After last year’s bear market, many stocks have rebounded in 2023. As a result, a number of the world’s most well-known stock market indexes, including the S&P 500, the Euro Stoxx 50, and the tech-focused Nasdaq 100, are now back in bull market territory.
Now there’s no guarantee stocks will keep rising from here, of course. However, given that inflation is falling rapidly, interest rate hikes are slowing, and consumers are still spending, I think these bull markets could have legs.
With that in mind, here are three shares for investors to buy now.
Consumers want experiences
If there’s one thing we know about consumers right now, it’s that they are spending their money more on experiences than goods. After years of being stuck at home due to Covid restrictions, people want to travel the world, take trips with their families, and see new things.
I think a great way to play this theme is by investing in Airbnb (NASDAQ: ABNB), which operates the world’s largest home rental platform. It looks well placed to benefit as travel spending rebounds after Covid.
From an investment perspective, there are a number of things I like about Airbnb. One is that the company is extremely scalable. Another is that it’s now profitable.
On the downside, there is some regulatory risk here. Additionally, the stock is a little expensive.
Overall though, I’m very bullish.
Huge dividend increase
Another stock I’m bullish on today is FTSE 100 company Ashtead (LSE: AHT). It’s a construction equipment rental business that operates in the US, the UK, and Canada.
This is a company that has a lot of momentum right now. Thanks to mega projects in the US (its largest market), revenues are booming.
For the year ended 30 April, for example, revenue came in at $9.7bn, up 24% year on year. On the back of this healthy level of growth, the company raised its dividend by a huge 25%.
Ashtead shares have had a good run recently. Over the last year, they’ve climbed more than 40%.
I don’t think it’s too late for investors to buy them, however. Currently, the forward-looking P/E ratio here is 16, which strikes me as a very reasonable valuation.
Assuming there’s no big recession in the US in the near future, I think this stock will continue to do well.
An ageing population play
Finally, I also like Smith & Nephew (LSE: SN.), the global healthcare company that specialises in joint replacement technology.
The reason I’m bullish here is that after years of disruption in the healthcare industry, the number of elective surgeries is rapidly picking up.
We know this because earlier this week, US insurance giant UnitedHealth said its costs are rising due to an increase in surgeries. Older adults are getting more comfortable accessing services for “things that they might have pushed off a bit like knees and hips“, said the company’s executives.
This is great news for Smith & Nephew.
This stock offers a lot of value right now, to my mind. I think the forward-looking P/E ratio here of 16 is a steal.
China revenues remain a risk in the short term. I expect the company to generate healthy growth in the years ahead however.
