The value investor watches out for the best bargain all the time when he wants to invest. He looks for the proverbial $1 for $0.50 deals. With that in mind, I’ve found two stocks that I believe are the best stocks to buy before 2022. Both have had a great run in 2021, and it’s doesn’t look like they’ll be slowing down anytime soon. And on top of that, I think despite their upward momentum, they remain underpriced. Let’s take a look.
An evolving telecommunications business
My first best stock to buy, Nokia (NYSE:NOK), is not new to most investors. The company was once a giant in the mobile phone business, holding a whopping 48.7% market share at its peak! Today Nokia is no longer in the mobile phone business. But rather, it’s evolving itself to become a new leader in the 5G and network service industries.
This change in strategy has gotten many investors excited, including myself. So seeing the stock up over 45% since the start of 2021 is quite understandable in my mind. And with a prospect of dominating the 5G networks, it makes my list of best stocks to buy before 2022.
There is no denying, the road ahead won’t be tough. Nokia has to go up against some fierce competition from the likes of Huawei, Ericsson, and Qualcomm. However, in the last four quarters, the firm has managed to beat expectations while revenue continues to gain momentum. Suppose management succeeds in its plan to dominate the 5G industry. In that case, I believe the Nokia share price could be in for some substantial growth over the long term.
The best stock to buy in the online travel platform
Airbnb, Inc (NASDAQ:ABNB) was hit hard by the pandemic. With lockdown and travel restrictions being enforced, not many people were looking to use the service. And at one point, Airbnb even pressed pause on the entire business. Since then, things have improved, and the stock has managed to recover from the pandemic lows, delivering a 36% return year-to-date.
Looking at its third-quarter results, revenue came in at $2.2bn which is a new all-time record. To put this in perspective, that’s 36% higher than pre-pandemic levels. And this surge in gross income also translated into $834m of net profits. As a result, this was the most profitable quarter since Airbnb was founded.
The risk profile in my mind remains unchanged. If guests don’t enjoy an amazing experience, they may decide not to continue using the platform. But despite this constant challenge, Airbnb seems to be taking the right actions to encourage hosts to deliver these experiences. And with travel activity slowly returning to normal, I think this could be one of the best stocks to buy now for my portfolio.
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Final thoughts
One feature of the stock market that will never change is its unpredictability in the short term. That being said, accurately predicting how stocks will perform in the future is also pretty challenging. Nevertheless, my picks for best stocks to buy before 2022 have shown an encouraging trend that will let them deliver stellar returns if continued.
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Prosper Ambaka own shares in Nokia Corporation. The Money Cog has no position in any of the companies mentioned at the time of writing. Views expressed on the companies, assets, and strategies mentioned in this article are those of the writer and therefore may differ from the opinions of analysts in The Money Cog Premium services.
