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Investment Opportunities

The Best Stocks for 2022

Believe it or not, 2022 is fast approaching. As we look to the year that lies ahead, you might be thinking about what the best stocks for 2022 are. After all, whether it’s due to the COVID-19 pandemic or some other reason, many of us are ready for a fresh start.

Whether you are new to investing or simply looking to start 2022 on the right foot, here are the best stocks for 2022:

  • Uber Technologies, Inc. (NYSE: UBER)
  • The Walt Disney Company (NYSE: DIS)
  • Public Storage (NYSE: PSA)
  • CVS Health Corporation (NYSE: CVS)
  • Starbucks Corporation (Nasdaq: SBUX)

Chances are high that you know all of these names. The reason for this is, as mentioned, to start 2022 on the right foot. In addition, these companies are doing well recently in spite of the pandemic. Hence, you should consider adding them to your portfolio in 2022 for consistent and reliable growth.

If you decide to add others that may have more upside, that is of course your choice, but these can be considered your anchor. Let’s take a closer look at each of them.

The best stocks for 2022.

Best Stocks for 2022

No. 5 Uber Technologies, Inc.

Uber is one of the businesses that seemingly had an uncertain future early in the pandemic. No one was going anywhere, and we were so unsure about how the virus even worked that we didn’t want to be in the same car as a stranger.

Today, Uber requires everyone in the vehicle to wear face coverings. If the weather is warm, the car windows can even be rolled down for extra ventilation. In other words, Uber rides are not nearly as scary as they were a year ago, and we have a good idea of how to stay safe. Tourism is even beginning to resume to a degree.

Uber stock didn’t decline nearly as much as some stocks did in March 2020, and analyst projections have this stock being “driven” up significantly over the next 12 months.

No. 4 The Walt Disney Company

There was a time in 2020 when things looked grim for Walt Disney, as they did for many businesses. Disney World was closed for four months, and closures spanned across the globe. However, the theme park that has become a media giant had more than a few tricks up its sleeve. It helped that it just happened to launch Disney+ in November 2019, mere months before the pandemic hit the United States. Disney+ has been a massive success, propelled by shows like The Mandalorian and Loki.

As Disney has acquired the rights to many media companies, it has an expansive library under its belt. Now, Disney parks are reopened, and 2022 looks to be an excellent year for the company. DIS shares have nearly doubled since March 2020 and with Disney’s current position, they should only continue to rise in the year ahead, making it one of the best stocks for 2022. 

No. 3 Public Storage

If you have ever moved or been in a temporary living situation, you may have used Public Storage or a similar service. After all, Public Storage is the largest self-storage company in the U.S. with over 2,400 locations. It is organized as a REIT, meaning it is also an easy way to invest in real estate. Public Storage is a highly profitable business which is why it’s a great addition to your best stocks for 2022 portfolio.

Just how profitable is Public Storage? In Q3 2021 it posted a nearly 53% profit margin. In each of the past four quarters, its profit margin has been around 50%. Q3 2021 was particularly strong for Public Storage as it posted year-over-year (YOY) gains across the board. Its revenue was nearly $1 billion for Q3 along and its net income was $490 million.

Best Stocks for 2022 No. 2 CVS Health Corporation

CVS is one of the largest convenience and drugstore chains in America, and that makes it an excellent stock to hold in any portfolio. The company merged with Aetna back in 2018, and CVS has become an integral part of our healthcare system ever since. Now, with COVID-19 shots, flu shots and prescription medication, it’s hard to imagine a world without CVS anytime soon.

CVS shares have been climbing steadily; just since February 2021, its price has increased from under $70 to just over $100, a greater than 40% increase in under a year. It also pays a 2.19% dividend and has an EPS of 5.73. CVS’s margins are notably slimmer; in each of the past four quarters, its net profit has been in the range of 1.4% to 3.8%. Still, it posted gains across the board in Q3 2021 with a net income of $1.6 billion and nearly $10 billion cash on hand. This is a great addition to your list of best stocks for 2022. 

Best Stocks for 2022 No. 1 Starbucks Corporation

Coffee? Yes please: that’s what Americans are saying once again to Starbucks. The coffee chain is still the biggest in the U.S., claiming more locations than Dunkin’ (though still slightly behind McDonald’s). However, Starbucks has big expansion plans. Even though it already has over 30,000 stores globally, it plans to expand that number to 55,000 stores by 2050. That expansion plan said it would add 1,100 stores in 2021.

Granted, shares of SBUX do appear to be somewhat overvalued at the moment. It does have a relatively high P/E ratio of 30.72. However, it does net you a dividend of a little better than 2%, and Starbucks has been posting huge gains as of late. For instance, its Q3 2021 net income was up YOY by nearly 350% for a total of $1.76 billion. It posted a 21.66% profit which was up 242% YoY, and its operating income was $1.46 billion, up 102% YOY.


About

Bob Haegele is a personal finance writer who specializes in investing and planning for retirement. His hefty student loan burden inspired him to pay off his loans, and now he’s helping others get their finances in order. When he’s not writing, he enjoys travel and live music.

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