The stock market has had its share of ups and downs in 2023, but these are five of the best stocks of the year. All of them boast triple-digit gains.
In sort of a preview of IBD's year-end special report, IBD scanned for 2023's best-performing stocks priced at $12 or higher that trade at least 100,000 shares a day on average. These five stocks topped the list, created with IBD MarketSmith and edited to ensure they comply with our criteria.
Best Stocks Of The Year: Biotech Outperforms
Reata Pharmaceuticals has gained an outstanding 345% this year through Friday.
Shares catapulted 54% on July 28 alone, on news that Biogen entered into an agreement to acquire Reata for $172.50 per share in cash. The deal is said to equal an enterprise value of about $7.3 billion.
Reata develops therapeutics for serious neurological diseases, while Biogen develops medicines for neurological and other diseases.
With investors expecting the deal to go through, Reata stock has traded nearly flat since the news.
Reata's only source of product revenue has been from the sales of its Skyclarys treatment for Friedreich ataxia, a rare nervous system disease. The drug began shipping to U.S. customers in June and generated around $20 million in net revenue in the second quarter.
Chip Stocks Led The Rally
Super Micro Computer has scored a 196% gain so far this year despite a sharp pullback from its all-time high of 357 on Aug. 7. The peak occurred just one day before the company reported its fiscal fourth-quarter earnings and gave current-quarter revenue guidance that left analysts wanting more.
The stock gapped down more than 23% on Aug. 9 to close below its 50-day moving average in heavy volume.
Shares of the cloud computing and AI company rallied in sympathy with Nvidia after the latter reported earnings on May 24. Analysts project 29% profit growth in fiscal 2024 and 19% in 2025 for Super Micro.
IBD Leaderboard stock Nvidia has also gained 196% and definitely is an investor favorite in 2023.
The AI leader and chip developer reported an outstanding fiscal first quarter on May 24, sending shares up over 25% the next day. Shares continued to climb to an all-time high of 480.88 on July 14.
Shares pulled back in early August and fell below their 50-day line on Aug. 9. NVDA stock is rebounding now ahead of second-quarter earnings Wednesday after the market close.
Other Big Gainers
Disc Medicine has risen 160% through Friday. The biotech is in a cup-with-handle base with a 55.51 buy point. Of the top five stocks of 2023, it's the only one forming a base.
The relative strength line hit a new 52-week high as shown by the blue dot on the MarketSmith weekly chart.
Disc specializes in developing treatments for rare blood disorders. The company hasn't produced any revenue yet but has treatments in its pipeline.
The fifth-best-performing stock is Vertiv Holdings with its 148% rally. Shares are extended from a cup base with a 17.88 buy point.
The stock gapped up over 29% on Aug. 2 in heavy volume, following the company's earnings report. Vertiv reported 46 cents in second-quarter EPS, compared with 10 cents a year ago, on 24% sales growth. Analysts expect 2023 earnings growth of 194% and next year 24%.
Vertiv designs and makes digital infrastructure technology for data centers and communication networks.
Used-car retailer Carvana is worth a mention here. It has soared 727% in 2023, but was below the $12 price minimum criteria. CVNA stock began the year around $4 per share.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
