10 Best Stocks for 2022: What’s on Tap for Wall Street This Year?

Best Stocks - 10 Best Stocks for 2022: What’s on Tap for Wall Street This Year?

Source: InvestorPlace

Editor’s note: This article is part of InvestorPlace.com’s Best Stocks for 2022 contest.

In 2021, investors were introduced to new terms, themes and trends that seem to have changed the market forever. From the surge in cryptocurrencies and non-fungible tokens (NFTs) to the rise of meme stocks and investing plays on the housing market, it was an interesting year overall. And all of this occurred while the novel coronavirus continued to cause havoc both on and off Wall Street.

The first few weeks of 2022, however, have been rather different. Poor crypto performance, inflation fears and the uncertainty of the pandemic are all affecting market sentiment. Specifically, the three major indices — the S&P 500, Dow Jones Industrial Average and Nasdaq Composite — are down from their highs, with the Nasdaq down nearly 13% year-to-date (YTD).

While this may be true, many investors view this period as a buying opportunity. And with a new year underway, it’s time to take a closer look at your portfolio.

Additionally, the start of a new year also means the return of InvestorPlace.com’s Best Stocks contest. For 2022, we’ve rounded up the top nine picks from our contributors and one chosen by you, the readers.

So, without further ado, here are the 10 best stocks for 2022:

  • Abbvie (NYSE:ABBV)
  • Arhaus (NASDAQ:ARHS)
  • Arianne Phosphate (OTCMKTS:DRRSF)
  • Bristol-Myers Squibb (NYSE:BMY)
  • EPR Properties (NYSE:EPR)
  • Kulicke and Soffa Industries (NASDAQ:KLIC)
  • Nvidia (NASDAQ:NVDA)
  • POSaBit Systems Corp. (OTCMKTS:POSAF)
  • Roku (NASDAQ:ROKU)
  • Sonic Automotives (NYSE:SAH)

Now, let’s dive in and take a closer look at each one.

Best Stocks for 2022: Abbvie (ABBV)

abbvie (ABBV) website and logo on mobile phone

Source: Piotr Swat / Shutterstock.com

Investor: Bob Ciura

When it comes to investing, the stock market has plenty of options for every investor. For example, it is possible to find a stock that can offer both dividends and growth — and that’s what we have with ABBV stock.

Abbvie has seen major growth over the past decade. In fact, according to the company, it generated annual revenue and adjusted earnings per share (EPS) growth of 13.5% and 18.8%, respectively, between 2013-2020. Outside of these figures, Abbvie has also invested in its growth through its research and development (R&D) department and recent acquisitions.

Additionally, in terms of dividends, AbbVie has increased its dividend for more than 40 consecutive years. As a result, it is considered a Dividend Aristocrat.

Furthermore, for 2022, AbbVie announced a 2022 dividend increase of 8.5%. In turn, ABBV stock boasts a forward annualized dividend payout of $5.64 per share — good enough for a yield of 4.3%. In comparison, the average yield of the S&P 500 index is around 1.4%.

With all of that in mind, AbbVie has “all the makings of a high-dividend stock that also offers growth at a reasonable valuation.” And that is one of the reasons why it’s one of the best stocks to buy for 2022.

Click here to read more about ABBV stock.

Arhaus (ARHS)

A staged room with a blue chair in focus.

Source: Shutterstock

Investor: Luke Lango

Like many stocks in the current market environment, Arhaus is having a rough start to 2022 — down nearly 30% in just the first three weeks. Nonetheless, the “Restoration Hardware (NYSE:RH) for millennials” still has plenty going for it and could really take off.

Much like RH and other premium furniture retailers, the company sells a variety of high-end couches, tables, chairs, and more through its many showrooms across the United States. However, what makes Arhaus different from its competitors is its digital marketing strategy. Aside from its Instagram presence growing significantly over the past few years, Arhaus also taps influencers to market and sell its products.

Moreover, the housing market continues to be hot with high demand and low inventory. More specifically, homes are being sold at a rate not seen in two decades. And what do new homeowners need for their major purchase? New furniture.

In turn, InvestorPlace’s Luke Lango believes this trend will continue and that the premium furniture market will witness outsized growth. This is “mostly because the backbone of the housing market — millennials — is a generation of consumers who, thanks to social media, are obsessed with status.” In turn, many of these homebuyers buying high-end furniture.

Additionally, as Lango also pointed out, “Arhaus has ‘next RH’ written all over it.” And despite some recent struggles to begin the year, ARHS could take off in a hurry — making it one of the best stocks for 2022.

Click here to read more about ARHS stock.

Best Stocks for 2022: Arianne Phosphate (DRRSF)

construction workers point at mining equipment in the near distance

Source: Shutterstock

Investors: Joanna Makris

Now, we have reached our first of two penny stocks in the InvestorPlace.com Best Stocks for 2021 contest.

Trading at less than 50 cents at the moment, you may not be completely aware of Arianne Phosphate and DRRSF stock. As analyst Joanna Makris describes the firm, “Arianne is focused on phosphate mining at its Lac à Paul greenfield project in Quebec. The company manages one of the largest phosphate reserves in Canada, estimated at 590 tons.”

Why is phosphate so important, though? Well, it is vital to the production of two major products: fertilizer and electric vehicle (EV) batteries. With both of these sectors growing at a rapid pace now and over the next few years, phosphate will continue to be a vital commodity across the world.

That said, with global supply issues and geopolitical concerns, phosphate definitely has its fair share of questions at the moment. However, despite these issues, the opportunity this company presents in the industries it focuses on is massive.

Thus, at the low price DRRSF stock is trading at, it represents one of the best stocks for investors to keep their eye on moving forward.

Click here to read more about DRRSF stock.

Bristol-Myers Squibb (BMY)

Bristol-Myers (BMY) logo at the top of a cellphone.

Source: Piotr Swat / Shutterstock.com

Investor: Ben Reynolds of Sure Dividend

If you’re looking for one of the most well-known names on Wall Street, Bristol-Myers Squibb is just that. After falling off a bit in the back half of 2021, BMY stock is mostly flat so far in 2022.

As Sure Dividend contributor Ben Reynolds addressed, one of the first aspects that sticks out for the stock is its low valuation. And at its current price, BMY stock dividend yield sits at 3.3% — more than double the S&P 500 average of 1.4%. Additionally, management issued guidance for adjusted EPS of between $7.40 and $7.55 for fiscal year 2021.

Therefore, it’s clear that Bristol-Myers Squibb stock is inexpensive relative to its earnings power and dividends. Of course, the firm’s growth potential in terms of revenue presents some questions. However, “Bristol-Myers Squibb should be able to compound its adjusted [EPS] at somewhere between 3% and 8% per year.” And with the potential growth at this end of the firm, BMY stock is very undervalued at this point — making it one of the best stocks for 2022.

Click here to read more about BMY stock.

Best Stocks for 2022: EPR Properties (EPR)

a wooden house shape holds 3 bags of cash representing reits to buy

Source: Shutterstock

Investor: Charles Sizemore

Earlier, I touched on the impact that Covid-19 continues to have not only on Wall Street but also on Main Street. Of course, the massive outbreak across the world has been treacherous for millions for nearly two years now. However, while the pandemic’s ramifications for the stock market are also not always good, buying opportunities for investors remain prominent across the board. And EPD stock is a prime example of that.

EPR Properties is a real estate investment trust (REIT) with a niche portfolio focused on experiences and entertainment. (EPR is actually short for “entertainment properties.”). Moreover, as InvestorPlace.com contributor Charles Sizemore points out, “95% of the portfolio is invested in entertainment and experiences with the remaining 5% invested in private schools and early childhood education.”

More specifically, movie theaters are the REIT’s largest allocation — accounting for about 44% of revenues. Next to that, EPR’s biggest allocation is 28% to “eat and play” properties, such as Top Golf driving ranges, with much of the rest of the portfolio allocated to ski and amusement park properties. That said, all of these businesses were hit hard by the pandemic. As I said earlier, though, this type of dip provides a great buying opportunity — and EPR Properties is a perfect play on this situation.

Thus, with the current market environment, and the addition of a solid dividend, investors should keep a close eye on EPR stock. With pent-up demand continuing to slowly return to the world amid new strains of the coronavirus popping up, it could be another one of the best stocks of the year and beyond.

Click here to read more about EPR stock.

Kulicke and Soffa (KLIC)

Close-up electronic circuit board. technology style concept. representing semiconductor stocks

Source: Shutterstock

Investor: Louis Navellier

Like many other sectors, semiconductor stocks have struggled mightily at the beginning of 2022. And Singapore-based firm Kulicke and Soffa is no different, with KLIC stock down more than 11% YTD.

Kuicke and Soffa specializes in the equipment and tools needed to manufacture chips and assemble semiconductor devices. According to its website, the company is the “leading provider of semiconductor packaging and electronic assembly solutions supporting the global automotive, consumer, communications, computing, and industrial segments.” However, chips and chip technology are not why InvestorPlace.com analyst Louis Navellier is so bullish on the KLIC stock.

Instead, Navellier is extremely high on Kulicke and Soffa’s mini and micro LED technology that is used in many television and computer displays across the world. But while the new display panels are going to soar in popularity, they are a challenge to manufacture. Mini LEDs are tiny; micro LEDs are worse. In turn, Kulicke and Soffa sells a system called Luminex. It is a laser-based die transfer system designed for mini and micro LEDs, and display manufacturers use Luminex as part of their assembly process.

Overall, when you look at what’s happening with mini LED display technology and what is going to be happening with micro LED, you’ll understand KLIC stock is one of the best stocks for 2022.

Click here to read more about KLIC stock.

Best Stocks for 2022: Nvidia (NVDA)

Nvidia (NVDA) logo on the indoor wall of a corporate building made of yellow tiles

Source: JHVEPhoto / Shutterstock.com

Investor: Reader’s Choice

Here we are: your pick for the InvestorPlace.com Best Stocks for 2022 contest.

Nvidia likely needs no introduction. The semiconductor company is one of the most well-known names not just in its sector, but across Wall Street. NVDA stock enjoyed an excellent year in 2021, rising 125%. That’s in spite of the chip shortage (expected to extend until early 2023) and supply chain disruptions (maybe slowing down this year) that have slowed down seemingly every business.

Nonetheless, like many stocks over the first few weeks of 2022, Nvidia has struggled. YTD, NVDA stock is down nearly 25%. That said, Nvidia still has plenty of catalysts in the pipeline that eventually will come back to like (along with NVDA stock) when chip shortage and supply chain issues ease over time.

Of course, I’m not saying that NVDA stock will have a repeat performance of 2021 in 2022. But with more tailwinds coming and the need for the chips showing no signs of slowing down, Nvidia is in a prime position to capitalize again when the time comes. Therefore, investors should continue to believe that NVDA stock is one of the best for 2022.

Click here to read more about NVDA stock.

POSaBit Systems Corp. (POSAF)

futuristic image of a hand with the words block chain floating above it. representing riot blockchain stocks

Source: Shutterstock

Investor: Thomas Yeung

Founded by former Microsoft (NASDAQ:MSFT) general manager Ryan Hamlin and Adapx’s Jon Baugher, POSaBIT is a small company with big ambitions. However, this attitude is just one of the reasons why POSAF stock is one of the best stocks to buy for this year.

The Canada-based blockchain payments company is a point-of-sale (POS) payments company that helps marijuana dispensaries manage finances. And overall, there’s a specific reason why POSaBIT is doing so well: regulation.

As InvestorPlace.com analyst Thomas Yeung explains:

“Exchange rules prohibit U.S.-listed firms from dealing in Schedule I controlled substances. That means credit card giants Visa (NYSE:V) and Mastercard (NYSE:MA), as well as lesser-known payments processors like $64-billion-dollar Fiserv (NASDAQ:FISV) are locked out of the market.

“Meanwhile, patchy Federal regulations have left a loophole for Canadian-listed firms to roam free. Though interstate commerce is still illegal, these offbeat firms are largely free to operate within states that have legal marijuana.”

In turn, POSaBit Systems helps cannabis retailers manage money. Its POS system acts as a cashless ATM at the point of sale, while its backend reporting system can help stores manage finances. So, with low competition and a massive market opportunity, POSAF stock is on that investors should keep their eye on this year.

Click here to read more about POSAF stock.

Best Stocks for 2022: Roku (ROKU)

The Roku logo on the side of an office building comprised of sand colored concrete

Source: JHVEPhoto/Shutterstock.com

Investor: Bret Kenwell

Similar to Nvidia, Roku also enjoyed handsome gains in 2021. ROKU stock rocketed higher by more than 500% during the year thanks to the massive growth in video streaming. And despite shares losing about 34% of their value so fair in 2022, Roku has strong growth projections and is the leader in a secular growth industry.

Last quarter, Roku generated 18 billion hours of streaming, up 21% year-over-year (YOY). Additionally, active accounts also climbed, up 23% YOY to 56.4 million customers. Both of these figures are extremely impressive, as active accounts came in at 43 and 46 million in Q2 and Q3, respectively, and 14.6 billion and 14.8 billion streaming hours, respectively, during that same period. And with the coronavirus continuing to keep consumers at home, streaming video will continue to be a huge trend.

Overall, as InvestorPlace.com writer Bret Kenwell discussed, “[streaming video] had strong growth before Covid, erupted during the pandemic and will continue to grow after the pandemic.” And with a double-digit decline in value over the first few weeks of the year, ROKU stock is at a buying price for investors.

So, with the massive growth potential continuing for Roku, ROKU stock is a perfect example of the best stocks to buy in 2022. In fact, as Kenwell stated, “a bear market is a bull’s opportunity.”

Click here to read more about ROKU stock.

Sonic Automotive (SAH)

A close-up photograph of a car engine.

Source: OlegRi / Shutterstock.com

Investor: Josh Enomoto

If I had to sum up the current market environment in one phrase, I would refer to it as “topsy turvy.” Fears of inflation and price hikes continue to affect overall sentiment, and the recent crypto crash — for example — is a prime example of how fear is affecting investors’ minds.

Nonetheless, as InvestorPlace.com writer Josh Enomoto says, “the underappreciated fundamental catalysts for Sonic Automotive — the fourth-largest automotive retailer following its acquisition of RFJ Auto Partners — could inexplicably bolster SAH stock.” And if that happens, it could be one of the best stocks for 2022.

Of course, as mentioned before, the world is experiencing a major chip shortage and global supply chain issues. However, throughout the supply chain, headwinds to retail distribution suggests car prices still have legs. In fact, J.D. Power reports that the used car market won’t stabilize until 2025, presenting a still risky but undeniably compelling opportunity with SAH stock.

Additionally, despite some people already returning to their offices, the work-from-home environment from the pandemic could also slowly come to an end. In turn, this will add even more demand for personal vehicles, potentially bolstering SAH stock even more. Therefore, with plenty of catalysts on board for Sonic Automotive, SAH stock is one of the best stocks for 2022.

Click here to read more about SAH stock.

Nick Clarkson is a web editor for InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/01/10-best-stocks-for-2022-whats-on-tap-for-wall-street-this-year/.

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