While you may not have time to do an in-depth analysis of every potential investment opportunity available to you right now, you can use helpful criteria as a general guideline when considering which companies offer the best prospects. This article will look at some great stocks that will perform well over the next five years. These companies have great potential thanks to their exposure to growing industries, unique products or services that aren’t saturated in today’s markets (and therefore should see rising demand), and other vital factors. Keep reading to learn more about the top best stocks to buy now of 2022 and how you can invest!
Pinterest (NYSE: PINS)
This company is a social media company that most people know as a place to find ideas and recipes. However, Pinterest is much more than that. It’s also a place to sell products. Pinterest’s advertising business currently makes up around two-thirds of total revenue. That shows how important it is to the company’s future. There are some significant tailwinds at play that should allow Pinterest to keep growing. First, social media, in general, is expected to see a lot of growth. People will spend more time on these sites than ever before. That’s great for Pinterest because it means more ad revenue for the company. Another significant factor that should help Pinterest is the shift to e-commerce. That will lead to more companies advertising their products online. Pinterest has already proven itself as a place to do this effectively.
As a result of people rediscovering outside-the-home activities during the pandemic lockdowns, Pinterest’s user base has plummeted over the past year, dropping by 0.93 percent. While cooped up, people took advantage of Pinterest’s virtual corkboard technology to save ideas for home improvement and family activities. Pinboard’s monthly active users dropped 9 percent to 433 million in the most recent quarter after the return of freedom of movement made online idea sharing less appealing.
Even though Pinterest receives almost all of its money from adverts, it is recently troubled by concerns that a recession may affect advertising. Apple also updates its privacy settings to allow users to opt out of being tracked by advertisers. Although, these concerns may be exaggerated regarding Pinterest.
In contrast to Snap, which was recently panned after reporting slowing revenue growth due to falling ad sales, Pinterest is an advertiser’s paradise. Pinterest users frequently look for things to spend money on, so the platform fits in well with an advertising model that Snap and other social media platforms are trying to force onto their apps.
Even though consumers’ spending power will hit during a recession, this is a temporary problem. Despite this, Pinterest could still increase its global revenue per user by 28 percent in the first quarter. Pinterest is a good investment for individuals who can wait for the company to evolve into an online retail behemoth, given its stock price has plunged by more than 80% in the last year.
Johnson & Johnson (NYSE:JNJ)
One of the largest healthcare organizations in the world is Johnson & Johnson.. The company’s solid balance sheet with little Johnson & Johnson will benefit for decades.
The company is also poised to profit from the growth of health care worldwide. As a result, Johnson & Johnson will likely keep benefiting from this trend.
Johnson & Johnson (JNJ 0.18 percent) is hard to beat regarding healthcare blue chips. Over $94 billion is made in annual sales worldwide by this massive conglomerate that produces consumer goods, pharmaceutical drugs, and medical devices.
Johnson & Johnson’s sales and earnings have climbed yearly, giving it the title of “Dividend King.” In addition, it is just two corporations with the highest AAA credit rating from S&P. The consumer products division will be spun off as a result of this.
UnitedHealth Group (NYSE: UNH)
That is another health care stock that is likely to benefit from the growth of health care worldwide. People who do not have health insurance can also benefit from the company’s services. It does this through programs such as Optum. One of the most critical trends for UnitedHealth is the shift to value-based care. This model rewards doctors for keeping their patients healthy rather than just treating their illnesses. Optum is an excellent way for UnitedHealth to benefit from this shift. The company has also been investing heavily in its digital presence. That includes an acquisition of a company called Tricida. This company has an excellent track record of helping other health care companies manage their digital transformation. All of these factors should help UnitedHealth thrive in the years ahead.
One of the largest healthcare organizations in the world is UnitedHealth Group (UNH, -0.16%). UnitedHealthcare, which sells health insurance, and Optum, which specializes in healthcare delivery, make up the company. The company had a whopping $295 billion in sales in the previous twelve months.
Over the past decade, the company increased revenue and earnings per share by an average of 11 percent per year. As a result, UnitedHealth should continue to benefit as healthcare spending rises. In addition, the company has become a solid dividend stock thanks to 10 years of uninterrupted increases and $1.9 billion spent on share repurchases, reducing the number of outstanding shares by 9%.
Amazon (NASDAQ: AMZN)
Amazon is the biggest online retailer in the world. It started as an online bookstore, but now it sells everything from electronics to groceries. There are two main reasons to buy Amazon stock now. First, online shopping is growing. That is especially true for products like groceries and clothes. As people spend more of their income online, Amazon will be a huge beneficiary. The company has been putting a lot of effort into emerging markets where e-commerce is still in its infancy. The other big reason to buy Amazon is that it has been expanding its empire. The company now owns Whole Foods and is growing its cloud computing business. These divisions could become much more profitable over the next few years.
Even though its growth seems assured, Amazon’s (AMZN 10.36 percent) stock has suffered a meltdown similar to that of Pinterest (the e-commerce giant is down “only” 37 percent in the last 12 months). With $12 billion in sales over two days, Prime Day set a new global record and outsold JD.com’s three-week-long 618 extravaganzas by a wide margin when comparing deals per day. JD’s annual revenue of $56 billion is less than $2 million daily. Amazon made over $6 billion during the event in one day alone.
And that’s not even the most exciting thing about Amazon; its cloud services business, Amazon Web Services, is still expanding rapidly and generating the most revenue.
By establishing “local zones,” Amazon is bringing the storage and database infrastructure of AWS within closer proximity to the customer, thereby enhancing AWS’s capabilities for cutting-edge technologies like online video streaming, online gaming, and augmented and virtual reality. In addition, having data travel in a matter of seconds is a huge productivity booster.
A recent stock split of 20-to-1 makes Amazon stock more affordable at $114 per share. As a result, Amazon is a growth tech stock in every sense of the word and one to buy and hold for years to come, even though shares still go for 45 times next year’s earnings estimates. Wall Street expects the company to grow profits at a 33 percent compound annual rate for the next five years.