Table of Contents
Table of Contents
Best Value Top Stocks
Top Stocks With the Most Growth Potential
Top Stocks With Most Momentum
- Markets News
Top stocks for December based on value, growth, and performance include AMPY, MAR, and OLMA
:max_bytes(150000):strip_icc()/tim_1978_linkedin__tim_smith-5bfc261946e0fb00265aea0e.jpg "Top Stocks for December 2023 (1)")
:max_bytes(150000):strip_icc()/GettyImages-1245888318-211e9863a2c942ffa29ff1b8cb7255a1.jpg "Top Stocks for December 2023 (2)")
The top stocks have the performance of well-run companies, a steady performance, and the potential for future growth. They typically have strong fundamentals: consistent earnings, prudent levels of corporate debt, and an edge in their markets. These stocks don't just offer the prospect of capital appreciation as their stocks rise but often distribute dividends for those seeking passive income. In addition, top stocks turn over more shares and thus have plenty of liquidity to reduce your transaction costs.
Investors often compare top stocks against the Russell 3000 Index, a broad measure of the U.S. stock market comprising 3,000 large publicly traded companies or 96% of the investable U.S. equity market. Over the past 12 months, the benchmark has gained 14.9%, while its leading two components have each risen by more than 400%.
Below, we highlight the top stocks based on value, growth potential, and momentum. All data is as of Nov. 24, 2023.
Best Value Top Stocks
The stocks below have the lowest 12-month trailing price-to-earnings (P/E) ratio, which measures a stock's market price compared with its earnings per share. An elevated P/E ratio suggests heightened expectations for future earnings growth, while a lower ratio could point to an undervalued company. Investors use the P/E ratio to compare a stock's valuation with the industry or market average.
| Price ($) | Market Capitalization (Market Cap) ($B) | 12-Month Trailing P/E Ratio | |
| Amplify Energy Corp. (AMPY) | 6.28 | 0.24 | 0.72 |
| Southwestern Energy Company (SWN) | 6.85 | 7.55 | 1.45 |
| Gulfport Energy Corporation (GPOR) | 133.35 | 2.47 | 1.53 |
Source: TradingView.com
- Amplify Energy Corp.: The company explores for and produces oil and natural gas in the U.S., and it has onshore and offshore wells and other assets in Oklahoma, the Rockies, Southern California, East Texas, and northern Louisiana. The oil producer’s net income swung from a $9.8 million profit to a $13.4 million loss between the second and third quarters this year after accounting for unrealized losses on commodity derivatives.
- Southwestern Energy Company: The firm explores, develops, and produces natural gas, oil, and natural gas liquids in the U.S. It has two divisions: exploration and production and marketing. The energy giant continues to chip away at its debt, reduced from $4.4 billion at the end of 2022 to $4.1 billion by the end of the September quarter.
- Gulfport Energy Corporation: The company explores for and produces energy assets, with its key properties spread across 261,000 net reservoir acres in eastern Ohio and Oklahoma. The oil and gas producer recently said that it achieved a grade “A” under the MiQ methane emissions standards for its natural gas production across all its Appalachia operations.
Top Stocks With the Most Growth Potential
The stocks below have the lowest 12-month trailing return on equity (ROE) ratio. This helps investors measure how effectively a company generates profits from shareholders' equity. In other words, ROE indicates how well a company deploys investor capital to generate returns, and it's calculated by dividing net income by shareholders' equity. A higher ROE should indicate a well-run company with prospects for future growth.
| Price ($) | Market Cap ($B) | 12-Month Trailing ROE Ratio (%) | |
| Marriott International, Inc. (MAR) | 209.75 | 61.60 | 1446.77 |
| Tempur Sealy International, Inc. (TPX) | 39.84 | 6.82 | 1275.77 |
| The Home Depot, Inc. (HD) | 310.67 | 309.20 | 1151.32 |
Source: TradingView.com
- Marriott International, Inc.: The firm has hotels, residences, timeshares, and other lodging properties globally. Some of its familiar brands include the Marriott, Sheraton, Westin, Four Points, and The Ritz-Carlton. In its latest quarter, the hotel chain operator said its revenue per available room grew 8.8% year-over-year, driven by strength in the Asia Pacific region.
- Tempur Sealy International, Inc.: The firm behind the well-known brand for mattresses and bedding has sales channels through retail partners, specialty stores, and ecommerce platforms. This year, the company agreed to acquire Mattress Firm, the U.S.'s largest mattress retailer, in a cash and stock transaction valued at about$4.0 billion.
- Home Depot, Inc.: The company is the largest home improvement retailer worldwide (2,300 stores in North America). It sells home construction and gardening supplies and installation and rental services. The DIY big-box retailer has been shifting to focus on millennial customers, launching a new homeowner site for first-time homeowners that's a sale channel and hub of resources for this growing market segment.
Top Stocks With Most Momentum
The stocks below have generated the highest total return over the past 12 months. Momentum investing involves following this metric's trends based on the view that the factors behind a stock outperforming its peers and the broader market are likely to continue.
| Price ($) | Market Cap ($B) | 12-Month Trailing Total Return (%) | |
| Olema Pharmaceuticals, Inc. (OLMA) | 13.92 | 764.59 | 468.21 |
| CymaBay Therapeutics, Inc. (CBAY) | 18.36 | 2.1 | 440.0 |
| Cabaletta Bio, Inc. (CABA) | 18.56 | 0.80 | 397.5 |
| Russell 3000 Index | N/A | N/A | 14.9 |
- Olema Pharmaceuticals, Inc.: The firm is a clinical-stage biopharmaceutical company developing therapies for women's cancers. The San Francisco biotech's stock started to trend higher in late April to early May after it announced positive results for its breast cancer drug, OP-1250.
- CymaBay Therapeutics, Inc.: The company develops treatments for liver and other chronic diseases. Its share price climbed to an all-time high in November after announcing positive phase three study results in its treatment for primary cholangitis, a liver disease that causes inflammation and scarring.
- Cabaletta Bio, Inc.: A clinical-stage biotechnology company that develops T cell treatments for patients with B cell-mediated autoimmune diseases. The company's stock is trading near its all-time high, boosted by recent news that the U.S. Food and Drug Administration approved its drug application for a cell investigational therapy. The drug will be studied in patients with generalized myasthenia gravis, an autoimmune disease that causes muscle weakness and fatigue.
Source: TradingView.com
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FTSE Russell. "Russell 3000 Index Factsheet, Page 1."
TradingView.com. "Stock Screener."
YCharts. "Russell 3000 (RUA)."
Yahoo! Finance. "Amplify Energy Corp. (NYSE:AMPY) Q3 2023 Earnings Call Transcript."
Yahoo! Finance. "Southwestern Energy Announces Third Quarter 2023 Results."
MiQ.org. "Gulfport Energy Corporation Awarded MiQ 'A' Grade Certification."
Bloomberg. "Marriott International Reports Third Quarter 2023 Results."
Associated Press. "Tempur Sealy To Buy Mattress Firm in $4 billion Deal."
The Home Depot. "The Home Depot Launches New Homeowners Hub Designed With Millennials in Mind."
Investor's Business Daily. "Olema Stock Has Soared 551% This Year. Its CEO Thinks It's Still Undervalued."
Yahoo! Finance. "Cabaletta Bio Receives FDA Clearance of CABA-201 IND Application for Treatment of Generalized Myasthenia Gravis."
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