Every year brings new hopes and concerns for stock investors, and 2022 is no different. Investors are busy doing their homework for assessing the year gone by to gather insights about the future. As we enter 2022, investors have many concerns despite the much-awaited economic recovery on track. Within the US, talks are afoot about the possibility of the Federal Reserve raising interest rates to counter rising inflation. The tight labor market is also a factor to consider. The ongoing battle against Covid 19 and the new emerging variants keep stretching the uncertainties about the end of the pandemic. The bottlenecks stifling the global supply chain are a matter of concern too. Hoping for the economic growth of 4.5%-5% there, you can expect a bullish market and pick some of the top stocks mentioned in this article.
Top stocks that will be in focus
While the stocks of tech companies will remain strong because of the high growth in the segment despite the US government’s efforts to curb the activities, stocks of other sectors also hold good promises. But as any stock investor would know, it is difficult to bank too much on promises that can prove misleading at any moment. Therefore, looking at the list as a forecast without any promise would make investors feel more at ease. They can use their judgment to decide which would be the best stocks to invest in right now. Here are the picks.
Alphabet Inc. (GOOGL)
The PE ratio of the price to earnings ratio of GOOGL is a shade under 29 and matches the S&P 500 broader index, which is an indicator of the power of the growth stock. Analysts foresee GOOGL earnings to rise by 24% per year in the next five years, way ahead of the 15% growth predicted for Apple (AAPL). Online advertising, which is the core business of Alphabet, remains incredibly strong. YouTube revenue surge is continuing and crossed 43% in the recent quarter, and the Google Cloud is rising. Despite $644 million operating losses in cloud operation, revenue increased by 45% over the previous year, and improved margins are the silver linings that hint at profitability. Alphabet can be one of the good stocks to invest in, hoping to discontinue its ‘other bets’ division that remained unprofitable for long.
Medifast Inc. (MED)
Medifast is undoubtedly one of the best stocks to invest in right now. The multilevel marketing company that makes and sells (including distribution) weight-loss foods provided good returns (86%) to investors even in 2020. The stocks of Medifast remain undervalued while it traded sideways through 2021 despite revenue increasing by 52% in the last quarter as proof of its high growth. Analysts expect 20% annual growth for the next five years, but the Medifast stocks trade abysmally less than its earnings. There is no reason to overlook this growth and income stock as a company insider purchased stocks of MED worth nearly a million. Moreover, the company pays a sustainable dividend of 2.9% and does not have any debt.
ASML Holding NV (ASML)
Investors who hate competition like Peter Thiel, the billionaire investors, PayPal founder, and an early investor in Facebook should put their money in ASML. ASML is a technology company from the Netherlands worth about $320 billion enjoys a monopoly that makes it a precious company. The company is the only producer of EUV or extreme ultraviolet lithography machines used by large chipmakers and semiconductor foundries for producing the most powerful chips in the world. ASML researched the technology for many years, and each EUV lithography machine costs about $150 million and is as big as a bus. As the global chip shortage continues, the demand for machines remains high.
EOG Resources Inc. (EOG)
What makes EOG an obvious choice for investors in 2022 because the stocks would always be among the top stocks of 2022 because the stocks are exceptional as they would benefit from inflation. Worth more than $50 billion, the US oil and natural gas producer trades for much less than its forward earnings and pays a dividend of 1.8%. The fact that EOG stock prices rose with energy prices and surged to 82% in 2021 is reason enough to consider it among the booming stocks.
These stocks really have high future prospects. This is why investors will surely be leaning towards such stocks. You can also decide to invest in these stocks to make some huge profits.
