The pandemic has been a testing time for the stock market. For investors, short bursts and busts have tested everyone’s mettle. While some stocks have proven to be unsustainable for the long term, others have projected stability for the near future.
For analysts, the best stocks are identified not by their fast growth but also by stable earnings amidst market changes. These stocks outperform others with solid fundamentals, innovative potential, returns, and dividends that provide value.
This list compiles the best stocks to invest in in 2022.
The cryptocurrency age is upon us, and one company at the centre of it all is NVIDIA. As a corporation that dominated the gaming market for its Graphics Processing Units, NVIDIA chips found a new use for crypto miners. Besides the demand surge influenced by the rise of bitcoin, NVIDIA has applications in AI, data, and medical research centres.
Since 2019, NVDA stock has risen from about $32.66 per share to over $200. The impressive run exudes confidence and signifies that it aims to dominate the hardware market.
Apple is a brand that requires no introduction, and in the consumer electronics, software, and service world, they are considered a true market leader. The name is even stronger in the stock market, with its growth in 2022 considered a significant boost for its reputation. Apple experienced growth across the spectrum with its iPhone, iPad, accessories, and services, bringing in high margins.
While the company’s stock is a bit volatile, the $147.54 price per share indicates irrefutable gains. If you seek to diversify your portfolio in the tech industry, Apple is a valuable stock prospect.
Amazon’s story is unlike any other, and its impacts in online retailing prove that it’s a visionary corporation. In a market where brick-and-mortar companies rely on walk-in customers, Amazon ventured out, bringing services and products straight to the doorstep. Of course, the rise in relevance translates to better market performance.
From June 2020, Amazon’s stocks have risen from about $2,545 to over $3,500, one of the most substantial growths in the market. The company is at the centre of the e-commerce boom, and its stability projects further rise in the years to come.
In a world of digital payment, PayPal is at the centre of change. With a presence in over 200 markets, it’s easily one of the most profitable companies. In 2015 when PayPal split from eBay, it had about 181 million accounts, and by 2020, it’s clocked an impressive 377 million. With a 16% compound annual growth rate, PayPal demonstrated its market position as a leader in financial technology.
In stocks, PayPal’s performance signals confidence, with stocks hovering close to $300 per share. With a considerable growth potential and a culture of making new acquisitions, PayPal is bound to expand. Its impressive track record and potential for expansion make PayPal stock an excellent investment across the board.
Facebook Inc. (FB)
Facebook is a significant player in social networking, pulling in over 1 billion daily active users. Its success is evident through its assets such as Instagram, Workplace, WhatsApp, and the Facebook platform.
Making listings as a top stock and accumulating a 1 trillion market cap, Facebook is a substantial venture opportunity. While the stock has increased, it’s still attractive to investors who see value in its 33% climb this year. The impressive run and dominance in its industry make the stock a noteworthy investment.
The Walt Disney Company (DIS)
The Walt Disney Company is a household name with a worldwide presence making it a multinational giant. After recent expansions into streaming with Disney+, the company qualifies as one of the most predictable stocks in the market.
Since March 2020, Disney’s stock has risen 140%, a comeback against the global economic slump. Disney stock is hot for any investor through theme parks, cruises, and new movies streaming and releasing in theatre.
There is no greater success story than Microsoft’s rise with Windows software and the Office suites. In the 2000s, market changes seemed to push the software giant into oblivion. But as fate would have it, the giant would rise again through cloud computing.
As a corporation that foresaw cloud computing, Microsoft has given Amazon a run for its money in the cloud market. With a revised business model, Microsoft’s shares have risen five times over at an accelerating pace. Investing in Microsoft might be the safest move to make in the market amidst global concerns.
Alphabet Inc., better known as Google, is one of the most diversified global companies, and its status as the world’s most popular search engine proves it’s no joke. With the ownership of serious assets like GooglePlay, GoogleCloud, Chrome, and even the Android OS, Alphabet is a serious money maker.
In 2021 alone, GOOGL’s stock jumped 61% amidst high investments in cloud data centres where Amazon and Microsoft dominate. The growth indicates their aggressive investment strategies. Alphabet’s performance is nowhere close to slowing down in the coming years.
BJ’s Wholesale Club Holdings Inc. (BJ)
BJ’s is a warehouse club chain that’s peaked recently as more people look to save. As an online club providing access to all products, from electronics to groceries, BJ is positioned for greatness. For investors, the Massachusetts-based bulk retailer is attractive since it is cheaper compared to other alternatives.
With plans to expand into more states and open new warehouses, BJ might be the cheapest and safest investment in 2022. Like a star that shone after the pandemic hit, there are no barriers to growth in the future.
The stock market is ever-changing, and there’s no saying who will be on top one week after the next. But when stocks burst fast and disappear even quicker, investments need to be driven by level-headedness.
These stock options are responsible investments because they evaluate stability and the value of returns. While they might not be the best performers each week, they are well-positioned for growth, strength, and sustainability.