10 Top Stocks To Buy for 2022

New York, New York, USA - November 21, 2019: American Eagle store in Union Square.
DW labs Incorporated / Shutterstock.com

As the year unfolds, investors are currently wondering which stocks to place their bets on. While the analyst community has high expectations and optimistic forecasts for the year ahead, it’s important to keep a close eye on the market and make your own judgments.

Investment opportunities can come from many different sectors, and you should remain vigilant to find the best options for you and avoid any expensive mistakes. If you’re looking to buy stock in 2022, here’s what you need to know.

Top 10 Stocks To Consider in 2022

Before we dive deeper into which stocks you should be buying in 2022 and why, here’s a quick rundown of the top contenders. All statistics are current as of April 15, 2022.
 

Stock Price Market Cap
American Eagle Outfitters Inc. $17.50 $2.96 billion
Nucor Corp. $165.32 $44.44 billion
Steel Dynamics Inc. $88.32 $16.74 billion
Salesforce Inc. $189.41 $187.52 billion
Westlake Chemical Corp. $122.51 $15.7 billion
Devon Energy Corp. $62.56 $41.55 billion
Marathon Oil Corp. $26.61 $19.12 billion
Hewlett Packard Enterprise Co. $15.38 $20 billion
Berkshire Hathaway Inc. $516,435 $760.37 billion
Micron Technology Inc. $70.13  $78.31 billion

Fastest-Growing Stocks 

When companies have a strong leadership team, strong sales, a large audience and a good growth market, they offer excellent long- and short-term opportunities for investors. Here are some of the fastest-growing stocks to invest in for the current year. 

Building Wealth

1. American Eagle Outfitters Inc. (AEO)

According to the Piper Sandler Teen Survey released on April 6, American Eagle is one of teens’ three favorite brands, right up there with Lululemon and Nike. That’s not surprising considering the success of its Aerie line, which helped drive year-over-year sales growth of 17% and 15% on a two-year basis at the end of 2021, according to Zacks Investment Research. Store revenues were up 32% thanks to increased traffic.

Share prices are down 53% since peaking in July, but that hasn’t deterred analysts, who predict an average price target of $29.09 — a 66% increase over the current $17.50 price.

2. Nucor Corp. (NUE)

The most fruitful steel-producing company in the world gained 20% from mid-March to mid-April, ahead of its April 21 earnings release, outperforming both the S&P 500 and the basic materials sector, according to Zacks. Analysts predict Nucor will report a 44% increase in quarterly revenue and a 138% increase in earnings per share compared to a year ago — the latter prediction representing a 9.36% upward revision from a month ago.

Although full-year forecasts see revenue slowing compared to the prior year, Nucor seems poised for significant growth in the short term. Zacks analysts rate NUE a buy.

Building Wealth

3. Steel Dynamics Inc. (STLD)

Shares for this American steel producer have been trending up since the beginning of the year, and the short-term outlook is excellent as the company approaches its next earnings release. It currently ranks near the top of its industry and sector, earning it a “strong buy” rating from analysts at Zacks.

By the next earnings release on April 20, Steel Dynamics is expected to showcase some major strengths. The forecast predicts quarterly earnings of $5.51, a 162.4% increase from the same quarter last year, and a 47.7% increase in revenue.

4. Salesforce Inc. (CRM)

Salesforce has long been ubiquitous among Fortune 500 companies that rely on its customer-relationship and marketing software-as-a-service product, but it since has expanded into a full-fledged communications and e-commerce platform with the acquisition of Slack and the launch of Commerce Cloud.

Shares are trading a hair’s breadth above their 52-week low of $189.25. Price to revenue and price to free cash flow are near 10-year lows, according to U.S. News, giving investors a chance to buy at a significant discount. The consensus price target among analysts polled by Yahoo Finance is $292.68, more than a 54% increase over the current price.

5. Westlake Chemical Corp. (WLK)

Shares of this chemical industry giant have gained 25% so far this year, whereas the specialty chemicals industry overall lost 15% during the same period. The global economic rebound massively benefited this company, positioning it as a solid buy for the second quarter in 2022. Westlake Chemical Corp. is now experiencing higher sales prices for its most important products and increasing demand within the construction material business. 

The future looks promising for WLK and those looking to put their money in it. The strong demand for this company’s products has contributed to its economic expansion internationally and is showing no signs of stopping anytime soon. 

Best-Performing Stocks

To measure stock performance, analysts and investors should take into account the stock’s potential and ability to increase its shareholders’ wealth during an estimated period. Here are some of the best-performing stocks to keep on monitoring throughout 2022. 

6. Devon Energy Corp. (DVN)

This company’s stock price has recently gone up due to its capital return for shareholders, outstanding financial performance and geopolitical conditions that have sent energy stocks soaring. It’s projected that DVN’s share price will continue to climb this year because of its high-dividend play status. This makes Devon Energy shares a buy. This stock’s EV/EBITDA attractive valuations could potentially lead to increasing the company’s stock value. 

Devon’s strong performance over the last 60 days has prompted Zacks to increase its consensus estimate by more than 29% and assign the company a Growth Score of A. Analysts predict the company will report nearly 105% sales growth for the quarter ended in March compared to the same quarter last year.

7. Marathon Oil Corp. (MRO)

Shares of this stock have advanced over 57% since the beginning of the year, while the Dow and S&P 500 have lost considerable ground. The effects of the Russian invasion of Ukraine are certainly a factor, driving share prices to just below their 52-week high.

A great deal of uncertainty exists around the short-term energy outlook, according to the U.S. Energy Information Administration, and some analysts are skittish, stopping short of recommending MRO as a “buy.” However, Zacks Investment Research rates it a “strong buy” and ranks it in the top 3% of U.S. integrated oil and gas stocks.

Best Value Stocks

When considering a stock, value investors tend to choose those trading for less than what they’re worth. The strategy includes measuring fundamental business metrics against the stock price with the hopes the price will rise alongside the company’s worth. Here are some of the best value stocks for 2022.  

8. Hewlett Packard Enterprise Co. (HPE)

Hewlett Packard Enterprise, created when HP divided its operations, calls itself a “global edge-to-cloud” company that helps businesses connect, protect, analyze and act on their data and applications. The company reported a strong first quarter with heightened customer demand driving orders up 20% compared to the same quarter last year, Zacks reported. And the company is flush with cash — $1.8 billion to $2 billion worth. As a result, it’s paying a healthy 3.12% dividend yield and repurchasing shares.

Trading at just 5.5 times earnings with a $15.38 share price, analysts’ consensus price target is $18.01, a 17% increase.

9. Berkshire Hathaway Inc. (BRK-A)

It might seem counterintuitive that the world’s most expensive stock could be considered a good value, but consider this: Berkshire Hathaway is a holding company for businesses representing dozens of brands in industries as diverse as insurance, freight rail transportation, utilities, furniture, confections, batteries and recreational vehicles, to name a few, and it’s helmed by one of the world’s most successful value investors.

Berkshire Hathaway shares are up over 15% since the beginning of the year and almost 30% from a year ago. While not as “cheap” as a year ago, Barron’s says the stock is still a good deal. Diversified earnings, excellent management and a recent spending spree — a deal to acquire Alleghany, an insurance company, and the purchase of a 15% stake in Occidental Petroleum — which Barron’s says investors love, bode well for patient investors. Of course, most will have to buy a fractional share of the $516,435 stock or pick up budget-priced Class B shares.

10. Micron Technology Inc. (MU)

Micron stock has taken a hit over the last year, but it checks a lot of boxes as a value stock — low price-earnings ratio, high earnings-per-growth forecast over the next year through the next five years, and a target price better than 30% above the current price. A Zacks Consensus Estimate puts 2022 fiscal year sales growth at 21% and earnings-per-share growth at 57.4% and gives the memory and digital storage company an A grade for value.

It’s worth noting that Micron has beaten estimates by an average of 6.6% over the last four quarters.

Stephen “Sarge” Guilfoyle, Real Money columnist for TheStreet, believes that “demand for what Micron does will outpace supply and/or capacity for some time.” As for Micron’s financials, Guilfoyle noted that “the balance sheet is as clean as a whistle and gets high marks on the Sarge test.”

Final Take

The stock market is in constant evolution, and those looking to invest need to pay close attention to its frequent ups and downs. When looking to invest in new stocks and diversify your portfolio, do your research and evaluate what’s best for you in the long run. The guide above is meant to give you some insight into some of the best options in the stock market nowadays. Be aware that these conditions may vary over time. 

Good To Know

Experts recommend investing in stocks over bonds if your goal is growth and you have a strong appetite for risk. Although stocks are more volatile than bonds, historically, they have produced larger long-term gains. If investing in individual stocks is too risky for you, consider a mutual fund that invests in a basket of growth stocks. 

Daniela Rivera-Herrera contributed to the reporting for this article.

Data was compiled between April 15 and April 16, 2022, and is subject to change.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

About the Author

Daria Uhlig is a personal finance, real estate and travel writer and editor with over 25 years of editorial experience. Her work has been featured on The Motley Fool, MSN, AOL, Yahoo! Finance, CNBC and USA Today. Daria studied journalism at the County College of Morris and earned a degree in communications at Centenary University, both in New Jersey.

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