Most of the stocks to be purchased for 2021 and 2022 are complementary to economic recovery prospects as the world is fighting back COVID-19.
Investors very well know that the stock market had very few surprises in 2020. The same situation is waiting ahead as the strongest factor that experts are considering and analyzing to find the best stocks to buy for 2021 and 2022 i.e. COVID-19.
In 2020 best stocks typically were tied to companies that benefited from rising trends resulting from COVID-related lock-downs. The best stocks for 2021 and 2022 are most expected to benefit from a healing process from COVID-19.
“Continued progress in the response to COVID-19, including further stimulus, will be the key to sustaining the recovery,” writes LPL Financial, a retail investment advisory firm, in its 2021 outlook. “An earnings rebound in 2020 and strong earnings growth in 2021 may allow stocks to grow into somewhat elevated valuations. Cost efficiencies achieved during the pandemic may persist.”
Tabulated below are the best stocks to buy for 2021 and 2022. A few of these stocks are so powerful and primed to continue their success for another year but many of these stocks are benefiting from the recovery phase in 2021 and maybe in 2022 as well.
Best stock to buy now (Analysis Chart)
|STOCKS||INDUSTRY||MARKET VALUE||STOCK PRICE +/-||DIVIDEND YIELD|
|PayPal Holdings||Credit services||$249.38 billion||+5.75 (+2.36%)||May 10, 2021 is 0.00%|
|Castle Biosciences||Diagnostics and research||$1.51 Billion||-1.15 (-2.10%)||May 10, 2021 is 0.00%|
|IEC Electronics||Electronic components||$116.54 Million||−0.41 (3.62%)||May 10, 2021 is 0.00%|
|Hilton Worldwide Holdings||Lodging||$33.864 Billion||+0.21 (0.17%)||February 27, 2020 is $0.15|
|Alibaba Group||Internet retail||$713.7 Billion||-7.60 (-3.53%)||May 10, 2021 is 0.00%|
|Wayfair||Internet retail||$23.9 billion||+4.17 (+1.30%)||April 16, 2021 is 0.00%|
|Microsoft||Infrastructure software||$1.6 Trillion||-2.32 (-0.94%)||1.1%|
|Stryker||Medical devices||$88.7 Billion||-4.67 (-1.82%)||1.1%|
|United Parcel Service||Integrated freight and logistics||$146.2 Billion||-2.52 (-1.17%)||2.4%|
|Bank of America||Diversified banks||$249.1 Billion||-0.47 (-1.13%)||2.5%|
|Intel||Semiconductors||$205.2 Billion||-0.98 (-1.74%)||2.6%|
|JPMorgan Chase||Diversified banks||$369.0 Billion||-2.92 (-1.81%)||3.0%|
Special Report – Analysis
Investment experts are not counting Danoff out. His long-term record is there in the market which counts, and it is brilliant. For example, Danoff bought PayPal Holdings (PYPL, $203), the digital payment company, in 2015, the year it was spun off from eBay (EBAY).
Since then, the stock price has increased fivefold, but Danoff hasn’t cashed it out yet – he was buying more in 2020.
Therefore we can expect PayPal amongst the best stocks to buy for 2021 and 2022.
Castle Biosciences CSTL
Castle shares have been trading for a year and a half and their price has shot up 262% from their initial public offering (IPO) price of $16. But Wasatch continues to add to its holdings, and Castle Biosciences now ranks among the fund’s top 10 stocks to buy at 2.4% of AUM.
Dan Abramowitz says he believes “some moderation in growth rates,” but earnings would rise by double digits, and the price is right. Based on Abramowitz’s earnings forecast for the year 2021, shares trade at a P/E ratio of 15, and profits “could surprise to the upside.”
IEC Electronics is also one of the best stocks to buy for 2021 because of its potential as a takeover target.
Hilton Worldwide Holdings HLT
It is although literally true that the COVID-19 virus’s damaged Hilton, on track to report a 50% decline in sales and a 64% drop in earnings for 2020. Revenue per available room was $47 in late 2020, down from $102 in 2019.
Yet analysts from Wall Street believe earnings must rise in 2021 and 2022. And a cash pot of $3.5B will see Hilton through.
Alibaba Group Holding Ltd
With 11.10% of AUM, Alibaba group is now the 2nd largest holding regarding funds. Alibaba group is booming nowadays with revenues have more than tripled in the last three years. Its stock is booming, but its continued upside potential makes it one of the best stocks to buy for 2021 and 2022.
Wayfair inc (W)
Wayfair’s active customers base has increased 10 million more customers than it had last year. It is also getting repeat orders which volume as a percentage of total orders is now 72%, it is six percentage points up than third quarter of 2019.
Lockdowns, accelerating store closures in a fragmented industry will drive more sales online.
Deutsche Bank sees the shares at $325 to $350 over the coming year. That equates to a 12-month return of 35% to 40%, which certainly would put Wayfair among the best stock to buy for 2021 and 2022.
It is one of the world’s largest software creators. Microsoft was unproductive regarding its earnings between 2011 and 2017, but after that period its earnings doubled just because of cloud computing, which has become Microsoft’s largest source of revenues.
According to forecasts of Value Line, Microsoft’s earnings must increase by an average of 15-16% for the next five years – nearly doubled as compared to the past five years. The stock also throws off a modest amount of income via its 1.0%-yielding dividend. These are the reasons which make MSFT one of the best stocks to buy for 2021 and 2022.
According to analysts of Canaccord Genuity who believe that Stryker must be “a core position for growth-oriented investors.”
Its demand will remain high as long as there are high rates of infections due to COVID-19, but hospitals are adapting their infection-prevention protocols, and the rate of elective procedures has started to increase manifold. U.S., Australia, Germany, Canada, and especially China are Stryker’s largest markets right now.
Analysts from Argus Research rate the stock a Buy and declare it as the best stock to buy right now.
United Parcel Service (UPS)
UPS must succeed in any pandemic scenario. It’s already making vaccine deliveries for different businesses. The recent recovery phase would also support its strong e-commerce sales which is a plus point for UPS.
A 12-month price target for the shares of $210 by brokerage, believing UPS to be one of the best stocks to buy for 2021 and 2022.
Bank of America BAC
BAC’s shares have been rallying hard since March, yet they still remain at 2017 levels. It’s as if the great market boom of the past four years never happened.
In a market starved for value, financials could be among some of the best stocks to invest in during 2021 and 2022. As one of the largest banks in the world, BAC stock is one of the best stocks to buy now in 2021.
Intel – Semiconductor company
Dodson, a value maven, has lately been scooping up shares of another chipmaker, Intel (INTC, $50.07), which moved in the opposite direction of Nvidia in the past year, falling 16.3%.
Intel looks like an unusual tech bargain, however, with a forward price-earnings ratio of 11 and a 2.6% dividend yield.
JPMorgan Chase (JPM)
Low-interest rates have reduced the bank’s net interest income – the difference between the interest it earns from lending money and what it pays depositors. But record revenues in 2020 from investment banking and trading have been a boost. JPM is well-positioned for an economic rebound and could join Bank of America as one of the best stocks to buy for 2021 and 2022.
While you’re waiting for that rebound, collect 3.0% in dividends from this U.S. mega-bank.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.