With the global economy showing signs of recovery, I think now is the time to look for the best stocks to buy in 2022. The Dow Jones Index has grown by 87% since the market crash in March last year. Similarly, the S&P 500 index has doubled over the same period and now stands at around 4,600 points. Most industries are showing signs of recovery, and many firms have started delivering double-digit growth.
Amongst all these high-growth companies, I have found a few gems that, I believe, are set to continue thriving. In my opinion, these are some of the best stocks to buy for 2022. And I am keenly looking at them to add to my portfolio.
A leader in electric vehicles
The shift towards a greener environment has resulted in a massive push towards electric vehicles (EV). Moreover, the considerable success of Tesla (NASDAQ:TSLA) appears to have transformed the automotive sector’s dynamics. After all, almost all car manufacturers are now converting their vehicle catalogues to be electric.
The current progress of the EV stock is astounding. Up till the third quarter, the company has delivered 627,350 vehicles and produced up to 624,581 in 2021 so far. Considering the progress, the firm could be en route to developing and selling nearly one million cars by the end of the year.
No doubt Tesla has been a pacesetter in the EV industry. But it has also put it under the limelight for quite a while. As a result, all the new entrants of the EV industry are aiming to beat the leader. In other words, the increased competition could prove problematic if Tesla cannot retain or expand its market share.
EV sales are expected to reach approximately 35 million units by 2030, according to Markets and Markets. Tesla appears to be ahead of its competitors for now. And share price is already setting new records. Personally, I believe the automaker will continue to maintain its leading position in the coming years despite the challenges ahead. That’s why I think Tesla is one of the best stocks to buy for 2022.
Enter the metaverse
Roblox (NYSE:RBLX) is a universe of user-generated 3D virtual worlds. It’s best described as a virtual playground. The gaming platform has become a massive hit amongst its audience, especially the younger generation.
User growth is of prime importance in the multi-player gaming world, as it ultimately drives future growth potential. Roblox’s daily active users, as reported in the second-quarter results, were 46.6 million, up 28% from July of 2020. And it doesn’t look like that’s going to slow down since the firm’s expansion throughout North America, Europe, and the UK is continuing at full speed. That’s what makes it one of the best stocks to buy for 2022 in my mind.
Despite being a newbie in the gaming world, Roblox has secured its place amongst the industry’s leading names. And the pandemic has certainly helped drive up the player numbers as people were stuck at home for most of 2020. However, what concerns me is whether the game can retain its recently inflated community once the pandemic is finally over.
Currently, more than 60% of the revenue originates from its US audience. The expected geographic expansion coupled with the move into mobile platforms may skyrocket the company’s revenue even further. So despite the risks of a potential post-pandemic slow down, I still think Roblox’s long-term potential is worthy of my portfolio.
Final thoughts on these best stocks to buy
These stocks undoubtedly have their risks. And the valuations are on the pricy side. However, the long-term growth potential of both these firms seems to represent an excellent opportunity for my portfolio. That’s why I’m considering buying both. They are, after all, my top picks for the best stocks to buy for 2022.
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Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned at the time of writing. Views expressed on the companies and assets mentioned in this article are those of the writer and, therefore, may differ from the opinions of analysts in The Money Cog Premium services.
