3 return stocks to buy for 2022
These 3 stocks are about to bounce back in 2022
Although major stock indexes like the S&P 500 are trading at record highs to end the year, many stocks have experienced significant selling pressure in 2021 and have yet to rebound. Whether it’s companies that have been hit by the pandemic, growth stocks that have been hit due to upcoming interest rate hikes, or companies in the payments space that have suffered from ‘A negative sentiment, many companies are still comfortable their 52-week highs.
Some of those battered stocks could make a comeback as 2022 approaches, which means it’s not a bad idea to start considering adding stocks. It’s also important to remember that the January effect could cause money to rotate from past winners to areas of the market with greater upside potential. That’s why we’ve put together the following list of 3 Return Stocks to Buy for 2022. Continue reading below to find out more.
Disney stock has certainly been a major disappointment in 2021, as the company’s share price has taken a hit due to new variants of the COVID-19 virus and slower Disney + subscriber growth. That said, it’s still a top name to consider owning for the long haul and a business that could be a big winner next year. Investors should take into account that winter tends to be the peak of COVID cases throughout the year, which means people could be returning in droves to the theme parks and iconic cruise ships of the business when summer arrives thanks to pent-up demand.
There is also a lot to love about Disney + and its growth prospects, as the company will certainly improve its content offerings and focus on its international expansion after the big subscriber shortage last quarter. Keep in mind that Disney owns some of the biggest media network brands in the world including ESPN, ABC, FOX, and more, as well as some incredibly strong Disney brand franchises including Pixar, Marvel Universe, and Lucasfilm. These franchises and brands are expected to help the company dominate the streaming entertainment industry for years to come by attracting both young and adult viewers.
For a few months of 2021, Upstart Holdings stock was unstoppable. The fintech company’s fantastic earnings report in August sparked a rally that sent stocks into the stratosphere, but Upstart has since made all that post-earnings movement. Growth investors should still be interested in exposure to this disruptive company, and the stock could prepare for a comeback in the coming months. Upstart is unique in changing the consumer finance industry with its artificial intelligence lending platform.
The company helps consumers access loans at rates 10% lower than traditional lenders, while making it easier for banks to choose loan applicants with less risk of default. Upstart could end up rendering the traditional FICO score obsolete, and the growth of the business has certainly been impressive. Although the share price has taken a hit in recent months, it should be noted that the company has consistently posted total revenue of $ 228 million, up 250% year-on-year, and granted 362,780 loans to banking partners, up 244% year-on-year. over one year in the third quarter. Another sign that this company is on the right track is that Upstart achieved Adjusted EBITDA of $ 59.1 million in the third quarter, down from $ 15.5 million a year earlier.
Global payment processors like Mastercard have seen their ups and downs over the past year, with renewed fears about the impacts of the pandemic on consumer spending and international travel continuing to keep stocks down. That could certainly change in 2022, which means Mastercard is a fantastic comeback candidate to consider adding shares now. It is a high-quality company that will benefit from secular, long-term growth trends for many years to come, as the digital payments industry still has plenty of room to grow in the United States and international markets.
As the world’s second-largest payments processor, a continued rebound in spending volumes should lead to strong earnings over the next few quarters. Mastercard is already showing signs of a recovery in cross-border transactions, and the company recently saw its gross dollar volume increase 20% year-on-year to $ 2.2 trillion. Mastercard also recently announced that non-auto vacation retail sales are up 8.5% year-over-year this holiday season, another positive sign the company could post big numbers in 2022.