JPMorgan’s Best Performing 15 Stock Picks for 2023

Ramish Cheema
10 min read

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In this piece, we will take a look at JPMorgan's top performing 15 stock picks for 2023. For more top stock picks, head on over to JPMorgan's Top 5 Stock Picks for 2023.

As we settle into 2023, market watchers are trying to balance optimism with cautiousness. After all, 2022 was an absolute bloodbath especially for growth companies, as money flooded away from markets into the safe haven dollar due to the Federal Reserve's aggressive interest rate hikes to battle inflation. Naturally, this made inflation the buzzword for 2022, and in 2023, it's still one of the most closely watched indicators. This is because a potential drop in inflation will serve as a leading indicator for the much-awaited Fed interest rate 'pivot'. This utopia like situation from the point of view of a wide variety of investors will lead to interest rates gradually coming down and the stock market becoming more attractive as returns on bank deposits drop, firms find it easier to secure working capital for their operations, and consumers find it easier to make purchases.

However, before we get ahead of ourselves, fresh data for used car prices courtesy of Manheim shows that prices might be peaking. As reported by Bloomberg, used vehicle prices grew by 2.5% in January 2023, after they had dropped by 15% in 2022. This metric is worrying since used car prices themselves are an indicator of new car prices, which then end up making a large part of economic spending.

When it comes to the outlook for 2023, investment banks offer divergent opinions. For instance, while Goldman Sachs is of the opinion that a recession can be avoided if the economy is carefully handled, JPMorgan Chase & Co. (NYSE:JPM) is a bit dourer in its outlook. The bank believes that while a global recession is not unavoidable, the U.S. can slip into a recession before the end of this year. On the interest rate front, central banks will pivot and signal interest rate cuts this year, but this will have to be preceded by further economic weakening, believes JPMorgan. For overall economic growth, the bank's estimates suggest that while the global economy can grow at 1.6%, the U.S. economy will grow at 1%, with China being the fastest with a 4% growth rate. Commenting on the stock market, JPMorgan's global head of equity macro research Dubravko Lakos-Bujas shares that:

In the first half of 2023, we expect the S&P 500 to re-test the lows of 2022 as the Fed overtightens into weaker fundamentals. This sell-off combined with disinflation, rising unemployment and declining corporate sentiment should be enough for the Fed to start signaling a pivot, subsequently driving an asset recovery and pushing the S&P 500 to 4,200 by year-end 2023.

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