Top stocks to invest in 2022
2021 was marked by the recovery of the global economy after the pandemic. Virtually all financial assets rose in price, from commodity futures to company stocks. The US stock market closes 2021 at its historical growth level, thereby confirming its status as the most profitable option for receiving passive income from investing.
The results of the stock market certainly attract attention. More and more investors from the CIS are asking questions: “How to invest in US stocks” and “Where to invest in 2022”.
Answering the first question, it is worth noting that investing in shares is very affordable. Today, one does not need to have an account in an American bank or be a professional stock exchange participant to buy company shares. It is enough to have a brokerage account with an international broker, which, in fact, concludes transactions for the purchase of the shares you have chosen. For example, it is enough to have LMFX’s trading account.
Answering the second question, we have prepared a selection of the top 10 US stocks that will continue to grow in 2022.
Shares of Tesla Inc (TSLA)
Tesla stock has been a hot topic all year. The active social activity of Elon Musk, as well as the positive financial results of the company, made Tesla shares one of the best in terms of profitability in 2021. The uptrend will continue into 2022. The company began reporting quarterly earnings growth as well as earnings per share (EPS). Previously, the company generated sales, while net income was negative. Now, this trend has changed, and the company will continue to work in the same vein, which will attract potential new large investors.
Shares of Apple Inc. (APPL)
Apple shares are the most popular investment vehicle for both large and novice investors. For example, Warren Buffett keeps 45% of his investment portfolio in Apple stock.
It is worth noting that the company’s shares showed excellent growth in 2021, even though the company lagged behind the sales plan for new phones due to the interruption in the supply of new chips for the iPhone 13. Thus, with the restoration of the hardware supply chain, the shares will receive an additional positive fundamental factor that encourages their growth.
The stock’s robust growth in 2022 will see the company reach $3 trillion in capitalization, making Apple the first company in history to achieve this level of market value.
Shares of Meta Platforms Inc (META), AKA Facebook
The business model of Mark Zuckerberg’s company is built around social media. The main income of the company consists of income from the sale of advertising on social platforms such as Facebook and Instagram. However, the renaming of the company from Facebook to Meta suggests that the company will take a new vector of development.
At the same time, the business model will not change dramatically: the company will continue to support social networks and profit from them. But bringing the metaverse to the real world will give the stock an extra boost as the company becomes one of the first to provide turnkey solutions in the space. In turn, this will diversify the company’s revenues, improve financial performance, and hence share growth in 2022.
Shares of Microsoft Corporation (MSFT)
The most transparent and understandable financial model of Microsoft allows it to maintain leadership not only in its segment, but also in the growth of shares. From year to year, investing in Microsoft shares brings investors an average annual return of 30-45%. The company has a stable client base, and its IT solutions are in demand all over the world.
Diversification of the company occurs at every level of sales. Microsoft has a wide range of ready-made solutions: from selling game consoles to providing access and working with cloud databases. Thus, the consumer of the company’s products are both ordinary individuals and the world’s largest corporations.
The company has fully adapted to work during the pandemic, has moved its entire business online, and plans to become part of the metaverse in 2022 as well.
Shares of NVIDIA Corporation (NVDA)
The American graphics card manufacturer has been a leader in its sector for several years. The company provides the best solutions for virtual reality, gaming, computing power and, of course, mining.
The growth of the cryptocurrency market in 2021 has a positive effect on the company’s income from sales of video cards for mining. Nvidia has adapted to the market demand and provides ready-made solutions specifically for cryptocurrency mining. This allows the company to increase profits on a quarterly basis, and the shares to show growth no worse than cryptocurrency.
Shares of Bank of America Corp (BAC)
The recovery of the world economy entailed an increase in the cost of all goods and services. This, in turn, triggered inflation in every country and forced a number of central banks to act around the world. The Federal Reserve is no exception, which has launched the process of phasing out the quantitative easing (QE) program and is making plans to raise rates in 2022.
Such an economic situation will play into the hands of representatives of the banking sector. The increase in rates will increase the marginality of the business and issue loans at a higher interest rate. Investing in Bank of America shares is already showing positive results, and the rate hike from the Fed will only strengthen their position in 2022.
Shares of Caterpillar Inc. (CAT)
In the United States, a package of support for the economy called the “infrastructure bill” was adopted. This bill was announced by Biden during the election campaign and, thus, the total size of the next “infusion” will be $1 trillion.
$100 billion will be allocated to repair roads, bridges and highways. If you look at companies that can take on this and “make repairs”, then the first on the list is Caterpillar. Only after the vote on the bill, the company’s shares rose by +4%. After the start of work on the bill, the company will be able to receive additional profit in 2022, which will positively affect the share price.
Shares of Procter & Gamble Co. (PG)
Procter and Gamble products are used all over the world. The company demonstrates growth in revenue and net profit from year to year, and the products are included in the category of essential goods, which allows the company to demonstrate positive results even in crisis years. The company is also active in the development of vaccines against coronavirus and sells many drugs in the medical sector of the economy.
What’s more, Procter and Gamble pays out a third of its net income as dividends. Thus, this makes the company one of the best companies to invest in dividend stocks.
Shares of Netflix Inc (NFLX)
Going online after the start of the pandemic has been one of the most profitable periods for Netflix. The closure of theaters brought the audience online, and the company was able to retain the consumer with quality series and its product line. The number of resource subscribers is growing every quarter, and this business model allows generating sustainable net profit indicators.
Netflix has become more than a streaming resource, but quite a competitive producer of video content (movies and series), which allows you to earn additional income from copyrights and increase the price of commercial requests for advertising.
Shares of Pfizer Inc. (PFE)
Many experts expect 2022 to be the last year of the impact of the coronavirus on the lives of the population. However, the number of vaccinated people in the world is still at extremely low levels. At the end of 2021, only 48% of the world’s population is vaccinated. Continued vaccination will allow Pfizer to increase its bottom line.
At the end of the year, the company increased its net profit by 80% due to the sale of vaccines. The continuation of the trend for the next year will enable the stocks to continue the uptrend.
These top 10 companies are already showing solid growth, and some of them are paying dividends to their investors. The US stock market continues to lead in terms of return on investment. If you are considering investing in stocks as a novice investor, then such an investment portfolio structure will allow you to reduce risks and diversify your capital.
Use the LMFX’s trading platform to achieve your goals or the above ideas.