Best 2022 Stock Options for Your Portfolio

2022 was a banner year for stocks and that's why Benzinga takes a look at the best 2022 stock options for your investment portfolio. How did you do with your portfolio regarding these stocks?

Quick Look at the Best 2022 Stock Options:

• Apple
• PayPal Holdings
• American Airlines Group
• UnitedHealth Group
• Airbnb

Top 2022 Stocks to Watch Out for This Year

With 2022 underway, it is time for investors to research which stocks could make the most significant gains this year. Below are our top 5 stocks for 2022.  

Apple (NASDAQ: AAPL)

Apple is one of the most globally-recognized companies. Recently, Apple became the first company to hit a $3 trillion market valuation. With products such as the iPhone, iPad, AirPods and much more, everyone seems to have or previously had an Apple gadget. 

2021 was an impressive year for Apple as its share price continued to grow alongside its earnings. Its shares gained over 30% throughout the last year, and after reporting an industry-leading cash flow of $104 billion, its spending on share buybacks has been significant. 

PayPal (NASDAQ: PYPL) 

PayPal has revolutionized the online payments game, serving as an electronic alternative as opposed to traditional paper methods. However, a recent fall in its share price may offer an investment opportunity as the company remains a leader in its market.

It is also ranked highly. TipRanks showed the stock is rated a Strong Buy for the following 12 months with an average price target of $269.07 and a high of $342.

American Airlines (NASDAQ: AAL)

The major airline may have mixed reception as Covid remains an issue, but American Airlines should see growth and demand continue to top pre-Covid levels throughout 2022. While there are still risks, the emergence of the milder omicron variant has given investors more confidence in the travel sector.

The company’s 2021 was mixed for its share price after an impressive start. Uncertainty and outside circumstances — such as the delta variant — played a considerable role for airline stocks. However, this opens the door for potential growth over the coming year.

UnitedHealth (NYSE: UNH)

The insurance and healthcare company provides a service that has been in great demand during a pandemic. UnitedHealth is the largest global healthcare provider. 2021 was a standout year, reaching record highs for its share price. Revenue is predicted to cross $300 billion for the first time in the coming year.

The stock gained over 40% last year, and the company reported convincing figures for 2022. Truist analyst David Macdonald raised UnitedHealth's price target to $575 from $520.

Airbnb (NASDAQ: ABNB)

The American vacation and rental company Airbnb has only been a public company for over a year. However, the stock has made impressive gains over the last six months. As the economy continues to open up and improve, travel should follow suit, which sets a precedent for Airbnb to have a positive 2022.

Investors remain cautious due to uncertainty around the travel industry. However, a recent analyst at Cowen believed investors were significantly underestimating the stock’s growth prospects.

Overview: Top 2022 Stocks

The highlighted stocks for 2022 are all large-cap stocks with substantial valuations. Apple leads the line as the biggest company globally at this current moment with a market cap of $3 trillion. 

The tech giant has specialized in consumer electronics since it was founded in 1976 but has faced fierce competition from a challenging market. Market leaders are constantly changing as adaptability and innovation are essential, but the likes of Amazon, Google, Facebook, Microsoft, and Apple are to be the dominant firms.

The online payments industry has shown strength as the switch from paper transactions to online payments has, as expected, progressed massively, with PayPal at the forefront. Internet and online transactions are much more convenient and demand has developed over time, making it a popular choice and leaving little to worry about for customers. Market contenders and PayPal competitors include Square, Google Pay, Payoneer and many more.

American Airlines and Airbnb operate in the travel industry, which has suffered significantly from the pandemic over the last few years. As a result, travel tumbled dramatically during 2020 with heavy losses and low demand. However, signs of bouncing back have been on the horizon for quite some time, with increased vaccinations and pent-up demand for tourism. 

The healthcare and insurance market, particularly in the U.S., is enormous. UnitedHealth is the leading firm in this market, but its main competitors include CVS Health, Cigna, Humana and many more. The pandemic resulted in a massive increase in demand for top U.S. health insurers and while it may slow slightly, it should still be strong over the next year. 

How to Buy The Top 2022 Stock Options

The majority of brokers will offer large-cap stocks due to the increased demand for these companies' shares and liquidity. The stocks listed will be easy to acquire if you have already set up an account. However, if you do not yet have a brokerage account, follow the steps below.

1. Find a brokerage.

A broker acts as the intermediary between you and the stock exchange and may be listed under the Nasdaq or the NYSE. The customer places an order via their broker to buy a stock, and the broker will carry out the instructions set. If you decide to purchase shares for any of the stocks listed, you instruct your broker to buy the number of shares you request at the price you wish, and it carries out those instructions. 

The broker may charge a small fee in exchange for its services. Although, the price varies depending on the broker. Therefore, make sure to research costs and other aspects before setting up an account.

2. Decide how many shares you want to buy.

Funding of the account will be required based on how many shares you may like. Take into account the amount of risk you want and the percentage of your account attributed to each stock. 

Starting with a small investment and adding consistently over time has been a safe strategy used by investors to spread its risk. However, before you make your purchase, consider how you will enter the market. 

3. Choose your order type.

This stage requires you to decide on how your position is executed. The main 2 order types used by investors include market orders and limit orders.

Market orders mean you acquire the shares at a price dictated by the market. In other words, you buy at the current market price. Market orders mean your order will likely be filled, and there is a level of certainty to the entry.

Limit orders allow the individual to purchase the stock at a price of their choice. You can determine what price you buy the shares at, but there is a risk that your order level will not be reached and you will miss an entry.

4. Buy the shares.

After you have completed all the necessary steps to put you in a position to buy the shares, all that is left to do is just that — buy the shares. Once you have completed the required fields, the last thing to do is click buy. Once all the steps are completed, you can monitor your ticket through your account.

Compare Online Stock Brokers

The task of researching the best brokers can be tiresome. Luckily, listed below are the best brokers for the large-cap stocks mentioned.

Biggest Movers of the Day

The best stocks are not always the biggest movers on the day, however, it’s always a nice surprise to see a stock you own make a significant premarket move. However, if you want to see the stocks which have made significant gains, they are listed below.

Potential For 2022

The stock market has produced excellent returns in recent years, and many analysts believe it will continue in 2022. Stock selection and picking the right company at the right time are vital to generating the best returns. 

However, coronavirus and new variants such as omicron still pose questions for the market and the global economy in general, with the threat of restrictions still prevalent. Although 2022 has its headwinds, many investment opportunities are still present.

Frequently Asked Questions