5TopStocks to buy before 2023

Companies with strong balance sheets that consistently return cash to shareholders through dividend payments rather than making aggressive investments in business expansion make up the less-flashy value stocks. Here are the top five value stocks to purchase right now in light of that. The stocks included here all have above-market dividend yields and are trading at significantly lower share prices or at significantly lower valuations than they were at the beginning of the year. As we get ready for the new year, it would be wise to take a closer look at the high-quality value investments of this type.

1. Occidental Petroleum Stock

According to MarketSmith analysis, the Warren Buffett stock is now in a buy zone after earlier crossing the 72.14 buy threshold from a cup-and-handle base. The shares are trading substantially above their 200-day moving average and above their 50-day line, both bullish indicators.

The relative strength line is also close to highs, which strengthens the positive picture. This contrasts the performance of a stock with the S&P 500. The stock has increased by around 133% so far this year, far outpacing the general stock market.

Even if price performance is exceptional, earnings are also rising. The stock now has an EPS Rating of 81, and the company revealed last week that earnings increased by 18% in the most recent quarter. The oil producer also revealed that while output was largely flat in the third quarter, it returned over $2 billion to investors. OXY said that thus far in 2022, it had given $2.6 billion in dividends to its stockholders. In the third quarter, Occidental Petroleum reported capital expenditures of $1.1 billion and output of 1.18 million barrels of oil equivalent per day, an increase of less than 1% from Q3 2021.

Warren Buffett is a big Occidental lover. According to SEC filings, his company Berkshire Hathaway has grown its OXY investment to 20.9%, with warrants that could increase the stake to more than 25% of outstanding shares. This comes after Berkshire was given permission on August 19 by the Federal Energy Regulatory Commission (FERC) to acquire up to 50% of the energy giant. Given Berkshire Hathaway’s value-driven DNA, though, it “could require a huge decrease in oil prices to motivate an acquisition of that scale,” according to a Wall Street Journal story.

Occidental Petroleum, situated in Houston, is one of the top S&P 500 performers, and oil and gas companies have routinely outperformed the 2022 market. Fuel costs have increased as a result of inflation and Russia’s invasion of Ukraine in February, which has benefited the economy. However, since reaching a high in June, crude oil prices have fallen sharply, with a recent low of $85 per barrel.

The company’s main operations in oil, natural gas liquids, and natural gas have not yet been affected. The heavyweight, on the other hand, has a petrochemicals division that has had trouble ever since the collapse of home sales.

One of the top three suppliers is the branch of Oxychem that manufactures PVC pipe. This chlorinated hydrocarbon is manufactured from salt and natural gas, and it is used in plumbing.

2. Teladoc Health

This year, the stock price of Teladoc Health (NYSE: TDOC) fell 63%. With two-billion-dollar non-cash goodwill impairment charges, the pioneer in telemedicine let investors down. Investors’ worries about the business’s lack of profitability increased as a result.

However, Teladoc may have passed through its most challenging period. Teladoc’s net loss decreased in the third quarter. Revenue and customer visits increased by double digits. Additionally, Teladoc reported that the average deal size today is around 50% larger than it was a year ago. Companies hampered by the current economic climate and coronavirus disruptions have taken longer than anticipated to complete their Teladoc initiatives. These problems are transitory. Teladoc can have a noticeable recovery when things get better. As of right now, the business has succeeded in growing the number of American members.

3.

Vertex Pharmaceuticals

One of the year’s top stock market performers is Vertex Pharmaceuticals (NASDAQ: VRTX). The shares have increased 38%. Vertex, however, might only be getting warmed up. That’s because the business is going through a significant shift right now. The biotech company already holds a commanding position in the cystic fibrosis (CF) therapy industry. Each year, the CF portfolio generates billions of dollars in sales and profit. However, Vertex is set to diversify into yet another important therapeutic field.

Regulators in the US, EU, and UK will get the beta thalassemia and sickle cell disease candidate that Vertex and partner CRISPR Therapeutics are filing this month. The product could launch soon if everything goes according to plan. Vertex therefore faces a clear catalyst.

4.

General Motors

After dropping below a cup-with-handle base optimum entry point of 40.20, MarketSmith research reveals that GM stock is now barely below the purchase zone. Even if a large portion of the base formed below the crucial 50-day moving average, the GM stock is once again above it. Around the 200-day line, GM precisely constructed the handle. After taking a recent drop, the RS line is now moving forward once more. However, it is down from year highs.

Earnings growth and stock market success are roughly parallel. Despite recent gains, the stock still needs to recover its losses from the year before. In the most recent quarter, General Motors ended a four-quarter streak of dropping earnings. Earnings at GM increased by 48% to $2.25 per share, exceeding analyst expectations. Although revenue increased by 56% to $41.889 billion, it fell short of Wall Street projections.

General Motors still expects full-year EPS of $6.50 to $7.50 despite the significant Q3 beat. Continued expectations include automotive free cash flow of $7 billion to $9 billion and wholesale volumes that are 25% to 30% higher. GM’s full-year profits per share are now projected by Wall Street to be $7.10, up 0.4%. The stock has recently seen large-scale purchases, as seen by its B- Accumulation/Distribution Rating. Funds hold a total of 48% of its stock.

The N, which stands for New Products, is an important component of the CAN SLIM formula that GM is pursuing. By 2035, GM has stated that it intends to gradually stop selling ICE light vehicles. According to CEO Mary Barra’s latest letter to shareholders, GM will talk about the “rapid scaling of our EV portfolio” at an investor day on Nov. 17. An EV ramp is essential for General Motors as it competes with Tesla (TSLA).

Through 2024, GM plans to sell 400,000 electric vehicles in North America. However, its expensive new Hummer and Lyriq EV vehicles sold fewer than 500 units combined last quarter, with the majority of its EV sales coming from an older but updated Chevrolet Bolt model. The car manufacturer wants to roughly 60% expand Bolt EV output the next year.

The first all-electric Silverado truck, Blazer SUV, and Equinox SUV crossover will all go on sale in 2023 under GM’s Chevrolet brand, which is renowned for its affordability. The auto industry’s expectations are closely watched, along with earnings. Due to rising interest rates and growing recessionary fears, investors and industry observers are on the lookout for any indications of lower demand. Demand is still robust, according to GM CEO Mary Barra, who echoed past assertions made by GM and Ford management.

5. Moldtek Packaging

In terms of rigid plastic packaging, the business dominates the Indian market. It creates containers for food, paint, lubricants, and other items that are injection moulded. ITC, HUL, Asian Paints, Nestle, Britannia, and other notable companies are among the company’s major clients. This month, Vertex and partner CRISPR Therapeutics are submitting their potential treatment for the blood disorders beta thalassemia and sickle cell disease to regulators in the United States, Europe, and the United Kingdom. The product may launch soon if everything goes according to plan. Thus, Vertex will soon experience a definite catalyst. By the start of the financial year 2024, the company will expand its Daman facility by building a second one to meet the expanding food and FMCG demand in the Western region.

The Sultanpur, India, facility that will produce IBM products as well as injection-blow-molded pharmaceuticals, cosmetics, and over-the-counter (OTC) goods will be operating at the same time. In addition, its pilot facility will begin operating in September–October 2023 to make over-the-counter (OTC) products. A significant order for the OTC product has already been placed with the company by an FMCG company.