While 2022 didn’t unfold as planned, with the S&P 500 and Nasdaq Composite ending the year down 19% and 33%, respectively, bear markets are known to present hidden opportunities. These events, which occur once in a blue moon, enable shrewd investors to invest in innovative, game-changing companies at discounted prices.
As we move forward into 2023, filled with uncertainty, the following promising stocks have the potential to double your money in 2023.
Stocks that Could Double your Investments in 2023
Redfin, a technology-driven real estate company, could be a potential stock that could double your investment in 2023. But unfortunately, the past year has been difficult for real estate-related businesses, with Redfin losing around 90% of its value since its highest point and rising mortgage rates adding to the industry’s challenges.
In addition, a report from Redfin shows that home sales declined 35% in November 2021. This drop is the largest on record as new listings fell 28%, the second-largest year-over-year decrease in history.
However, Redfin offers several advantages over conventional real estate companies, including lower fees for its services and a range of services to help businesses get maximum value from their homes.
Redfin management believes that expense reduction and a focus on its core internet-based services could lead to profitability in 2023.
Petco Health and Wellness
Petco Health and Wellness (WOOF 0.64%), a pet-focused retailer, has the potential to double your money in 2023. But unfortunately, 2022 saw company shares plummet 52%, particularly due to high integration costs.
These integration costs followed its acquisition of a veterinary-care company, Thrive; the increasing trend of pet owners willing to spend on their “family members” bodes well for Petco.
The company’s focus on subscription services and digital sales is paying off, with digital sales up 10% from the prior year and 42% over the past two years. If Petco can maintain strong double-digit growth in these areas in 2023, it has the potential to recover from last year’s losses and make good on your investment.
Mondelez International is a global food and beverage company with a global presence. CEO Dirk Van de Put has implemented several strategic initiatives since taking over in 2017, including investing in the company’s brands and supply chain and implementing a decentralized organizational structure, improving its competitiveness.
According to their official website, the company’s profit margin dropped by over 500 base points to 33%. Despite this, the company has a strong financial stepping stone and generates steady cash flow.
That allows it to pursue M&A opportunities to expand into adjacent categories. As a result, it is likely to generate double-digit total returns in 2023 and the long term, including high-single-digit EPS growth and a 2.3% dividend.