We Found 3 Stocks with Outperform Potential in 2022
There's no better way to start off the year than by adding a few potential winners to your portfolio, but finding those types of stocks isn't easy as active investors know.
While the preceding weeks in the market have been difficult, recent volatility has given important insights into which sectors of the market are still in high demand.
Whether you're looking for stocks that have dropped significantly from their highs or market leaders that may continue to rise, there are several intriguing possibilities for investors to consider right now.
Let's have a look at three equities that are poised to surge in 2022.
Tesla's stock has been subject to significant selling pressure throughout the year, as the firm's CEO Elon Musk has been dumping billions of dollars in shares for tax purposes. This has resulted in a substantial drop off from the 52-week highs, yet nothing fundamental about Tesla's growth narrative has changed.
Tesla is still the top electric vehicle company in the United States, and it has a lot of growth potential in foreign markets like China. With Elon Musk on the verge of completing his selling, the stock should be poised to return to highs in 2022.
Keep in mind that Tesla has a number of new vehicles on the way, including the Cybertruck and a semi-truck model, which may be beneficial to the stock price. Tesla also reported its best-ever net income, operating profit, and gross margin in Q3, suggesting it is moving forward at full speed into 2022.
The bottom line is that Tesla has seized first place in the electric car market due to best-in-class technology, a huge network of superchargers, and an unusual but passionate leader. In 2022, investors should anticipate big things from the stock.
PayPal's stock has rather suffered since the firm abandoned a previous announced takeover of the social media company Pinterest in October, but that shouldn't prevent investors from purchasing shares in PayPal in 2022.
It's a big fintech firm that serves as a go-between for customers and merchants, allowing them to use digital and mobile payments. The recent decline could turn out to be a buying opportunity in 2018, when the sector is expected to expand rapidly. Remember that the digital payment industry has vast potential over the next ten years, and this firm's robust network puts it in the lead.
In 2022, PayPal's growth prospects are bolstered by the company's emphasis on e-commerce. Furthermore, e-commerce is a popular trend that will help PayPal continue to grow in the future, as consumers and businesses increasingly rely on this firm's electronic payments to manage their online transactions.
There's a lot to like about PayPal's Venmo app, which will be an Amazon shopping option in 2022. Finally, Q3 payment volumes increased by 26% year over year to $310 billion, suggesting that secular trends are still very much in play for PayPal.
PayPal stock has a consensus analyst target price of $282.16, implying a potential upside of 47 percent from current levels.
EOG Resources (NYSE:EOG)
If inflation isn't a passing fad for you, EOG Resources is an excellent invest idea to consider in 2022. It's a Houston-based firm that is one of the United States' major independent crude oil and natural gas businesses.
Inflation could cause oil and gas prices to rise, which will bode well for the industry's top names. It's also a compelling choice because of the firm's heavy cost-cutting measures that it took in 2020 and 2021, which should result in greater earnings throughout the next year.
EOG Resources is a stock that should outperform in the next year because of its dividend payments, which currently provide investors a 3.47 percent yield. EOG has a forward P/E ratio of 9.99, which is appealing when compared to the S&P 500's 21.55 forward P/E ratio. If commodity prices keep up their rally in 2022, look to EOG to lead the sector.