The Covid-19 pandemic is not yet over. With the fear of Omicron Covid-19 strain looming over our shoulders, it is still early days to predict the direction it would take. The economy and the markets are going through unexpected events amidst this pandemic.
However, analysts and investors have turned their attention to a new year, 2022. As analysts and experts consider the top companies to invest in, in 2022, they know that the so-called “black swans” are impossible to analyze. There could be unforeseen events like a pandemic that could routinely make fun of strategies and forecasts.
Though we all blame the pandemic, the supply chain pandemonium in 2021 is also responsible for a jolted investment life. Despite all the unforeseeable events, strategists across the world believe that the global economy is likely to speed up in 2022.
Given that the last two years have shown us unpredictability, the most prudent perspective would be planning for investment with a gamut of outcomes.
Our list of the top companies to invest in 2022 are some companies outperforming themselves in 2021 amidst continued economic recovery both at home and away and will continue to make new records in 2022:
Best Companies To Invest In 2022
Walt Disney
Industry: Entertainment
Market Value: $278.7 billion
Dividend Yield: N/A
The worst-hit company during the pandemic should have been Disney, with its theme parks closed or with limited facilities for months, cinema business in a coma, and even ESPN sports business reeling under cancellation of several professional sporting events for months. However, such was not the case. Walt Disney has proven that it is beyond compare with adaptability.
It is said that luck favors those who delve. Disney started its OTT services with Disney+, which became an instant hit and turned the tide in the company’s favor. Today, it has emerged as the strongest competitor to the OTT giant Netflix. The movie business has gathered pace too, with the announcement of new Marvel productions and the theme parks slowly opening up to global customers.
Analysts expect the EPS of Disney+ to grow two times in 2022. Currently, the stocks are trading at similar prices to those of 2019. Disney has grown since 2019 and is likely to be one of the best companies to invest in 2022.
Uber Technologies
Industry: Application Software
Market Value: $75.3 billion
Dividend Yield: N/A
The ride-booking Uber Technologies is available in 750 markets and 63 countries across the world. Uber Eats is one of the largest connectors between restaurants, delivery drivers, and customers. Uber also has an upcoming freight business.
Uber had achieved an important landmark when it made a profit in the third quarter of 2021 for the first time after its inception. This profit is before taxes, interest, amortization expenses, and depreciation. What is remarkable is that the achievement was during the post effects of the pandemic.
The company that made a name out of mobility as a service is one of the best companies to invest in 2022. Although the EPS will probably be negative, analysts believe that the stock will trade at $64 in the next year, which is 65% profit from the currently traded price.
Alibaba Group
Industry: Internet Retail
Market Value: $339.1 billion
Dividend Yield: N/A
Although the company has suffered a significant setback in terms of its stock prices after the Chinese government slapped a record $2.75 billion as a penalty for monopoly, Alibaba Group stands strong.
Analysts are bullish about the performance of the stock even after it slumped 60% between October 2020 and November 2021. As per experts, the company is sure to turn the tide.
Alibaba is a leading e-commerce company, and though the performance has been underwhelming, 2022 could see the stock giving returns. The stock price is low, with a 50% discount on the average long-term forward price-earning ratio of 37. This is one of the top companies to invest in, in 2022.
Alphabet Inc.
Industry: Internet And Information Services
Market Value: $863.2 billion
Dividend Yield: N/A
As a premier large-cap company, Alphabet Inc. trades for a price-earnings ratio just under 29. As per analysts, Google is expected to have a 24% increase in earnings year on year for the next five years.
The core business of Alphabet Inc. is online advertising. YouTube returns have increased over 43% in the past quarter, and the Cloud business is also showing an upward curve.
Given the circumstances, betting on Alphabet Inc. is a sure-shot success, and thus it is one of the topmost companies to invest in, in 2022.
Medifast Inc.
Industry: Health And Nutrition
Market Value: $2.28 billion
Dividend Yield: 2.9%
Medifast is well known for its health and nutrition products. The company produces, distributes, and sells products that help in reducing weight.
In a similar situation like 2020, Medifast Inc. in 2021 has been trading sideways with undervaluation. However, the company has done remarkably well in terms of revenue that saw a growth of 52% in the mid-quarter.
Medifast Inc. shares trade at less than 15 times the earnings. However, trade analysts predict a year-on-year growth of 20% for the next five years. The company has no debt, and it gives a dividend yield of 2.9%. What’s more, a company founder has recently bought stocks worth 1 million, which makes this undervalued stock a worthy buy in 2022.
EOG Resources Inc.
Industry: Oil and Natural Gas
Market Value: $51.50 billion
Dividend Yield: 1.8%
A “top organization to invest in 2022” list would be incomplete without mentioning EOG Resources Inc. It is one company that would benefit from inflation. An American company that is worth more than $50 billion and has the capacity to weather any storm.
EOG Resources Inc. stocks trade at less than 9 times forward earnings, and as a company, it pays its shareholders a neat 1.8% dividend. Even at its peak, EOG traded at a 33% discount in October 2018.
The company is well known as an efficient operator, and it has proven its capacity to rise with energy prices that went as high as 82% in 2021, along with a 50% recovery in oil. Look out for this company in 2022.
Visa Inc.
Industry: Credit Cards
Market Value: $458.71 billion
Dividend Yield: N/A
Visa Inc. is a U.S.-based financial services corporation that expedites electronic transfers throughout the world. The company stocks trade at a premium because of its excellent track record, consistency, high margins, and amazing competitive advantage.
However, the stock prices have been slipping in 2021 after a flat 2020. This is even after the company has performed reasonably well, along with declaring a dividend that is 17% higher than the last quarterly dividend.
The company has recently been clouded with certain headlines that were not in good taste. However, as per the CEO, they would soon resolve the conflict, and normalcy will return. With global travel returning to its earlier form, the picture looks bullish for Visa Inc. It is a company to look out for in 2022.
Meta Platforms Inc.
Industry: Internet And Technology
Market Value: $930.47 billion
Dividend Yield: N/A
Formerly known as Facebook, Meta Platforms Inc. includes Instagram and WhatsApp in its kitty. Over time, the economic situations may have downsides,, a geopolitical crisis may trigger, but Facebook, Instagram, Messenger, and WhatsApp are likely to boom. The services are used by an incredible 3.58 billion subscribers month on month. That is about 50% of the world population.
Although it would take years for the company to pay dividends, there is no doubt that at 23 times earnings, Meta Platforms Inc. has the best value to growth opportunity of the FAANG (Acronym to the five most popular technology stocks in America -Meta (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google (GOOG)) stocks. Watch out for the company in 2022.
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