In December 2022, InvestorPlace.com contributor Joel Baglole picked out Seven Surprising Stock Picks for Contrarian-Minded Investors.
His picks would prove masterful.
Not only did he pick out Coinbase (NASDAQ:COIN) – one of the top performers of the stock market this year. He also chose Meta Platforms (NASDAQ:META), Zillow (NASDAQ:ZG) and AMC Entertainment (NYSE:AMC), a wide variety of 2023’s highest-returning stocks.
Together, Joel’s seven picks have risen 37% since January. A stunning figure by any measure!
I’m not cherry-picking results either. According to our internal reports, the analysts at InvestorPlace’s free market news and analysis website all tend to focus on high-performing stocks.
Tesla (NASDAQ:TSLA) is our most covered stock in 2023 so far (+67% YTD return). Microsoft (NASDAQ:MSFT) (+8%), Alphabet (NASDAQ:GOOG) (+6%) and Nvidia (NASDAQ:NVDA) (+69%) round out our other most covered mega-cap picks. These are the companies InvestorPlace.com writers talk about the most.
The only exception is when we cover meme stocks like Mullen Automotive (NASDAQ:MULN), a Southern California-based electric vehicle company, and Bed Bath & Beyond (NASDAQ:BBBY). These are companies InvestorPlace.com analysts write a lot about, but they rarely advocate action because of the companies’ poor fundamentals.
This week, I’d like to take a moment to recognize the five best stock pickers from InvestorPlace.com in 2023 so far.
And I’ll give you a sense of what our analysts are thinking will happen next…
1. Best Contrarian Performance
Joel Baglole, a former Wall Street Journal reporter, has an exceptional record at InvestorPlace.com of combining market bullishness with a healthy dose of cynicism. Not only did he pick out the seven contrarian stocks I noted above, but he also has a nose for picking out high-quality stocks that can do well in both good times and bad.
Last week, Joel released his latest seven undervalued picks, which include everything from Steady Eddie Danaher (NYSE:DHR) to a riskier “buy-the-dip” Advanced Micro Devices (NASDAQ:AMD). It’s a highly worthwhile read for value-minded investors.
2. Best Thematic Pick
Ian Cooper is one of InvestorPlace.com’s top thematic stock pickers. He was among the few analysts who called the 2008 financial crisis, and today Ian focuses on identifying the top companies of specific tech industries.
In mid-January, he used these skills to pick out both Nvidia and C3.ai (NASDAQ:AI) as winners of the artificial intelligence revolution. The former is up 36% since the call, while the latter has rocketed 80%. His diversification pick, the Global X Robotics and Artificial Intelligence ETF (NASDAQ:BOTZ), is also no slouch, up 6%.
Risk-seeking investors will be happy to know that Ian has now named his top seven lithium stocks to buy for the eventual phase-out of gas-powered vehicles. It’s an intriguing look into an industry where certain strong players will come out ahead of others (i.e., not every lithium producer can possibly win). You can see the seven stocks here.
3. Best Insider Pick
I’ve long used my Insider Track Strategy to pick winning stocks in volatile markets. Insiders tend to understand their businesses far better than outsiders, and their reported transactions can help investors outperform anywhere from 6% to 17% per year.
InvestorPlace staff writer Eddie Pan continues this tradition of updating readers every week on notable share purchases by corporate insiders. On Jan. 6, he noted that DraftKings (NASDAQ:DKNG) insiders were betting big on their stock. Shares have since risen a stunning 68% after the company reported stronger-than-expected revenues and raised its 2023 outlook in February.
Last week, Eddie noted that online consignment firm ThredUp (NASDAQ:TDUP) now has 5 key investors buying shares, including the company’s CEO. It’s a sign that shares of the small-cap stock could still be highly undervalued, and on far better grounds than its low profits suggest.
As a bonus, Eddie also has picked out five stocks that hedge funds are betting big on right now. His latest group includes Charles Schwab (NYSE:SCHW), a stock that will benefit from rising interest rates, and beaten-down ride-hailing stock Uber Technologies (NYSE:UBER). Click here to see the full list.
4. Best Short Sale
In early February, InvestorPlace.com writer Chris Lau called crypto bank Silvergate (NYSE:SI) a “crypto meme stock to sell as markets question its survival.”
Since then, Chris has been proven 100% correct. Last Thursday, the embattled lender announced it would cease operations and liquidate itself:
In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of Bank operations and a voluntary liquidation of the Bank is the best path forward.
Shares of the company have understandably collapsed. Silvergate now trades for a $100 million valuation, and shares could realistically go to $0 if its capital buffers prove insufficient.
Chris’ nose for weak companies runs beyond crypto-based lenders. In the same article, he highlighted GameStop (NYSE:GME) and Peloton (NASDAQ:PTON) as other stocks to sell short. Investors who acted – shorting all seven of his picks – could have raked in a 23% return in just a month.
This week, as the EV bubble begins to lose air, Chris adds seven electric vehicle stocks to his sell list. And once again, his sobering look into an often-overhyped industry is a breath of fresh air.
5. Best Meme Stock Call:
Earlier in this email, I noted how InvestorPlace.com writers tend to avoid making meme stock recommendations because of their volatility.
But Dana Blankenhorn has no such qualms. On Jan. 17, the long-tenured financial writer gave his starkest assessment of BBBY yet.
“Bed Bath & Beyond looks headed towards bankruptcy,” he noted in no uncertain terms, calling the retailer “beyond hope.”
Shares of the home goods retailer are down 70% since then, and the firm continues to teeter on bankruptcy.
Dana has since also warned about getting too excited about SoFi Technologies (NASDAQ:SOFI) on its student loan moratorium lawsuit, as well as the prospects for AMC Entertainment’s common stock because of dilution concerns.
Risk-seeking investors who bet on these firms should take note.
Finding the Right Strategy for Today’s Markets
The writers at our free market news and analysis site, InvestorPlace.com, focus on stock-picking from an industry-specific standpoint. It’s a method of specialization that’s used at every level of Wall Street – from the mega-cap hedge funds to the small family offices.
That’s because it can take years for analysts to build domain knowledge, especially in more esoteric areas like artificial intelligence and biotech. You don’t become an expert in cancer drugs overnight.
The downside, of course, is that major trends can sometimes get overlooked. Will the stock market rise 20% this year or fall 50%? Will we see oil go to $120 or $60 this summer? Most importantly, are we headed into a recession?
Fortunately, these are questions that InvestorPlace’s newsletter analysts – Eric Fry, Luke Lango, and Louis Navellier – regularly cover. It’s a skill that you readers know they do startlingly well.
As the Fed continues to telegraph more rate hikes, it’s becoming more important than ever to watch these signs. To see Louis Navellier’s latest market predictions, click here.
On the date of publication, Tom Yeung held a LONG position in GOOG. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.