTD Total Returns: 205.82%
P/E ratio: 233.00
Nvidia has maintained a leading position in the industry with its highly regarded gaming chips, which have positioned the company advantageously in pursuing emerging markets. The graphics and other capabilities of these chips have successfully anticipated the demands of metaverse, cloud computing, and AI work. In the current fiscal year 2024, which commenced on January 30, 2023, Nvidia is expected to achieve remarkable revenue and earnings growth. Analysts are projecting a substantial 59% increase in revenue, amounting to approximately $43 billion. Moreover, the forecast for adjusted earnings per share (EPS) indicates a significant jump from $3.34 in the corresponding period of the previous year to $7.78.
YTD Total Returns: 46.36%
P/E ratio: 46.55
Netflix Inc. (NFLX) is a pioneering streaming video service, leading in TV and movie content streaming in the U.S. It has shifted from third-party content to producing original and valuable content. Netflix's expansion extends globally, and it has introduced innovative initiatives like ad-supported subscriptions and password sharing measures.
As of the second quarter of 2023, Netflix's global streaming paid memberships reached an impressive 238.4 million, with an additional 5.9 million members added during that quarter. Apart from the direct subscription revenue generated from its subscribers, Netflix also leverages data collected from users to optimize its platform and enhance user experiences.
Value Stocks
Berkshire Hathaway Inc (BRK.A)
YTD Total Returns: 13.84%
P/E Ratio: 108.39
Berkshire Hathaway possesses an array of approximately 60 subsidiary businesses, which includes well-known names such as GEICO, Duracell, and Dairy Queen, among others. Additionally, the company holds a substantial portfolio of common stocks valued at around $370 billion, with significant investments in prominent companies like Apple, Bank of America, Chevron, American Express, and Coca-Cola. Berkshire Hathaway's diversified model earned it a reputation as a stable stock. Class A shares have shown an 10 year average annualized return of 11.78%, surpassing the S&P 500's 10.41% return during the same period.
Taiwan Semiconductor Manufacturing Co Ltd (TSM)
YTD Total Returns: 29.33%
P/E Ratio: 15.85
Taiwan Semiconductor Manufacturing (TSM -0.24%) holds a commanding position in the semiconductor fabrication industry, boasting a substantial 58% share in contract chip manufacturing and producing over 90% of ultra-high-end semiconductors. Renowned as a key player, TSMC is the preferred manufacturer of computer chips for major global brands such as Apple, NVIDIA, and Intel.
Despite facing macroeconomic challenges and a slight decline of about 4.8% in revenue during the first quarter of 2023 (reaching around $16.7 billion), the company still managed to achieve a notable 2.1% growth in earnings per share during the same period. The first quarter also showcased impressive margins, including a 56.3% gross profit margin, a strong 45.5% operating margin, and a remarkable net income margin of 40.7%.
Summary with Opportunity
This collection showcases a variety of stocks with strong promise in growth, performance, and value within the dynamic investment landscape of 2023 and beyond. From innovative growth entities across sectors, to high-performing stocks demonstrating impressive returns, alongside enduring value prospects with diverse portfolios, these picks cater to a wide spectrum of investors aiming to navigate the intricacies of the market while aligning with their distinct investment goals and risk thresholds. Additionally, for those intrigued by diversifying into the $1.2 trillion diamond market, explore Diamond Standard to delve deeper into this profitable arena.
