The Smartest Investors Are Buying These 3 Beaten-Down Stocks
Probably the most outstanding single quality that smart investors share is patience. The best-known smart investor of them all, Warren Buffett, famously doesn't try to time the market. Instead, his core strategy is to buy quality stocks at reasonable valuations -- and his holdings include positions in the first two companies discussed here.
In the case of each of these three stocks, the buy thesis now pretty much requires investors to overlook their near-term negatives in favor of their long-term positives. Apple (NASDAQ: AAPL), UPS (NYSE: UPS), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) all face earnings headwinds in 2023, but they will likely emerge stronger from any recession that coult potentially kick off this year. Here's why.
A combination of supply chain disruptions, a weakening environment for consumer discretionary spending, and adverse foreign currency exchange movements hit Apple in calendar 2022, and some of those issues are likely to extend well into 2023. That said, Apple's dominant position in the U.S. smartphone market and its opportunity to grow sales and market share worldwide as the number of smartphone users increases haven't gone away. Moreover, the underlying growth of its higher-margin services business is improving the quality of its earnings.
Source Fool.com
