Countless stocks have been on the rise this year after 2022's sell-off. However, it's not too late to take advantage of some great buys that will likely provide substantial gains over the long term.
Apple (AAPL +2.05%), Warner Bros. Discovery (WBD 0.04%), and Amazon (AMZN +0.55%) are vastly different companies that are also in competition with their respective streaming platforms. These companies suffered steep stock declines last year. However, their diverse businesses offer investors the chance to invest in multiple high-profit industries such as consumer tech, entertainment, e-commerce, and cloud computing.
Here's why Apple, Warner Bros. Discovery, and Amazon are no-brainer buys right now.
Apple
It's always easy to recommend Apple's stock with its long history of growth and the potency of its brand that consistently enhances demand for its products. The company's shares rose 291% in the last five years despite recent macroeconomic headwinds, and have soared 989% in the last decade. Apple's stock is one you can buy and hold indefinitely, knowing it will almost certainly continue to trend upward over the years.
In 2023, the tech giant has some exciting developments in the works. Apple is expected to enter the virtual reality/augmented reality (VR/AR) market with the launch of a new headset in June, according to Bloomberg. The device will see the company join a market projected to reach a value of $31 billion this year and expand at a compound annual growth rate (CAGR) of 13.7% through 2027.
NASDAQ: AAPL
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Apple's past performance when entering new markets has led it to have dominating market shares in smartphones, tablets, smartwatches, and headphones. As a result, the company's plans to release a new product in the high-growth VR/AR market could significantly boost earnings and keep the stock on its current growth trajectory.
Warner Bros. Discovery
This entertainment giant has strong positions at the box office, streaming, theme parks, and gaming. Yet its stock was battered in 2022, plunging 63% throughout the year after an expensive merger and controversial restructuring moves. Investors have rallied over Warner Bros. Discovery's stock in 2023, but it remains down 37% year over year, prompting a buying opportunity.
As the home of such brands as Harry Potter, Game of Thrones, The Lord of the Rings, and DC, the company has valuable assets to boost its business for years. Warner Bros. Discovery made numerous slashes to content last year, which concerned investors. However, the cuts have allowed it to focus solely on its most profitable franchises. The priority on expanding beloved brands is already paying off, with the Game of Thrones spin-off show House of the Dragon attracting the most viewers for a finale since the original series aired, hitting 9.8 million.
NASDAQ: WBD
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Moreover, Warner Bros. Discovery's 12-month price target of $21.77 is 44% higher than its current position. The company is on a solid growth path, making its stock a bargain buy.
Amazon
Amazon is a titan of the tech industry with leading market shares in e-commerce and cloud computing. Economic declines hit its business hard last year, leading its North American and international segments to report a combined $10.6 billion in operating losses.
However, the e-commerce market continues to have an excellent long-term outlook, with Amazon's dominance a lucrative position once economic headwinds subside. According to Statista, the industry is expected to reach $4 trillion in 2023 and grow at a CAGR of 11.5% through 2027.
NASDAQ: AMZN
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While Amazon waits out e-commerce challenges, its cloud platform, Amazon Web Services (AWS), is well-positioned to keep the company profitable. The platform earned 100% of the company's profits in 2022, achieving $22.8 billion in operating income. Recent advances in artificial intelligence have spotlighted cloud services like AWS, boosting the industry. Meanwhile, Amazon's leading market share will likely continue to provide earnings gains.
Analysts' average 12-month price target for Amazon is $137 -- 35% higher than its current price -- and nearly all call the stock a strong buy. The company was battered in 2022 and still has a long road ahead to bring its e-commerce back to profitability. However, it remains the home of a robust business likely to continue growing over the long term, making Amazon's stock a must-buy right now.
