What goes up often comes down. However, what goes down can go back up as well. That's a common occurrence in the stock market, with its bull and bear cycles.

Three Motley Fool contributors were asked to pick beaten-down stocks that they think could explode higher in 2023. Here's why they chose CRISPR Therapeutics (CRSP 1.92%), Moderna (MRNA -1.11%), and Zoetis (ZTS 0.73%)

Potentially on the cusp of a rally

David Jagielski (CRISPR Therapeutics): CRISPR Therapeutics' shares have underperformed in the current bear market, with the gene-editing stock down almost 40% year to date. Limited revenue and mounting losses this year have made investors fearful of owning shares of the biotech. But it might not be long before that trend changes as some much-needed positive news could be on the way.

The company has been working with Vertex Pharmaceuticals on a treatment, exa-cel, that could be a functional cure for rare blood disorders beta-thalassemia and sickle cell disease. The partners are in the process of submitting a biologics licensing application for exa-cel to the U.S. Food and Drug Administration (FDA), which should be complete in the coming months. CRISPR and Vertex are also submitting for approval of exa-cel in the European Union.

Confirmation of the completed submission could alone trigger a positive response in the markets and send CRISPR Therapeutics' stock higher. And if exa-cel wins approvals next year, that would definitely provide an even greater boost. Exa-cel has the potential to generate billions in revenue. CRISPR Therapeutics would share in 40% of the profits on the therapy.

Don't jump ship too quickly

Prosper Junior Bakiny (Moderna): Shares of biotech company Moderna are down close to 20% this year, but the company has been on a rally over the past few months. This run recently got a boost when the vaccine marker saw its stock jump by more than 20% in one day. Moderna owed this performance to positive results from a phase 2 clinical trial for mRNA-4157/V940 -- a potential personalized cancer vaccine.

This product, in collaboration with Merck's cancer immunotherapy Keytruda, proved effective in reducing the risk of disease recurrence or death in stage III/IV melanoma patients compared to Keytruda alone. Of course, it is only a phase 2 study, and Moderna's candidate still has a long way to go before earning approval. But these results highlight Moderna's long-term potential. 

The company has plenty of exciting pipeline candidates, some of which should deliver clinical trial results next year. Investigational flu vaccine mRNA-1010 is currently in a phase 3 clinical trial. Moderna expects a data readout from this study in the first quarter of 2023. Investigational respiratory syncytial virus vaccine, mRNA-1345, could also deliver results sometime next year. Positive results from either or both of these studies could send Moderna's shares soaring.

With more than 40 ongoing programs, these aren't the only candidates with which Moderna will make progress next year. As demonstrated by the great phase 2 results for the company's personalized cancer vaccine, Moderna's messenger RNA platform has a lot of potential.  

Investors have sold off the biotech's shares in droves as its coronavirus tailwind could slow next year. But Moderna could show in 2023 why it isn't just a pandemic play. I think that investors should stick with the stock despite its poor performance in the past 12 months. 

Animal spirits ready to resurface

Keith Speights (Zoetis): It's been a tough year for Zoetis shareholders. The animal health stock has plunged nearly 40% year to date. Zoetis delivered worse-than-expected earnings in its last two quarters. 

To be sure, Zoetis will continue to face challenges in 2023. The supply chain issues the company has experienced this year could linger. Generic competition isn't going away. With 98% of CEOs expecting a recession within the next 12 to 18 months, the economy might not work in Zoetis' favor.

However, Wall Street analysts remain quite bullish about the stock. The consensus 12-month price target for Zoetis reflects an upside potential of more than 40%. Seven of the 21 analysts surveyed by Refinitiv rate the stock a "strong buy." Another seven recommend buying Zoetis. None of the surveyed analysts think it's wise to sell right now.

I don't always agree with Wall Street analysts, but I do in this case. Zoetis' long-term prospects remain strong. Pet ownership is increasing worldwide. Many of these owners are willing to pay a premium for their pets' health. Expanding middle classes in developing nations should drive higher demand for protein, which would likely create a tailwind for Zoetis' livestock business.

And while many predict a recession, not all do. If the global economy proves to be more resilient than anticipated, I think that the stock market could rebound nicely in 2023, with Zoetis among the big winners.