Investors started experiencing more caution and fear by late 2021 as the beginning of 2022 approached. There was no shortage of evidence pointing to a potential downturn, with prices continuing to fall from their all-time high in early 2020. The market is becoming volatile, and you must consider new factors when investing. Instead of looking at stocks with the highest momentum, focus on the top stocks to buy with staying power.
There are a lot of factors to consider when picking the right stocks to invest in. The most important factor is to pick stocks that are growing and have a high return on investment.
The top stocks to buy are those with strong fundamentals and a high return on investment. There is no stock out there that has all these features. However, it will be easier for investors as they can pick one stock that has the best combination of these features.
Investors should consider changing their portfolios in the second half of the year. Now is a good time to evaluate your current holdings and decide what to buy or sell and what you should keep in your portfolio. This list will provide you with some of the top stocks that have performed well for the past half-year and are expected to continue in fine form.
|X||United States Steel Corporation||$19.44|
|LOW||Lowe’s Companies, Inc.||$184.22|
|ASR||Grupo Aeroportuario del Sureste, S. A. B. de C. V.||$209.99|
|UPST||Upstart Holdings, Inc.||$38.78|
Top Stocks: U.S. Steel (X)
U.S. Steel was founded in 1901 and has been a major player in the industry since that time. It has been listed on the New York Stock Exchange since 1901 and is headquartered in Chicago.
U.S. Steel makes high-value, advanced steel. One of the most notable items it makes is XG3 advanced high-strength steel, which automakers use to produce lighter-weight cars. Its clients include the automotive, construction, appliance, energy, containers, and packaging industries, and it has operations in the U.S. and central Europe.
Last year, U.S. Steel made $20.3 billion in revenue, an increase of over double its 2020 net sales.
U.S. Steel has been in the news lately for increasing its investments in the United States and abroad. With the Biden administration gearing up to increase infrastructure spending, investors are looking at U.S. Steel as an appropriate investment for their portfolios due to its recent gains, consistent performance and secular tailwinds.
eBay (NASDAQ:EBAY) has evolved from a small startup to one of the most valuable companies in the world. It is now one of the world’s leading online auction websites, with over $10.42 billion in annual sales, and it offers millions of products across many categories.
eBay allows buyers to purchase items from sellers, with a wide range of goods available for sale, including antiques, collectibles, vintage goods, electronics, cars, and more. eBay also provides services such as an auction house that enables sellers to list items for sale at fixed prices or auctions with various bidding options and payment methods.
The Covid-19 pandemic hit eBay hard, but it could bounce back quickly. The company was able to create a strategy to target users who were searching for specific items and also promote its category offerings. However, although e-commerce stocks like Amazon (NASDAQ:AMZN) and Alibaba (NYSE:BABA) has had success before and after Covid 19, eBay was more dependent on the pandemic for its recent success.
However, it’s been showing improvement over the last few years, with a very high velocity of sales and lots of active buyers. Its platform also brought in new improvements, helping it to keep up with its competitors. But keep a long-term investing horizon in mind with this one.
Mastercard has grown to be one of the most popular cards in the world and is now accepted by over 200 countries. It has gradually increased its business in recent years, and as a result, it is now considered one of the most popular cards in the world. It was founded in 1966 by George J. Laurer and named Master Charge but changed its name to Mastercard in 2008.
Mastercard’s growth can be attributed to several factors, such as its powerful marketing strategy, wide acceptance and innovative technology.
However, the growth in the last five years rests largely on the shoulders of its digitalization strategy, which saw it develop mobile apps, an online payment platform, and other digital products for its customers.
Top Stocks: Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is a holding company that controls Google, Nest, Waymo, X Lab and CapitalG. Its one of the most valuable companies in the world, with a market capitalization of $744 billion.
Alphabet is one of the world’s largest internet companies, with Google at its heart. YouTube is a massive platform, with more than 1 billion hours watched worldwide per day. By Q4 2021, YouTube revenue was $8.6 billion – more than the $7.7 billion reported by Netflix (NASDAQ:NFLX) in the same period. Its biggest potential money-spinner, though, is the cloud division. Revenue for the segment jumped 47% in 2021 to more than $19 billion, a 7% share of Alphabet’s revenue.
However, due to the wider tech sell-off, Alphabet is not doing well. It allows you to purchase the stock at a discount. The company just reported a stellar set of earnings and is gearing up for a 20-for-1 stock split in July. Therefore, the time to buy is now.
Top Stocks: Lowe’s (LOW)
Lowe’s (NYSE:LOW) offers a wide range of home improvement and repair products, including appliances, tools, and building materials for construction projects. It also offers garden supplies, lawn care products, paint and paint-related services.
In the last few decades, Lowe’s has expanded its business to include stores in Canada and Mexico and online shopping.
Lowe’s and its competitors will be seeing more homebuilding projects in the coming year, thanks to a tight housing market. We expect this to continue for the foreseeable future. Plus, work from home is becoming more prevalent.
Remote work is on the rise. On a worldwide basis, more than 16% of companies are fully remote, according to a study by Owl Labs. This study found that 61% of the workers 22 to 65 often or always work remotely. The benefits of remote work include increased productivity, improved time management and a better quality of life for workers.
It also means more work around the house since workers will spend a lot of time in and around their premises.
Home improvement is a secular trend that has been growing over the past few years. The industry has seen steady growth in the number of projects undertaken by homeowners, builders, and renovators.
Lowe’s has increased its dividend every year for over 50 years. Its never missed an annual dividend payment or defaulted on its debt. It is hard to see it changing as millennials enter their prime buying years. This rare stock is indeed a safe investment option.
Grupo Aeroportuario dl Srst SAB CV (ASR)
Grupo Aeroportuario del Sureste SAB de CV (NYSE:ASR) is an infrastructure company that operates airports in Mexico City, Monterrey, Guadalajara and Puebla. It has been listed on the Mexican Stock Exchange and the NYSE. The company’s headquarters are located in Mexico City.
People are excited to return to their daily routine and want air travel options. ASR is also seeing this in passenger traffic, with a jump in business due to the return of flights and overall flight arrivals.
International diversification is a key driver of stock performance. The company also benefits from the global increase in travelers to and from its main destinations. Shares of this company have outperformed the market over the year thus far.
Top Stocks: Upstart Holdings (UPST)
Upstart Holdings (NASDAQ:UPST) is a credit scoring company that uses artificial intelligence to assess people’s financial health. It uses machine learning algorithms to analyze data and predict credit scores.
Upstart Holdings uses AI to provide a more accurate assessment of a person’s credit score. This information can be used by banks, lenders, and other financial institutions as they make lending decisions.
Upstart Holdings is just one of many examples of how you can use AI in the financial industry.
The AI-focused company has done very well for itself in the last few quarters. In Q4’21, revenue increased by a handsome 252%. Despite this, its full-year revenue forecast is now $1.25 billion, down from the prior guidance of $1.4 billion. It has to do mainly with rising interest rates. However, banks will exceedingly lean towards the platform to access credit worthiness.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.