Many stocks are recovering from the losses they endured last year, with some looking ready to break out and test new highs. Many of the top stocks to buy in down markets have led the way higher in 2023. These strong performers have been propelled higher by solid earnings and improving sentiment among analysts and investors.

The key for retail investors is spotting the stocks on the cusp of soaring and buying before the price rockets upwards. This isn’t easy, especially as the stock market swings between gains and losses, and its near-term direction remains hard to pin down.

Concerns about a recession and uncertainty regarding when the U.S. Federal Reserve will stop raising interest rates continue to muddy the waters for professional and amateur investors alike. Of course, we at InvestorPlace want to help and offer the following three stocks to buy before they soar to new heights in 2023.

Ralph Lauren (RL)

Fashion designer and clothing retailer Ralph Lauren (NYSE:RL) has found its way onto my list of top stocks to buy. This is a retailer that’s trending in the right direction, and could be on the cusp of a breakout.

Over the past six months, RL stock has gained 30%, including a 7% increase this year. The company’s share price has increased on solid earnings and analyst upgrades. In February, the fashion house reported an earnings beat on the top and bottom lines.

Citing strong fundamentals, Bank of America (NYSE:BAC) upgraded their rating on Ralph Lauren stock to a “buy” and gave the shares a $145 price target, 25% higher than where the stock is currently trading. In its upgrade, Bank of America noted Ralph Lauren’s growing revenue streams from various operating units. It applauded the company’s management team for keeping costs in line during the current inflationary period.

Abbott Laboratories (ABT)

Abbot Laboratories (NYSE:ABT) finds itself on this list of stocks to buy due partly to the promising move ABT stock has made over the past six months. However, despite the voracity of this move higher, I think a bigger move could be on the horizon.

Incredibly, ABT stock recently jumped 8% in a single trading session after the company reported strong earnings, beating consensus estimates by four cents a share. The results were awe-inspiring as they showed Abbott Labs overcame a pronounced slowdown in sales of its Covid-19 tests.

Strong sales in Abbott’s medical devices unit drove the latest earnings beat, posting $3.9 billion in sales during the first quarter, up 9% from a year earlier. The company’s glucose-monitoring device, Freestyle Libre, is a bestseller, earning $1.2 billion in Q1 revenue. For the year to date, ABT stock has gained 2%, though it is trading 9% lower than where it was this time last year. A continued breakout could be in the cards for this stock.

JPMorgan Chase (JPM)

Last on this list of stocks to buy is yet another company that has managed to defy expectations. JPMorgan Chase (NYSE:JPM) reported record first-quarter revenue of nearly $40 billion. Notably, these results came despite recent turmoil in the banking sector.

JPMorgan attributed the record results to higher interest rates charged on its various loans, announcing earnings of $4.32 per share versus the $3.41 expected among analysts, according to Refinitiv data.

JPMorgan Chase’s Q1 revenue came in at $39.34 billion versus a consensus forecast of $36.19 billion, which had been forecast among analysts covering the bank. JPMorgan’s results were robust, particularly considering the recent collapses of two regional lenders, Silicon Valley Bank, and Signature Bank. However, the failure of those regional banks may have helped JPMorgan as it reported an influx of new customers towards the end of Q1.

JPM stock shot up 6% immediately after its Q1 earnings were issued publicly. The stock has now gained 21% over the last six months.

On the date of publication, Joel Baglole held a long position in BAC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.