The best shares to buy now for 2023 are likely the companies set to benefit from the changing economic tides. With inflation cooling, economic activity is starting to ramp back up. And investors now have the rare opportunity to scoop up shares in depressed but robust businesses.
With that in mind, here are two shares from my portfolio I believe are on track to deliver stellar returns in the coming years.
Elective surgeries are back on the rise
Following the start of the pandemic in 2020, hospitals worldwide had to realign their focus to treating Covid-19. Subsequently, elective surgeries like hip replacements haven’t exactly been high on the priority list. And even today, demand remains depressed as fears of catching Covid in hospitals remain present.
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However, with hospitals now better equipped, the backlog of elective procedures is starting to get cleared. And analysts from BTIG – an investment banking firm – now expect the pent-up demand to provide a significant boost to the sector over the next 12 months.
That’s terrific news for Intuitive Surgical (NASDAQ:ISRG). The robotic surgery specialist generates the bulk of its revenue by selling instruments and accessories for its da Vinci machines. And with more procedures being completed, demand for its products is rising rapidly. So it’s no surprise that its latest earnings report beat analyst expectations.
The pricey valuation of this enterprise certainly introduces some significant volatility risk. After all, a P/E ratio of 81 is far from cheap. However, considering its dominant position as the industry leader and its long track record of defying expectations, this is a rare instance where I believe such a premium is justified.
That’s why, despite the price tag, I believe Intuitive Surgical could be one of the best shares to buy now.
The digital advertising winter may be ending
As economic conditions improve, businesses are starting to slowly restore marketing budgets. And for dotDigital (LSE:DOTD), it’s creating some positive tailwinds.
Following a recent trading update, revenue is expected to return to double-digit growth ahead of analyst expectations. Meanwhile, underlying earnings are on track to hit internal targets. On closer inspection, the drivers appear to originate from an increase in activity in the US as well as another boost in average revenue per customer, reaching £1,622 a month versus £1,461 in 2022.
Needless to say, that places dotDigital in an ideal position to thrive as the macroeconomic picture improves over the next year. That’s why I think it could be one of the best shares to buy now, especially since the share price has seemingly yet to reflect this potential.
Having said that, digital advertising is a highly competitive landscape. Many of the firm’s competitors have significantly more financial resources at their disposal that could prevent dotDigital from capturing further market share.
However, given the group’s impressive track record, I remain cautiously optimistic about the long-term potential of this business in my portfolio.
