2 No-Brainer Stocks Up 50% This Year to Buy Before the Next Bull Market

You're not alone as an investor if you struggled to maintain your focus while the volatility that rocked the markets in 2022 carried into 2023. But the current volatility in the market need not deter you, especially if you only invest in companies that you believe in, that you understand, that have strong underlying businesses, and that have demonstrated long-term competitive advantages. Oh, and it helps to keep a long-term mindset and hold the stocks for three to five years minimum.

Two stocks, in particular, are no-brainer considerations right now. Both are trading up at least 50% this year and both still have long runways for further growth. If you are looking to add to your portfolio before the next bull market gets underway, here are two fantastic companies to consider. 

1. Amazon 

Amazon (AMZN 0.81%) is a big tech name that dealt with particularly turbulent stock-trading waters over the last three years, but a recent wave of optimism and strong financial performance have driven shares up about 48% since the start of 2023.

Consumer spending habits remain in flux in a difficult economy, and enterprise customers using its cloud solutions look to streamline costs. But the market leadership of Amazon's suite of brands is driving the business steadily forward. 

Its flagship e-commerce business accounts for approximately 40% of all online sales generated in the U.S. alone. Its online store's sales in the first quarter of 2023 -- $51 billion -- accounted for nearly half its total net sales of $127 billion for the period. That top line represents a healthy 9% increase from a year earlier.  

Other key drivers include its cloud computing business, Amazon Web Services, with sales of $21 billion in the first quarter, up 16% from a year ago, and its services for third-party sellers, with $30 billion in revenue, up 18%. Even as everyday consumers hesitate to spend given the uncertain economy, Amazon reported that 26 million customers made purchases using same-day delivery in the first quarter, 50% more than the same quarter in 2022.

Over the trailing 12 months, Amazon has had net income of just over $4 billion, with profitability of $3.2 billion in the first quarter. Operating cash flow totaled just over $54 billion in the first three months of 2023.

Amazon taps into some of the world's largest and fastest-growing industries, like e-commerce, cloud infrastructure, and entertainment. This, combined with its continued financial strength, could create a buying proposition that's just too good to pass up.

2. Airbnb 

Airbnb (ABNB 0.87%) stock trades up about 46% since the start of 2023 mostly on investor sentiment regarding a continued stream of impressive quarterly reports and the ongoing recovery in the travel sector. The company's commitment to continually innovate for hosts and guests drives revenue and profits to record highs even as consumer spending is still fluid. 

Airbnb's summer revisions include the most comprehensive wave of updates since the company was founded 15 years ago. These include better pricing tools for hosts to help ensure their listings are competitive for their respective region, improved price transparency for guests, and new payment options like the buy now, pay later service Klarna for guests in the U.S. and Canada.  

Airbnb has something for travelers whether they're looking for a vacation home or a longer-term rental. That's why 46% of bookings are for stays of at least a week, and 18% are for stays of at least a month.

And to increase the affordable options for guests, the company just rolled out an initiative that harkens back to the early days of the business, called Airbnb Rooms. It lets guests find accommodations with an average price for a private room of $67 per night.

Management thinks this will also appeal to younger travelers, posing a key demographic opportunity, especially with so many more people blending work and travel given the abundance of digital and flex jobs.  

Revenue was $8.7 billion and net income was $2 billion in the trailing 12 months. That same period also brought in operating cash flow of $3.8 billion. The current net margin is a healthy 23%.

Even if the travel industry were to sink under the weight of a recession -- a possibility that many economists think could be staved off -- the foundation that Airbnb is building opens up a formidable runway of growth that investors can benefit from.