One of the most popular investment avenues is the stock market. With solid returns and high dividends, investors are drawn towards growth stocks that are also the top market performers today. 2021 has been a mind-blowing year for investors who allocated their money to large tech companies. The short-term ups and downs are common, but many growth companies have managed to rake in good profits and rewarded the investors. Every year, a few companies emerge that become the hot picks, and these companies look promising for long-term investment.
However, it is not always about picking the cherry on the top. Many small-caps and mid-caps might not be shining today but have a long way to go. There are many companies in the emerging industries like fintech, electric vehicles, and renewable energy, which have seen a decline in the last few months, and investors must be careful about them in 2022. That said, there’s always an opportunity to be found. Let’s look at some of the best stocks to buy in 2022.
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Meta Platforms Inc. (Facebook)
Meta Platforms, Facebook’s parent company, has had a wild ride in the past year. It saw massive growth in the advertising business through 2021 as many sectors of the economy opened, and businesses started putting money into advertising. But the company is going beyond that. They are entering a metaverse world, a digital space that will unite communication, work, and gaming.
The company will be investing billions of dollars in this effort, and if it turns out to be successful, Meta will be dominating the next few years. It can undoubtedly give the smartphone a run for its money. Besides metaverse, Facebook has a strong presence in the social media industry, which rakes in cash. It has given the firm a solid runway to expand and invest in emerging new companies.
The success of Facebook isn’t without controversies, but the long-term picture is clear. It has a long way to go, and this means it will continue to generate solid returns for the investors.
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Apple Inc.
The most valuable company in the world, Apple is here to stay, and it is here to make money. The company is well known across the globe, and it develops, designs, and sells electronic devices. It has control over the hardware and software on the devices. The company is consistently growing and expanding its product base.
The iPhone segment is its most significant contributor to earnings and revenue, but even the service segment grows fast. I believe Apple will continue to reward investors in 2022. It is soon to release the first augmented reality/ virtual reality device, and if it goes as planned, the company will show double-digit growth in the earnings. It already has a considerable cash reserve.
Apple is the first company to reach $3 trillion in market value. The company has an impressive balance sheet and has returned significant cash to the shareholders every year. It is one stock to buy and hold for the long term.
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The Walt Disney Company
One of the most prestigious and popular brands globally, The Walt Disney Company has grown exponentially over the past 98 years. It went from a small animation studio to a large entertainment conglomerate. Disney+, a streaming platform, has already won 120 million subscribers only in the first two years of the launch.
I believe there will be a surge in the number of subscribers over the years, which will benefit the company significantly. The company also has legacy businesses- the theme parks that have seen an uptick in the past few months, and if all goes well, it will continue in the coming year. The movie theater business might be slower to recover, but it will never go out of demand.
The company has suspended dividends currently to pursue growth opportunities. Even if the streaming business is making a loss, the legacy business will be here for many years to come. Disney has a lot working in its favor, and it owns firms that cater to all age groups and customer personalities, making it a top stock to hold for the year.
Read: How to Buy Disney Stock
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Alphabet Inc. (Google)
Alphabet was formed after the restructuring of Google in 2015, and it has become a massive part of our lives. It is impossible to imagine life without Google today. Apart from Google Search Engine, several companies are under the umbrella of Alphabet Inc. The stock increased 67% in 2021 and is expected to soar this year.
The company generates significant revenue from its advertising services. The stock is priced at a premium, but it can grow in the coming year. It is also set to benefit from Cloud services and has some of the most prominent organizations using its service. It is one stock that is resistant to inflation and offers a solid return.
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Visa Inc.
A leading payment technology company, Visa has become a familiar name today. The company is pursuing the network of networks strategy and aims to connect individuals and businesses across the globe.
Besides facilitating the payments, Visa also provides merchant clients with a range of platforms, products, and value-added services. The company has massive growth potential in electronic payments to expand the market. Visa has a solid balance sheet, and a recovery in personal travel over the coming years will lead to growth. The transition towards digital payments will continue to grow, pushing the EPS higher.
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Amazon
There are several reasons I believe Amazon will rebound in 2022 and benefit investors. Right from the holiday sales to the Amazon Marketplace, the company has a lot working for it. Amazon remains the top stock for growth investors for its solid presence across the globe and the Amazon Web Services.
The stock may be priced on the higher side but it will soar further up. AWS is the key that will take the company’s growth higher in the future, and the stock could be as high as $4,000. It is heavily expanding its services, and some of the biggest companies in the world are Amazon’s cloud service customers.
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Nvidia Corporation
Nvidia is one company that has its feet in every industry. Semiconductors are considered new oil, and Nvidia is a leader in the sector. I firmly believe it will continue to outperform in 2022. NVDA stock has already delivered more than 67,000% returns since it went public in 1999. The company is firing on all cylinders and is one of today’s top tech stocks.
If you look under the hood, you will realize that the company’s future is very bright, which justifies the premium share price. Nvidia is a part of several industries, including cloud computing, data centers, space exploration, electric vehicles, video gaming, 5G, autonomous driving, artificial intelligence, cryptocurrency e-commerce, big data, and more.
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Tesla Inc.
Today, Tesla will continue to dominate the market as the top high-growth artificial intelligence company. Known for electric cars, Tesla has a niche of its own. It crowdsources the data from drivers and vehicles through cameras and sensors. This information is crucial, and the company uses the data for technology development.
The vehicle analytics market has massive growth potential, and the addressable market could be $750 billion in this decade. Tesla is a wave that rides the stock market and has become a prominent name in the industry over the years. It also moved cryptocurrency prices by announcing that the company would accept Bitcoin as payment.
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Microsoft Corporation
One of the best tech stocks that promises solid returns in the long run is Microsoft. The stock is set for an explosive year of growth and has to be one of the safest stocks to invest in. This large-cap has generated solid returns for investors over the years, and I believe it will continue to do so in the coming year.
Microsoft enjoys a substantial advantage with which it can attract more customers who are looking to move into the cloud. It has enjoyed stellar growth in the cloud-computing business, which has shown a 441% increase in the stock price over the past five years. The stock has ample room to run, making it the top choice of 2022. Remember, the move towards cloud computing has only just begun.
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Pfizer Inc.
Healthcare stocks have had a roller coaster ride in 2021. Not every healthcare stock saw the best days, but many shined, and one of them is Pfizer. While we were eagerly waiting for a vaccine for coronavirus, Pfizer was making the right moves at the right time. This year, the company reported solid revenue growth, mainly due to the vaccine. It is one of the first pharma companies that got vaccine authorization, which is reflected in the balance sheet.
The sales of its vaccine contributed $36 billion to the revenue in 2021. The company has already doubled the business through the vaccine, and the management has forecasted that Pfizer will produce 4 billion doses this year. With Omicron, the new Covid-19 variant, the demand for vaccines will only grow.
The pandemic is not yet over, and Pfizer has a long way to go. Pfizer is at the forefront as countries open up booster shots for adults and start vaccinating children. The current covid situation worldwide shows that Pfizer can become a surefire winner of the year. The company is also paying solid dividends to shareholders and rewarded them with a hike of 2.6% this year.
Image Credit: Pfizer.
The bottom line
Stock investment is a great way to make money. The solid returns, as well as consistent dividends, make them attractive for investors. On top of that, the interest rates offered by traditional investment avenues are low, which is why many people prefer investing in the stock market. No matter the company you choose to invest in, it is essential to remember that the market will show volatility from time to time.
The highs and lows are a part of the market. Once the bull market cycle ends, the bear market will begin. Do not make investment decisions based on this cycle.
Consider your investment criteria, long-term goals, and risk appetite when choosing the stocks to invest in. It is always better to invest in solid companies with a good history and generate returns over time.
This article originally appeared on Joywallet.com and was syndicated by MediaFeed.org.
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