Just Released: 5 Top Stocks to Buy in November 2023 [PREMIUM PICKS]

North American markets remain mired in a funk, and many investors are wondering if the end is in sight.

| More on:
person on phone leaning against outside wall with scenic view at airbnb rental property

Source: Getty Images

Premium content from Motley Fool Stock Advisor Canada

North American markets remain mired in a funk, and many investors (including me) are wondering if the end is in sight. My team at Stock Advisor Canada and I love receiving questions about the market.

The thing is, many of the questions we get don’t have an answer from anyone — or at least anyone you should pay attention to.

These questions tend to follow along two lines:

  1. Any question that starts with “when.” Unless it relates to a pre-announced date that’s widely known, we don’t know what the future holds. Asking “when” implies that we do. Sorry — we simply don’t!
  2. The word that usually follows or is associated with “when” is “will.” Furthermore, both words are generally attached to a stock price. For instance, “When will stock XYZ go higher?” Or these days, “Will stock XYZ stop going down?”

“Will” implies predicting with certainty. The reality is, especially in the short term, stock prices are anything but certain. The same goes for company performance. Certainty is not possible when it comes to the future.

Many people in the financial industry tout their ability to “call” short-term stock price movements, but we highly suggest seeking out their track record of success before following along. Frankly, if someone does have this ability, they need not offer their services to the general public.

The best we can do at Stock Advisor Canada is to study businesses, find great companies with promising investment potential, and ride along in the market with you. Here are five we especially like this month.

Foolishly yours,
Iain Butler, CFA
Advisor, Stock Advisor Canada

“Best Buys Now” Pick #1:

Airbnb (NASDAQ: ABNB)

By Tom Gardner: Airbnb’s (NASDAQ: ABNB) stock has certainly recovered from its late-2022 lows but is still down by about 26% from its 52-week high and is more than 10% below where it ended its first day as a publicly traded company in late 2020. This is in spite of the fact that Airbnb is much larger and more profitable. In fact, Airbnb’s 2022 revenue was about 150% greater than it was in 2020, and the company went from a $4.6 billion net loss to a $1.9 billion profit. Plus, all signs point to even stronger numbers in 2023.

Airbnb trades for about 9 times TTM sales, but you get what you pay for. This is a business with a 25% net margin over the past four quarters, 18% year-over-year revenue growth in an increasingly difficult economy, and a multi-trillion-dollar addressable market opportunity. 

If we were to ask you what Airbnb’s strongest growth period was, you might assume it was around the time of the COVID-19 pent-up demand surge that occurred in the travel industry in 2021 and 2022. But in some ways, the platform’s most impressive growth is happening right now. In the second quarter of 2023, Airbnb added more net active listings to its platform than any other quarter in its history. 

One of the reasons the company continues to grow so impressively is that management is constantly finding ways to improve the platform, make it appealing to hosts, and add new capabilities. Not long ago, Airbnb added the ability for renters (not just homeowners) to list their properties, just to give one example. The company recently rolled out new pricing tools for hosts, as well as certain fee changes to encourage more long-term stays. 

Regulatory uncertainty is one of the biggest question marks Airbnb investors should keep in mind; however, the company is in a category all by itself and is a tremendously profitable business that still has a large market opportunity ahead.

“Best Buys Now” Pick #2

Redacted

Want All 5 “Best Buy Now” Stocks? Enter your email address!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Iain Butler has no position in any of the stocks mentioned. The Motley Fool recommends Airbnb. The Motley Fool has a disclosure policy.

More on Top TSX Stocks

A plant grows from coins.
Stocks for Beginners

Create a Pension Passive-Income Stream With This TSX Stock

Want to build a passive-income stream? This one stock can provide a monthly distribution and stellar growth potential that you…

Read more »

movies, theatre, popcorn
Top TSX Stocks

Here Are My Top 4 TSX Stocks to Buy Right Now

TSX stocks like Cineplex and Tourmaline Oil remain attractively valued with good prospects ahead, making them among my top picks…

Read more »

Dividend Stocks

The Best Way to Start Investing With $1,000 Right Now

Looking to start investing? There are plenty of great options to pick, even if you only have $1,000 right now.…

Read more »

four people hold happy emoji masks
Top TSX Stocks

Just Released: 5 Top Stocks to Buy in September [PREMIUM PICKS]

Here are five hand-picked stocks the team at Motley Fool Canada thinks are a good value this month.

Read more »

Dividend Stocks

2 Dividend Stocks I’d Buy if They Dip a Bit

There are plenty of great dividend stocks I'd buy more of right now. Here's a look at two you should…

Read more »

Canada day banner background design of flag
Top TSX Stocks

Top Canadian Stocks to Buy Right Now With $1,000

There's no shortage of top Canadian stocks to buy on the market. Here are two options to consider buying right…

Read more »

clock time
Top TSX Stocks

2 Top Canadian Stocks for the Rest of 2024

Looking for some of the top Canadian stocks to buy right now? Here's a look at two options that are…

Read more »

Two senior friends playing beat tennis on sand tennis court
Top TSX Stocks

Just Released: 5 Top Stocks to Buy in August 2024 [PREMIUM PICKS]

Movements in the market create a lot of opportunity. Even if you’re not ready to act now, here are five…

Read more »