The new year is a good time for investors to reevaluate their portfolios to ensure they are on the best path toward financial well-being. A relevant quote worth revisiting is this one from Warren Buffett: "Price is what you pay, value is what you get." I think it applies perfectly to the state of the stock market right now.

There are plenty of safe stocks that are excellent sources of passive income for 2023. Those like Coca-Cola, PepsiCo, and McDonald's are likely to do well in a recession because demand for their products isn't as sensitive to economic cycles. But just because these stocks are safe doesn't mean they are compelling buys now. All three of those companies trade at a price-to-earnings (P/E) ratio above 25 -- representing a premium to the S&P 500. 

Meanwhile, Union Pacific (NYSE: UNP) has equally strong fundamentals as those leading consumer staples companies but at a far less expensive valuation. Here's why it's a no-brainer buy for 2023.

Continue reading

Source Fool.com