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Stocks Forecast 2023 – Tesla, Meta, and NVIDIA Could Bounce Back

By:
Vladimir Zernov
Updated: Jan 3, 2023, 08:57 GMT+00:00

Tesla, Meta, and NVIDIA are among the high-growth stocks that have suffered pullbacks and attractive valuations in the past year and may have the potential to gain strong upside momentum in 2023.

Tesla

In this article:

Key Insights

  • The past year was extremely challenging for leading high-growth stocks, which suffered serious pullbacks. 
  • The valuations of such stocks declined to attractive levels, and investors will try to find a bottom in these names when the general market stabilizes. 
  • Tesla, Meta, and NVIDIA have a good chance to gain strong upside momentum in 2023. 

Fed’s policy will be the key driver for S&P 500 in 2023. However, individual stocks will be more sensitive to company-specific news. Many growth stocks had a very challenging 2022, and their valuations moved to more attractive levels. Let’s take a look at several beaten stocks which have the potential for a strong rebound in 2023.

Tesla

Tesla

Tesla  stock lost 65% of its value in 2022. The stock’s high valuation at the start of the year, Musk’s share sales and Twitter distraction, as well as general pressure on growth stocks served as the key bearish catalysts for Tesla.

The huge pullback pushed the stock to reasonable valuation levels. Currently, Tesla is trading at 23 forward P/E. It should be noted that analyst estimates have been moving lower in recent months, which is bearish for the stock. However, Tesla remains the leader in the EV market, so investors will likely try to find a bottom near current levels.

Meta

Meta

Meta was also among the biggest losers in the S&P 500 as traders were disappointed with the company’s big spending on the Metaverse and reacted to other problems.

Currently, Meta is trading at 15 forward P/E, which looks rather cheap for one of the world’s leading companies. Analyst estimates have started to rebound in recent weeks, and it looks that the worst is behind for Meta stock.

NVIDIA

NVIDIA

NVIDIA stock suffered from the slowdown in the semiconductor segment and the rapid decline in crypto market activity. Trading at 34 forward P/E, the stock remains richly valued, and there is a good reason for this.

NVIDIA remains one of the key tech leaders in its market segment. The current slowdown in the semiconductor segment looks natural after the huge boost during COVID. While analyst estimates have been moving lower in recent months, NVIDIA stock rebounded from yearly lows in October and has a good chance to develop additional upside momentum in the upcoming months.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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