The United States has been home to some of history’s greatest corporations. From Apple, Google, and Microsoft, to many more household names across multiple industries, investing in US stocks can be a smart decision for your portfolio.
If you are searching to invest in stock trading and have little to no knowledge of stocks, then this post will help you. Check out this list of 5 best stocks from the United States worth investing in 2023.
Best Stocks from the United States
Apple Inc. (AAPL)
Apple is the world’s most valuable company, with a market capitalization of $2.278T as of December 2022. It produces consumer electronics such as smartphones and tablets, along with software like the App Store. The company also sells music, video, and other entertainment through its Apple Music streaming service and TV shows on iTunes.
AAPL shares, like other IT firms, struggled in 2022 as recession fears and rising interest rates frightened investors in the sector. After a remarkable 23% drop, Apple currently prices at 22 times earnings, providing investors with a good entry point into the $2.2 trillion iPhone maker.
Apple’s very adhesive ecosystem – customers tend to stick with Apple goods that connect smoothly with one another – and the ability to upsell more advanced iPhones year after year offers predictability to its income and safety to its stock.
While its 0.7% yield is nothing to write home about, the business is committed to returning its large cash flows to shareholders through a constantly rising dividend and share buybacks; AAPL spent almost $90 billion on stock buybacks in the last fiscal year alone.
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Dutch Bros Inc. (BROS)
While large, established companies such as Apple might provide investors with some stability, smaller companies have more possibility for growth and can help enhance portfolios.
Enter the rapidly rising coffee chain Dutch Bros. Coffee a publicly traded American drive-through coffee franchise. It is headquartered in Grants Pass, Oregon, and was founded by Dane and Travis Boersma. Its company-owned and franchise sites are mostly located in the western United States, though the company has begun to extend as far east as Nashville in the early 2020s.
Although worth more than $5 billion, it is roughly 0.25% the size of Apple. Revenue is exploding, up 53% year on year in the third quarter.
With its origins on the West Coast, Dutch Bros sites are now virtually exclusively in the West and Southwest, with 641 locations across 14 states. Because of the modest footprint of its drive-thru locations, they are relatively inexpensive to open, allowing for rapid expansion.
This is reflected in the figures: Dutch Bros established 103 new outlets in the third quarter, for a 19.1% increase in site growth, considerably exceeding the 2.8% increase observed by industry titan Starbucks Corp. (SBUX).
Citigroup Inc.
Citigroup follows an $86 billion international bank with retail and investment banking divisions.
Citigroup has two options for investors in 2023: For starters, it provides a respectable 4.4% dividend yield, which is a wonderful buffer for owners in a period of rising interest rates and high inflation.
Importantly, Citigroup’s dividend is sustainable over time, with the company paying out less than 30% of its earnings. Apart from its substantial dividend, Citigroup appears to be a bargain company at the moment, trading at less than 7 times forward profits and 0.5 times book value.
Warren Buffett, the world’s most famous investor and financial expert began purchasing Citigroup stock in the first 1/4 of 2022, with Berkshire Hathaway Inc. (BRK.A, BRK.B) owning approximately $2.3 billion in the company at the end of the third quarter.
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Walt Disney Co. (DIS)
While selecting stocks to buy and hold for the long term, one most important consideration to make is a company’s management team. And, with the recent return of veteran CEO Bob Iger, Disney now has plenty of that.
Iger, widely regarded as one of the best CEOs this side of the millennium, presided over a string of massively successful acquisitions, including Pixar, Marvel Entertainment, and Lucasfilm, before handing over the CEO post to Bob Chapek in February 2020.
While Chapek faced a number of challenges, including COVID-19 and rising inflation, he also failed to inspire Disney employees, became embroiled in cultural controversies, and arguably overspent on content for Disney+.
Amazon.com Inc. (AMZN)
Amazon, the dominant internet retailer, also appears to be an appealing purchase heading into the new year, with shares trading at almost a 50% discount from where they were only a year ago.
Cost inflation, a tight labor market, supply chain problems, and diminishing consumer confidence have all taken their toll on the stock. However, the market has been far too quick to write off Amazon, whose crown jewel is its enormous, fast-growing, and massively profitable cloud services business, Amazon Web Services.
AWS currently has an annual revenue run rate of approximately $84 billion and is rising. Given that Microsoft Corp. (MSFT) trades for approximately nine times sales, AWS should trade for approximately 10 times sales due to its quicker rate of growth.
If AWS is worth $840 billion, then at Amazon’s present $900 billion value, investors can purchase the rest of Amazon’s huge businesses – retail, Amazon Prime, digital advertising, and so on – for only $60 billion.
Conclusion
Now, you might be thinking that this is a curious list indeed. All of these stocks are among the most famous and well-known on the stock market today. But we believe that all of these companies offer great investment potential for long-term investors.
That said, if you are not looking for a stock that you can hold for the next several years, that’s fine too. Just don’t let short-term movements cloud your judgment and make a decision that may just lead to regret in the future.
