5 Predictions for The Stock Market In 2022
Human beings are predisposed to want to decode the future. It's their nature to predict what will happen in the coming days, especially during uncertain times.
In a bid to satisfy these demands, investment experts have helped prepare the top 5 predictions for 2022 regarding the stock market.
Note that these experts don't own a crystal ball. Therefore, all they can do is offer their best guesses of world predictions for 2022.
However, most of their guesses are backed by years of experience and investment expertise. Their accompanying analysis should prove informative to keen investors.
Stock Market Forecast for Next 6 Months
With the start of the new year, keen investors are keen to know what will happen in the next six months, and if possible, get a stock market prediction for the next 5 years.
Below is a look at what to expect in the coming weeks.
1. Walt Disney Is One of the Best Stocks to Buy for 2022
Market value: $287.7 Billion
Dividend yield: N/A
As far as 2022 stock market predictions are concerned, Walt Disney (DIS, $153.34) is one company investors can't afford to overlook. It's a company that has proven that it can easily adapt in a hurry.
The ongoing COVID-19 pandemic could have easily taken it down:
- Its movie empire was dead for months
- Theme parks were either operating on limited capacity or closed for months
- Its ESPN business got tipped over by the cancellation of professional sports for months
But despite all this, the entertainment giant managed to come out on top with the launch of its Disney+ video services. Launched in November 2019, this video service gave millions of people bored at home something to whirl away their time.
Consumers now had hours of Star Wars, Marvel, and Disney content to stream, thanks to it. The success of Disney+ helped raise its share prices. As the year progresses, Disney is expected to give strong competition to Netflix, which will assist boost its share prices.
2. Uber Technologies Ride Sharing Platform
Market value: $75.3 Billion
Industry: Application software
Dividend yield: N/A
Uber Technologies (UBER, US$42.03) operates in 63 countries and 750 markets. The ride-sharing platform helps in connecting riders to available drivers. Its subsidiary triangulates drivers, restaurants, and customers.
And this is not forgetting its up-and-coming freight business.
The company attained an important milestone in Q3 2021, which saw it turn a profit for the first time. Its profits were before:
- Amortization expenses
Today, this company which many credits with pioneering "mobility as a service," is ranked as a top internet pick at BofA Global Research. It particularly ranks highly in most urban centres which have started to recover from the effects of the pandemic.
Even though the 2022 stock market crash analysts believe its share prices may remain negative for a while, the stock should trade at around $64 by December.
3. Alibaba Group of Holdings
Market value: $339.1 Billion
Industry: Internet retail
Dividend yield: N/A
The government's ongoing crackdown of big tech companies based in China has weighed down on its shares. Last year, the government slapped the internet retail giant with a fine totalling $2.75 billion after conducting an anti-monopoly probe.
After imposing the fine, the Alibaba Group (BABA, US$128.50) shares dropped by around 60%. Its effects were felt between October 2020 to late 2021. Even though some analysts have begun to trim their shareholdings, Alibaba holdings are a stock to watch.
The 2022 predictions from the experts show that this is the leading eCommerce company in China. Additionally, its shares are cheap, making them affordable to all. The shares are currently trading at 19 times the estimates made for 2022.
4. Charles Schwab Financial Services
Market value: $153.3 Billion
Industry: Capital markets
Dividend yield: 0.9%
Charles Schwab (SCHW, US $81.20) is one company that investors can't afford to overlook when making the top 10 predictions for 2022. The company operates as a bank, brokerage firm, corporate retirement plan administrator, and money manager.
The last few months have seen it gobble up assets under management (AUM) with its renewed push for accounts and acquisitions. Its recent acquisition of TD Ameritrade saw its total AUM rise to $7.4 trillion.
World predictions for 2022 indicate that the rising interest rates will act as icing on the cake for this financial services firm.
According to Andy Adams of Mairs & Power Growth Fund (MPGFX), every percentage from a share improvement means an additional $750 million to $950 million in earnings.
Many Wall Street analysts are convinced that its annual earnings will increase by around 12% in 2022. However, you should note that Schwab shares aren't exactly cheap, unlike some of the other picks on this list.
5. Oshkosh: Farm and Heavy Construction Equipment
Market value: $7.6 Billion
Industry: Farm and heavy construction equipment
Dividend yield: 1.3%
As far as the stock market prediction for the next 5 years goes, experts are still uncertain about many things.
However, there's one thing that makes 2022 appealing: the thrill of the unknown. Plus, it has provided a blank slate on which to build on new things.
But if there's one thing the entire world knows, it's that the government recently passed into law a very large infrastructure bill. Some believe it's the largest bill in the last few decades. Many believe that this money will start flowing into infrastructure projects soon.
Increased spending on infrastructure-related projects is what makes Oshkosh (OSK, US $112.99) interesting. The company specialized in the manufacture and distribution of:
- Hydraulic lifting systems
- Cherry pickers
- Truck-mounted cranes
- Cement mixers
- Heavy-duty electric cars
Increased infrastructure spending will lead to increased demand for its products.
What You Need to Know About the Stock Market Forecast Next 6 Months
Armed with these 2022 stock market predictions, investors still need to know what to look for when investing in the stock market. Often, leading stocks are defined by superior fundamentals.
Furthermore, many companies have been left with increased profit growth and sales due to earnings rebound. Another way to distinguish the best stocks is through sound base patterns.
The downside here is that most stocks weren't very productive in the past year. Growth stocks are, however, expected to begin outperforming. Most of the shares mentioned above have either started rebounding or are in the process of doing so.
As such, it's only a matter of time before they regain their market leadership positions. It's hard to predict whether a 2022 stock market crash will happen or not and if it will when this will happen.
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