Best Stocks to Buy in 2022

Best Stocks to Buy in 2022
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Best Stocks to Buy in 2022: List of 5 Stocks that can give stellar returns in 2022.

Stock Name
1 Day
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1 Year
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-19.9%
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27.7%

Best Stocks to Buy in 2022: Amazon Inc (NASDAQ: AMZN)

Best Stocks to Buy for 2022

Last One Year Performance for AMZN.

Stock Name
Market Price (02.01.2022
Pivot Points
Support
(S3)
Resistance
(R1)
Moving Average (50 days EMA)
Moving Average (200 days EMA )
RSI (14)
MACD(12,260
ADX(14)
3333.34
3517.59
3038.99
3700.41
3431.66
3356.12
40.88
-27.11
11.98

The worldwide e commerce giant is heading into 2022 with lot of momentum behind it. The global giant has increased sales by 32% in last 12 months ended September 30. Also pandemic has been a boon for Amazon as millions of customers have turned to it to meet their daily needs who otherwise were reluctant to switch from offline to online shopping.

Fortunately for Amazon shareholders, they do not have only one positive news to cheer and giant is growing its more profitable segments. On one hand, Amazon’s increasing scale is leading to greater profits. Amazon’s operating profit margin expanded from 1.8% in 2011 to 5.9% in 2020. While 5.9% is not a great number, but 5.9% on $386 billion sales, is a huge figure-$23 billion to be precise.  

On the other hand, Amazon most profitable segment Amazon Web Series (AWS) is growing revenue faster than company overall. The continued success of AWS could push company’s profitability even further. Another segment to boost profits in 2022 is advertising. For Amazon, advertising revenue has grown rapidly-more than 40% in each of last six quarters and even 60% on three occasions.

Amazon is a bluechip stock and company is holding to double digit revenue growth, also to add to it, more profitable segments are growing more rapidly. Also, Amazon can be held at relatively fair price to earnings ratio of 68, and that’s why Amazon can as one of the best stocks to buy in 2022 and added in portfolio as one of the top tech stocks for 2022.

also read: Amazon Stock Forecast

Best Stocks to Buy in 2022:Zoom Video Communications (NASDAQ: ZM)

Best Stocks to Buy for 2022

Last One Year Performance of ZM.

Stock Name
Market Price (02.01.2022)
Pivot Points
(S3)
(R1)
Moving Average (50 days)
Moving Average (200 days)
RSI (14)
MACD(12,260
ADX(14)
ZM
183.91
232.84
137.33
269.32
220.00
285.24
37.67
-10.36
23.78

It is true that video communications businesses got the biggest boost from coronavirus pandemic, but for Zoom Video Communications its revenue were growing even prior to pandemic but grew more than fivefold since the beginning of 2020.

At one point in 2020, shares were up by more than 1000% and they are still more than double since start of 2020 but they are also down by 65% from all-time high, as investors seem convinced that Zoom multifold growth story is over. In fact, it is true, but Zoom is still growing and its revenue is up by 35% year on year in the third quarter and also sequentially and recent dip provides investors a chance to take entry at the current market price.

Companies are opening their offices but video conferencing has become a vital part of how companies work both internally and with customers. Also Zoom customers are looking to Zoom for more of their communication needs.

Zoom Phone sales more than doubled while the customers spending $100000+ increased 94%. Zoom is transforming from videoconferencing app to unified communication platform and it can be expected that its business will grow by 20% or more per year for another decade and its stock is currently trading at 15 times sales and 40 times forward earnings estimates. This valuation combined with profitability of 73% gross margins and 45% cash margins over the last year makes it one of the best stocks to buy in 2022.

Best Stocks to Buy in 2022:Netflix Inc (NASDAQ: NFLX)

Best Stocks to Buy for 2022
Stock Name
Market Price (02.01.2022)
Pivot Points
(S3)
(R1)
Moving Average (50 days)
Moving Average (200 days)
RSI (14)
MACD(12,260
ADX(14)
NFLX
602.44
660.97
599.99
684.26
622.37
578.90
41.37
-8.26
25.62

One of the biggest winners of coronavirus pandemic was Netflix. The stock experienced 67% rise in 2020 as it witnessed growing user base. With people stuck at home, it was no surprise. But during the first nine months of 2021, Netflix just added 10 million subscribers and the stock has significantly trailed the S&P 500 this year. The streaming services is becoming crowded with new rivals coming up and economy reopening has given options to customers to enjoy other leisure activities which they missed in pandemic. 

The pandemic caused production delays and it meant a lighter content slate for Netflix heading into 2021. Therefore, it was not a surprise that subscriber growth in 2021 was dull. But management has said that productions are largely back and running and it is expected that new hit series will bring new customers. Other positive point for Netflix is that it has rich cash flow and it spent $17 billion in cash on content.

For a streaming service company like Netflix, one data is most important above all and that is subscriber growth. It is fair to assume that Netflix can add 25 million subscribers in 2022. This is in line with the growth in recent years and hence business should end 2022 with approximately 247 million customers. If this turns out to be true stock can rise meaningfully.

What’s more, expanding profitability and positive free cash flow in 2022 will boost optimism surrounding the business. Analysts forecasts Netflix earnings to grow 23% in 2022 and even if price to earnings ratio of 55 comes down slightly stock is likely to hit $700 in 12 months. Which is why it is one of the best stocks to buy in 2022 and added in your portfolio.

Best Stocks to Buy in 2022:ChargePoint Holdings Inc (NYSE: CHPT)

Best Stocks to Buy for 2022

Last One Year Performance for ChargePoint Holdings Inc

Stock Name
Market Price (02.01.2022)
Pivot Points
(S3)
(R1)
Moving Average (50 days)
Moving Average (200 days )
RSI (14)
MACD(12,260
ADX(14)
19.05
25.97
20.93
27.90
21.53
23.27
41.64
-1.26
33.33

The US government believes that electric vehicles (EV) are the future of transport. To drive EV growth, the infrastructure law provides for a $7.5 billion investment in EV charging infrastructure. The government aims to develop 500,000 public chargers by 2030, a five-fold increase from the number of public chargers in the US right now. Despite, positive push from government, the stocks of electric vehicle charging providers fell in 2021. Leading EV charging company ChargePoint Holdings stock fell more than 50%in 2021.

50% downfall is alarming but the flip side of the story is that it rose 300% in the second half of 2020. Also, ChargePoint stock is nearly up 50% from September 24, 2020, when it first announced its intention to go public via SPAC.

Among the several challenges, electric vehicle charging companies face, attaining the profitability is top one. ChargePoint also reported a loss of $69.4 million in the third quarter, which also exceeded its revenue of $65 million. The company is focused on top line growth at the moment. The belief is that as it builds more sizable customer base, it will be able to generate more high margin recurring software revenue.

ChargePoint currently has 163,000 charging ports globally, in the third quarter, company grew its revenue by 79% year on year. Expected growth in electric vehicles and ChargePoint leading position as EV charger should support company’s growth in the coming years, but loss making operations are its key challenges. ChargePoint is trading at 52 weeks’ low and no doubt it is attractive entry point for investors and stock should not see further correction from here and that will make it suitable for long term investors with high level of risk tolerance, also making it one of the best stocks to buy in 2022.

Also read: Evgo Stock Forecast

Best Stocks to Buy in 2022: Meta Platforms Inc (NASDAQ: FB)

Best Stocks to Buy for 2022

Last One Year Performance for Meta Platforms

Stock Name
Market Price (02.01.2022)
Pivot Points
(S3)
(R1)
Moving Average (50 days EMA)
Moving Average (200 days EMA )
RSI (14)
MACD(12,260
ADX(14)
FB
336.35
333.83
303.20
345.53
335.34
327.41
51.03
2.75
14.14

Meta Platforms has gained lot of attention recently, primarily due to causes that led to name change. The company has highlighted that it will be investing aggressively to become a leader in Metaverse. The investors are split on company’s future approach. On one hand, the move to Metaverse expand its market share which could keep the revenue growing for more than a decade. On the other hand, investors are worried about the humongous resources and capital invested on Meta project which has uncertain outcomes.

Nevertheless, the company’s core social media business is experiencing robust user and revenue growth at massive scale. More than a quarter of world’s population checks in on one of Meta’s app daily and the company makes money by showing its users advertisements. What makes Meta’s user base more attractive to advertisers is that people willingly reveal information about themselves like age, marital status, which is useful to target them.

As a matter of fact, ad revenue for Meta Platforms compounded in the last decade at rate of 45.8% annually but revenue growth rate decelerated in last 4 years and that prompted the company to announce aggressive investment into building metaverse.

Meta Platforms have an excellent business and with its aggressive investments into metaverse, the potential for revenue growth long into next decade and stock is not expensive either, as it is trading at price to free cash flow of 26.5, the lower end of last five years and with excellent prospects and massive potential in the long run, it is definitely one of the best stocks to buy in 2022.    

-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.

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