Stocks to Buy in 2022: The S&P 500 is down 24% year to date, but some stocks have defied gravity. We’ve taken a look at the top performing stocks from January 2022 and now. Energy has been a huge winner for investors this year. Oil prices hit a record high of over $130 per barrel in March, locking in fat profits for many energy companies.
Goldman Sachs is currently trading at a discount to its all-time high, but that doesn’t mean that you can’t invest in the stock now. It’s trading at a fair valuation today, just 7.2x trailing 12-month earnings, and just above book value. That’s considered a defensive valuation in today’s market, but Goldman Sachs’ growth potential still makes it one of the best stocks to invest in.
The stock market has experienced volatile volatility in recent years, and investors are acutely aware of this reality. The S&P 500, which tracks the 500 most successful companies in the United States, has fallen by over twenty percent year-to-date. Similarly, the Nasdaq Composite has tumbled more than thirty percent. However, this is no time to sell Goldman Sachs, which is one of the top 10 stocks to buy in 2022.
Despite recent volatility, Goldman Sachs trades at an attractive valuation and offers a 3.1% dividend. It also has several under-appreciated tailwinds, including the growth of its consumer banking division. While Goldman Sachs is known for its investment banking business, it has been growing a strong consumer banking division with savings accounts, credit cards, and a robo-advisory platform.
Goldman Sachs’ top pick for 2022 is Amazon (AMZN). Others on the list include Uber, Lyft, Snap, and Facebook. One analyst at Morningstar, Dan Romanoff, likes Amazon and assigns it a fair value of $4100, which is up from the recent $371 low.
Goldman’s strategists note that value stocks outperform growth stocks during periods of high inflation. While inflation is expected to remain elevated through the end of the year, Goldman believes that value stocks are still better than growth stocks. Moreover, they point out that during recessions, value stocks tend to outperform growth stocks.
Etsy’s stock has a high P/E ratio, which means that investors believe in its potential. However, investors need to remember that this company is not a non-profit. Its marketplace attracted gross merchandising sales of $2.8bn in Q1 2022. While this was a slight decline from Q1 2021, it was still up 177% year-over-year. Its stock is currently trading at 5.9 times its sales.
However, Etsy’s top line growth for FY 2022 is expected to slow. While this is a slower rate than in the past, it will be positive nonetheless. This could serve as a re-rating catalyst for Etsy’s stock.
As a company that specializes in handmade goods, Etsy has a strong business model and growing buyer base. The company’s growth has led to double-digit merchandise sales growth and high buyer retention. The company has also expanded its product offerings.
However, Etsy’s stock price is now down 70% from its peak in 2021. While it is not yet a game-changer, the company’s stock has been overhyped in the last few years. Its stock price has fallen from dozens of times its forward earnings to a reasonable P/E ratio of 28. In the past few months, Etsy’s stock price has fallen due to the economic situation.
Although Etsy’s growth has been slow since the pandemic, the company is now experiencing a normalized trend. Its Q421 results were better than expected and revenue increased 16.2% to $717 million. Its EPS increased 2.8% to $1.11. The company also forecasted Q122 revenue of $565 million-$590 million, which beat analysts’ expectations of $630 million.
GXO Logistics (NASDAQ:GXO) is a logistics company that specializes in reverse logistics. This means that it takes product back and resells it. This business is growing rapidly, primarily thanks to e-commerce. As more customers buy products online, product returns are increasing. Most customers have trouble managing these returns, but GXO makes the process easier. The company resells up to 96% of the products it receives back.
This company is well-prepared for a recession and will try to take advantage of it to get market share. Nearly 40% of its contracts are cost-plus, which protects its profit margins and helps to insulate it from inflationary pressure. Another factor that protects its margins is that it sets minimum volume requirements in most of its contracts. It also uses take-or-pay clauses to make sure customers ship the volume they have contracted with it.
The current economic environment is not as stable as it was in the past. The Federal Reserve has recently announced that it will raise interest rates. This has shifted investor sentiment. As interest rates rise, less profitable companies will have a harder time producing cash flow. The best stocks to buy in 2022 will be those that have enough pricing power to survive the inflationary environment.
If you are looking for a stock to buy in 2022, GXO Logistics is one of the best options to consider. Its EBITA is currently at $155 million, which is higher than its pro forma adjusted EBITDA. It also generates cash flow from operations of $47 million and uses about $16 million of free cash flow in the first quarter of 2022.
While higher interest rates will hurt many tech stocks in the next several years, Salesforce has secular tailwinds that will help it weather the storm. Because of its growth potential, it is one of the top stocks to buy in 2022. However, it may not be a good time to buy Salesforce at current levels, as the company has been struggling to meet analyst expectations.
If you’re considering buying shares of Salesforce stock, you need to open an account with an online broker. This process is typically digital, though some brokers have background checks or require you to meet certain qualifications. You’ll also need to deposit cash with your broker. The most common deposit methods include a credit or debit card, but some brokers accept electronic wallets.
CRM has a strong track record of beating earnings estimates. In the first quarter of fiscal 2019, the company increased its revenue by 26.0% year over year, but its guidance was weaker than analysts expected. Last quarter, the company raised its earnings guidance by a mere 2%, which is not bad at all, but Salesforce’s results weren’t particularly exciting. This could be a good time to buy Salesforce stock if you’re looking for a long-term investment.
The stock market is a volatile place to invest. Some short-term investors may choose to stick with defensive stocks. These companies have already proven themselves resilient in the face of rising interest rates and the looming recession. Others may view this volatility as an opportunity to buy growth stocks. Today’s prices may represent a good entry point into these high-growth companies.
However, investors should be aware of the volatility of Wall Street in 2022. The S&P 500 index, which tracks the 500 most prolific companies in the U.S., has fallen significantly since the fourth quarter of 2022. The Nasdaq Composite index has fallen more than 35 percent this year. It’s also hard to predict the next year’s economic growth. This means that investors should stay vigilant about analysts’ performance records.
According to a recent JPMorgan survey, 69% of buy-side investors believe Amazon will outperform the market in 2022. The stock is also favored by hedge fund managers and long-only funds. The sell-side also has a positive view of Amazon.
While the bear market is still looming over the stock market, investors can still find great opportunities. Some of these stocks will be household names, while others will be relatively unknown. However, all are well-positioned to take advantage of the recovery that is expected to occur during the second half of the year.
The company is also a leader in cloud computing, which is set to grow at a 16% CAGR through 2026. Cloud-based computing solutions provide significant benefits to organizations, including lower costs and greater flexibility. Moreover, these services also enable companies to increase their productivity.
Amazon is also positioned to benefit from the growth of the e-commerce market. Its advertising business is also expected to benefit from this growth. Its advertising platform is highly popular with merchants looking to reach Amazon’s huge user base. Aside from its advertising platform, Amazon also offers a comprehensive range of seller services.
Amazon is currently trading at a discount to its large cap peers. The stock is trading at a low EV/Sales ratio and low EV/EBITDA ratio. These are just a few of the reasons for investors to consider the stock in 2022.
Amazon isn’t alone in bucking the bearish market. Several IPOs that went public in the previous year have struggled to make it to the market. For example, all birds is an eco-friendly manufacturer of casual and athletic shoes. It uses plant-based materials and wool for its manufacturing processes. Moreover, it has developed a carbon-negative foam in its soles. This will reduce carbon dioxide in the atmosphere.