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How to Plan Your 2023 Investing Strategy

  • (1:00) -  Having A Plan: What Should You Be Doing During A Market Sell Off?

  • (10:10) - Changing Trends: What Should You Buying and Selling Right Now?

  • (23:40) - Episode Roundup: W, ETD, CVNA, LAD, ADBE

  • Podcast@Zacks.com

 

Welcome to Episode #339 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is going solo to discuss how you can get your investing strategy ready for 2023.

2022 has been a tough year for investors. Even the “sure thing” FAANG stocks have fallen double digits.

But as the end of the year approaches, it’s time to get ready for brighter days in 2023. As Kevin Cook often says on the podcast, “have a plan.”

What’s your strategy for 2023?

Time for a Portfolio Assessment

As you prepare your 2023 strategy, now is the time to assess what is working, and what isn’t, in your portfolio. Be harsh and disciplined. Is the company performing as you had hoped when you bought it?

1.       Wayfair Inc. W

Wayfair soared during the pandemic as we were ordering desks and other home items to work from home and school from home. But that has mostly ended now.

Wayfair made $2.32 last year but is expected to see negative earnings in 2022, down 427% to a loss of $7.59.

Shares of Wayfair are down 88% year-to-date. Should Wayfair have a place in your portfolio in 2023?

2.       Ethan Allen ETD

Ethan Allen, the furniture retailer, was also a big pandemic winner. But it’s not expected to see negative earnings in 2023 even as earnings are expected to drop.

In business for 90 years, Ethan Allen has seen it all and adapted. It pays a juicy dividend, yielding 4.6%.

Ethan Allen also has no debt.

Should Ethan Allen be on the short list?

3.       Carvana Co. CVNA

Carvana shares have fallen 97% year-to-date. The online auto retailer was a big winner during the pandemic, however, but has fallen out of favor on the reopening.

Carvana earnings are expected to fall 496.3% to a loss of $9.72 from a loss of $1.63 last year.

In 2023, Carvana is still expected to see negative earnings of $6.81.

Should you take a chance on Carvana after this big sell-off?

4.       Lithia Motors LAD

Lithia Motors operates brick and motor auto retail locations as well as Driveway, it’s online sales portal.

For 2022, Lithia Motors’ earnings are expected to be up 14.2% compared to last year but in 2023, analysts expect a cut of 16.2%.

Over the last year, shares of Lithia Motors are down 20% but they’re dirt cheap, with a forward P/E of just 5.

Should Lithia Motors be on the short list?

5.       Adobe ADBE

Adobe is a rare big tech company that analysts believe will see earnings growth in fiscal 2022 and fiscal 2023.

Adobe is expected to see fiscal 2022 earnings growth of 9.1% and another 11.5% in fiscal 2023.

However, shares of Adobe have still fallen 50% over the last year. It’s not “cheap” but it’s become more attractive, with a forward P/E of 24.2.

Should investors be looking at big tech, like Adobe, again?

What Else Do You Need to Know About Planning Your Portfolio for 2023?

Listen to this week’s podcast to find out.

[In full disclosure, Tracey owns shares of ADBE in the Insider Trader portfolio.]

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Adobe Inc. (ADBE) : Free Stock Analysis Report

Lithia Motors, Inc. (LAD) : Free Stock Analysis Report

Wayfair Inc. (W) : Free Stock Analysis Report

Carvana Co. (CVNA) : Free Stock Analysis Report

Ethan Allen Interiors Inc. (ETD) : Free Stock Analysis Report

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Zacks Investment Research