Investing in the stock market is risky, but knowing when to purchase and sell is also simple. Everyone wants to get in on the action when stocks are soaring. But it can be challenging to know precisely when that will happen. Think about your future. Do you see yourself as an investor with a long-term horizon? If so, what capital gains taxes do you expect to pay at current rates?
How much risk are you willing to take with your investments? How important is it for you to have liquidity in your assets? Do you have a target retirement date or another time horizon for your money? Keeping these considerations in mind, if you expect to be in the same position in five years, in 2022, the following companies would be excellent investments.
Lam Research (NASDAQ: LRCX)
Lam Research makes machines for fabricating semiconductors. That is a highly complex industry, even for investors who understand the business well. Fortunately, the company publishes a lengthy annual report that includes a 10-K and 10-K highly informative summary, with a large amount of detail and financial analysis. Lam’s business is highly cyclical, offset by a consistent and predictable growth history. The firm has a proven profit and revenue growth record, a solid business strategy, and an industry-leading position. Lam has a high ROIC, consistent dividend growth, and a sizable buyback program. Its cash flow is high and consistent, and its management has a long and successful track record. However, Lam’s business has a high degree of complexity, which may make it challenging for some investors to understand.
Hyatt Hotels (NYSE: H)
One of the world’s biggest hotel and hospitality firms is Hyatt Hotels Corporation (NYSE: H). Hyatt is a $50 billion company with over 650 hotels and resorts in over 100 countries and territories. Hyatt Hotels Corporation operates Hyatt-managed properties and franchise-managed Hyatt Regency hotels. Hyatt’s business is highly cyclical, with significant revenue generated by convention and business travel. Hyatt has a consistent income, earnings growth history, and a consistent dividend. Hyatt is also aggressively buying back its stock. Hyatt’s business has a high degree of complexity, which may make it challenging for some investors to understand. Hyatt has a large debt and high fixed costs, making the company more cyclical than some investors may prefer. In addition, Hyatt is a vast cap company, making it more difficult for investors to accumulate shares than smaller companies. However, Hyatt is a stable, safe, and consistent business with a long history of dividend growth. As a result, Hyatt is an excellent long-term investment for conservative income investors who can afford to buy and hold for the long haul.
Roper Technologies Inc (NYSE: ROP)
Roper Technologies (NYSE: ROP) makes electrical equipment used in industries like oil and gas, mining, wind farms, and construction. The business is cyclical but has a long history of consistent and predictable growth. Roper’s business is highly compatible, with a solid history of consistent earnings growth, strong cash flow, and a long track record of dividend increases. In addition, Roper is cheap because the firm has a track record of delivering when demand increases. Roper is an excellent investment for conservative investors who can afford to buy and hold for the long haul.
Pegasystems Inc.(NASDAQ: PEGA)
Regarding artificial intelligence and business process automation, Pegasystems is the industry standard. Company profits and sales have increased regularly and predictably over many years. Pegasystems has a robust business model with a dominant position in its niche. The company’s product is highly scalable, with a high switching cost. The company has a high ROIC, a consistent record of dividend increases, and a strong cash flow. However, Pegasystems has a high degree of complexity, which may make it challenging for some investors to understand.
For the highest long-term returns, invest in companies that will still be around in 2022. These businesses have established records of sustained expansion and significant market advantage. These are the stocks that are both high quality and cheap. These are the stocks that are ready to put on a show. You want to buy these best stocks to buy now while they are still undervalued. You want to buy these stocks now while they are at their cheapest.