10 best companies to invest in for 2022
Investors could do nothing but applaud their returns in 2021, as the S&P 500 shook off the effects of the coronavirus pandemic and returned more than 26% to investors through December 16, 2021. The question whether the same will be true in 2022, however, is still up in the air. So far, 2022 looks like a “stock-picking market,” which means overall averages may be lackluster, but there will always be pockets of opportunity. Check with your financial advisor to see if any of these names match your investment goals and risk tolerance. Here’s a wide range of stocks that could outperform in 2022 based on a variety of factors, from undervalued to oversold.
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Tesla has continued to beat expectations for years, continuing its extraordinary 700% gain in 2020 with a 31% year-to-date gain in 2021 (as of Dec. 16). As of June 20, 2022, the stock was down 46% from a year ago. However, the company has transformed into a profit engine and Tesla plans to open two new gigafactories before the end of the year, which should significantly increase its production. With a market cap of $673.70, Tesla is on seemingly unstoppable momentum.
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Atlassian is the Australian-based software company behind products like Jira, Confluence, Bitbucket, Trello, and OpsGenie. The company’s software is primarily aimed at software developers and IT departments, but it also helps small businesses collaborate and become more efficient. Atlassian’s growth exploded during the height of the coronavirus pandemic, but it should remain in favor as even more companies now know how Atalassian’s software can make enterprise teams productive. they are remote or return to the office. Consensus analyst estimates are a buy, with a 12-month median price target of $338, around 83% above current levels (as of June 20).
Disney is a longtime Wall Street darling that has only been disappointing for investors so far in 2021. As of June 20, Disney stock was down about 40% year-to-date. , while broader markets rose by about the same amount. This wide chasm of underperformance is uncharacteristic of Disney, which has generally delivered strong and reliable returns over the long term. After rebounding strongly from the March 2020 market sell-off, Disney has fallen precipitously from its all-time high of $203.02 set in March 2021. However, signs of life abound for a rebound in 2022, as major The company’s lines of business — filmed entertainment, cruise ships and theme parks — are all reopened and generating revenue again. Disney’s vast treasure trove of content should also continue to fuel the company’s growth in its Disney+ streaming service.
Norwegian Cruise Line (NCLH)
If you’re a bit of a gambler, Norwegian Cruise Line might pique your investment interest in 2022. Cruise stocks were hammered in 2020 — it looked like they would all go bankrupt at the height of the pandemic — and there’s still experts who thought they would never be the same again, even if they survived. However, before the pandemic cruise industry was booming and after the world had returned to normal, pent-up travelers flocked to ships as soon as the pandemic was in the rear-view mirror. While the pandemic has hit cruise inventory hard, inventory is rising again and cruise lines are rebounding on firmer prices and strong customer demand. Currently, Norwegian Cruise Line is trading at 48% below its market value this time last year in 2021, but above the stock’s 70% decline in 2020.
PayPal has almost single-handedly changed the world of payment processing, but it’s had an absolutely dismal 2022. As of June 20, the stock had fallen about 63% since the start of the year. Although PayPal’s growth has slowed down a bit, it is still generating strong profits and recorded $25.4 billion in revenue in 2021, an 18% increase from the previous year. As PayPal continues to grow and reach more users, financial transactions are likely to increase, which will benefit PayPal in the future.
DocuSign soared to stratospheric levels early in the pandemic, as it seemed like all business would be done remotely in perpetuity. As the world began to open up and business returned to some sense of normalcy, trust in the business began to wane. After the company reported better-than-expected earnings and revenue in its third-quarter earnings report on Dec. 3, the stock was hammered on the back of fourth-quarter projections falling short of analysts’ expectations. This whiff of slowing growth completely hammered the stock, sending it down about 40% in a single day. Although the stock is down 61% year-to-date, the company is expected to grow 33% at a compound annual growth rate through 2030, making it a smart company to invest in this year.
JPMorgan Chase (JPM)
JPMorgan Chase could be favorably positioned for 2022. Banks traditionally do better when long-term rates rise because they are able to lend money at higher rates while continuing to pay short-term rates lower on deposit accounts. JPMorgan Chase remains cheap on a relative basis, at around 10 times earnings, and pays a strong dividend of 3.54% (as of June 20). Most of the stock’s 30% year-to-date decline came in January, then the stock more or less leveled off to rise again in May before falling again. Despite a current decline, JPM is a reliable dividend stock with a 25% dividend payout.
Ford engine (F)
Ford Motor has had a dismal run over the past two decades, with shares trading roughly where they were in 2001 with a 48% year-to-date decline in 2022, to June 20. But the company has a new life based on its move towards self-driving and electric vehicles. The company’s new F-150 Lightning has been hailed as the “new Ford,” with nearly 200,000 reservations and a production schedule of just 15,000, 55,000, and 80,000 trucks in 2022, 2023, and 2024, respectively. The company pays a healthy dividend of 3.56% and is still trading 48% below its all-time high of $42.45 set in 1999.
Adobe Inc. is another top flight that has fallen sharply and sits at 36% year-to-date. Some investors interpreted DocuSign’s negative outlook to mean that the pandemic boom was coming to an end and that Adobe would also suffer financially. But Adobe has consistently fired on all cylinders for years, and those trends — on the back of the company’s cloud and subscription businesses — look likely to continue. Despite some setbacks this year, Adobe has grown 148% over the past five years and remains a valuable stock to invest in this year.
Pfizer has always been a defensive stock in times of overvalued markets, so if you think a bubble is forming, Pfizer might be a good option for you. But Pfizer is much more than a safe haven. Pfizer’s COVID-19 vaccine has seen significant increases in revenue due to the pandemic and its revenue could reach $109 billion by the end of 2022. Beyond its vaccine production, Pfizer still has healthy drug pipeline, strong free cash flow and a 3.44% dividend yield. from June 20.
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This article originally appeared on GOBankingRates.com: 10 Best Companies to Invest in for 2022