If you want to know what some of the best stocks to buy right now are, you’ve come to the right place!
The pandemic triggered significant shifts in consumer, business, and economic trends not seen in decades, leading to a record-breaking stock market rally that could continue into 2022.
Read on to learn about the best stocks to buy in NZ, UK, US, Europe and Asia and how to invest in them with low commissions!
Which stocks to buy? Look at the global markets
Below is a quickfire list of some of the best stocks to buy in 2022. These cover a wide range of different topics and sectors such as airlines, digital payments companies, car companies and more, as well as different regions e.g. B. Best stocks to buy in NZ, UK, US, Europe and Asia!
Of course, this list isn’t exhaustive, and it’s worth remembering that stock prices rise and fall all the time. Be sure to manage your risk well and only invest what you can afford to lose.
The list of top stocks are stocks that have caught the attention of analysts and larger institutional managers. The list serves as a good starting point to build on, using your own research or the premium analysis tools in the Admirals Client Portal.
So let’s take a look at the list before we dive deeper into why we think these stocks are some of the best stocks to invest in in 2022:
- Volkswagen (VOW3) – A European value play likely to benefit from electro-mobility
- LVMH (MC) – A luxury fashion stock with a solid supply chain
- PayPal (PYPL) – An undervalued digital payments giant
- Disney (DIS) – A media giant that could benefit from the streaming boom
- Alibaba (BABA) – An undervalued e-commerce giant
In the next few paragraphs, we’ll delve a little deeper into each of these companies and see why they’re worth making the list of top stocks to buy right now.
The importance of analysis in stocks
Before we dive into what could be the best stocks of 2022 in the next section, let’s first explain what analytical basis these decisions should be based on:
- Fundamental analysis: This involves analyzing a company with a view to its financial condition. This includes metrics such as sales figures, profit forecasts, borrowing, new product releases, the economic environment and much more.
- Technical analysis: The quality of a company’s stock is evaluated using historical data in the price chart. Chart patterns and trading indicators can provide clues as to whether the buyers or sellers are dominating the market and predict potential reversal points in stock prices.
- Sector Analysis: In order to diversify your portfolio, you should invest in different sectors. This requires looking at companies from the banking, energy, consumer staples, finance, retail and more sectors.
Best Stocks 2022 #1: Volkswagen (VOW3)
At first glance, a stock like Volkswagen may not be the most exciting. However, the company is actively involved in one of the currently most exciting sectors – electro-mobility.
By 2025, Volkswagen wants to use 20 percent of its production volume for electric vehicles and plans to launch 70 different models and 60 battery factories by 2030.
There are a much higher number of buy ratings for the stock from analysts polled by MarketBeat compared to the same point last year. The highest 12-month price target is NZD $507.91, which represents clear upside potential from the stock’s recent decline.
Best Stocks 2022 #2: LVMH (MC)
Luxury fashion houses have done very well during the pandemic. Supply chain issues have not only pushed up the prices of their goods, but higher wage growth in developed countries has fueled a surge in luxury fashion purchases.
In the first three quarters of 2021, LVMH reported revenue growth of 46%. The company also acquired one of the most well-known jewelry brands in the world, Tiffany & Co.
With consumer appetites likely to increase in the wake of the pandemic, LVMH is a stock that could benefit even more.
Best Stocks 2022 #3: PayPal (PYPL)
PayPal was once predicted to be the next trillion dollar stock amid a surge in digital payments around the world. However, there’s a lot more competition in the industry now, leading to an investment bank issuing a sell rating on the stock, causing PayPal’s stock price to drop by 40%.
However, the strength of the decline — unexpected by most analysts — has now resulted in a flood of buy ratings for the stock. Analysts point out that the earnings report for the third quarter of 2021 showed an increase in the two most important metrics for a technology company – user engagement and user growth.
Total payment volume increased, as did the merchant base. What excites investors the most is PayPal’s new ventures, including its collaboration with Amazon, its entry into the buy-now-pay-later market, and its cryptocurrency offering.
Best Stocks 2022 #4: Disney (DIS)
Disney is a company that needs no introduction. It has come a long way since its inception in 1923, with subsidiaries including well-known names such as Pixar, Marvel, Hulu, 20th Century Studios, Lucasfilm and its Disney Parks and Experiences division.
But what excites most investors is the company’s entry into online streaming with the Disney+ service. While the industry is filled with other streaming giants like Netflix and Apple TV+, analysts remain bullish on Disney’s plans because of its content library.
Disney+ currently has over 118.1 million subscribers. Netflix has around 214 million subscribers but has been active since 1997. Disney+ only launched in late 2019. It’s likely that the company is on track to reach its long-term goal of 260 million subscribers.
Best Stocks 2022 #5: Alibaba (BABA)
Alibaba is considered the Amazon of China. The company has a huge e-commerce platform and a rapidly growing cloud computing platform. However, the stock experienced a 60% drop from its record high in October 2020 to lows in December 2021.
From a valuation perspective, the stock is considered cheap. It’s still a profitable business, with sales growing year over year (although it’s slowed over the last year).
Some analysts are wondering whether the Chinese government will allow tech companies to continue growing. However, despite these risks, analysts are pointing out the potential risk-reward scenario at the current price level.
Why buy stocks in 2022?
2021 saw some major divergences between global equity markets. At the end of the year, the US stock market was trading near record highs, while the European and Asian stock markets lagged.
As the coronavirus pandemic rattled global markets, many analysts are predicting the “Great Reset” will happen. As central banks around the world continue to support economies by providing cheap credit, that money is expected to flow back into stock markets.
Eventually, however, central banks will begin to withdraw support, as the Fed has already announced. Because of this, finding the best stocks to buy now requires a deeper analysis of company fundamentals and price-earnings growth.
Some of the core topics to focus on when finding the best stocks to buy in 2022 are:
- Hot sectors such as electric vehicles, cyber security and digital payment
- Companies with strong pricing power that can ward off the threat of inflation, such as Disney or Procter & Gamble (PG)
- Renewable energy stocks will also be in focus as governments switch to cleaner energy sources
In each of these situations, there are specific businesses that will benefit. While no one can ever predict with 100% certainty which stocks will and won’t perform best, understanding the big picture can help give you an edge.