Which Stock To Invest In The Stock Market In 2022?
An increase in turnover : Following the massive sale of the vaccine against covid, AstraZeneca experienced a significant increase in its turnover in 2021. Despite this growth in sales, the share price experienced a decrease slight, hence the interest in placing buy orders now.
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By Sophia Ava YEET MAGAZINE | Updated 0439 GMT (1239 HKT) February, 2022
Which Stock To Invest In The Stock Market In 2022?
The choice of stocks on which to bet money guarantees the success of a stock market investment. This is why it is important to select a safe and profitable security according to your investment strategy. In which stock to invest in 2022? And what are the sectors to focus on? This article gives you a list of interesting stocks to invest in the stock market and what you need to know before making an investment.
In which stock to invest in the stock market in 2022? Top 10 Promising Stocks
1. Which Stock to Invest In – Buy Facebook Stock (Meta)
Why Invest In Facebook Stock?
- World number one social network : A globally recognized company, Facebook is one of the most used social networks in the world. It holds the third place of the most visited site after Google and YouTube.
- Interesting prospects : Following the name change and a new strategic orientation of the Facebook share, investors are much more interested in the title. In addition, analysts expect the price of this share to rise with interesting prospects for 2022.
- Results that exceed expectations : During the last 5 quarters, the results of the Facebook group have largely exceeded the expectations of experts. Just like the previous year, this title can still hold good surprises this year.
Investing In Facebook Stock – Key Information
2. Which Stock to Invest In – Buy Apple Stock
Why Invest In Apple Stock?
- Solid results : Apple's latest figures prove its financial strength. The group even recorded a 29% increase in its turnover during the fourth quarter of 2021.
- A sharp rise in price : During the last 10 years, Apple's share price has experienced a very interesting increase of +899.78%. It is one of the most attractive stocks for a long-term investment.
- A good dividend : The dividend payment policy of the Apple group is very attractive. In addition to the group's positive return, buying Apple stock allows investors to earn passive income.
Investing In Apple Stock – Key Information
3. Which Stock to Invest in 2022 – Buy Netflix Stock
Why Invest In Netflix Stock?
- World leader in online entertainment content : Netflix is the most popular streaming service in the world. This technology company has enjoyed great growth following the evolution of the use of the internet.
- A spectacular return in 10 years : Netflix is one of the stocks that have benefited from a very attractive return on the stock market. The variation of its price increased by + 1999.13% after 10 years.
- A group present in different countries around the world : Apart from conquering the American market, the Netflix group has also been able to establish itself in several European countries, which has enabled it to significantly increase its turnover.
Investing In Netflix Stock – Key Information
4. Which Stock to Invest In – Buy Tesla Stock
Why Invest In Tesla Stock?
- A recognized brand in the field of energy technologies : A key player in the energy sector, Tesla develops photovoltaic panel and battery technologies. It is a globally recognized company in this field.
- Impressive results : On behalf of the year 2021, the results of the Tesla group are very impressive. They have significantly exceeded analysts' estimates, which will undoubtedly impact its share price in 2022.
- A stock with great potential : Since its IPO, the results of the Tesla Group have never ceased to surprise investors. The price of this share has increased by +14210.96% in 10 years.
Investing in Tesla Stock – Key Information
5. Which Stock to Invest In – Buy Amazon Stock
Why Invest In Amazon Stock?
- Dominant company in the e-commerce sector : World leader in the online distribution of consumer products, Amazon is experiencing significant growth in the e-commerce sector. It also has a subsidiary in France and is present in other countries such as Germany, the United Kingdom, Japan, etc.
- High pace of growth : Although fourth quarter results fell short of analysts' expectations, Amazon reported rising revenue and continued to grow at a high pace.
- Diversified products : To sustain its business, Amazon is diversifying its products to reach a wider audience. The company no longer limits its activities to online retail sales but also offers other services allowing it to diversify its activities.
Investing In Amazon Stock – Key Information
6. Which Stock to Invest In – Buy EDF Stock
Why Invest In EDF Shares?
- A major player in electricity production in France : The main player in French electricity production, EDF is also one of the leaders in the international energy market. The company even sets itself to triple its international contribution by 2030.
- An increase in turnover : The turnover of the EDF group has increased significantly, which has led the company to review its objectives for the year 2022.
- Bright prospects for green energy : Taking into account the increase in demand for green energy, EDF has a good chance of developing its activities more effectively in the coming years.
Investing In EDF Stock – Key Information
7. Which Stock to Invest in 2022 – Buy Google Stock
Why Invest In Google Stock?
- A large market share : Google has an interesting market share compared to its competitors. It remains the undisputed leader in the search service on the net.
- A solid financial position : Thanks to Google's good financial position, the company has been able to maintain attractive profit margins over the past few years. It also recorded a record result resulting in a 41% increase in turnover last year.
- Positive forecasts : Analysts' forecasts for a possible increase in Google's share price are positive. Indeed, stock market experts estimate a +162% increase in the price by 2025.
Investing In Google Stock – Key Information
8. Which Stock to Invest In – Buy Total Stock
Why Invest In Total Stock?
- A predominant position in its field : The Total group is one of the super oil majors. It has also become one of the world leaders in solar energy thanks to its subsidiary SunPower.
- A strategic shift towards diversification : The Total group has adopted a new strategy allowing it to stand out in several sectors. This can have a big influence on the company's financial results.
- A positive price change : Since its IPO, the change in the Total share price has remained positive. It is an interesting security whether for short or long term trading.
Investing In Total Stock – Key Information
9. Which Stock to Invest In – Buy AstraZeneca Stock
Why Invest In AstraZeneca Stock?
- A group present in more than a hundred countries : AstraZeneca is present in various emerging countries and occupies a significant share of the world pharmaceutical market.
- An increase in turnover : Following the massive sale of the vaccine against covid, AstraZeneca experienced a significant increase in its turnover in 2021. Despite this growth in sales, the share price experienced a decrease slight, hence the interest in placing buy orders now.
- A diversity of product portfolio : The diversity of the products offered by the group is one of its great strengths. AstraZeneca designs drugs for the treatment of cancer, cardiovascular diseases, gastrointestinal diseases and certain infections.
Investing In AstraZeneca Stock – Key Information
10. In Which Stock to Invest in 2022 – Buy Sanofi Stock
Why Invest In Sanofi Stock?
- A good positioning in its sector : The fourth largest pharmaceutical group in the world, Sanofi is also a leading company in its sector in Europe. In addition, the group is ranked as the world leader in the field of vaccines.
- Significant liquidity : Sanofi is one of the few groups that have significant liquidity, more than 8 billion euros. This allows it to launch share buyback programs from time to time for its shareholders.
- A good distribution of its activities : Sanofi has conquered many countries around the world and ensures a good distribution of its activities. 36% of sales are made in the United States, 33% in emerging countries, 22% in Eastern Europe and 12% in Asia.
Investing In Sanofi Stock – Key Information
How to know in which action to invest?
To know in which stock to invest, it is important to consider different criteria and follow certain steps. Here is what you will need to do:
- Select stocks versus budget : Determining which stocks to invest mainly depends on how much you want to bet. For example, you can choose stocks that are inexpensive but have high potential depending on the duration of the investment. Otherwise, you can also invest money in expensive but safe stocks to better return your investment.
- Compare companies in the same sector : If a particular company interests you, take the time to make a comparison with other companies in the same sector. You can consider different metrics such as revenue, market capitalization, number of customers, earnings per share, business breakdown, etc.
- Find out about the company that interests you : Once the action has been selected, consult the company's website. This will allow you to better understand its activities and obtain more details on the financial reports and annual accounts.
- Refer to expert publications : Different stock market experts publish detailed analyzes and reports on stocks. For example, you can consult the analyzes on ABC Bourse, Boursorama, Zone Bourse, etc. in order to know the interesting securities to invest.
Best Broker to Invest in the Stock Market in 2022
Investing in the Stock Market in 2022 – How to Buy Stocks?
- Choose a trusted broker to buy stocks. We recommend the DEGIRO website
- to invest at the lowest cost.
- Complete the online registration form to create a trading account.
- Deposit funds in order to buy stocks on the stock exchange.
- Open a buy position to start investing in the stock you are interested in.
What are the analyzes to be done before investing in an action?
- Fundamental analysis : It will let you know if a company's activities are viable. It is also a way of anticipating future developments, whether in the short or long term.
- Technical analysis : It corresponds to the analysis of technical data according to the history of the value of a share. This is a practical method for anticipating a possible rise or fall in the price.
How to choose the site where to invest in the stock market?
Here are the different criteria for selecting the best site to invest in the stock market:
- Fees : Each broker applies different fees as compensation for their service. To choose the site where to invest in the stock market, we recommend that you compare the rates imposed by the brokers. Among the various alternatives, the DEGIRO site remains the best broker to buy shares thanks to its competitive fees.
- The trading platform: Each trading platform offers different experiences depending on their functionality. Thus, favor an ergonomic and easy-to-use site to trade in a friendly atmosphere. By the way, all trading platforms can be tested for free.
- The list of available shares : To choose the site to invest in the stock market, make sure that the share you are interested in is available on the platform. The DEGIRO site offers a wide choice of stocks including securities from the CAC 40, the Paris Stock Exchange, Nasdaq, etc.
- Customer service : The quality of customer service plays a very important role when choosing the site where to invest in the stock market. Make sure that the customer service of the broker of your choice is responsive and available to quickly resolve your problems during the purchase.
What Are the Different Future Sectors for Investing in the Stock Market?
To diversify your portfolio, you can invest in different business sectors depending on the value of the action to bet. Here are the most profitable investment sectors for this year.
What Stock to Invest In – Information Technology
With the shift to remote working, the information technology sector remains the best performing stocks to invest in the stock market. Most companies in this sector have impressive capitalizations including:
- Google ( Buy Google Stock )
- Apple ( Buy Apple stock )
- Facebook ( Buy Facebook stock )
- Amazon ( Buy Amazon Stock )
- Microsoft ( Buy Microsoft stock ), etc.
In Which Us stocks to Invest in 2022 – Communication
Communication services are now part of the increasingly developed sectors. Indeed, these are services that people cannot do without even in the event of a financial problem.
Best Value Communications Stocks
These are the communications stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.
|Best Value Communications Stocks|
|Price ($)||Market Capitalization (Market Cap) ($B)||12-Month Trailing P/E Ratio|
|Altice USA Inc. (ATUS)||14.82||6.7||6.8|
|ViacomCBS Inc. (VIAC)||35.21||22.8||6.9|
|Nexstar Media Group Inc. (NXST)||165.19||6.8||7.9|
- Altice USA Inc.: Altice USA provides digital cable television, high-speed broadband, internet, local news, data, and digital advertising, among other offerings. The company serves customers across the U.S. For the third quarter (Q3) of 2021, ended Sept. 30, 2021, Altice USA reported net income attributable to stockholders of $266.9 million, compared with a net loss for the prior-year quarter. Revenue climbed by 5.8% year over year (YOY), driven primarily by growth in the company’s News & Advertising and Business Services segments.2
- ViacomCBS Inc.: ViacomCBS is a global multimedia company focused on creating premium content and experiences for audiences around the globe. The company provides cable networks, content production and distribution, television stations, and digital streaming services. It also operates other internet-based businesses as well as consumer publishing. On Nov. 30, 2021, ViacomCBS announced that it would sell its television and film studio CBS Studio Center in Los Angeles, a site covering 55 gross acres, to a partnership formed by Hackman Capital Partners LLC and Square Mile Capital Management LLC for approximately $1.85 billion. The center consists of 1 million square feet of space, including 22 stages and numerous support facilities.3
- Nexstar Media Group Inc.: Nexstar Media Group is a television broadcast and digital media company. It buys, develops, and operates television stations, interactive community websites, and digital media services in medium-sized markets throughout the United States.4
Which Stock to Invest In – Pharmaceuticals
The health sector is an area that is resisting the health crisis, and even benefiting from it. For this year 2022, the pharmaceutical fields remain interesting sectors to invest in the stock market. The demands are constant and most companies are constantly researching to develop pharmaceutical and biotechnology products. Here are some examples of stocks to invest in:
- Sanofi ( Buy Sanofi Stock )
- Gensight ( Buy Gensight Stock )
- Fermentalg ( Buy Stock Fermentalg ), etc.
In Which Stock to Invest – Renewable Energy
A growing market, the field of renewable energy is increasingly profitable. This is an area that takes time to evolve. This is why shares in this area are among the interesting securities to invest in the long term. In this case, we can cite titles such as:
- Vernet, etc.
What Stock to Invest in 2022 – Consumer Staples Companies
The consumer goods and services sector remains a profitable investment whatever the period. It has the advantage of providing consistent results even if the value is often not immediate. Being securities that can withstand the crisis, stocks in this area offer stability.
Advantages of consumer staples stocks
Consumer staples stocks function in a noncyclical manner, meaning they offer investors safety during recessionary climates. Since these companies sell products such as food and cleaning products that consumers rely on regardless of the state of the economy, they tend to generate solid profits even in weak economies. For instance, a number of consumer staples companies thrived during the early stages of the COVID-19 pandemic as consumers stocked up on essentials and avoided spending on discretionary purchases such as travel and restaurant meals.
DID YOU KNOW...
Consumer staples are noncyclical, meaning they offer investors safety during recessionary climates.
Consumer staples stocks are also generally defensive, dividend-paying stocks, meaning they tend to outperform during economic downturns. Some are Dividend Aristocrats -- companies that have increased their dividend payouts every year for at least 25 consecutive years. For this reason, consumer staples stocks are often popular with retirees and other investors seeking income and security. Many offer better dividend yields than the companies of the S&P 500 (SNPINDEX:^GSPC), which currently pay an average dividend yield of 1.3%.
Because consumer staples companies operate in stable sectors and sell products that are always in demand, the biggest ones have been around for a century or more. Their longevity is a sign of their brand value, a history of acquiring smaller brands, and their ability to endure a wide range of challenges and economic cycles.
Image source: Getty Images
Top consumer staples stocks
Just as you’re familiar with many consumer staples products, you’ll likely be familiar with many of the top stocks in the sector such as Costco Wholesale (NASDAQ:COST), Procter & Gamble (NYSE:PG), PepsiCo (NASDAQ:PEP), and Estee Lauder (NYSE:EL).
1. Costco Wholesale
Costco doesn’t make consumer staples products, but it sells them -- in bulk. Most of its inventory consists of groceries and household items such as paper products and cleaning supplies. Costco has a number of advantages over its retail peers, largely because its membership model creates a reliable customer base with a retention rate of around 90%. Costco also earns most of its profits from membership fees, so it can offer rock-bottom prices on merchandise, giving it a competitive advantage. Under its Kirkland brand, it sells a wide range of products in categories such as diapers, chocolate, and toilet paper, further leveraging its unique retail position.
The retail stock has prospered during the coronavirus pandemic, with comparable sales growth (an industry metric that factors out new-store openings) jumping by double digits and e-commerce sales soaring. The company even rewarded investors with a $10-per-share special dividend in December 2020 to directly share a portion of the pandemic windfall with investors.
2. Procter & Gamble
Procter & Gamble is best known for its marquee brands such as Tide, Gillette, and Crest. The household and personal care company is almost 200 years old and has 22 brands that generate $1 billion or more in annual revenue. Almost all of those brands hold the No. 1 or No. 2 market share position in their categories, which include paper products, laundry detergent, diapers, and beauty products. P&G is also a Dividend Aristocrat.
The company is currently developing innovative products, including the nontoxic insect repellent Zevo, and, in 2019, it released a line of plant-based cleaning products called Home Made Simple. After streamlining its business by selling off noncore brands, restructuring, and cutting costs, P&G's position is as strong as it’s ever been.
Like other consumer staples companies, P&G has gotten a healthy boost from the pandemic. Organic sales, which exclude the balance sheet impacts of acquisitions, divestitures, and currency exchanges, increased 6% during its fiscal year ending June 30, 2021, and core earnings per share rose 11%. The company's growth in fabric and home care, as well as in health care, was the most robust.
PepsiCo is much more than its namesake beverage brand. The company also owns Frito-Lay and Quaker, as well as other popular drink brands such as Tropicana and Gatorade. Its Frito-Lay snack business generates almost as much revenue in North America as its beverages, and that business has been a source of growth while soda sales slow in the U.S. and around the world. With its global brands and distribution, Pepsi enjoys many of the same advantages as industry giants P&G and beverage company competitor Coca-Cola (NYSE:KO).
Because of its exposure to the restaurant industry, Pepsi was more affected by the early stages of the pandemic, but the company began making a solid recovery in 2021.
The consumer staples company has also grown through acquisitions. In 2018, it acquired SodaStream, which gave PepsiCo a leading position in countertop soda-making, plus it bought energy drink maker Rockstar Energy in 2020.
PepsiCo is also a Dividend Aristocrat, having raised its quarterly payout for 48 years in a row, which shows that it’s an attractive stock for income investors.
There are many types of agriculture businesses, providing an array of investing opportunities.Tobacco stocks
These companies have typically performed well for investors, but they come with risks, too.Consumer discretionary stocks
Unlike consumer staples, these companies tend to follow broader economic trends during times of expansion and recession.Retail Stocks
While they are not considered staples, retail companies are intertwined with the consumer staples sector.
4. Estee Lauder
The cosmetics subsector tends to be more volatile than other parts of the consumer staples industry. That’s because trends in the beauty business, which are subject to broader fashion tastes, tend to change more quickly and more easily provide traction for smaller brands.
Additionally, cosmetics companies were hit harder by the COVID-19 pandemic than most consumer staples businesses because social distancing led to a decline in the demand for makeup and fragrances.
Nonetheless, Estee Lauder has been a top performer, more than doubling the S&P 500’s 108% return over the past five years.
Estee Lauder is the second-biggest cosmetics company in the world behind L’Oreal (OTC:LRLCY), and it has an impressive array of prestige beauty brands, including Clinique, Aveda, La Mer, and MAC. The company’s recent growth has been driven in large part by its success in the Chinese market, where its skin care products have performed particularly well.
For the fiscal year ending in June, currency-neutral sales rose 22% in Asia, primarily from China, compared to just 11% growth overall. Momentum from China’s expanding middle class should help support the company’s growth, making the stock a good choice for investors looking for a mix of fast growth and the stability of a traditional consumer staples stock.
Consumer staples ETFs
For investors who prefer exposure to the whole consumer staples sector rather than picking individual stocks, buying shares in an exchange-traded fund (ETF) is the most sensible option. The chart below summarizes three different consumer staples ETFs:
|Fund Name||Expense Ratio|
|Consumer Staples Select SPDR Fund (NYSEMKT:XLP)||0.13%|
|Vanguard Consumer Staples ETF (NYSEMKT:VDC)||0.1%|
|iShares U.S. Consumer Goods ETF (NYSEMKT:IYK)||0.43%|
The first two of these three ETFs have Costco, Procter & Gamble, PepsiCo, and Estee Lauder among their top 10 holdings. The iShares U.S. Consumer Goods ETF includes both consumer staples and consumer discretionary stocks, including Procter & Gamble, PepsiCo, and Estee Lauder, in its top 10, but it doesn’t own the stocks of retailers.
In addition, all three ETFs own popular consumer staples stocks such as Coca-Cola and the following:
- Philip Morris (NYSE:PM)
- Mondelez (NASDAQ:MDLZ)
- Altria (NYSE:MO)
- Colgate-Palmolive (NYSE:CL)
Are consumer staples stocks right for you?
The best consumer staples companies tend to have consistently strong organic sales, leading market shares, and attractive dividend yields. Although the industry sees relatively little innovation and growth, consumer staples products tend to be timeless, and these companies are likely to endure.
Consumer staples companies have an excellent ability to withstand recessions, increase their dividends, and post consistent, incremental growth. All of these characteristics make them good choices for investors looking for reliable, income-producing stocks.
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What Stocks to Buy Right Now?
To help you better diversify your portfolio, here is a selection of interesting stocks to buy right now:
- Nestlé Shares ( Buy Nestlé Share )
- Visa Stock ( Buy Visa Stock )
- Air Liquide shares
- Walt Disney Stocks
- Adobe Stocks
In Which Stock to Invest in 2022 – Should You Follow Stock Market Advice?
All stock market advice should be taken with caution. They are mainly based on technical and fundamental analyzes which do not engage the analysts. Indeed, consulting the opinions of experts or reading articles like ours can help you get some idea of the best stocks to invest in the stock market. However, no one can be certain about possible variations in the price of a share.
So, feel free to conduct your own research and analysis before placing an order. And above all, remember that events on the stock markets are unpredictable. This is why you should never invest money in it that you are not ready to lose.
Final Word: In Which Stock to Invest in 2022?
To conclude, the choice of the best stock to invest in the stock market depends on several parameters. This is why it is important to consider certain criteria such as the financial situation of the company, the history of its course, without forgetting to make a fundamental and technical analysis.
For this year 2022, stocks like Google, Netflix, Tesla, etc. remain safe bets to make your investment grow. Otherwise, other securities such as Nestlé, Air Liquide or even Walt Disney currently stand out from other securities in the same sector, hence the interest in closely considering the evolution of their prices.
What Action Will Explode in 2022?
Stocks in the field of technology such as Microsoft or Google remain the stocks that are likely to explode in 2022.
If we consider the price of shares on the stock market, you can bet on shares such as Nestlé or the Air Liquide share to invest at this time.
What Is The Most Profitable Stock Market?
The stocks we have listed in this article are all considered profitable stocks. However, the Netflix share stands out for the variation in its price, which reached +1999.13% after 10 years.
What are the Best European Stocks to Buy in 2022?
Stocks such as Total Energies, L'Oréal or even the EDF stock are interesting European stocks to buy in 2022.
What Are the Best US Stocks to Buy?
If you're looking for US stocks to buy, we recommend stocks like Facebook, Apple or Netflix stock.
In Which Stocks to Bet to Diversify your Portfolio?
To dump your portfolio, select stocks in the health care, technology or consumer staples sectors.
Do you have any other questions about stocks to invest in 2022 or want to share your opinion? Leave us a comment .
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