As we near the end of 2022, many investors are looking forward to the start of a new year and hoping for better returns in the stock market. While it is impossible to predict the future with certainty, looking at historical trends can give us some insight into what we might expect in the coming year. Based on this analysis, it is likely that 2023 will be a good year for stocks.
Historically, the stock market has tended to perform well in the 12 months following midterm elections. This is likely because midterm elections often result in a change in political power, with the party that is not in the White House gaining ground.
While it is unclear exactly why the stock market tends to perform well in the 12 months following midterm elections, the trend does suggest that we may see a strong recovery in the market at some point in the coming year. However, as with any investment, it is important to carefully consider which stocks to invest in and to diversify your portfolio in order to mitigate risk.
In this report, we are highlighting a selection of stocks that have the potential to grow in the coming year. These stocks may be particularly attractive to investors at the moment because they are currently offering a good entry point, with potentially favorable prices and growth prospects.
- Procter & Gamble (NYSE:PG)
The first stock on our list is Procter & Gamble, a consumer staples company that is traded on the New York Stock Exchange (NYSE) under the ticker symbol PG. This stock is considered a defensive stock, meaning that it is likely to hold up well in a variety of market conditions, including times of economic uncertainty or inflation. This can make it an attractive option for investors who are seeking to minimize risk in their portfolio. Additionally, Procter & Gamble is a blue-chip stock, meaning that it is a well-established and financially stable company with a strong track record of performance.
Procter & Gamble is a company that is able to pass along higher costs to its consumers because it produces products under well-known and trusted brand names that people are willing to pay a premium for. Currently, the price-to-earnings ratio (P/E ratio) of PG stock is around 24x, which is roughly in line with the average for the sector. The stock has been trading around its 52-week low but the price seems to gradually be increasing. Plus, Procter and Gamble historically increases its dividend and currently offers a dividend yield of 2.70%, which will appeal to investors who are after income.
Concerning Procter and Gamble
The Procter & Gamble Company is a global company that produces and sells consumer products under various brand names. Its main business segments include Fabric & Home Care, Beauty, Grooming, Feminine & Family Care, Health Care, and Baby. Within the Beauty segment, hair products take center stage such as styling products, shampoos and conditioners, and treatments under the brand names such as Head & Shoulders and Pantene. It also sells personal hygiene products, antiperspirants and deodorants, and skin care products.
- Enterprise Product Partners (NYSE:EPD)
In the coming year, the energy sector will continue to be a priority for both political parties. One good option for investing in this sector is Enterprise Product Partners, a company that operates in the midstream sector of the energy industry. Specifically, the company transports natural gas through its extensive pipeline network, which spans over 50,000 miles.
Enterprise Product Partners generates income through contracts that provide a stable and reliable source of cash flow, regardless of fluctuations in the price of oil. This predictable nature of their revenue may not be appealing to investors who are looking for rapid stock price growth, as the company’s stock tends to not experience significant price movements.
Despite the relatively stable price of its stock, Enterprise Product Partners may be an attractive option for income investors due to its structure as a master limited partnership. This type of company is known for distributing a large portion of its profits to shareholders in the form of dividends, and Enterprise Product Partners has a dividend yield of over 7.5%
Concerning Enterprise Products Partners
Enterprise Products Partners is a company that offers midstream energy services to various players in the energy industry, including producers and consumers of natural gas, crude oil, petrochemicals, refined products, and NGLs. The company’s operations span four segments: Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, NGL Pipelines & Services, and Petrochemical & Refined Products Services. These segments cover the transportation and processing of a range of energy products through the company’s extensive pipeline network.
- Visa (NYSE:V)
There are several reasons why Visa (NYSE:V) is a potentially good investment. As a payment processor, the company is part of a broad industry that is constantly evolving and growing. While Visa is still well-known for its credit cards, it has also expanded into other areas such as peer-to-peer payments, where it competes with other companies such as Apple (NASDAQ:AAPL) and Block (NYSE:SQ). Overall, the bullish case for investing in Visa is based on the company’s strong brand, track record of success, and position in a dynamic and growing industry.
Inflation is expected to be a significant factor in the coming years, and it may affect consumer behavior in various ways. Some people may be using their credit cards more frequently to pay for travel, while others may be relying on credit to help them manage the impact of rising prices on their budget.
Regardless of the specific reasons for increased credit card usage, it is likely to be beneficial for Visa’s financial performance. The company’s revenue and earnings are already at record levels, and continued growth is expected in the coming years. While it may not achieve the same level of growth as in previous years, Visa has indicated that it is targeting revenue growth in the mid-teens.
Concerning Visa
Visa is a global payments technology company that helps facilitate digital payments between various parties, including consumers, businesses, merchants, financial institutions, and government entities – amongst others. The company operates VisaNet, a network that processes payment transactions and handles a number of tasks. Through these and other services, Visa enables the smooth and secure transfer of funds for a wide range of payment types and transactions.
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