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Top 20 Stocks for 2022

Top 20 Stocks for 2022

Wall Street analysts have been attempting to figure out what to expect in 2022, and their predictions are varied. Morgan Stanley has a year-end 2022 forecast of 4,400 for the S&P 500, which would represent a drop of about 9% from current levels. Wells Fargo, on the other hand, predicts that the index will surpass 5,300, implying another year of significant increases. While Charles Schwab does not have a price estimate for the S&P 500 for 2022, Sonders sees the possibility of a “strong” year, but with a moderate risk of weakening as market participants adjust to Fed policy changes. Market volatility might be front-loaded in the first half of the year, providing a better foundation for the market to improve on in the second half. Investors will also be looking at the Build Back Better Act’s possible tax reforms, which are aimed at rich individuals and companies. Because corporate profits are one of the most important indicators of market success, every change in corporation tax rates can impact the earnings outlook. In 2022, the Federal Reserve will focus on policy, inflation, and taxes.

In collaboration with Revolve Capital and Investment

Forecasts for 2022 boil down to projecting the Covid-19 pandemic’s sustained effect, especially given the late 2021 rise in cases and the uncertainty presented by the new omicron form. It has the capacity to wreak havoc on supply chains, influence global demand, and drive-up inflation. To sum up, Nepali Robinhood and Mystic trader team projects 2022 could be another rollercoaster year. Bull run can be seen during the earning months, bull and bear trap could equally prevails in the market with volatility. The fear of Omicron, FOMC interest hike and tapering will stay in the market, having said by second quarter we can have precise picture of Inflation that can direct next half of the financial market. Clean energy, vaccine, EV, metaverse stocks could be great to watch 2022. 

Details will be followed in our top 20 picks of the year 2022. This list is created by Nepali Robinhood team in collaboration with Mystic Trader group. Also, this list number is not ranking for the stock. 

Disclaimer: Investing in financial market severe risk. This is not investment advice, just a general idea for learning purpose.
1. Unity Software($U)
  • Sector: Technology
  • Industry:  Software Industry
  • Market cap: 42.664 Billion

Unity software is a platform that provides an opportunity for a user to create a 2D and 3D game. Being one of the most prestigious and well-known platforms among the game developer unity software is getting some good noise in the market. Having a feature of creating a 3D game incorporating physics. That means it is important for creating metaverse and VR game. Since market is going crazy for metaverse, Unity software will play more important role in metaverse. Looking at the popularity among developers and usability this will take over in gaming industry. Now, looking at financial analysis analyst are expecting earning of -$0.08 in upcoming earning which is year over year growth of 20%. That means company is performing well in terms of financial analysis. Therefore, Unity software will be one of pick for 2022. 

2. Lithium America Corp($LAC)
  • Sector:  Basic Materials 
  • Industry:  Mining 
  • Market cap: 3.556 Billion

One of the hottest things on the market right now is the electric vehicle (EV) in the auto industry. EV is changing the market dynamic of the auto industry. Since last year the market has been getting hot and crazy for EV. With the increase in demand for EV in the market, one of the metals that is attracting the attention is Lithium. Battery is one of the major components of EV. Lithium is used to make a battery. Since EV is revolutionizing the world and demand of EV is increasing day by day. Lithium space is gaining enormous attention for an EV battery. LAC is stepping into the market with two new projects in Argentina and Nevada. LAC will play a vital role in meeting the supply and demand ratio of lithium all over the world. With the strong financials $482 million in cash, they are ready to be one of the leading lithium mining companies in the market. 

3. Citizen Financial Group($CFG)
  • Sector:  Financial Services 
  • Industry:  Banking 
  • Market cap: 20.138 Billion

CFG is one of the oldest and biggest financial institution in the US. Having 1000 branches and around 3100 automated teller machines in 14 states, CFG is providing exceptional service to the customer. Looking at the financial statement of Citizen Financial group they have very good numbers. As of September 30, 2021, company has $187 billion of assets, 123 billion of deposits and $23 billion of shareholder equity. Looking at the company’s growth, it is steadily on uptrend growth. Loans and deposits in CFG witnessed a compound annual growth rate of 3.4% and 7.6% since last 5 years. It is expected to grow as the US economy is in full recovery mode. Having a liquidity position, CFG is in a strong position to grow via acquisition of big financial institutions. CFG has been able to acquire several institutions, including DH Capital LLC, Willamette Management associates and several East Coast branches, as well as HSBC’s national online deposit business of HSBC bank. With this acquisition it is expected to add $29 billion of deposits and $24 billion of loans. It shows that it is ready to create a strong foundation for revenue growth. Compared to the other banking it seems it is undervalued. Having price-to-cash flow and price-to-earnings ratio exceptionally good CFG is ready to blast in 2022. 

4. Citi Group($C)
  • Sector: Financial Services 
  • Industry: Banking 
  • Market cap: 119.38 Billion

Citi group is a multinational financial services corporation. It provides a range of services like consumer banking, corporate and investment banking, security, and wealth management. Based on records provided by the city group, they have around 200 million customer accounts in 160 countries. As the economy is recovering and FED is in the process of hiking interest rates and steady loan growth Citi group is expected to have phenomenal net revenue in 2022. Economic recovery and good improvement in consumer and corporate confidence is driving loan growth. Their diversification of long-term investment has been creating a diverse revenue source for a company. One thing I really like about how Citi group is expanding its business internationally. Unlike other financial institutions, it is focused on digital banking with an hope to reach and have more user base. Looking at the financial statement, as of September 30, 2021, Citi group has cash and deposits of $323.8 billion. With a best interest ratio of 6.5 and a decent cash balance, there is a lower credit risk and less chance of default interest and debt repayment if economy get worsen over time. Compared to the same industry group, this stock seems undervalued, we can expect huge price movement in 2022.

5. CrowdStrike Holdings ($CRWD)
  • Sector:  Technology
  • Industry: Software Infrastructure  
  • Market cap: 46.957 Billion

CRWD is a technology company that is solely focused on cybersecurity technology. As covid hits, working from home culture has increased. Various companies have been worried about having a high chance of a data breach. With the increase of this worries $CRWD is benefiting by bringing world class technology service to deal with various cybersecurity issues. Having a huge demand, they are diversifying to provide the solution in every platform whether it is cloud service or in house service. They have acquired several companies which are expected to increase the net revenue of the company exponentially. Looking at the past few years, its net revenue has been increased by 92% in year 2021 only. Their business model is subscription based which is creating revenue in a steady mode. To have a successful business, it is important to have a good relationship with clients. CRWD has adopted channel centric sales which gives the opportunity to have direct relationships with clients which has increased the client acquisition. Looking at the financial sheet, they great liquidity position and no debt obligation. The company has created $356.6 million of cash flow from operating activities and short-term investments and securities of $1.91 billion. Having enough cash in hand and ready to explore new opportunities, they are going to be one of the best growing companies to invest in for 2022.

6. Piedmont Lithium Inc ($PLL)
  • Sector: Basic Material 
  • Industry: Industry Material and Mining   
  • Market cap: 832.509 Million

With rise in EV, Lithium mining industry is gaining wild popularity. Being one of the major components of battery for EV demand for lithium in 2022 will be increasing exponentially. PLL is an American-based lithium mining company. As of 2021, the company has not generated any revenue yet. But PLL is gaining wild popularity among investors due to promising prospects. PLL is expected to produce 30,000 tons/ year from different locations in the US. PLL also holds a certain percentage of its stake in Abitibi lithium hub, Sayona Mining and various mining companies. That means their revenue is diversified.  Having a sustainable business model and solid growth plans is making this company noise in markets. Based on financial statement they have $81 million cash and cash equivalent on hand. This means they have a strong cash ratio of more than 10. This implies that they are ready to go above and beyond to perform in the lithium market. The stock will be a high watch in 2022. 

7. Nike ($NKE)
  • Sector: Consumer Cyclical 
  • Industry: Footwear and Accessories 
  • Market cap: 263.809 Billion 

NKE is one of the popular companies which is engaged in developing, marketing, and designing athletic footwear, accessories and equipment for all genders and for all age groups. With the increase in business and more partnerships, there is expected to be strong momentum with better results in the first quarter of 2022. NKE share price has been increasing constantly in year 2021 with the increase of people visiting the store. NKE has been working to have more connection with a customer and bringing the product to market by being customer eccentric. Looking at the financial data, the revenues of NKE have increased by 12% year over year. Being more focused on customers, this year their direct customer sales have increased by $4.7 billion, which is 28% comparing to last year. NKE has also closed 2021 with strong liquidity cash that includes short-term investment. NKE debt to capitalization ratio has been increased subsequentially compared to 2020 from .42 to .40. Also, the NKE interest rate ratio has been increased from 26.4 to 28.8. NKE has also been very vocal in proving its commitment to providing value for shareholders by providing regular dividends and repurchase share overtime to improve shareholder returns. This all-financial data suggests that NKE is strong in fundamental aspects and ready to have significant price movements in 2022. 

8. Snowflake inc ($snow)
  • Sector: Technology 
  • Industry: Software-Application
  • Market cap: 103.759 Billion

As world is evolving and technology is booming, one of the things that is making more crucial in this evolution is data. Data are so important that it has becoming key player to measure how business is doing. To overcome many problems like data storage, optimization data and providing insightful information snow is playing vital role in the market. Looking at consumer report for snowflake, it clearly shows that snow is bringing significant positive impact in the business. Also, looking at the financial data, Snow has 173% net revenue retention. Company has a uptrend growth in the net revenue, number of customer. This clearly shows that company is clear in their motto and working toward to make more efficient software to include evolving problem in data.  Having strong financial statement and creating a platform that solves the major problem in field of data it is gaining attention of investor. Therefore, it is high watch for 2022.

 9. Huntsman Corporation ($HUN)
  • Sector: Basic Materials  
  • Industry: Chemicals   
  • Market cap: 7.605 Billion

HUN is one of the largest manufacturers and supplier of chemical products for different groups of industrial and consumer customers. Their products are used in various applications like aerospace, automotive, construction and many more. One of the major products that they produce is MDI. The demand has been increasing rapidly every year as the community is focusing more toward ecofriendly products. They are also diversifying their product which has higher margins and lower volatility. They have also acquired Demlic, a leading manufacturer of SPF insulation systems, to have diverse products in the market. It is expected to have $135 million more revenue in future from this buyout. Looking at the balance sheet, they have strong liquidity position around $2 billion. HUN is focusing on and creating a strong free cash flow business model which is to be a beneficiary for shareholders. So looking at their expansion and their business model, this is on the list of stocks to watch in 2022.

10. FedEx Corporation ($FDX)
  • Sector: Industrial  
  • Industry:  Logistics
  • Market cap: 68.532 Billion

FDX is one of the biggest global leaders for providing delivery services all around the world. It operates and provides services in 220 countries. FDX has performed exceptionally well in providing service all around the globe. Looking at the financial statement, FDX has been able to beat the earnings in second quarter which is reported in Nov 30 2021. Having the strong guidance for 2022, strong demand scenario and pricing FDX is expected to outperform in 2022.  FDX liquidity position is strong. Liquidity has increased liquidity to 1.49 which is higher than the industry average. Also, their cash equivalent is way higher than their debt. That means company is the steady growth with high profitability. Also, one of the things to consider is that during the supply chain issue and covid outbreak they have increased the dividend by 65 cents to show that company value their shareholder. With strong financial statements, strong demand and its effort to reward shareholder FDX is a strong buy for 2022.

11. JD.com ($JD)
  • Sector:  Consumer Cyclical  
  • Industry: Internet retail
  • Market cap: 109.796 Billion

JD.com is one of the biggest online retail direct sales companies. It offers various products to consumers all around the world. Due to the regulatory crackdown and China stock delisting news this stock was not able to perform as well as expected in 2021. JD executives have clearly mentioned that they have fulfilled all the requirement, so investor don’t have to worry about the delisting. Amid fears of delisting and other regulatory news, JD performed well in 2021. Growth of the JD has been increased drastically in 2021. Also, the financial statement looks strong. Their total revenue has been increased by 30% in year 2021 comparing to 2020. Also, JD.com has increased the buy back stock amount from $2 billion to $ 3 billion which will basically favor the investor like us. The buyback will be completed by 2024. Also, it is expected that revenue will be increasing as the internet shopping is increasing. It is gaining investor attention with a potentially high return in 2022. That is the reason it is on our list for 2022.

12. Nio Inc ($Nio)
  • Sector: Consumer Cyclical  
  • Industry: Auto Manufacturers
  • Market cap: 53.26 Billion

Nio is one of the leading EV companies that is often called Tesla of China. Nio is creating an ecosystem by including advanced technology. Nio is focused on technology and services which is making a huge impact on the market. Strategic collaboration with Mobileye to create driverless vehicles is creating a buzz among investors.  Nio has introduced and launched a game changer system i.e., battery swap system. Recently, Nio has opened its 700th battery swap station in China. Slowly and gradually, it is increasing its presence in the world market. Recently they have published the news of expansion in Europe which will be a major game changer for EV. Also, looking at the job market for NIO, they have posted several openings in the United States. That means they are coming to the US market as well. Looking at the financial statement they have a strong balance sheet which clearly shows that Nio is increasing flexibility to tap into growth opportunities. Their revenue has been increased by 107% comparing to 2020.Their cash and cash equivalents have been increased to $3.3 billion from $2.7 billion. Current ratio is 2.04 which is higher than the industry 1.24 Also, they can deliver 109% more car in 2021. With more expansion and more factories all around the world these numbers will be changing massively in 2022. With this strong fundamental and financial statement, we can say that Nio will be the hottest stock for 2022. 

13. Tesla ($TSLA)
  • Sector: Consumer Cyclical  
  • Industry: Auto Manufacturers
  • Market cap: 1.061 Trillion 

Tesla is a game changer and leader in the EV field. Over time, Tesla has played a major role in transforming the EV market. Over the years Tesla has shifted its paradigm from developing niche product for a rich buyer to making more affordable EVs for customers. Tesla is creating a car with a strong performance and impressive design. With an exceptionally high delivery number in Q4, Tesla has beaten the expected delivery number by a wide margin. Tesla’s energy generation and strong revenue is attracting more investors with the aim of high potential growth. Tesla is expanding and developing more Gigafactory to create more products that meet the demand all around the world. Looking at the financial statement, falling debt level is a positive signal. Tesla’s long-term debt to capital ratio decreases to .20 from 0.25 which is also lower than the average of industry i.e., 0.53. That means Tesla is flexible enough to grab new opportunities. Also, their revenue has increased by 28.31% in year 2021. With strong financial statements and fundamentals, Tesla has the potential to run and create a new all-time high in 2022.

14. Hut 8 Mining Corp ($HUT)
  • Sector: Financial Service
  • Industry: Capital Markets
  • Market cap: 1.309 Billion

Hut is a cryptocurrency mining company that mines the bitcoin and Ethereum in industrial scale. With the hype of cryptocurrency going on HUT will be one of the stocks that should be in the watchlist for 2022.They are expanding their mining system to other country as well. Based on the report they have published; they have mined 256 Bitcoin in November 2021 with an average of 8.83 bitcoin per day. They currently posses 5242 bitcoin. Looking at the financial statement they do have the stellar financial statement. Their revenue has increased by 317.49%. As of September 30, they do have cash of $19 million which means they are ready for expansion and adaption of new technology for optimal mining. Having strong fundamental and financial state there will be a strong movement in stock prices of HUT in 2022. 

15. Apple Inc ($Aapl)
  • Sector:  Technology
  • Industry: Consumer Electronics
  • Market cap: 2.913 Trillion 

Apple is a multinational company that creates a consumer electronics, computers and online cloud services. It is expected that apple’s service and its wearable services are expected to have strong growth in 2022. Apple has opened its ecosystem to partnerships with various tech giants like Samsung, amazon and many more. This partnership has strengthened their service segment. The new subscription-based model for news, gaming and video streaming has been a great addition to the revenue. One of the services i.e., Apple Pay is gaining strong attention because of being contactless. The service has been a major hit during Covid. Apple Music’s paid subscribers have also increased to 6 million and are expected to increase more in 2022. Now apple if trying to enter the EV ecosystem, if this happens then it will push the price higher. Also, looking at the financial statement it has a strong balance sheet and strong cash flow. Also, they have huge dividend payout for an investor. With all new products and new services coming in 2022 apple is in a watchlist. 

16. PBF Energy Inc ($PBF)
  • Sector: Energy
  • Industry: Oil and gas
  • Market cap: 1.56 Billion

PBF is one of the largest and leading refiners of crude.  PBF provides the end products that consist of heating oil, lubricants and many other products. PBF can process around 1,050,000 barrels every day. That means it refines a higher amount than another refinery. Based on the oil refining index called Nelson Complex Index, PBF has a 12.8 score. This means that PBF can generate a lighter and better grade of refined products compared to other refiners. The company’s strategic investment in accordance to the time and situation is fantastic. During the covid surge when oil demand was less it devised the 5-hydrogen steam reformer to air products and chemical inc with $530 million in cash. Oil stocks have been hit during 2021. As demand for oil increases in the market, PBF will be a must-watch stock in 2022. 

17. Marathon Oil ($Mro)
  • Sector: Energy
  • Industry: Oil and gas
  • Market cap: 12.784Billion

Marathon Oil is an oil and natural gas exploration and production that operates in the United States and Africa. As oil and gas demand is increasing this stock will be on our watchlist with an expected move of more upside. MRO wells have extremely low-price breakeven costs and oil prices. That means to be profitable barrel can be only $35. MRO is continuously working to reduce the cost of operations. MRO has projected that their earning will be increased by 71.6% in 2022. With strong momentum in stock, strong guidance for the company for 2022 and high demand for oil in the market, MRO will be on the watchlist. 

18. Teladoc Health Inc ($Tdoc)
  • Sector: HealthCare
  • Industry: Health Information System
  • Market cap: 14.7 Billion

Teladoc is a healthcare company which provide virtual access to healthcare for 24 hrs. a day and 365 days a year. Basically, it provides service on B2B (Business to business) model. As the rise of Covid, service provided by Teledoc has been increased. It has become one of largest telehealth company. Teladoc has a huge demand in the market. To meet this demand, it been acquiring company like Healthiest you better help, consult a doctor and Ameridoc. Acquisition of these company clearly shows that company is growing rapidly.  It is expanding globally as well by acquiring Best Doctor Medical and MedecinDirect. It is forecasted that compound annual growth rate of Teledoc has been increased by 16.9%. Looking at the financial statement, its revenue has been increased by 81% year over as patient visit rose to 31% in Teladoc platform. Also, CVS health’s Atnet will be using Teladoc platform. It will give a huge boost to the Teladoc. As well Omicron virus fear is increasing Teladoc will be major platform for the public to get medical help.  Having strong fundamental and financial state, Teladoc is on watchlist for 2022. 

19. Crown Castle International Corp ($CCI)
  • Sector: Real estate
  • Industry: REIT
  • Market cap: 90.218 Billion

CCI is a real estate investment trust and a provider of shared communication infrastructure in the United States. CCI has been growing rapidly. The company has been partnering with various media companies like Version to expand the 5G service in the USA. CCI to lease tower to top carrier’s long term. This means they have continuous cash flow and recurring revenue.  Due to the increased use of mobile data rather than cabled internet, CCI is investing more in fiber and small cells so that they enhance their network density. Also, looking at the financial sheet, they do have a strong balance sheet. Their revenue is increasing at a constant rate over time. They also do provide solid dividend payouts. Basically, they do provide dividends in a range of 7-11% each year. CCI is investing their money and time to bring new innovative technology into the network. Having a strong fundamental background, this stock can make a significant move in 2022.

20. Gore Guggenheim Inc ($GGPI)
  • Sector: Financial Services 
  • Industry: Shell Company
  • Market cap: 1.17 billion

GGPI is a blank check company. It is a spac created for a planned merger to take an EV company called Polestar public. It is backed by Volvo and by Geely. Polestar has started a full production activity with the aim of operating in 30 countries by 2023. It is planning to sell 290,000 vehicles by 2025. As the craze for EV continues, GGPI will also be riding the tide of EV craziness that could become one of the hottest stocks on the market in 2022. Polestar is making good progress in global expansion which can result and push the stock prices higher. After the merger completion, we will see a huge rally on GGPI. 

These are the detailed fundamental analysis for the top 20 picks that we will be watching closely. We will be doing in depth technical analysis on these stock in upcoming future and will be posting an update how it is doing over a period. 
Let’s, have a great trading year. 

*Disclaimer: Investing in financial market severe risk. This is not investment advice, just a general idea for learning purpose.