10 stocks worth buying in 2022 | WTO News

2021-12-14 23:39:29 By : Ms. Eva Zhu

U.S. News and World Report

10 stocks worth investing in in 2022:

Entering 2022, as an investor, there are many things that need to be closely watched. Domestically, the tight labor market, rising inflation, and the possibility of the Federal Reserve raising interest rates are declining. These are all factors that need to be considered. On a global scale, supply chain bottlenecks and ongoing efforts to combat COVID-19 and its many variants are particularly prominent. However, economists are cautiously optimistic about the new year, generally guiding global economic growth to between 4.5% and 5%. Although some portfolios may benefit from rebalancing in light of these macroeconomic trends, it is still a stock picking market. In the long run, a portfolio of companies that are financially healthy and growing is a formula for success. With this in mind, here are the 10 most worth buying stocks in 2022.

Alphabet Inc. (stock code: GOOG, GOOGL)

As a top large-cap growth stock, GOOGL's price-to-earnings ratio is almost the same as the broader S&P 500 index, slightly below 29. Analysts expect GOOGL's earnings to grow 24% annually for the next five years, in stark contrast to Apple's (AAPL) expected growth of 15%. Apple (AAPL) is a leader in the technology industry with a price-to-earnings ratio of 31 times. Alphabet's core online advertising business is still very strong; YouTube revenue continues to soar, increasing by more than 43% in the most recent quarter, and Google cloud business is also growing. Although cloud operations were not profitable-last quarter's revenue was US$4.99 billion, an increase of 45% year-on-year, Alphabet's operating loss was US$644 million-profit margins are improving, and the shift in profitability is a huge one for investors chance. Alphabet's long-term unprofitable "other bets" department is also attractive for its optionality, which is oscillating on the fence of big ideas. In addition, if the leadership is tired of other bets, in the last quarter alone, stopping the department will net an additional $1.3 billion in operating profit.

Next on the list of the most worth buying stocks in 2022 is Medifast, a multi-level marketing company that produces, distributes, and sells foods for weight loss. Repeated selections from the 2020 list. When the stock price rebounded by 86%, Medifast once again found itself severely undervalued after basically sideways in 2021, despite the 52% increase in revenue in the previous quarter, which is enviable. You might call it a "growth at a reasonable price" opportunity. Medifast stock has a price-to-earnings ratio of less than 15 times, and analysts expect annual revenue growth for the next five years to be 20%. With no debt, a sustainable 2.9% dividend, and a company insider who recently purchased nearly $1 million worth of MED, there is little to dislike for this neglected $2.3 billion growth and income stock.

Billionaire investor Peter Thiel, one of the founders of PayPal Holdings Inc. (PYPL) and an early investor in the company's predecessor Facebook Inc. (FB), is known for his contempt for competition. In this case, what companies and investors should strive for is something close to a monopoly. ASML, a technology company headquartered in the Netherlands, is now worth about 320 billion U.S. dollars and owns an extremely valuable company. ASML is the only manufacturer in the world that produces extreme ultraviolet or EUV lithography machines. Semiconductor foundries and large chip manufacturers need these equipment to produce the world's most powerful chips. At the highest level, ASML is a company that maintains the trend of smaller, denser, and more energy-efficient chips. The barriers to entry are very high-ASML has spent decades researching this technology, and each EUV lithography machine costs about 150 million US dollars, which is about the size of a bus-as the global chip shortage continues to In 2022, demand will remain high.

If anyone is compiling a list of the best stocks to buy in 2022, and ignoring the stocks that can benefit from inflation, it would be a negligence. Enter EOG, an oil and gas producer headquartered in the United States that is large enough to withstand a storm of more than $50 billion. The company pays a sustainable 1.8% dividend and has a forward P/E ratio of less than 9 times. Although oil prices are almost the same as today, EOG's transaction price is 33% off its October 2018 peak. Taking into account the November inflation reading of 6.8%-the highest level in nearly 40 years-investors should expect further increases in commodities such as oil. The shale oil EOG, known as an efficient operator, has proven its ability to increase energy prices by 82% in 2021, while oil prices increase by 50%.

Lowe's Cos. Inc. (LOW)

The next most worth buying stock in 2022 is Lowe's, which is a repeat choice in 2021. As people remodel, housing shortages, hot real estate markets, and pandemics should continue to be bullish catalysts for home improvement space in the coming year, adding and repairing their houses in other ways to adapt to these strange times. LOW’s stock has risen by more than 60% in 2021, but compared with its larger competitor Home Depot Inc. (HD), its stock code is still in line with its stock code, which has a P/E ratio of approximately 28 times, while LOW’s The price-to-earnings ratio is about 23 times. Although sales growth may not be surprising-last quarter's revenue growth was less than 3% because it is far from the growth driven by the 2020 pandemic-but the profit margin is the opportunity . Compared with larger peers, the net profit margin is slightly lower, which means that every additional percentage point will have a greater impact on profit growth. The repurchase proves that the company believes in its attractive valuation; the number of outstanding shares fell by 8.2% year-on-year.

For whatever reason, when every technology investor’s favorite acronym: FAANG was excluded, Microsoft was severely hurt. It has long dominated the PC software field-the company was ordered to split in 2000 for violating the antitrust law before winning an appeal and finally reaching a settlement with the federal government-since then, Microsoft has skillfully avoided a new round of government The impact of anti-major technology sentiment. An amazing enterprise, Hyundai Microsoft is cloud-centric, and almost all aspects of its business are designed to support its Azure cloud computing platform, which is a highly profitable, fast-growing service of the second largest cloud provider after AWS. Its monopolistic foothold in operating systems (Windows) and productivity software (Office and Office 365) generates regular cash flows that can be reinvested in the cloud. Segments such as LinkedIn (up 42% last quarter), Xbox, Microsoft Surface, and Salesforce.com (CRM) competitor Microsoft Dynamics are the most delicious cherries. Don’t be surprised if Microsoft, which is worth 2.6 trillion US dollars, easily breaks through the 3 trillion US dollars mark in 2022.

This vacillating draft pick is not for the faint-hearted, but it holds great promise in the long run. Upstart is an artificial intelligence-driven innovator in the credit scoring industry, and has long been dominated by companies such as Fair Isaac Corp. (FICO)'s FICO score. Upstart’s statement is striking: It claims that the loan default rate of lenders using its services has been reduced by 75%. Behavioral evidence also shows the usefulness of Upstart technology, with bank partnerships increasing from 10 during the IPO in December 2020 to 31 during the earnings call in November. Upstart's target market is also expanding rapidly. What started with personal loans is now expanding to a larger auto loan market, and larger fish such as mortgage loans may follow up in time. Since the stock price is 22 times sales, there is a great increase in internal, but Upstart is already profitable-this is rare for young growth stocks.

Credit card giant Visa rarely offers attractive entry points. Due to its impressive track record, high profit margins, consistency and incredible competitive advantages, its transaction prices are higher than in other markets. But after a slight decline in 2021, the stock price has been completely flat since its February 2020 high. Although the payment volume in the most recent quarter (the fourth fiscal quarter) was higher than the level before the 2019 pandemic, and the company confidently announced a 17% increase in its quarterly cash dividend. Some of the recent terrible headlines are partly blamed on Visa’s opportunity, because Amazon (AMZN) suddenly plans to ban Visa cards issued in the UK on its website due to high fees. The CEO of Visa has stated that he hopes the conflict will be resolved. Gradually returning to normal and increasing global travel will undoubtedly benefit Visa, which will increase the cost of international consumption.

Grupo Aeroportuario del Sureste SAB de CV (ASR)

It's time to do something out of the box: Mexican airport operator Grupo Aeroportuario del Sureste is second to last among stocks worth buying. Unlike the airlines themselves, operators only need to keep the airport running-and then sit down and collect their fees. The company owns Cancun, Mexico; San Juan, Puerto Rico; and Medellin Airport, Colombia, reported in November that passenger traffic at all its airports has been 7.2% higher than in November 2019. Although omicron and future variants of the coronavirus may pose a threat, delta's stock in 2021 has hardly been adjusted in stages, and the company's stock price has fluctuated significantly because Mexico has done relatively little work in combating new variants. In short, ASR is an international mid-cap stock, an attractive dividend stock with a yield of 2% and a price-to-earnings ratio of less than 17 times. If you believe in gradual reopening and stable return to normal consumer behavior, then travel will rebound and ASR will benefit.

In the long run, economic conditions may fluctuate, geopolitical crises may emerge, and unforeseen epidemics may rise... But one thing remains the same: human nature. Meta Platforms, the company formerly known as Facebook, is a bet on self. Incredibly, 3.58 billion people use one of the company’s services each month, including Facebook, Instagram, WhatsApp, and Messenger, covering approximately 50% of the world’s population or 75% of the world’s Internet users. Among these platforms, only two platforms, Facebook and Instagram, have achieved meaningful monetization. The monetization of WhatsApp and Messenger still represents a huge opportunity. The elephant in the room is the fulcrum for Facebook to bet on the meta universe, and it will invest 10 billion US dollars next year. Although it will almost certainly take several years to start paying dividends, at only 23 times the price-to-earnings ratio, Meta Platforms can be said to be the best growth value proposition among FAANG stocks. At the same time, the ego will not go anywhere.

The most worth buying stocks in 2022:

— Lowe's Cos. Inc. (LOW)

— Grupo Aeroportuario del Sureste SAB de CV (ASR)

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