The Best Stocks to Buy

The Dow Jones, NASDAQ, S&P and Russell 2000 have all fallen into a funk the last 3 months. It’s a pessimistic mood driven by rising rates, the Eastern European war, looming issues with China, high commodity and oil prices, and the withdrawal of big Fed stimulus money.

Next week the Fed plans to raise interest rates, and we know the markets will not like that.  The most likely direction of stocks then will be down, unless the Fed sends new signals that it’s backing off trying to cool inflation via monetary policy. The question for stock investors is how painful will the inflationary trend be to consumers and how will they now adjust their spending. Is the summer travel season in jeopardy?

Certainly the post pandemic economy promises to bring a lot of businesses back again including travel, hotels, restaurants, and retail shopping.  The Fed stimulus, continued low interest rates and increasing production, it seems 2022 will be a solid year for manufacturing.

The goal of all investors right now is to find some great stocks to buy during this dip, in anticipation of a market surge and economic recovery. Experts forecasts for the markets have them heading upward by summer. However, is the momentum of these great performing stocks listed below enough for you to buy?

Should you be buying stocks on the Dow Jones, S&P 500 ,NASDAQ or Russell in the next 3 months?

The goal then is to find companies who will benefit from the new economic and business environment. Is it 2019 all over again? Likely not, now that the the current US regime is raising taxes, raising energy costs, and pursuing a technology course, at the same time as recessionary spending and reduced global trade.  Raising US business costs and creating high consumer prices is not a good course.

US News Top Earnings Stocks:

Blackstone Inc. BX
Stock Price: $116.05, 1 year returns: 63.38%,  5-YEAR returns: 38.79%, P/E RATIO 15.91

Encore Capital Group Inc. ECPG
Price: $62.04
1 year returns: 56..5%
5 year returns: 15.7%
P/E Ratio: 5.52

Extra Space Storage Inc.  EXR
Price: 196.51
1 Year returns: 55.22%
5 Year returns: 25.04%
P/E Ratio: 36.6

Mckesson Corporation MCK
Stock Price: $281.23
1 Year returns: 53.96%
5 year returns: 14.78%
P/E Ratio: N/A

Old Dominion Freight Line ODFL
Stock Price: $306.38
1 year returns: 35.25%
5 year returns: 28.53%
P/E Ratio: 40.33

Signature Bank SBNY
Stock price: $289.25
1 year returns: 31.4%
5 year returns: 15.45%
P/E ratio: 21.52

Telus Corporation TU
Stock price: 26.16%
1 year returns: 27.8%
5 year returns: .27%
P/E ratio: 24.05

Essex Property Trust, Inc ESS
Stock price: $336.02
1 year returns: 26.7%
5 year returns: 11.86%
P/E ratio: 46.93

High Tide Inc. HITI
Stock price: $4.47
1 year returns: 647.49%
5 year returns: N/A
P/E ratio: N/A

General Electric Co. GE
Stock Price: 91.33
1 year returns: 646.94%
5 year returns: 39.68%
P/E ratio: N/A

Byrna Technologies BYRN
Stock price: $9.97
1 year returns: 638%
5 year returns: 146.3%
P/E ratio: N/A

Lightwave Logic Inc.  LWLG
Stock price: $8.69
1 year returns: 636.44%
5 year returns: 66%
P/E ratio: N/A

CYREN Ltd  CYRN
Stock price: $6.80
1 year returns: 631%
5 year returns: 26.5%
P/E ratio: N/A

Destination XL Group  DXLG
Stock price: $4.20
1 year returns: 520.38%
5 year returns: 10.9%
P/E ratio: N/A

Vertex Energy  VTNR
Stock price: $8.90
1 year returns: 501%
5 year returns: 50.3%
P/E ratio: N/A

Discover more on money.usnews.com/investing/stocks/earnings-gainers.

Here’s the top performing stock of late from Trading View:

Top performing stocks.
Top performing stocks. Screenshot courtesy of Trading View.

Please do check out stocks to avoid, the best stocks to buy, best tech stocks, and the forecast for the next 6 months.

 
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What will be different in 2022?

  • interest rate rises to battle consumer price increases
  • inflation persists
  • stimulus funds still infusing into the economy
  • GDP will rise as production is back full tilt across the country
  • wages will grow only slowly
  • US dollar is strengthening as production moves back to the US to avoid risk
  • energy prices will rise to cripple GDP

Yes, you’ll want to check out the standard opportunities which include oil stocks, 5G stocks, Google, Facebook, Bitcoin, Tesla, Apple, and perhaps even check out some high quality penny stocks.  And you’ll find some good stocks on the Dow Jones, NASDAQ, and S&P reports.

Tech stocks and Google, Facebook, and Amazon have lagged this year as the pandemic fizzles out. They are facing anti-trust and monopoly charges, and big taxes, along with controls on tax evasion, so parking your money with big tech is a sketchy decision.

If there is a stock market crash in 2023, you’ve got 18 months to pick some suffering stocks that can last the long run. Which stocks are those? Take a look at the stock market forecast page for some ideas.

Here’s the best performing stocks last week:

Best performing stocks last week.
Best performing stocks last week. Screenshot courtesy of Barchart.

Although the NASDAQ has stayed steady and the Dow Jones stocks have excelled, it may be S&P 500 stocks are your best bets. Take a look at the S&P 500 forecast and it’s top stocks.

Should you just stick to the best of the Dow Jones, S&P, and NASDAQ?  Tech stocks are sketchy right now however Google, Facebook might be the safest. See some best stock picks.

Which Stocks Will Thrive in 2022?

Some suggest small caps and small business is ready for a breakout this year. Here’s Yahoo Finance’s look at some low priced small caps that are racing upward fast.

Top performing small caps.
Top performing small caps. Screenshot courtesy of Yahoo Finance.

What’s Supporting Stocks for the Year

GDP forecasts for the next 5 years are promising. Steadily each year, it’s scheduled to grow guided by optimism and business reopening.

GDP Estimates to 2022. Screenshot courtesy of the Bureau of Labor Statistics

The economy looks up, and with the recovery, consumer spending and infrastructure spending should be able to carry the ball forward.  The full economic recovery won’t be felt until 2022/2023.  It takes years for stimulus spending to really take effect.

GDP growth projection for next 5 years. Screenshot courtesy of Statista.

Find the Best Bargain Priced Stocks

Instead, surveil the available bargain stocks. Stocks prices will keep plunging with or without stimulus money. When no one is working, stock values cannot climb.

Kiplinger cites 10 cheap stocks with good potential:

  1. Sirius XM Holdings (SIRI)
  2. Infinera (INFN)
  3. Mobile TeleSystems (MBT)
  4. Comstock Resources (CRK)
  5. Viking Therapeutics (VKTX)
  6. Amneal Pharmaceuticals (AMRX)
  7. Veon (VEON)
  8. Annaly Capital Management (NLY)
  9. TrueCar (TRUE)
  10. SmileDirectClub (SDC)

How To Spot the Best Stock Picks

  • checkout their P/E ratio — those which had the biggest drop are ripe for the highest rebounds
  • trending prices or momentum means investors believe they’re onto something
  • low priced stocks with high volume – means everyone is evacuating
  • stocks that thrived during the last rapid price growth phase
  • Russell index where lots of small caps will be decimated and then return with vigor in 2021
  • good estimate of the 5 year and 10 year outlook
  • stocks in high growth sectors such as EV cars, 5G, software, automation and artificial intelligence

The real estate sector has performed alright and there might be still be some home builder stocks you might buy. The 5 year forecast for housing though is good and the 2022 real estate market should be a good one despite the current severe housing shortage. It’s that shortage that will draw in more investors.

The top losing market sectors are energy and financials.  Google stock price and Apple Stock price will bounce back too, but percentage wise you might not get the same growth as with smaller companies that were hurt more by this recession.

You can see the full list at barchart.com/stocks/top-100-stocks/bottom where they have plenty of additional data to guide your stock picks.  See the full picture on the stock market forecast post, along with report for the next 3 month and 6 month periods.

Housing Market Crash 2022 | Stock Market Crash | Stock Market Forecast 2023 | Florida Housing Market

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