Stock Market Trends For 2022
A lot happened in the stock market in 2021. There was significant growth, despite the ongoing corona pandemic. 2020 took a big hit after the outbreak, triggering a free fall in stock prices.
There was a decline across major sectors like infrastructure, transportation, consumer services, and real estate. Uncertainty, confusion, and business shifts at the time impacted the economic environment.
Business reopening and vaccine rollouts brought in some hope. The economies of many countries now had a chance at recovery.
There were significant gains in some areas. The S&P 500 closed the year with a total return, including dividends of 28.7%. This signifies a 16.3% increase from 2020. Nasdaq composite ended at 21.4%.
Dow Jones achieved an 18.7% growth. Industry analysts attribute the gains to an increase in consumer demand after the reopening of the economies.
In the US, the Federal Reserve maintained a zero interest rate during the year. Wall Street analysts contend that it provided a major boost. Companies could maintain high stock valuations and keep borrowing costs low.
But, the pandemic is still very much here with us. New variants like Omicron are still spreading undertones of uncertainty. It will be interesting to see 2022 updates in regards to stock rankings. Let’s see what industry analysts project, going forward.
Top Rated Stocks to Consider In 2022
Investing in the right stocks can bring in huge returns. But, the challenge for most, especially first-timers is to choose the right one. Forget about searching for information online. What you will get are tons of responses that will further add to the confusion.
Signing on to platforms like Wallstrank will simplify the process. The experts do the hard work of narrowing down stocks with upside potential. You get a list of good stocks to buy, without the hassle of doing the work yourself.
With that said, let’s see what the stock market has in store for 2022.
1. Play it Safe With Top Rated Stocks
You could always stick to some of the top performers. Take the example of the Nasdaq-100 index. The last time it had a bad year was in 2008, during the Great Recession. It ended 2021 on a high note, especially for those who put their money in tech companies. There are tons of other stock options that have growth potential. These include Lucid Group, Roblox Corporation, Marathon Digital, and Hive digital.
Apple continues to command the top spot in terms of market capitalization. One of its highest income sources comes from the iPhone segment. But, the company is expanding its service and product offering. The market response has always been pretty positive, and we don’t expect less in 2022.
2020 saw the company trade at an all-time high of about 39%. That means each share was worth about $180. As of September 2021, sales rose by 33%. This could be attributable to the strong demand for computing products and the 5G iPhones.
Take a look at the price performance over the past 5 years.
Image source: Capital.com
The company is facing some challenges. It is struggling to meet demand in some areas. The CEO Tim Cook attributes up to a $6 billion loss in sales due to supply chain constraints. Component shortages and long waiting times are turning off customers.
But, industry analysts still see a lot of potential for the company. Once it irons out the kinks, their stock shares will continue to fly high. Add that to the steps they are taking to expand their portfolio, and you get a sound investment platform.
Products like the AR/VR devices that will hit the market in CQ4 of 2022 are already generating a lot of interest. Enhancing customer experience, a forte that the company has mastered, will continue to place Apple as a strong stock option.
2. Meta Platform Inc. Offers Emerging Opportunities
Social media changed the communication landscape. And big-time players like Meta, previously Facebook, and Instagram are reaping the benefits. Companies invest millions of dollars in online advertising.
Stock analysts are confident such platforms are fantastic for investments as they provide opportunities in emerging industries.
Take the case of Mark Zuckerberg making a foray into Metaverse. The platform will unite gaming, work, and communications. He is putting in billions of dollars to realize the dream of being a major player in big interface devices.
A CNN analyst recommendation draws a strong consensus. Meta Platform Inc. is a good investment option. 12-month price forecasts set the target at a median of 407.50. This represents a +21.16% increase from the last pricing.
Wall Street analysts give a 4.48 rating out of 5. They are optimistic that the Meta stock will keep rising at double-digit rates.
Image source: Seeking Alpha
3. You Can Start With Small Investments
Top analysts recommend starting small and building up. In fact, $20 is enough to start your investment journey. Companies like Spotify, Coinbase Global, and Apple offer such opportunities.
What makes them strong is the addition of new income avenues. As we stated, Apple, for instance, has added new products, Cryptocurrency, and software services to its portfolio.
The Cryptocurrency Company Coinbase Global also has a lot of potential. The number of transactions on the platform has increased significantly. With more people adopting Cryptocurrency trading, the upward trajectory will continue.
Image source: The Motley Fool
4. Big Data Analytics Could Explode
Digitalization has led to the creation of large data volumes. Industry players are investing in the handling and management of such. That is why top analysts see great investment opportunities in such areas. Companies like Microsoft, Datadog, MongoDB, and Workiva are worth keeping a close eye on in 2022.
Industry projections for the global data market are at $450 billion by the end of 2026. As of 2020, the sector was worth $208 billion. This means a compounded annual growth rate (CAGR) of 10%.
We can expect higher investments in big data analytic software, services, and hardware. The graph below illustrates the Microsoft Corporation Price growth since 2017.
Image source: Zacks.com
Investing in the right stocks can bring massive returns. Yet, it can be difficult to know which stocks to buy. Articles such as these are an excellent starting point when researching.
But, there are stock research online tools you can use to make the process easier. This is especially true for beginners. We have looked at some areas worth investing in. It will be interesting to see how things play out in the stock market in 2022.