The performance of the stock market in 2023 has been mixed. The Federal Reserve’s interest rate policies, global economic conditions, and energy sector shifts have trended this year. As a result, fluctuations and downturns in major indexes are the norm.
True, many invested in quality stocks, and saw values rise. So why forego already achieved gains? Keeping shares that may earn a higher profit but not losing such already achieved gains are very tricky issues. However, it is crucial to take stock, no pun intended, of the circumstances at hand.
Another aspect that should never be ignored in stock market navigation is diversification. Investing in a wide variety of different sectors, companies, and assets diminishes the risk affecting the whole portfolio. It may even prevent the risk on that investment, ensuring a more stabilized investor’s experience.
Finally, while it might feel good to cheer when stocks rise, one must remain calm and realistic to account for market uncertainties. Informed and diversified investments, along with long-term focus, helps traders navigate the peaks and troughs in the stock market landscape.
Armed with this knowledge, you can make the critical decision to take profits and enjoy the fruits of well-made investments. This list only includes companies that are up almost 1,000% in 2023 in respect to the last five years. So, let’s embark on this epic journey on stocks to take profits on!
Tesla (TSLA)
With Tesla’s (NASDAQ:TSLA) stock on an all-time return approaching 19,000%, investors have to rethink their stance. As Tesla revolutionizes electric mobility in 2023, it will require tactful decisions. Tesla’s upcoming affordable model will cost about $25,000, possibly shaking up the EV market. Nevertheless, investors need to determine whether it is an appropriate time to cash out their shares in Tesla stock.
Although the Cybertruck’s initial price has risen, it shows Tesla’s ability to react to market changes. By 2025, Tesla aims to produce 250,000 units per annum. Investors need to review carefully their plans for growth. For example, the underbodies of EVs were manufactured by the company at its cast house using the sand casting method. Hence, that decision demonstrates the organization’s openness to innovations and efficient solutions. These improvements strengthen Tesla’s standing but may result in the recalibration of investor positions.
Further, Tesla’s model year 2023 includes improvements on the existing model S, X & Y, which underscores technological advancement. And, although such progress is commendable, it proves why one should undertake prompt selling of shares. Tesla’s strategy towards automated driving and low carbon footprint is consistent with future demand.
However, investors should be cautious and strike a balance between the hype surrounding Tesla’s success and sound investment techniques. Finally, the outstanding returns on Tesla’s stock might be considered as a cue to investors to either sell or book for profit that matches the next market environment. As a result, when discussing stocks to take profits on, you cannot go wrong with Tesla.
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT), a key player in cryptocurrency mining, has experienced a staggering 1,073% return over five years. The stock’s surge mirrors the rise of cryptocurrencies.
However, in 2023, the stock is up almost 370%. The surge in Bitcoin (BTC-USD) prices this year drives a wave of investor optimism. This heightened confidence stems from the anticipated launch of the first-ever spot Bitcoin ETF. In addition, the regulatory activity surrounding the world of crypto is ever-changing. In fact, many emerging economies accept crypto as a mode of payment.
Riot Platforms is trying to play the situation to their advantage. Recently investing $290.5 million, it acquired over 66,000 MicroBT mining machines. This addition bolsters Riot’s mining capacity by 18 exahash per second (EH/s), a significant leap towards its ambitious 100 EH/s goal. EH/s is a unit that measures the speed of Bitcoin mining, indicating trillions of calculations performed per second.
Commencing in early 2024, Riot Platforms plans to deploy these high-efficiency M66S models. By mid-2025, it expects a total self-mining hash rate capacity of 38 EH/s. This expansion underlines Riot’s determination to dominate the Bitcoin-driven infrastructure landscape. Additionally, its workforce growth signals a broader expansion and evolution.
These strides place Riot Platforms in a strong position, especially with the looming Bitcoin halving in April 2024. Traders anticipate it to impact the crypto mining sector significantly, underscoring the timeliness and potential of Riot’s current expansions.
NVIDIA (NVDA)
NVIDIA’s (NASDAQ:NVDA) stock price has increased by a staggering 1,098% over the past 5 years. This is further evidence that it’s a leader in the semiconductor industry. However, investors would take precautions when looking for stocks in which to profit.
Nevertheless, the company never turns a blind eye on any potential challenge. Since it adheres to the U.S. export embargoes against China, it participates within a complex geopolitical scene. Additionally, the increasing stress of AMD (NASDAQ:AMD), specifically launching a chip faster than NVIDIA’s H100, hints at the next stage of the market.
All in all, NVIDIA is at the crossroads of remarkable expansion possibilities and growing market problems. The company has a good track record spanning many years and intense competition. However, with high-profile developments, the stock is slightly overvalued. It is changing hands for nearly 63x P/E, which is higher than its historical average. So, it is the ideal time to enjoy your winnings and place this on your list of stocks to take profits on.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.