Within the confines of the fourth quarter, it’s only natural that investors look to growth stock predictions for next year. If a succinct summary existed regarding this framework, it might be disruptions and transitions.
At the start of 2022, the U.S. and global economies suffered under the weight of inflation. Though various stimulus programs were arguably necessary to induce stability following the coronavirus pandemic, now, central banks had to resolve prior excesses. Later, the Russian invasion of Ukraine sparked all manners of chaos, particularly in the energy market.
Throughout this tumultuous cycle, expectations in the workforce changed. Corporate employees realized that a world beyond the cubicles existed. And this only sparked curiosity about a different lifestyle, thus setting the stage for various growth stock predictions.
Given all the paradigm shifts that occurred, society must adjust to new realities. Therefore, below are some specific growth stock predictions for 2023.
One of the growing numbers of companies that feature exceptional relevancies to the gig economy, PayPal (NASDAQ:PYPL) brings much to the table regarding growth stock predictions. Sure, at the moment, the narrative simply stinks. Following the conclusion of the Oct. 17 session, PYPL finds itself down 56% on a year-to-date basis. Nevertheless, this crimson stain may open speculative upside opportunities.
Fundamentally, the Covid-19 crisis sparked an awakening among corporate worker bees. You might say they got “woke,” to hijack a meme. Indeed, the New York Times mentioned back in May 2020 that employees wanted to secure some key benefits associated with telecommuting privileges.
Of course, under a capitalistic system, management isn’t exactly looking to be cooperative. You either do the job or someone else will do it in your stead. Therefore, I do see a sizable number of people making the transition to the gig economy full-time. That should help PayPal, which already features strong longer-term growth trends. As a bonus, the company features a significantly undervalued profile.
A direct player in the burgeoning gig economy, Upwork (NASDAQ:UPWK) is a marketplace for freelancers. Essentially, the underlying platform connects enterprises seeking certain duties to be filled with professional talent that can fill them. It’s a win-win, as companies fill specific gaps while freelancers earn money and build their reputation on the platform.
To be fair, though, Wall Street doesn’t see it that way. Since the beginning of the year, UPWK hemorrhaged over 61% of its market value. Nevertheless, UPWK represents an important cog for growth stock predictions for 2023.
Fundamentally, the gig economy itself brings much organic potential. Experts project that this segment can reach a gross volume of $455.2 billion next year. Moreover, upper management teams and workers clashed over return-to-office requests. At some point, though, economic realities may mean push comes to shove. In this scenario, Upwork may be intriguing.
Still, as it relates to growth stock predictions, UPWK remains one of the riskiest. Per Gurufoucs.com, the underlying business may be a value trap.
One of the most treacherous ideas among growth stock predictions on this list focuses on Uber (NYSE:UBER). Effectively the pioneer of the sharing economy, Uber popularized the concept of ride-sharing. One year before the Covid-19 crisis, the Pew Research Center mentioned that more Americans are using ride-hailing apps.
Fundamentally, this narrative always undergirded UBER stock. While the business itself incurs hefty losses, the conveniences associated with arranging a ride through your smartphone are unparalleled. In terms of growth stock predictions pre-Covid, UBER may have ranked highly.
Post-Covid, though, circumstances bring difficulties to the ride-sharing giant. As economic vagaries force many consumers to tighten their belts, ride-sharing seems superfluous.
Nevertheless, should society fully recover from the pandemic, UBER represents a name to watch closely. While it’s more aggressive than its rivals, Uber’s expansions into international locations and different industries (i.e. food delivery) should see it dominate most or all components of the ride-sharing industry. Still, just be aware of the risks. Gurufocus.com warns that UBER may be a value trap.
Cheniere Energy (LNG)
As far as growth stock predictions are concerned, the case for Cheniere Energy (NYSEAMERICAN:LNG) is right in its ticker symbol. A specialist in liquefied natural gas, Cheniere has always been a relevant component of the economy. However, with Russia’s brazen military action in Ukraine, energy security (especially in Europe) became a massive issue. Suddenly, Cheniere found itself in a glaring spotlight.
While no one enterprise represents a panacea for Europe’s brewing energy crisis, Cheniere certainly did its part. During the first half of this year, over 70% of the company’s exports went to Europe. Further, recent reports indicated that China will stop selling LNG to European countries. Obviously, this presents significant supply constraint problems. Cynically, though, it makes LNG that much more relevant.
Regarding growth stock predictions for 2023, I expect more of the same. Since the beginning of this year, LNG gained nearly 66%, one of the top performers thus far. While it might not generate that much performance next year, LNG fundamentally remains extremely viable.
Enphase Energy (ENPH)
Specializing in solar energy solutions, Enphase Energy (NASDAQ:ENPH) focuses on developing and manufacturing solar microinverters. As well, the company offers battery storage systems, enabling customers to store renewably extracted energy for later deployment. Of course, such systems come in handy when blackouts occur. During the new normal, this situation came to a head.
It’s not just the inconveniences associated with a lack of power. With several states’ grids drawing serious questions, resiliency can no longer be taken for granted. Therefore, regarding growth stocks predictions for 2023, I see ENPH continuing to rise higher. Why? Households with money – and there are still plenty of those – will increasingly make the transition to solar.
Yes, solar systems help mitigate hefty utility bills. But I believe the primary motivator moving forward is resilience. With climate change imposing pressures on our grid, a significant disruption almost invariably awaits us. Enphase helps astute homeowners (with money) plan ahead.
Raytheon Technologies (RTX)
During the initial phase of the Ukraine crisis, Raytheon Technologies (NYSE:RTX) captured the spotlight because of its co-developed Javelin anti-tank missile. This weapons system has been crucial during the early weeks of the conflict as Ukrainian soldiers valiantly fought off the Russian invasion of Kyiv. However, circumstances again shifted to Kyiv but for different reasons.
Using Iranian-made kamikaze drones, Russia now blitzkriegs the capital city and other Ukrainian regions with terrifying aerial assaults. What makes this circumstance problematic from a humanitarian perspective is that the Russians target civilian infrastructures. Therefore, as part of growth stock predictions for 2023, I anticipate Raytheon to once again step up to the plate.
Based on its website, Raytheon achieved tremendous results in tests involving aerial threats. Therefore, the placement of advanced missile-defense systems to protect civilians seems like an ethical no-brainer. To be sure, the Kremlin will likely view such systems integration as an escalation. Nevertheless, the U.S. must now take a leadership role in global stability rather than being the tail wagged by a wayward dog.
Fast Retailing (FRCOY)
If you’ve been following the retail space (particularly the apparel segment) you’ll note that the sector has been hurting. With soaring inflation imposing significant hardships on consumers, many chose to clamp down on their discretionary spending. The result: Higher inventories, even for globally renowned brands. Then again, that’s what makes Fast Retailing (OTCMKTS:FRCOY) so special.
Best known for its primary subsidiary Uniqlo, the clothing retailer represents a hot commodity in its native Japan. But it’s steadily taking over the world thanks to its high quality, low prices, and chic appeal. Usually, such a trifecta doesn’t exist in any market. Thus, Uniqlo is a breath of fresh air, helping to explain its burgeoning popularity.
For growth stock predictions for 2023, I expect a better performance from FRCOY than what it prints now. Currently, shares gained about 2% YTD. Fundamentally, the aforementioned return to the office should augment sales. Plus, Uniqlo allows people to upgrade their Covid wardrobe of sweatshirts and pants to something more presentable at reasonable prices.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.