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7 crème de la crème stocks to buy today

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Investors are racing to find stocks to buy as the market shows a strong uptrend this year. Of course, people make money when prices go up. Yet these rebounding markets are potentially dangerous for investors, as risky investments can rise alongside good companies. Buyers buying speculative investments could end up owning the worst stocks when sentiment turns sour.

To avoid these risks, investors should carefully consider which companies can outperform the market as their earnings increase. Creme de la creme stocks have strong businesses that are thriving and surviving despite economic conditions.

Of course, investors will also want stocks to buy this trade at reasonable valuations. Names trading at a discount are a bonus. Once the market recognizes a great company, its stock price can rise significantly.

What types of companies fit this profile? Consider drugmakers with healthy product pipelines and tech companies that are reducing capital expenditures without hurting their product development.

For that list, here are seven stocks to consider from the sectors mentioned above and more. They all have strong quality and value characteristics as well as robust growth potential in 2023.

Apple (AAPL)

An Apple MacBook Air laptop sitting under bright purple lights.

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Apple (NASDAQ:AAPL) is the first name on this list of stocks to buy. The company offers investors the best of both worlds with hardware and entertainment offerings.

When it comes to hardware, Apple just introduced a new Mac mini powered by the M2 and M2 Pro processors. The Mac mini starts at just $799, a price range that allows the company to keep pace with other PC vendors. On top of that, creative professionals can also purchase the powerful new Macbook Pro for more processing power in a good-looking package.

Sure, global PC shipments were down 28.5% year-over-year (YOY) in Q4 2022. But Apple’s impressive lineup should keep it competitive as the PC market heats up. adapts to economic realities.

When it comes to entertainment and home apps, Apple also recently announced its second-generation HomePod. This product offers “revolutionary sound and intelligence” and robust smart home features. It can notify users of smoke and carbon monoxide alerts as well as read room temperature and humidity via “smart home automation”.

Axcelis Technologies (ACLS)

Image of the Axcelis (ACLS) logo on a web browser magnified through the lens of a magnifying glass

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The next step on this list of stocks to buy is Axcelis Technologies (NASDAQ:ACLS), a manufacturer of semiconductor equipment.

On January 10, Axcelis raised its guidance for the fourth quarter and full year 2022, thereby increasing the revenue forecast. In the statement, CEO Mary Puma explained that the company benefited from “good execution by Axcelis employees, delivering higher than expected system shipments and aftermarket revenue.” Investors can infer that the company’s business momentum could pick up from there.

Axcelis’ Purion family of products is a particular driver of growth. These ion implanters “address manufacturing process challenges” at 10 nanometers (nm) or less. According to the company, “The Purion platform is designed with unique enabling technologies to deliver the highest purity, precision, and productivity, and the lowest cost of ownership.” Enterprise customers are investing more in solutions that reduce costs.

ACLS currently has a price/earnings ratio (P/E) of approximately 21 times. ACLS shares also have strong growth and quality characteristics with increased profit potential when freight improvements and improved prices on materials come into play.

Pfizer (PFE)

Pfizer logo on metal plate with marble background

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Pfizer (NYSE:DFP) is an even cheaper stock to buy today after falling to the $45 level this week. PFE stock peaked at around $56 last year before profit takers turned away from drug stocks.

The shareholders who sold are however absent. Pfizer is supplying its Covid-19 drug to China in limited quantities at this time. But CEO Albert Bourla recently said the company was not in talks to license the drug in the country. By instead negotiating a price for the branded product in China, Pfizer’s drug Paxlovid should continue to boost the company’s profits.

Bourla said Pfizer’s 19 products set to launch over the next year and a half are another reason for optimism. “I firmly believe that the best days are ahead of us,” commented the CEO. Sales of these new products should accelerate revenue growth. This is just another reason to consider PFE as one of the stocks to buy.

Stellantis (STLA)

A Stellantis logo flag flies outside a building with the logos of some of its car brands, including Abarth, Lancia, Fiat, Alfa Romeo and Jeep.

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Stellantide (NYSE:STLA) showed its electric vehicle (EV) ambitions by unveiling its Dodge Ram 1500 Revolution battery electric vehicle (BEV) concept at the CES event in Las Vegas this year. This unveiling will certainly be a defining moment for the automotive firm.

The Ram 1500 BEV gives investors clear direction on the company’s roadmap. Stellantis is making its mark on the truck segment with this concept vehicle, demonstrating its commitment to providing customers with cutting-edge technology and transforming the driver experience. The vehicle will offer “a fully connected customer experience and advanced mobility features”, an “ultra-modern exterior design” and more.

On January 9, Stellantis entered into a manganese sulfate supply agreement. The five-year deal will give the company 45 kilotons of material for EV battery production from 2026. EV companies need supply deals like this to produce vehicles and meet demand customers, so the deal is a big step forward for Stellantis.

Right now, STLA stock is trading at a P/E of 2.9x. If the company can report better operating profits and free cash flow growth across the board, shares could rise from here.

Taiwan Semiconductor (TSM)

TSM stock: the Taiwan Semiconductor logo on the side of its factory in Taiwan

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Taiwan semiconductor (NYSE:TSM) manufactures advanced semiconductors. In the fourth quarter of 2022, the company increased revenue 2% sequentially. TSM stock is a buy as customer demand recovers, especially for advanced 5-nanometer semiconductor solutions.

Recently, Taiwan Semiconductor said its depreciation expense will increase by 30% in 2023 as the company strives to deliver 3-nanometer technologies. According to the company, this technology is the “most advanced semiconductor technology in PPA and transistor technology”. As a result, TSMC predicts “strong demand in 2023, 2024, 2025 and beyond.”

TSMC is also expanding its capacity outside of Taiwan to provide optimal solutions to customers and improve its ecosystem. By opening new factories in the United States and Japan, the company will increase its global capacity over the next few years.

Overall, TSMC doesn’t seem to be slowing down its research, development and expansion efforts. The company’s semiconductors are essential to modern daily life, making TSM stock one of the best stocks to buy.

Resources Teak (TEAK)

piece of copper on black background

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Teak Resources (NYSE:TEAK) will benefit from strong demand for copper, zinc and steelmaking coal in 2023, especially with the reopening of China. The company is well positioned in the industry to capitalize on revenue growth.

Last year, Teck launched an initiative to realize the value of its zinc development assets. Through Zinc Satellite, the company leverages its technical and commercial expertise in five projects spanning all of Alaska, Canada and Australia. Although some emerging miners operate in sometimes politically turbulent places, these five projects are all located in stable areas.

Currently, TECK stock is inexpensive at a P/E of around 7x. It also has a low debt-to-equity ratio. With such a healthy balance sheet, the company can return cash flow to shareholders. Teck could reinvest in the business, buy back shares or issue a special dividend.

Vertex Pharmaceuticals (VRTX)

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Vertex Pharmaceuticals (NASDAQ:VRTX) is a biopharmaceutical company offering a triple combination therapy with exceptional sales potential. VRTX stock is a buy, especially before the company brings its new drug to market.

Investors should expect strong growth from Vertex’s vanzacaftor triple therapy for cystic fibrosis. The company expects to complete its Phase 3 studies of the treatment by the end of 2023. Biotech stocks typically rally when a particular company reports positive results.

Looking to the future, Vertex has high expectations for its drug. He has also “already identified additional potentiators and correctors in the laboratory” and “is advancing them in the clinic.” Finally, the company is developing an “mRNA approach” for patients with cystic fibrosis “who cannot benefit from CFTR modulators”.

Vertex creates value by developing transformative medicines for serious diseases. In the past, investors have also seen strong returns from Vertex; the company completed a $1.5 billion buyout in 2021. If the company can commercialize its new drugs in development, VRTX stock could be a big winner.

As of the date of publication, Chris Lau does not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Chris Lau is a contributing author for InvestorPlace.com and many other financial sites. Chris has over 20 years of stock market investing experience and leads the do-it-yourself value investing market on Seeking Alpha. He shares his stock picks so readers get actionable insights for strong returns on investment.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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