In this article, we discuss the 5 stocks that analysts are recommending for 2022. If you want to read our detailed analysis of these stocks, go directly to Analysts are Recommending These 10 Stocks for 2022.
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 (NYSE:PSA) 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 (NYSE:PSA), 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 (NASDAQ:IAC) 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 (NASDAQ:IAC), 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 (NYSE:SCHW) 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 (NYSE:SCHW) 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 (NYSE:SCHW), 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 (NYSE:BAC) 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 (NYSE:BAC), 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 (NYSE:BAC), 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 (NASDAQ:NVDA) 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 (NASDAQ:NVDA) 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 (NASDAQ:NVDA), 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.
