Analysts are Recommending These 10 Stocks for 2022

Published December 20, 2021 at 11:51 am EST Updated September 7, 2026 at 1:53 pm EDT

In this article, we discuss the 10 stocks that analysts are recommending for 2022.

Analysts are backing the United States economy to get to a solid start in 2022 as consumer and business spending show no signs of slowing in the latter half of 2021 despite rising inflation, persistent staffing shortages, and supply chain disruptions. The surge in virus infections has also failed to hold back economists from forecasting annualized growth of 3.7% in the first half of 2022. The overall growth rate for 2022, according to the OECD Economic Outlook, will likely hover around 4.5% before downshifting in 2023.

Investment bank Morgan Stanley predicts that monetary policy will tighten in 2022 but not enough to discourage capital expenditures. Improving supply chains and other normalizing forces are expected to play their part in a strong economic outlook for the year. A strong capex cycle and increased inventory-building will also act as growth catalysts for the economy. Ellen Zentner, the chief US economist, expects commodity price increases to slow down as well.

Investors are also concerned about rising interest rates. Analysts contend that the Federal Reserve will raise interest rates in the latter half of 2022, with European authorities likely to wait until 2023 to do the same. There are risks to this outlook as well, which include a slowdown in China, fears around the rise of a new variant of COVID-19, and imbalances in the energy market. However, the overall outlook for 2022 remains mostly bullish.

According to an economic forecast by the Conference Board, the United States and China will power the global economic recovery with growth rates of 3.8% and 5.5%, respectively, in 2022. The China factor is often downplayed in analyst forecasts, given that the Chinese economy accounted for 30% of the global economic growth in 2021. Analysts have also claimed that a rise in interest rates, triggered by inflation, could dampen growth and be a “threat” to governments that have accumulated massive debts through the COVID-19 period.

Investors eager to exploit these forecasts to their advantage should consider some of the stocks that analysts recommend buying for 2022 that include NVIDIA Corporation (NASDAQ:NVDA), Bank of America Corporation (NYSE:BAC), and The Charles Schwab Corporation (NYSE:SCHW), among others.

Our Methodology

The companies that analysts from different investment advisories have recommended as a Buy heading into 2022 were selected for the list.

Hedge fund sentiment was included as a classifier as well. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.

Luis Louro / shutterstock.com

Analysts are Recommending These Stocks for 2022

10. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 60

Tesla, Inc. (NASDAQ:TSLA) makes and sells electric vehicles and clean energy equipment. New Street analyst Pierre Ferragu has a Buy rating on the stock with a price target of $1,580. In a recent investor note, the analyst backed the EV maker to register a revenue of more than $80 billion next year as the Shanghai-based production plant made new cars at an annual rate of 700,000, well above initial estimates of 450,000 units per year.

UBS analyst Patrick Hummel believes that Tesla, Inc. will continue to beat top line growth and margins consensus expectations in 2022. The analyst touted the potential of the firm to grow market share in the coming months despite being the industry leader in EVs since it had better access to chips and batteries compared to competitors.

At the end of the third quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Tesla, Inc., the same as in the previous quarter worth $9 billion.

Just like NVIDIA Corporation, Bank of America Corporation, and The Charles Schwab Corporation, Tesla, Inc. is one of the stocks attracting the attention of elite investors.

Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:

“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”

9. Littelfuse, Inc. (NASDAQ:LFUS)

Number of Hedge Fund Holders: 24

Littelfuse, Inc. (NASDAQ:LFUS) makes and sells electrical components. Baird analyst Luke Junk, in a bullish analysis on the firm, has forecast upside for the shares in 2022 as production of vehicles returns to normal and supply-chain disruptions ease. The high demand for electric vehicles, smartphones, and other electronic devices, all of which are made using products of the firm, is expected to help the stock as well.

In late October, Littelfuse, Inc. announced that it would acquire Carling Technologies, a firm that manufactures switches and circuit breakers, in a deal worth $315 million as part of a plan to grow into the commercial vehicles business.

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Impax Asset Management is a leading shareholder in Littelfuse, Inc. with 823,932 shares worth more than $224 million.

In its Q4 2020 investor letter, Polen Capital Management, an investment management firm, highlighted a few stocks and Littelfuse, Inc. (NASDAQ:LFUS) was one of them. Here is what the fund said:

“Littelfuse was a detractor for the full year. Littelfuse is a leader in circuit protection, power control, and sensing technologies. Having monitored its slowdown in organic growth and lower margins, we became concerned that the company is more cyclical than before and vulnerable to the pandemic, so we exited our position in the second quarter in an effort to upgrade our Portfolio.”

8. American Water Works Company, Inc. (NYSE:AWK)

Number of Hedge Fund Holders: 28

American Water Works Company, Inc. (NYSE:AWK) provides water and related services. Argus analyst John Staszak has backed the company to benefit from rate increases and efforts to lower operating and maintenance costs as a percentage of revenues in 2022. In a recent note on American Water, the analyst said that “a higher multiple is warranted given the company’s skill as an acquirer, strong regulated businesses, and history of dividend increases”.

On December 8, investment advisory Barclays raised the price target on American Water Works Company, Inc. stock to $187 from $174 and kept an Equal Weight rating. Analyst Eric Beaumont issued the ratings update.

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Impax Asset Management is a leading shareholder in American Water Works Company, Inc. with 5.5 million shares worth more than $941 million.

7. Oshkosh Corporation (NYSE:OSK)

Number of Hedge Fund Holders: 31

Oshkosh Corporation (NYSE:OSK) makes and sells specialty vehicles. Baird analyst Mircea Dobre recently termed the stock a Bullish Fresh Pick following the passage of the infrastructure bill. As the US government ramps up infrastructure spending in 2022, Oshkosh, which manufactures cement mixers and cranes, could see an increase in demand for the products, driving up the share price of the firm.

The analyst noted that 2022 margins for the firm were “poised to accelerate as equipment pricing is catching up with higher input costs. The company is further differentiated by its ability to drive electrification/alternative fuels across wide portions of its portfolio which should continue attracting investor attention along with a clean balance sheet”.

In late November, Oshkosh Corporation announced that it had won a contract for the US Army worth $591 million that includes the delivery of 1,669 Joint Light Tactical Vehicle trucks, 868 JLTV trailers, and related parts by 2023.

Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in Oshkosh Corporation with 730,991 shares worth more than $74 million.

In its Q3 2021 investor letter, FPA Queens Road, an asset management firm, highlighted a few stocks and Oshkosh Corporation (NYSE:OSK) was one of them. Here is what the fund said:

“Oshkosh Corporation posted increased earnings, but its shares slid during the quarter because the company announced significant supply chain issues and cost pressures. Given the current valuation and long-term prospects, we think the company remains an attractive opportunity.”

6. Prologis, Inc. (NYSE:PLD)

Number of Hedge Fund Holders: 32

Prologis, Inc. (NYSE:PLD) is a real estate investment trust that focuses on high-barrier markets. As one of the major landlords to big ecommerce firms, including Amazon, the company stands to benefit from the macro trends favoring the real estate sector in 2022. RBC Capital analyst Michael Carroll recently highlighted that the firm had “historically strong property-level trends and the same store cash NOI growth should remain elevated for it over the next few years”.

Morgan Stanley analyst Vikram Malhotra recently kept an Overweight rating on Prologis, Inc. stock and raised the price target to $165 from $138, backing the firm to leverage organic growth and acquisitions to deliver over 10% total net operating income growth in 2022.

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm AEW Capital Management is a leading shareholder in Prologis, Inc. with 2.1 million shares worth more than $270 million.

In addition to NVIDIA Corporation, Bank of America Corporation, and The Charles Schwab Corporation, Prologis, Inc. is one of the stocks that hedge funds are buying.

In its Q1 2021 investor letter, Third Avenue Management, an asset management firm, highlighted a few stocks and Prologis, Inc. (NYSE:PLD) was one of them. Here is what the fund said:

“Prologis, Inc. (a U.S.-based real estate investment trust that is the largest owner of modern logistic facilities with a platform that expands more than 950 million square feet of space in 19 countries globally) completing $2.0 billion USD of debt placements at a weighted average interest rate of 0.9% with an average term of more than 13 years. In the process, the company has further solidified one of the most compelling capital structures in the real estate industry with a prudent loan-to-value ratio of approximately 25% that is primarily comprised of fixed-rate debt at an average cost of 1.8% for a term that exceeds 10 years. As a result, the long-tenured management at Prologis (including one of the true leaders in the real estate space CEO Hamid Moghadam) have set up the company for what could be a very rewarding period ahead as incremental rental income and asset management fees seem likely to accrue disproportionately to shareholders on the “bottom-line” with its interest costs locked-in.”

5. Public Storage (NYSE:PSA)

Number of Hedge Fund Holders: 35

Public Storage (NYSE:PSA) owns and runs self-storage facilities. Analysts expect the company to do well in 2022 given better demand for space, increasing market rents, and robust private market activity in the real estate sector. Investment bank Citi expects the real estate investment trust sector to outperform in 2022 and estimates REIT’s total return at 10%-15% over the next 12 months. From a sector perspective, the bank’s largest overweight positions are in the industrial, residential, lodging, gaming and shopping center sectors.

Citi analyst Michael Bilerman recently upgraded Public Storage stock to Buy from Neutral and raised the price target to $400 from $353.

At the end of the third quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Public Storage, up from 27 in the preceding quarter worth $1 billion.

4. IAC/InterActiveCorp (NASDAQ:IAC)

Number of Hedge Fund Holders: 47

IAC/InterActiveCorp (NASDAQ:IAC) is a media and internet company. The firm recently acquired Meredith, a publishing company, that will provide recurring revenues for IAC in 2022 and allow it to focus on rehab business projects. Evermore Global Advisors analyst David Marcus has termed the purchase a “cash cow” for the firm.

IAC/InterActiveCorp posted earnings for the third quarter in early November, reporting earnings per share of $0.65, beating estimates by $1.11. The revenue over the period was $924 million, up 17% year-on-year.

At the end of the third quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in IAC/InterActiveCorp, compared to 50 the preceding quarter worth $1.2 billion.

In its Q4 2020 investor letter, Alphyn Capital Management, an investment management firm, highlighted a few stocks and IAC/InterActiveCorp (NASDAQ:IAC) was one of them. Here is what the fund said:

“On November 22nd, IAC announced it would look into spinning out Vimeo, its Software-As-A-Service video creation company, on the back of strong revenue growth and robust investor interest. To quote from the IAC shareholder letter “We just tested Vimeo’s ability to access capital with a small private fundraise to bolster Vimeo’s balance sheet and to repay capital to IAC. We entered into agreements today to raise $150 million of equity capital at Vimeo from outside investors at an implied enterprise value of $2.75 billion, a large multiple of current revenue. We don’t normally think in terms of revenue multiples, but we found real appetite among investors who do – we had more interest in Vimeo than the number of shares we were willing to let Vimeo sell.” In other words, IAC will exploit current valuations while the market is willing to pay for it. This has so far been a good example of our defensive approach towards investing software companies from the cover of an undervalued holding company run by intelligent capital allocators.”

3. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 59

The Charles Schwab Corporation provides wealth management and other financial services. The company has more than $7 trillion in assets under management and rising interest rates in 2022 are expected to mint hundreds of millions in additional earnings. Bank of America analyst Craig Siegenthaler believes the firm is “best-positioned for higher rates and elevated inflation given the unique model in how it monetizes its client relationships through their cash sweep balances”.

Deutsche Bank analyst Brian Bedell recently raised the price target on The Charles Schwab Corporation stock to $120 from $100 and kept a Buy rating on the shares, noting that banks would benefit from the expected rise in interest rates in 2022.

At the end of the third quarter of 2021, 59 hedge funds in the database of Insider Monkey held stakes worth $4.5 billion in The Charles Schwab Corporation, compared to 72 in the previous quarter worth $4.8 billion.

In its Q3 2021 investor letter, Ariel Investments, an investment management firm, highlighted a few stocks and The Charles Schwab Corporation (NYSE:SCHW) was one of them. Here is what the fund said:

“Additionally, financial services provider Charles Schwab Corporation (SCHW) was another strong performer in the period. Management has made progress increasing new and existing customer engagement through its multichannel approach and low-cost, high value product offerings—bolstering the company’s competitive positioning. Elevated interest rate expectations have been another driver of performance as SCHW reinvests deposits in securities and earns a spread. In our view, SCHW has the ability to weather various macro-economic and competitive pressures by flexing its scale and customercentric focus in support of the company’s industry leading cost advantage. We also believe the TD Ameritrade acquisition will create incremental value and further enhance SCHW’s market place standing and long-term growth trajectory.”

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 72

Bank of America Corporation provides banking and financial products. The stock is trading at less than 14 times the expected earnings for 2022, despite registering a rally of 41% this year, and analysts recommend buying it ahead of an expected rise in interest rates. UBS analyst Erika Najarian has identified the stock as the top large-cap bank pick for the coming months and sees the company as a potential cyclical and secular winner in 2022. The analyst touted the clean balance sheet and excess capital as growth drivers for the firm as well.

Brian Moynihan, the CEO of Bank of America Corporation, recently told news platform Bloomberg that supply chain issues would extend into the new year and would be a “slow fix” as inventories improved.

At the end of the third quarter of 2021, 72 hedge funds in the database of Insider Monkey held stakes worth $46.4 billion in Bank of America Corporation, compared to 87 in the previous quarter worth $46.5 billion.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Bank of America Corporation (NYSE:BAC) was one of them. Here is what the fund said:

“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 83

NVIDIA Corporation is a visual computing firm. Supply chain pressures and production problems failed to halt the rapid progress of chip stocks this year with NVIDIA leading the pack. Analysts expect much of the same in 2022 given strong demand for chips. Tigress Financial analyst Ivan Feinseth has underlined the potential of the firm as an “omniverse” and artificial intelligence play in 2022.

On December 2, investment advisory Tigress Financial raised the price target on NVIDIA Corporation stock to $400 from $230 and kept a Buy rating.

At the end of the third quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $10 billion in NVIDIA Corporation, compared to 86 the preceding quarter worth $9 billion.

In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:

“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”

You can also take a peek at 10 Companies that Benefit From Crypto Mining and 12 Best Artificial Intelligence Stocks To Invest In Right Now.

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