Get ready for the next bull market: 3 stocks to buy before 2023

Let's start with the bad news. No one can accurately predict when the next bull market will occur. But here's the good news. A bull market will happen. History tells us that bear markets are eventually followed by strong stocks. So as investors navigate today's tough markets, they should prepare for brighter days ahead.

There's no better time to start than now. Many great businesses have suffered losses this year, but they have the ability to rebound and thrive in a bull market. Today, investors have the opportunity to grab shares of these market players at good prices. So why wait? Consider these three smart stocks to buy before 2023.

1.Amazon

Amazon (NASDAQ: AMZN) may have delivered a lot of packages this year. But the e-commerce giant has yet to deliver on its share price performance. The stock is down 45% this year. Investors have been disappointed with Amazon's share price performance over the past year. Higher inflation puts pressure on company costs - and hurts customer purchasing power.

These problems are not over yet. That means Amazon's revenue may not recover overnight. But that doesn't change Amazon's bright long-term prospects. It's important to remember that today's economic challenges are temporary. And Amazon can weather the storm.

Here are the reasons for my optimism. Amazon leads two markets with double-digit growth: e-commerce and cloud computing. In the e-commerce space, Amazon has added Prime subscriptions. These members spend more and rely more on Amazon to purchase goods and services. This should pay off when economic conditions improve.

As for cloud computing, Amazon Web Services (AWS) continues to grow at double-digit rates. Amazon has stepped up its investment in this critical business. AWS generally drives Amazon's operating revenue.

Amazon is also reviewing its own cost structure. This will help it get through tough times and should also be good for earnings once a bull market takes shape.

Today, Amazon's stock price relative to sales is at its lowest level since 2015. Therefore, now is clearly a smart time to enter.

2. Starbucks

Starbucks (NASDAQ: SBUX ) stock has outperformed this year. But the stock price still fell by 12%.

The stock trades at 29 times forward earnings, down from about 40 times earlier this year.

Here's why this looks like a good deal to buy into the stock. First, Starbucks revenue continues to grow at double digits. In the most recent quarter, revenue rose $11% to a record $8.4 billion.

What is driving earnings? Loyal Starbucks fan. Starbucks rewards members accounted for more than half of U.S. store spending in the quarter. And this membership base continues to grow. In the most recent quarter, active Rewards members in the U.S. increased by 16% to 28.7 million.

China's coronavirus epidemic prevention and control has hindered the company's total revenue potential. So, you can imagine Starbucks doing better in the future. That future may be coming soon. China has recently relaxed epidemic prevention restrictions. This should give Starbucks a boost, especially since China is the company's second-largest market after the United States.

Another reason to be optimistic about Starbucks has to do with the company's recent "reinvention" plan. The company plans to focus on several growth areas. For example, it will increase store licensing opportunities, which tend to increase return on invested capital. Starbucks also aims to strengthen beverage innovation and open new stores to meet consumer demand.

The company is targeting annual double-digit revenue growth, as well as double-digit non-GAAP earnings per share (EPS) growth.

All of this means there are plenty of share price catalysts ahead. If you buy cheap shares of this company now, you could benefit.

3.Walt Disney

Walt Disney (NYSE: DIS ) has reached a major turning point. The entertainment giant recently recalled a star executive. The move is aimed at cutting costs and kick-starting growth. Chief Executive Bob Iger will stay on for two years before a successor is named.

We have reason to believe that Iger is the right person for this job. He led Disney through major acquisitions — such as Marvel — and served as CEO when the company launched the blockbuster "Frozen." Disney's market capitalization also soared during his tenure.

Disney isn't starting from an extremely weak point. The company's theme parks remain favorites around the world. The company's revenue is climbing.

Revenues from the company's Parks, Experiences and Products division grew by $73% in the recently ended fiscal year. The segment's operating income more than doubled from a year earlier to $1.5 billion. Spending in parks is also increasing. Compared with fiscal year 2019, per capita spending increased by nearly 40%. The strength of this division is critical because it typically represents Disney's largest source of revenue.

Meanwhile, Disney's losses on its streaming service have deepened. The company has invested heavily in expanding the business and acquiring users. Recently, Disney increased the price of its ad-free streaming service. This should aid the company's efforts to make the unit profitable.

Disney trades at 22 times forward earnings. That's down from around 40x earlier this year. Given the continued strength of the parks business and Iger's return, now is a good time to buy the stock. If Iger makes progress on at least some of his goals, Disney could really stand out in a bull market.