Are you looking to make some additions to your portfolio in 2023? If you are, the three ASX 200 shares listed below could be great options.
I believe these shares could generate solid returns for investors in the future thanks to their strong business models and positive long-term outlooks. Here's why they could be five-star stocks.
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Altium Limited (ASX: ALU)
The first five-star ASX 200 share that I would buy next year is Altium. It is the tech company behind the Altium Designer printed circuit board design (PCB) software.
PCBs are the boards you find in most electronic devices. They are integral to their operation and come in all shapes and sizes which means that specialist software is required for their design.
Altium's software is regarded as the best in the industry and is used by high-profile companies and organisations such as BAE Systems, Dell, Microsoft, NASA, and Tesla.
With demand increasing thanks to favourable tailwinds such as the Internet of Things and artificial intelligence booms, management is forecasting strong growth over the coming years. This includes growing its revenue to US$500 million by FY 2026. This will be more than double FY 2022's revenue of US$220.8 million.
CSL Limited (ASX: CSL)
Another five-star ASX 200 share for investors to consider buying in 2023 is CSL. It's one of the world's leading biotherapeutics companies with a portfolio of life-saving, world-class therapies and vaccines. Its products are used around the world to treat immunodeficiencies, bleeding disorders, hereditary angioedema, Alpha 1 antitrypsin deficiency, and neurological disorders.
The company also recently added treatments for iron deficiency, nephrology and cardio-renal to its arsenal through the acquisition of Vifor Pharma for $17 billion. Together with its improving plasma collections and its US$1 billion+ annual spend on R&D, I believe CSL is well placed for growth over the long term.
Xero Limited (ASX: XRO)
A final five-star ASX 200 share that I would buy in 2023 is Xero. It is a cloud accounting platform provider which has been growing at a consistently solid rate for some years. This led to the company reaching 3.5 million subscribers globally during the first half of FY 2023.
Pleasingly, Xero's subs growth looks unlikely to end here. Management estimates that it has a global market opportunity of 45 million subscribers. This provides the company with a significant runway for growth over the next decade and beyond.
Combined with price increases, its burgeoning app store, and the structural shift to online accounting, I believe Xero can continue its strong top-line growth for the foreseeable future.
