9 Best Stocks To Buy and Watch Now for 2022
After a tumultuous two years, you likely know how the stock market can change at the drop of a hat. Unexpected jumps and drops can create uncertainty for even the most seasoned investor.
9 Stocks To Keep an Eye on in 2022
To help guide your investing decisions, here are some of the best stocks to buy and keep an eye on for 2022.
1. Alphabet Inc. (GOOG, GOOGL)
Alphabet Inc. is a multinational technology company with headquarters in California, USA. It is now the parent company of the world-renowned Google and its other subsidiaries. Alphabet’s segments include Other Bets and Google. The Google segment of Alphabet Inc. includes Gmail, YouTube, Search, Google Play, Gmail, Chrome, Android and Google Maps.
- Most Current Stock Performance: 52-week low of $1,721.55 and a 52-week low of $3,037
- Buying Price: $2,782.61
- Market Value: $1.846 trillion
- Dividends: N/A
2. Medifast Inc. (MED)
Although not as popular as some other companies on this list, Medifast is one of the best stocks to watch. The multilevel marketing company sells and distributes foods for weight loss. With impressive year-over-year returns, Medifast remains undervalued, making it a good option for investors. With the success of its Coach-driven wellness approach, Medifast decided to phase out and instead continue support for customers through its holistic health brand, OPTAVIA.
- Most Current Stock Performance: 52-week low of $184.48 and a 52-week high of $336.99
- Buying Price: $202.83
- Market Value: $2.356 billion
- Dividends: $5.68
3. EOG Resources Inc. (EOG)
EOG Resources is a U.S.-based natural gas and oil producer. It is one of the best stocks to buy now since it will benefit heavily from the projected inflation in the coming year. The company operates in Canada, the U.S., the United Kingdom North Sea, China and other international regions.
- Most Current Stock Performance: 52-week low of $50.08 and a 52-week high of $10.350
- Buying Price: $102
- Market Value: $59.679 billion
- Dividends: $3.00
4. Microsoft Corp. (MSFT)
It shouldn’t surprise anyone that Microsoft has made it to the list of the best stocks to buy now. Being a giant in the cloud computing market, Microsoft has constantly cranked out cash flows through its segments, such as Microsoft Surface, Xbox, LinkedIn and others. Two of the main reasons for investing in Microsoft stock are that the company’s cloud transformation is paying off heavily, and its core cloud services generate impressive revenue.
- Most Current Stock Performance: 52-week low of $212.03 and a 52-week high of $349.67
- Buying Price: $304.80
- Market Value: $2.288 trillion
- Dividends: $2.48
5. Upstart Holdings Inc. (UPST)
Upstart is a personal lending company that uses technology to offer competitive rates and flexible payment terms to its customers.
Upstart was founded in 2012 to make unsecured personal loans more affordable for people who have no credit history. The company offers loans to people who are unable to get traditional credit through its online platform that uses an individual’s employment, academic and financial history to determine whether they qualify for a loan.
- Most Current Stock Performance: 52-week low of $42.51 and a 52-week high of $401.49
- Buying Price: $109.25
- Market Value: $8.954 billion
- Dividends: N/A
6. Visa Inc. (V)
Visa is a credit card company that offers solutions, including financial services, to individuals and businesses. The company’s shares have been consistently stable since 2020, although there was a slight dip in 2021. As the world returns to normal and international travel becomes more common, Visa is expected to see a spike in its stock price since it charges a high fee on international spending.
- Most Current Stock Performance: 52-week low of $190.10 and a 52-week high of $252.67
- Buying Price: $215.00
- Market Value: $467.369 billion
- Dividends: $1.50
7. ASML Holding NV (ASML)
ASML Holding is a Dutch company that manufactures machines for chip production. It is the largest manufacturer of extreme ultraviolet lithography machines, or EUV, and has a dominant position in this niche market, with a significant share globally. The company engages in developing, marketing, producing, selling and servicing semiconductor equipment systems.
- Most Current Stock Performance: 52-week low of $501.11 and a 52-week high of $895.93
- Buying Price: $730.08
- Market Value: $296.759 billion
- Dividends: $3.96
8. General Motors (GM)
General Motors is a publicly-traded, American multinational corporation headquartered in Detroit, Michigan, that designs, manufactures and distributes automobiles and automobile parts. The company’s divisions include Chevrolet, Cadillac, Buick and GMC. General Motors stock has a high Relative Strength Rating from IBD, which means it has outperformed most other stocks in the past year.
- Most Current Stock Performance: 52-week low of $47.07 and a 52-week high of $67.21
- Buying Price: $61.77
- Market Value: $89.681 billion
- Dividends: N/A
9. Cheniere Energy (LNG)
Cheniere Energy is an energy infrastructure company focused on producing Liquefied Natural Gas. The company cleans, secures and provides LNG to energy trading companies, utilities and integrated energy companies worldwide.
- Most Current Stock Performance: 52-week low of $58.26 and a 52-week high of $115.73
- Buying Price: $112.70
- Market Value: $28.582 billion
- Dividends: $1.32
Best Stocks to Watch: How To Find
Thousands of stocks trade on the Nasdaq and New York Stock Exchange alone — and there are even more stocks on other exchanges around the world. This can make it quite difficult for investors to find the best stocks to look out for.
One of the best ways to determine if a stock is worth buying is by checking the CAN SLIM system. The CAN SLIM system shows you how to analyze a stock, what is unique about a particular company and its industry, and when might be the best time to buy.
Stocks are traded on exchanges like any other commodity or asset in which price is determined by supply and demand forces. Certain factors, such as the company’s performance, geopolitical factors and the general market sentiment affect the supply-demand ratio in the stock market.
Investors who think the stock price will rise attempt to buy more than is being offered for sale to profit from an increased share value. Investors who think the stock price will decrease are less interested in buying the shares, so they want to sell their shares. All of these transactions lead to changes in share prices.
The CAN SLIM Investing System
The CAN SLIM system considers all these things. The acronyms of CAN SLIM are:
- C: Current quarterly earnings
- A: Annual earnings
- N: New product or service
- S: Supply and demand
- L: Leaders
- I: Institutional ownership
- M: Market direction
As evident, the CAN SLIM system considers the quarterly and annual earnings of a company to determine the direction its stock price will go. If there’s a change in market direction or the company introduces a new product or service, the CAN SLIM system also bases the strength of the stock on these aspects.
Institutional sponsorship refers to investors, such as pension plans, insurance companies, mutual funds, government bodies and banks. Since these professional investors have experienced analysts researching stocks for them, their investment in a stock is considered good news. Simply put, if more institutional sponsors are investing in a stock, it means the stock is expected to do well.
The “M” of CAN SLIM is extremely important. Almost all stocks follow the direction of the market. If there’s a confirmed uptrend in the market, that’s when you should invest in a stock.
It’s also important to remember that the stock market changes very quickly. Therefore, you should keep a close eye on the prices of stocks you’ve invested in and any news surrounding them.
Good To Know
When searching for the best stocks to buy now, you should have a clear idea of what you’re looking for. A growth stock, for example, is expected to have a higher rate of return than a blue-chip dividend stock. Besides the stock type, consider trends in earnings growth, debt-to-equity ratio, company strength, the company’s dividend division method and the price-earnings ratio.
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- Microsoft. "Microsoft buys LinkedIn - Stories."
- U.S. News Money. "How To Pick Stocks: 7 Things All Beginner Investors Should Know."