Stocks to buy

3 Stocks for Getting Rich in 2023

If getting rich was easy, everyone would be wealthy. And what constitutes “rich” varies from person to person. But one thing that is certain is that investing for wealth requires a sound strategy. By investing in stable companies with high-potential stocks, you can set yourself on the path to significant gains starting this year.

Of course, when looking for high investment returns, it always helps to have a bullish wind at your back. That is certainly the case in 2023, with stocks mounting a strong comeback following 2022’s market rout. In addition to slowing inflation and better-than-expected economic data, the promise of artificial intelligence (AI) has brought investors clamoring back into the markets.

Below are three high-potential stocks for investors to consider. Even if you don’t get rich from them this year, buying now should lead to substantial long-term returns.

Tesla (TSLA)

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After a brutal 14 months, during which Tesla (NASDAQ:TSLA) stock lost three-quarters of its value, it has come roaring back. Shares of the premier electric vehicle (EV) manufacturer have surged 186% since hitting a 52-week low in early January.

This outperformance is underpinned by robust delivery numbers that continue to turn heads each quarter. Earlier this month, Tesla reported second-quarter deliveries that blew past Wall Street’s forecast. The company delivered a record 466,140 EVs, easily exceeding the 445,000, analysts expected.

For the full year, analysts expect Tesla to deliver 1.82 million EVs, which would be a nearly 39% increase over 2022, aided by the company’s recent price cuts and federal EV tax credits.

According to activist investor Ross Gerber, much of Tesla’s recent success is due to Chief Executive Officer (CEO) Elon Musk renewing his focus on the company after handing over the reins of Twitter to Linda Yaccarino on June 6. Indeed, since Musk stepped down from Twitter, TSLA stock has gained 35%.

While price cuts have hit margins, Tesla just reported record quarterly revenue of $24.93 billion for the second quarter and a 20% year-over-year increase in net income to $2.7 billion.

Tesla will continue to outshine traditional automakers. Given its dominant market position and potential for sustained sales growth and profitability improvements, its soaring valuation is justified. As Tesla’s momentum continues, it’s a story that investors cannot ignore.

Meta Platforms (META)

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Less than a year ago, skeptics had written off Meta Platforms (NASDAQ:META) as a fallen star. Big losses from the company’s Reality Labs venture and a tepid advertising landscape painted a rather bleak portrait of a firm past its prime. Analysts warned of a rocky road ahead for the social media behemoth, whose shares declined as much as 77% in just over a year.

But 2023 ushered in a seismic shift for Meta. In late 2022, CEO Mark Zuckerberg spearheaded aggressive layoffs and budget trims, effectively streamlining company operations.

Moreover, the firm has made headlines with several new product rollouts, including its upcoming Meta Quest 3 virtual reality headset and ChatGPT-like AI tools for Messenger and WhatsApp.

Another feather in Meta’s cap is the recent launch of Threads, a Twitter-esque app that has beaten ChatGPT to become the fastest-growing app worldwide, amassing a staggering 100 million users in a few days. These strategic moves have rekindled investor confidence in Meta Platforms, refuting claims of its supposed decline and sending shares up 163% year to date. But this is likely only the beginning for the innovative company.

Lithium Americas (LAC)

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Unlike the other names on today’s list of stocks for getting rich, Lithium Americas (NYSE:LAC) has underperformed thus far in 2023, rising just 11% compared with a 19% advance for the S&P 500. Yet, despite the sideways movement in the stock over the past year, business developments point to a significant upside breakout in the cards.

In May, the company’s board approved a plan to split its North American and Argentine operations into two separate publicly traded companies. This move should unlock substantial long-term value for shareholders.

Its North American operations are focused on the Thacker Pass project in Nevada, one of the largest known lithium resources in the U.S. with an impressive after-tax net present value of nearly $5 billion. With the project expected to deliver average annual EBITDA of $1.2 billion over a 40-year mine lifespan, the asset could generate colossal cash flows once production begins.

Lithium Americas recently partnered with General Motors (NYSE:GM), which plans to invest $650 million in the Thacker Pass project. This strategic alliance and a binding supply agreement provide the firm with a clear vision of future cash flows, solidifying its potential in the space.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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