Investors could do nothing but cheer their returns in 2022, as the S&P 500 shook off after the Russia-Ukraine war and returned over 26%. So far this year is looking like a ‘stock picker’s market’, meaning the broad averages may be lacklustre but there will still be pockets of opportunities. Here, Global Business Outlook takes a look at top five companies that one can invest in 2022.
Tesla (TSLA)
Tesla has continued to outperform expectations for years now, following up its extraordinary 700% gain in 2022 with a 31% YTD gain in 2021 (as of December 16). As of July 25, 2022, the stock has gone down 46% compared to last year. However, the company has transformed itself into a profit engine and Tesla plans to open two new giga-factories before the end of the year, which should increase its production greatly. With a market cap of $673.70, Tesla is on a seemingly unstoppable roll.
Atlassian (TEAM)
Atlassian is the Australian-based software company behind products such as Jira, Confluence, Bitbucket, Trello and OpsGenie. The company’s software is primarily for software developers and IT departments, but it also helps small businesses collaborate and become more effective. Atlassian’s growth boomed during the height of the coronavirus pandemic, but it’s likely to remain in favor as even more companies are now familiar with how productive Atalassian’s software can make corporate teams, whether they are remote or return to the office. Consensus analyst estimates are a buy, with a 12-month median price target of $338, or about 83% above current levels.
Disney (DIS)
Disney is a long-time Wall Street darling that has been nothing but disappointing to investors thus far in 2021. As of July 25, Disney stock is down about 40% YTD, while the broader markets are up about the same amount. This wide gulf in underperformance is uncharacteristic of Disney, which has generally provided solid and reliable long-term returns. After rallying sharply off the March 2020 market selloff, Disney has dropped precipitously from its all-time high of $203.02 set in March 2021. However, signs of life abound for a 2022 bounce-back, as the company’s main business lines — filmed entertainment, cruise ships, and theme parks — all are reopened and generating revenue again. Disney’s vast treasure trove of content also should continue to fuel the company’s growth in its streaming service Disney+.
Norwegian Cruise Line (NCLH)
If you’re a bit of a gambler, Norwegian Cruise Line might grab your interest for a 2022 investment. The cruise stocks got hammered in 2020 — it seemed they would all go out of business during the height of the pandemic — and there are still some pundits who thought they would never be the same, even if they survived. However, before the pandemic cruise business was booming, and after the world returned to normalcy, pent-up travellers flooded back onto ships as soon as the pandemic was in the rear-view mirror. While the pandemic greatly affected cruise stocks, the stocks are on the rise again and cruise lines are rebounding on the backs of firmer pricing and high customer demand. As of now, Norwegian Cruise Line trades a whopping 48% below its market value this time last year in 2021, but higher than the 70% dip the stocks stood at in 2020.
PayPal (PYPL)
PayPal almost single-handedly changed the payment processing world, but it has had an absolutely dismal 2022. As of July 25, the stock is down about 63% YTD. While PayPal’s growth has slowed a bit, it’s still generating significant profits and posted $25.4 billion of revenues in 2021, which was up 18% from the year before. As Paypal continues to grow and reach more users, financial transactions are likely to increase, thereby benefiting PayPal going forward.