Jim Cramer’s 5 S&P 500 Stock Picks for 2023

1. Meta Platforms, Inc. (NASDAQ:META)

Upside Potential: 11.05%
Gain since Cramer Prediction: 140%
Price to earnings multiple: 24

Meta Platforms, Inc. (NASDAQ:META) has been one of the key drivers pushing the S&P 500 higher after a 140% year-to-date gain. Cramer had predicted that the company will benefit on directing its Metaverse budget to other high growth areas.  That has been the case as the company has put aside its metaverse plans opting to join the artificial intelligence spree and focus on enhancing efficiency. Efforts by CEO Mark Zuckerberg to focus on efficiency through slashing costs are already bearing fruits going by its profitability metrics.

Likewise, earnings have improved significantly, with the company delivering $32 billion in revenue in Q2 against the $31.06 billion expected. Earnings totaled $2.98 a share against the $2.92 a share expected. Average monthly users on its networking apps have been trending up. The launch of Threads, a text-based social network to rival Twitter, has also strengthened its outlook.

Despite the impressive run, Meta Platforms, Inc. (NASDAQ:META) trades with a price-to-earnings multiple of 24 with an average price target of $331.57, implying an 11.05% upside potential from current levels.

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