Top Stocks To Keep An Eye Out For In 2022Eleonora Symeou
The S&P 500 (NYSEARCA: SPY) has returned 28 percent year to year and is on track to outperform the Nasdaq (NASDAQ: QQQ) so far. Growth investors are concerned about the Fed’s rate-tightening agenda in the coming year.
This is a blunder.
Rate hikes are already expected in 2022, according to the market. Investors in technology who sold overvalued stocks will avoid market hazards. They will dodge the pull of a Nasdaq correction if one occurs. Nonetheless, investors should be wary of continuously increasing inflation (6.8 percent in November 2021). The monthly CPI will determine how quickly the Fed raises interest rates.
Investing In Stocks
Investors in technology have the most to fear. If overpriced leaders such as Tesla (NASDAQ: TSLA) underperform, technology firms with high price-to-earnings and price-to-sales ratios may tumble. Rather than attempting to time a market correction, take tiny positions. Force yourself to watch pricey stocks first among the 22 top options to consider. Begin with a 0.2 percent allocation (or 20 holdings at 0.2 percent) in the equities mentioned below.
Choose which of the two stocks you have the most confidence in buying from the list of 22.
1. To counteract the media’s criticism, Facebook (NASDAQ: FB) rebranded itself, Meta. TikTok is edging up Instagram in terms of market share as users spend more time on the app. TikTok, which is owned by ByteDance (BDNCE), is not currently investable in China. Nonetheless, investors must consider China’s competitive threat to Meta.
China is limiting the number of time youngsters can spend playing video games. It is eroding technology businesses’ clout with the Chinese. Meta, on the other hand, merely needs to wait for the Instagram outrage to subside. Advertisers will return to the site since they don’t have any other options. Furthermore, this time, bet on Meta reviving virtual reality.
2. Apple (NASDAQ: AAPL) could have hired Meta’s public relations director. This will not affect Meta’s good sales momentum for Oculus. It also does not affect Meta’s progress toward becoming a vast ecosystem for the metaverse.
3. Amazon is ranked second on the FAANG list (NASDAQ: AMZN). It dumped nearly 10,000 Chinese suppliers a few months ago to clear up the rogue guys. AMZN stock has a potential upside of 27% for investors. The company has grown for eight consecutive quarters. The 55/100 value score indicates that AMZN stock will not slip into the deep value zone.
4. Value investors will be swayed by the comparison of Alibaba (NYSE: BABA) to Amazon.com. Because the Chinese Communist Party rewrote the e-commerce rules, this is no longer a legitimate comparison. The party still has a grudge against Jack Ma. It keeps enacting additional penalties and imposing large fines. Recently, the CCP has requested that Alibaba sell its 30% share in Weibo (NASDAQ: WB). This transaction will help a state-owned media company.
Wait for the negative slope of the MACD to reverse. If the faster-moving line crosses over, it may indicate that the stock’s downturn has come to an end. The large rotation across streaming, content suppliers and broadcast companies is still ongoing.
5. Google (NASDAQ: GOOG) is a cash-flow generator. Despite losing an appeal against a EUR 2.4 billion European Union punishment, Google’s operating profits have the opportunity to grow.
Even though YouTube displays three or more advertisements every video, users are not quitting the site. They plan to upgrade to YouTube Premium to avoid advertisements. Subscription fees will contribute to Google’s remarkably constant revenue growth over the next year.
6. As a result of the semiconductor shortage, GPU prices have more than tripled, putting Nvidia (NASDAQ: NVDA) in the driver’s seat. Go through the process of purchasing a high-end gaming computer. Most retailers are out of stock on the RTX 3080. The suggested retail price is $699. The asking price on NewEgg is at least $1,665.99.
The GPU is so hot that Nvidia will not announce a mid-range RTX 4060 or 4070 at CES 2022. Instead, an RTX 4090 will set you back $2,999.
7. Due to value worries, investors sold Unity (NYSE: U). There’s a reason why U stock is so costly. Its acquisition of Weta Digital will significantly improve the quality of its gaming visuals. Consider the use of movie-quality visuals in video games.
8. Roblox (NYSE: RBLX) is being accused of child labor. Nonetheless, the number of daily active users increased by 35% to 49.4 million. Investors may cease purchasing equities purely based on DAU. They may be perplexed by the stock’s price concerning the platform’s low-quality graphics.
Roblox will likely continue to post user additions. In the coming year, it plans to invest in improving its platform tools. This will keep user activity and growth rates consistent in 2022.
9. Sea Limited (NYSE: SE) reversed course around $360 and is presently trading at levels not seen since May. Investors incorrectly associate Sea with Chinese equities. Sea must strike a balance between aggressive promotional freebies on Shopee and user retention goals.
10. Okta (NASDAQ: OKTA) established an entry opportunity following the November drop from $270 to under $220.
11. With K-Drama, Netflix (NASDAQ: NFLX) is outpacing 4- Disney (NYSE: DIS) and 5- AT&T (NYSE: T). Squid Game hit it out of the park. History will repeat itself in 2022. Netflix may release another international hit film, causing NFLX stock to skyrocket.
12. The necessity to cover COVID treatments is driving long-term expansion in healthcare. Continue to hold UnitedHealth (NYSE: UNH) and Cigna (NYSE: CI) (NYSE: CI). Customers will like the COVID testing coverage. Even after the pandemic has passed, UnitedHealth and Cigna are expected to increase their plan enrollment.
13. CVS Health (NYSE: CVS) is currently up more than 51% from its lows. The stock is still a good buy for health care and drug stores. Expect further retail traffic growth as customers handle their healthcare needs. Because cash flow is so good, CVS increased its dividend by 10%.
14. Aptiv (NYSE: APTV) has made a 180-degree shift from $180 in the self-driving and automotive parts markets. There’s a reason why APTV stock is so costly. The company is transforming. It is withdrawing from low-growth, low-margin markets. It, for example, spun off its Powertrain division. It launched an autonomous joint venture with Hyundai last year (OTCPK: HYMTF).
15. Magna (NYSE: MGA) has a less aggressive move from traditional automotive parts to automotive automation than Aptiv. It will produce Fisker (NYSE: FSR) electric vehicles.
16. AMD (NASDAQ: AMD) dominates the high-end PC gaming market. Gamers will choose AMD CPUs over Intel CPUs (NASDAQ: INTC). The processors have improved multitasking capabilities at a low cost/performance ratio. Although Intel’s Alder Lake processor is excellent, its motherboards are prohibitively pricey. AMD will have an advantage until Intel’s partners develop low-cost boards. “Never settle, never sell,” says AMD’s shareholder slogan.
17. Shopify (NYSE: SHOP) has surpassed Amazon. The company provides a platform for small enterprises to create an internet presence. Inflationary pressures may dampen overall demand. Fortunately, the long-term trend toward internet buying will continue. This will result in Shopify breaking merchant sales time and time again.
18. People will flock to Spotify because they require streaming music (NYSE: SPOT). Apple Music is an alternative for customers. Spotify, on the other hand, allows users to share playlists. This boosts brand awareness at a low cost.
19. Comcast (NASDAQ: CMCSA) is back on the market. The stock’s downward trend started in September. The drop came after investors liquidated streaming companies such as Roku (NASDAQ: ROKU) in the summer.
20. ViacomCBS (NASDAQ: VIAC) has yet to drop low enough to warrant consideration. The P/E ratio of 6.4 times and the forward P/E ratio of 7.85 times indicate that the company is a buy-on deep value. Why is the stock declining?
Earlier this year, Archegos Capital drove VIAC stock to above $100. Investors will analyze the stock’s fundamentals after they have finished posting a loss on it. The company is liquidating its properties to invest in its streaming content.
21. Investors can choose between electric vehicles and cryptocurrency. Both industries, according to value investors, are still in a bubble. Because Bitcoin (BTC-USD) values are volatile, investing in the platform may pay handsomely. Volatility may increase activity on Coinbase (NASDAQ: COIN) or Voyager (OTCQX: VYGVF).
Among the FAANGM, we believe FB and NFLX are the best two companies to consider. These are companies that are broadly held. They contributed to the indices reaching all-time highs and this pattern may continue well into 2022.
Disclaimer: All materials are published for informational purposes only and do not contain – and should not be considered as containing – investment advice and recommendations. The built-in widgets belong to their authors and “Emporium Capital” is not responsible for their content.