Investors are off to an enthusiastic start in 2023. The S&P 500 is up about 5% so far in January, and many individual stocks are seeing their prices begin to climb back up.
It's still too early to tell how the year will go, but even if a bull market returns, investors should stick with some of the lessons learned in 2022. One of those is finding great stocks and holding for the long term instead of panic selling. With that in mind, here is a group of 10 stocks that all have incredible long-term potential. Some of them could skyrocket this year, but either way, they're worth buying now and holding on to from here.
The list includes Airbnb (ABNB 4.34%), Amazon (AMZN 1.52%), American Express (AXP 1.39%), Chipotle Mexican Grill (CMG 3.87%), Dutch Bros (BROS 6.63%), Global-e Online (GLBE +1.14%), Lululemon Athletica (LULU 2.83%), Marqeta (MQ 5.12%), MercadoLibre (MELI 5.20%), and Nu Holdings (NU 3.59%).
1. Airbnb: Down 33% over the past year
Airbnb has demonstrated an incredible comeback from pandemic declines and is now well on track to lead the travel industry into new places (literally). It's a true industry disruptor that has become profitable as it scales and has tons of future growth potential.
Between rentals in exclusive places that large hotels can't offer and the ability to offer affordable long-term accommodations, Airbnb has been able to shift to meet demand. The best case for its future growth is the ability to do that again and change according to trends.
Airbnb stock is already up 23% in January, and it's likely to keep climbing.
2. Amazon: Down 32% over the past year
Amazon stock lost nearly all the value it had gained since the pandemic in 2022. Between slowing sales, net losses, and a gloomy economic outlook, the e-commerce king has struggled. However, it's up 16% so far in January.
The future remains bright for this powerhouse company. It still accounts for a large percentage of all U.S. e-commerce sales, which has helped it become the second-largest U.S. company by sales. E-commerce is expected to grow annually, as is Amazon. It's investing in many new businesses and acquisitions, and Amazon Web Services continues to grow profitably. Amazon is a no-brainer powerhouse stock that should provide years of growth.
NASDAQ: AMZN
Key Data Points
3. American Express: Down 3% over the past year
American Express posted strong performance throughout 2022, yet its stock is still slightly down over the past year. It's slightly up so far in January.
The company has successfully moved on from its branding as the credit card of an older, affluent customer to capture market share in the millennial and Gen-Z population. It continues to refresh its card options with perks that speak to this cohort.
Fees, which it charges for many of its cards and which cardholders are willing to pay for the benefits, contribute a significant portion of sales and income. American Express is well-placed to post more growth as its core categories of travel and leisure continue to rebound in 2023.
4. Chipotle Mexican Grill: Up 16% over the past year
Chipotle has been an incredible stock to own over the years as fans eat up its quality, fast-casual fare, generating high sales and profits. At almost 3,100 stores, it's quite large at this point, but management sees an opportunity for 4,000 more. Chipotle has been able to successfully raise prices to account for increased costs, leading to continued double-digit sales growth despite inflation.
There's just so much to be confident about for Chipotle this year and into the future. It's already up 15% in January, and it should continue to reward shareholders in 2023.
NYSE: CMG
Key Data Points
5. Dutch Bros: Down 18% over the past year
Dutch Bros is an up-and-coming coffee chain with 671 stores across 14 states in the western part of the country. It has a differentiated culture and a quick expansion strategy, seeing the opportunity to reach 4,000 stores over the next 10 to 15 years.
Inflation proved a bit of a challenge last year, but management is addressing lower same-store sales through raised prices. Sales overall have been very strong, increasing 53% year over year in the 2022 third quarter. Profitability is also improving as Dutch Bros scales, and as the economy recovers, Dutch Bros should thrive.
Dutch Bros stock is already up 20% in January and could soar further this year.
6. Global-e Online: Down 21% over the past year
Global-e may be the best e-commerce stock you haven't heard of yet. It offers cross-border e-commerce solutions for businesses small and large, and it boasts companies like Walt Disney and Macy's among its clients.
Its shipping and payment solutions are valuable in any economy, which is why it has been able to demonstrate continued high double-digit sales growth throughout the volatile economy. Since it takes a fee from each sale using its platform, that should get even better when the economy improves.
Global-e stock is already up 26% in January, and it could move higher in 2023.
7. Lululemon Athletica: Flat over the past year
Shoppers can't get enough of Lululemon's premium athleisure wear. The company's special formula combines patented fabrics, classic styles, a commitment to the active lifestyle, and premium branding. Sales typically grow double digits each quarter, and Lululemon's ability to charge high prices keeps it comfortably profitable.
Investors were disappointed in management's revisions for its 2022 fourth-quarter outlook, and the stock took a dip. It's now down 3% in January, moving in the other direction from all the other stocks on this list. But make no mistake -- this powerhouse apparel stock has enormous growth prospects, and investors can use the dip to get shares at a better valuation.
NASDAQ: LULU
Key Data Points
8. Marqeta: Down 42% over the past year
Marqeta has been the worst-performing stock on this list over the past year. It hasn't posted a profit since going public, and unprofitable tech stocks have been plunging in the bear market.
Marqeta is a fintech company that provides payment and financial solutions for other companies. For example, it developed the technology that underlies many of Block's services, and it creates customized solutions for each client. Growth remains robust, with sales increasing 46% year over year in the 2022 third quarter, and more clients keep signing up.
Marqeta stock is up 11% in January, and 2023 could be a turnaround year.
9. MercadoLibre: Up 8% over the past year
MercadoLibre has been an impressive success story as it continues to dominate the Latin American e-commerce market and turn its focus to new fintech services.
It's still demonstrating high double-digit sales growth after triple-digit growth through several consecutive quarters at the beginning of the pandemic, and it has returned to hearty profitability.
MercadoLibre stock is already 31% in January, and investors should expect more gains from this potentially big winner.
10. Nu Holdings: Down 44% over the past year
Nu is another Latin American fintech that's growing like a weed. It's a digital bank based in Brazil that has captured a large portion of the market, and it's branching into new areas and new products. Revenue increased an incredible 171% in the 2022 third quarter when Nu also posted its first profit as a public company.
Nu stock is about flat in January, which may make this a good time to buy.
