The strong post-pandemic economic recovery by the end of 2021 is giving stock market analysts to remain bullish about the coming year. Despite inflation concerns, the analysts are optimistic about the continuance of the bullish trend of the stock market through 2022. Investors can expect a total return of 10%, including dividends, when 2022 ends, as the expected increase in the benchmark S&P500 is likely to rise 9% through 2022. Well, this is what the chief equity strategist at Goldman Sachs has to say about his prediction of the stock market in 2022. So, here are the stocks that will blow up in 2022 and undoubtedly the best stocks to buy to make it a memorable year for investors.
LM Ericsson (ERIC) figure among the stocks that will blow up in 2022
As spending in 5G technology will explode by 2027 to reach half a trillion dollars, it translates into a compounded growth rate of a staggering 106% from now till 2027. LM Ericsson, a powerhouse in 5G hardware, services, and solutions, is ready to overwhelm investors with its excellent performance in 2022. A leader in 5G due to its unique capabilities, Ericsson stocks are undoubtedly one of the best stocks to buy in 2022. Ericsson has already overtaken Huawei Technologies, the Chinese giant of 5G that was the undisputed leader even two years ago. Accused of alleged spying activities for the Chinese government, Huawei now faces severe steps taken by the US government to halt its progress in telecommunications networks, especially 5G. Huawei’s loss is Ericsson’s gain, both contracts, and prestige.
Ericsson is at the right place at the right time, and victory is only a matter of time.
Akamai Technologies (AKAM)
Known as the world’s CDN (content delivery network) provider, Akamai Technologies is morphing into one of the world’s largest firms in cloud security. Today, it is a fast-growing cyber security company in the garb of a slow but steady CDN company. But it has already become a leader in many areas of cyber security. The company has proved its worth as a leader from web app firewalls and bot management to preventing DDoS attacks.
The company keeps expanding its footprint in cyber security to maximize the large-scale opportunity that is knocking at the door. Some of the products in the ‘beta phase’ are genuinely outstanding. The company expects a 20% growth of its cloud security division over the next 3-4 years. On accomplishing the feat, the annual adjusted EPS of Akamai in 2023 could top $7, and by 2021 it could be $8.
We have to wait to see whether it happens, but there is no doubt that the stocks will go up in 2022.
Pacira BioSciences Inc. (PCRX)
Pacira BioSciences is a pharma company that provides regenerative health and pain management solutions. The sales of the company’s top product Exparel, a bupivacaine liposome injectable suspension, are making experts optimistic about the company’s good performance in 2022. The company has already started manufacturing the product in its new facility in Swindon, England. With a market cap of $2.3 billion, the company beat market predictions in EPS by 0.07% in the third quarter. During the same period, the revenue growth was 8%. By the end of the third quarter of 2021, $425 million was the value of stakes held by 24 hedge funds which were $423 million, and 23 hedge funds in the previous quarter.
Aspen Technology Inc. (AZPN)
Aspen Technology stocks are among the best stocks to invest in 2022. The company provides asset optimization solutions. According to Andrew Obin, analyst of Bank of America, the $11 billion Emerson takeover deal in the offing will positively impact margin expansion and revenue growth. Aspen Technology beat market estimates when it declared its earnings per share and revenue for the third quarter in late October. The figures of $0.22 and $10.7 million, respectively, are encouraging enough to attract stock analysts who see a bright new year ahead. Twenty hedge funds hold a stake of $620 million in Aspen Technology. The company also featured in the list Polen Capital, an asset management firm that had something good to say about the company’s future.
Although no one can say which stocks will blow up in 2022, the strong contenders are listed here. Therefore, you need to carefully choose your own option after doing your own research.
