With my 2023 Tax Loss Selling Recovery Portfolio up and running, I thought it appropriate to hand out a few "honorable mentions" -- namely, intriguing stories for 2023 that did not quite meet the portfolio's criteria. Setting the forward price-to-earnings (P/E) ratio at 15 for the next two years, for instance, excluded some companies that were hit hard in 2022 and might rebound.
Alphabet (GOOGL) (down 31% year to date) had three consecutive earnings misses in 2022 after a string of six consecutive positive surprises. Alphabet shares currently trade at 19x and 16x 2023 consensus earnings estimates, respectively. GOOGL ended its latest quarter with cash and short-term marketable securities of $116 billion, or about $17 a share, and $14.6 billion in debt.
Walt Disney (DIS) (down 37%) has been in the news a lot lately, and not because it had a good year. Bob Iger is back at the helm and the high-ticket prices at Disney parks were just pushed even higher. It's hard to believe DIsney shares are less than $15 away from their pandemic low, but when it rains, it pours. DIS currently trades at about 18x and 15.x 2024 and 2025 consensus earnings estimates, respectively. Disney could be one to watch in 2023.
Intel (INTC) (down 45%) trades at levels not seen since 2016, and it has seen a big fall from April 2021's $68 a share to last Friday's sub-$30 close. Intel shares currently trade at 24x and 16x 2023 and 2024 consensus earnings estimates, respectively. The small sweetener here is Intel's nearly 5% dividend.
Stanley Black & Decker (SWK) (down 56%) has fallen off a cliff in 2022, and in October SWK shares were trading close to the pandemic low. Bloated inventories have hurt, as have overall economic conditions. Stanley Black & Decker shares trade at 16.5x and 11x 2023 and 2024 consensus earnings estimates, respectively, and currently yield 3.9%.
This is a who's who of names, and they will be interesting to watch in 2023.