Stocks Best Share to Buy: The best shares to buy today are likely to be different from those to buy in 2022. Wall Street investors are facing new challenges this year. The effects of the stimulus plan are starting to bite, and more inflation is on the way than the Fed is willing to accept. However, there are still some stocks that should be on your radar.
The latest upgrade to Itochu Corporation’s stock has the company earning a Zack Rank #2. This means it is in the top 20% of all Zack-covered stocks. Investors can expect the company’s stock to move higher in the coming years, and we believe it will be one of the best shares to buy in 2022.
Itochu’s dividend policy also looks attractive in 2022. The company will increase its dividend to Y=130 per share in FY 2023, from the current 110 yen. While the company’s resource-based business profit will fall by 4% next year, non-resource business profit will increase by 5.6%. Meanwhile, core profits will rise by 2.9%. This will bring core profits up to 750 billion yen by FY 2023.
The company has a low debt to equity ratio compared to its peers. And it has the lowest net debt per share among its peers. This has helped it improve its balance sheet. With a relatively weak yen, Itochu shares have underperformed recently, but they deserve a premium. The company’s low debt, high return on equity, and low exposure to commodities give Itochu shares a premium valuation. However, continued weakness of the yen and an economic downturn could pressure the stock. Despite the downside, the company’s high concentration in non-cyclical businesses should make it a good buy in 2022.
A rising trend in earnings estimates is also supportive of Itochu Corporation. This suggests a better future for the company, and should push the stock price higher. In fact, empirical studies have shown that the upward trend of earnings estimates is correlated with the near-term movement of the stock.
ITOCHU Corporation is a Japanese company with global operations. Its business is divided into seven segments. Its textile segment expands globally through textile raw materials, yarn, and textiles. The machinery segment involves in environmental projects, infrastructure development, and steel product processing. Its energy & chemicals segment focuses on the trading of energy products. Finally, the food segment produces raw materials and distributes food products.
Crowd Strike is a cloud-delivered cybersecurity company that provides protection against malware. It also offers threat intelligence, managed security services, IT operations management, and zero-trust identity protection. It sells subscriptions to its Falcon platform and cloud modules via direct sales teams and its network of channel partners.
Crowd Strike has consistently delivered exceptional growth despite a tough environment. Its product portfolio continues to expand, with new offerings in cloud and identify. It generated record ARR in the last quarter. This growth is consistent with management’s target of reaching $5B in revenue by FY26. However, its high valuation and tumultuous macro-environment mean that its multiple may be cut by half or more. Therefore, investors are advised to consider a long-term view when investing in Crowd Strike.
While most software companies have struggled with slowing growth, Crowd Strike has been enjoying phenomenal growth. Its cloud-native security platform has helped it gain meaningful market share in the security industry. Moreover, its revenue growth accelerated by 68% compared to its industry peers.
The company also uses machine learning and artificial intelligence to detect malware on devices connected to corporate networks. Its XDR technology, which stands for extended detection and response, detects malware on endpoints, web/email gateways, web application firewalls, and cloud business workloads. This technology will help security companies protect their data from cyberattacks.
As a result, Crowd Strike has a high DBNR, meaning that its customers are more likely to stick with it. The company also has a healthy cash position. As long as its strategy continues, Crowd Strike is likely to remain a top share in 2022.
Cybersecurity is one of the top concerns in the world today. In addition, the enterprise environment is ripe for cybersecurity companies. The Biden Administration recently announced that enterprises must set minimum standards for infrastructure firms to meet certain standards. This could boost Crowd Strike’s growth prospects.
Cybercrime is a global threat, costing billions of dollars annually. As more people work remotely, the need for endpoint security increases. As a result, Crowd Strike provides endpoint security solutions. This company has an impressive history of earnings growth and continues to hire a record number of people.
In our recent review of the best shares to buy in 2022, we noted that GXO is the best investment opportunity for a variety of reasons. First, it’s a growing business that generates over three-quarters of its revenue outside of the US. The company recently reported its 2Q22 results and surpassed expectations. The company is profitable, but its revenue was hampered by currency headwinds. This means that if rates rise, investors will need an investment that can grow even higher.
In a rising rate environment, GXO Logistics is a defensive stock that also benefits from the secular tailwind of e-commerce. The logistics company offers a unique opportunity to buy into this sector without taking on the risks of individual companies. In addition, its shares remain undervalued, making it a great long-term investment.
Institutional investors own more than half of GXO Logistics’ stock. Hedge funds are not significant shareholders in the company. The largest shareholder, Orbis Investment Management Limited, holds 9.3% of the stock. Other notable shareholders include BlackRock, Inc., and Vanguard Group, Inc.
Despite its mature industry, GXO is delivering impressive growth. Its second quarter results saw organic revenue increase 20% to $2.2 billion, and adjusted earnings of $176 million. In the years ahead, the company expects to grow both organically and through acquisitions. It has a competitive advantage in technology and automation. It also boasts warehouses in Dallas-Fort Worth.
The company has both defensive and offensive capabilities, which make it a great stock to buy now and hold for decades. The company’s defensive nature means it has less downside in a rising rate environment. Additionally, the company’s long-term growth thesis makes it one of the best shares to buy in 2022.
The company has reported adjusted EBITDA 1 of $155 million for its first quarter of 2021, and pro forma adjusted EBITA of $144 million. The company also generated $47 million in cash flow from operations. As of August 2, 2021, GXO will become a public standalone company.