Here are 10 of the best stocks that could be great additions to your portfolio for the rest of 2022 and beyond.
The sheer number of publicly traded firms and ETFs and mutual funds available to investors makes it understandable that many are unsure of where to begin. Investors are starting to think about which equities to put their money into as the summer months continue. Volatility will likely persist, but analysts believe that the stock market will rise this summer, even if it is due to seasonal oscillations. According to CNN, the idea of a pre-crash “meltup” has also been raised by some.
It suffices to say that you should keep an eye on the market and form your own opinions.
Keep a watch for investment options in a wide range of industries to ensure that you don’t make costly blunders. Here are the 10 best stocks that you should invest in this 2022.
The top 10 stocks for 2022
- Etsy (NASDAQ:ETSY), $13 billion
- Pinterest (NYSE:PINS), $13 billion
- Sea Limited (NYSE:SE), $49 billion
- MercadoLibre (NASDAQ:MELI), $52 billion
- Shopify (NYSE:SHOP), $58 billion
- Block (NYSE:SQ), $62 billion
- Intuitive Surgical (NASDAQ:ISRG), $92 billion
- Walt Disney (NYSE:DIS), $218 billion
- Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), $745 billion
- Amazon (NASDAQ:AMZN), $1.47 trillion
Etsy
Etsy was already thriving before the pandemic by linking crafty artisans with clients who were looking for something a little out of the usual. In the midst of the pandemic, e-commerce as a whole had a significant uptick, but Etsy’s growth was far more than twice that of the industry as a whole.
Naturally, when consumers were looking for unique face masks, Etsy was a good place to go, but its growth has been amazing in every product category save perhaps that of handmade jewelry.
Without a doubt, Etsy is a powerful platform with well-rounded tools. It’s rare for e-commerce businesses to go up against Amazon and thrive.
When Amazon launched its own platform for selling handcrafted goods, Etsy not only survived but thrived. Etsy’s market potential is estimated to be in the hundreds of billions of dollars, yet it has only just begun to tap into that potential.
Amidst the increasingly bleak and divided social media landscape, Pinterest is an oasis of positivity. That’s in line with Pinterest’s primary focus on inspiration. Rather than focusing on other individuals, Pinterest users are drawn to the site because they want to see other people’s creative ideas. Pinterest is an excellent source of visual inspiration for people who wish to accomplish a variety of tasks, from building a deck to preparing a cake for a child’s birthday.
Pinterest has been criticized for lacking the same level of monetization as Facebook (NASDAQ:FB), despite the fact that its user base and sales have grown steadily. With most of its users being located outside of the United States, this is even more true. On the other hand, that’s one of the things we like best about Pinterest. It’s easy to see how advertising, lead generation, and product placement can be smooth when people are already there for suggestions. It has the platform and the audience.
Sea Limited
One of Southeast Asia’s fastest-growing companies is Sea Limited. The company’s Shopee e-commerce platform and Sea Money digital payment network, both of which have grown at triple-digit rates, are the company’s most potential growth drivers.
Sea Limited has three fast-growing and high-potential businesses in Garena, Shopee, and Sea Money. Both in its own region and other important global markets, it is swiftly rising to the top of the pack in all three categories.
MercadoLibre
Since it was founded, MercadoLibre has been dubbed “the Amazon” of Latin America, and there’s little wonder why. Brazil and Argentina, two of the region’s most populated countries, are important markets for the company’s e-commerce platform.However, MercadoLibre has much more to offer. Fast-growing payments platform, logistics service, business financing platform, and more are all part of it. For all intents and purposes, MercadoLibre is Latin America’s answer to Amazon, PayPal (NASDAQ:PYPL), Square, and Shopify, and it’s only getting started.
Shopify
In order to help small businesses succeed online, Shopify has developed a platform that is tailored to their needs. Firms can sign up for a $29 per month subscription to Shopify’s service, including additional features that help businesses run more efficiently.
Its “one-stop-shop” e-commerce strategy has made Shopify an industry leader. Now, it has more e-commerce sales pouring into and through its ecosystem than any other firm save Amazon does. Shopify, on the other hand, may be just beginning. This year’s platform revenue was $4.6 billion, but there is still a $153 billion (and growing) addressable market opportunity as more merchants move their focus to online sales.
Block
One of the most popular payment processing devices in the world, Block, has been transformed into a large financial ecosystem for businesses and consumers. On the merchant side, Block’s system processes around $160 billion in annual payments, and it also offers several complimentary services for enterprises.
In terms of services for individuals, Block has the Cash App, which has tens of millions of users, as well as the capability to perform inter-person money transfers, direct deposits, and debit card transactions. The Tidal music streaming service and the Afterpay buy-now, pay-later platform were also recently bought by Block. The company’s position will only improve as its ecosystem matures.
Intuitive Surgical
Shaky human hands can’t compete with a robot’s intuitive surgical assistance. Because of the “razors and blades” business model, the da Vinci surgical system can create a steady income stream as its systems are used. Since its surgical systems are widely used, and its supported procedures grow, Intuitive Surgical has plenty of possibilities for growth.
Disney
Don’t get distracted by any short-term political breezes that may be blowing in your direction. Disney is a portfolio that’s all-season-tire. Disney saw its theme parks and movie studios take a hit. But Disney+, the company’s streaming service, rose to prominence much faster than Disney had anticipated. Disney’s theme parks and movies are still in high demand in 2022.
In the first year, Disney+ was a “Wow!” and the firm is appropriately growing. Disney is the epitome of both a reopening play and a pandemic-fueled expansion enterprise for all intents and purposes. When it comes to “safety,” Marvel/Star Wars and ESPN/Pixar, and Disney intellectual property give it a significant advantage over other stocks on this list.
It still has a lot of room to grow, especially as it expands into more markets.
Berkshire Hathaway
Most of the stocks that we have on this list are growth stocks. More than 60 subsidiaries of Berkshire Hathaway are owned by the company, including familiar names like GEICO, Duracell, and Dairy Queen.
Aside from Apple (NASDAQ:AAPL), Berkshire possesses a $300 billion portfolio of common stocks, many of which were personally selected by famed investor Warren Buffett. Berkshire also owns an immense interest in Microsoft (NASDAQ:MSFT).
There are those who claim that Warren Buffett has lost his fastball, but Berkshire consistently outperforms the market. The world’s largest actively managed mutual fund, Berkshire Hathaway, would be a Berkshire Hathaway mutual fund.Buffett’s tenure as chairman of the board is coming to an end. Even though he will no longer be in charge of Berkshire, he has been stress-proofing the company for years, so it will continue to run smoothly when he is no longer in charge. As a sign of their confidence, he and business partner Charlie Munger have been repurchasing stock at a record pace. For the rest of us, that’s a good indication.
Amazon
Most people don’t need an elevator pitch to understand Amazon. Its Amazon Web Services cloud platform is also a market leader in the U.S. e-commerce industry, where it holds a commanding lead.
Amazon’s stock is now at a strong support level, and the potential downside from here is much lower than the potential upside, implying that the risk/reward is asymmetric and heavily favored by bulls.
Amazon’s stock price is expected to rise at a CAGR of 26.27 percent over the next decade, far exceeding investment thresholds of 15%. We, therefore, conclude that Amazon is a fantastic long-term investment at current levels.
Key Takeaway
Truth is, different sources will give you different lists of the best stocks to invest in. There are certain things to take into consideration when identifying the best stocks for you. Before you compare this list to others, make sure to read these reminders:
The best stocks to buy today are heavily influenced by your personal financial situation.
Read our guide on how to buy your first stocks to get a sense of where you stand. It walks you through topics like creating an emergency fund, allocating assets, and knowing when to buy stocks.
These stocks appeal to us as long-term investments. We cannot guarantee the movements in the coming weeks or months.
While we tried to include some variety, the list above is not intended to be a fully diversified portfolio. Instead, they are our most confident stocks for outperformance in 2022 and beyond. Building the core of your portfolio is still the best one-step way to diversify your holdings.
