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3 stocks to buy for 2023 after the 2022 correction!

Group of friends celebrating together the end of 2022 and the new beginning in 2023.
Image source: Getty Images

The 2022 correction has hit share prices hard. And while a lot of investors are expecting more doom and gloom from 2023, I see this as a terrific opportunity to snap up a few bargains. Warren Buffett’s famous saying, “be fearful when others are greedy, and greedy when others are fearful” comes to mind. For that reason, I’ve found myself three stocks to buy for 2023 that have “potential bargain” written all over them.


My previous examinations of American streaming giant Netflix (NASDAQ:NFLX) have left me unimpressed. Let’s just say I’m not in the habit of investing in companies with a price-to-earnings (P/E) ratio of over 100.

But a dreadful 2022 for the company has seen it lose over 70% of its share price, and has brought that P/E ratio down to a much more reasonable 26.

I’m bullish on streaming in general. After all, people won’t stop watching TV anytime soon. And what I like most about Netflix is its uncanny knack of getting people talking. No other streaming service creates the “must-watch” series that do the rounds on social media like Netflix does. That word-of-mouth exposure is priceless.

The biggest question mark around Netflix is its market saturation. With over 200m subscribers, its biggest growth is surely over, even if it does ban account sharing. Still, a swift return to its previous high seems inevitable to me.


The low-cost airline easyJet (LSE:EZJ) has a share price that is still down over 70% from all-time highs. That was before Covid-19 took an axe to the travel industry, of course.

The outlook is improving, though. easyJet’s latest trading update revealed that passenger numbers for Q4 2022 were close to pre-pandemic capacity. And based on current trading, the company expects Q4 2023 to reach pre-pandemic flight numbers.

easyJet currently has a P/E ratio of only nine, which compares favourably to the FTSE 250 average of 14. Add this to the company’s financials, which boast impressive cash levels and minimal debt. It’s a real surprise to me the share price is still so low.

Upcoming headwinds of inflation and cost of living will undoubtedly affect travel to some degree. But I suspect the short trips around Europe that easyJet specialises in may benefit, as consumers choose to cut down on long-haul destinations instead.


The multinational alcoholic beverages company Diageo (LSE:DGE) has caught my eye recently, too.

Its offerings, largely premium drinks like Guinness, Tanqueray, and Captain Morgan, fit in with what the company sees as a shift in consumer habits.

People are drinking “better, not more”, as its CEO Ivan Menezes is fond of saying. A CEO who was, incidentally, knighted in the recent 2023 honours list.

A strong philosophy tied with a consistent dividend yield of over 2% makes this company look like a great value bet over the long term.

My concern with Diageo is that it has weathered the recent correction better than most. Its share price is only 10% off all-time highs. I’ll be keeping a keen eye for any further drop in share price to see if I can get a more attractive entry point.

The post 3 stocks to buy for 2023 after the 2022 correction! appeared first on The Motley Fool UK.

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John Fieldsend has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Motley Fool UK 2023