As 2021 draws to a close, investors are beginning to balance and rebalance their portfolios. The next question then, is what stocks to buy for 2022. What stocks should I buy that could give me the highest returns or, at best, protect my portfolio?

With that in mind, I’ve found five companies that I’m currently considering opening a position in. They’ve already performed relatively well in 2021. And in my opinion, they will continue to do so in 2022. Let’s explore! 

#1 stock to buy for 2022

Year to date, Apple Inc (NASDAQ:AAPL) is up over 18%. And looking at the last 12 months, that number rises to over 35%. This is hardly surprising given Apple’s revenue has expanded by a compounded annual growth rate (CAGR) of 12% over the last five years. And over the same period, earnings per share has jumped even higher at an impressive 24.4%. 

Considering the company’s recent new product releases and a large royal consumer base, I don’t think this trend is going to change anytime soon. That’s why its on my top stocks to buy or 2022 list. Having said that, there are some risks. iPhone sales may start to slow down in the future. And the rapidly expanding income from its App Store may be in jepordy as the legal battle against Epic Games continues to unfold.

#2 is another tech giant

Firstly, Microsoft (NASDAQ:MSFT) continues to face several challenges. Although the company still has the largest user base of PC operating system users, it has consistently lost some of its market share since 2013. In fact, its fallen from over 90% in 2013 to around 73% as of June this year.

Having said that, Microsoft has added many other products to its business portfolio. The most prominent of which is Microsoft Azure which has become the primary revenue driver in recent years. The company’s revenue has grown at 15.6% CAGR in the last 5 years, while the EPS is 30.3% in the same period.

The tech stock is not without risks. First, it has equally powerful competitors. Aside from that, if consumers perceive Microsoft Azure to be unreliable, the company’s stock could be hurt. In any case, Microsoft shares remain attractive and make my list of top five stocks to buy for 2022.

#3 is the a leader in Covid-19 vaccines

Pfizer’s (NYSE:PFE) share price is up over 46% year to date. One thing that has spurred this growth is the company’s success in the Covid-19 vaccine production. But it’s hardly a one-trick pony. With a diversified portfolio of drugs on the market and in development, I think the stock has plenty more room for growth. 

This is evident when looking at the group’s CAGR of revenue is 13% in the last five years. However, maintaining the momentum of its share price seen in recent months may be quite challenging and could lead to volatility. But over the long-term I remain bullish on this business and it’s potential. Hense why its only list of top stocks to buy for 2022.

#4 is profiting from the electric vehicle revolution 

The Tesla (NASDAQ:TSLA) share price has been on a roller coaster ride in recent years. Looking at a P/E ratio of 351, one will agree that the company’s stock is probably overvalued. Nevertheless, Tesla is a growth stock that has performed well so far. If it continues at its current growth rate, it is bound to grow higher, at least I think so. 

Interestingly Tesla’s share price is up over 53% year to date. With a charismatic leadership and an industry that is young in the green economy. It will not be surprising for Tesla stock to further go northward. In any case, it makes my top 5 stocks to buy for 2022. However, the absurdly high valuation could be a catalyst for a rapid decline if growth problems start to emerge.

#5 stocks to buy for 2022.

Amazon’s (NASDAQ:AMZN) share price surprisingly hasn’t delivered particularly extravagant returns this year. After all, it’s up only up by around 8% year to date. And that’s despite having an impressive 27% average growth rate in revenue over the last half-decade. Meanwhile earnings have grown at an even more staggering 64%. It seems investors are getting a bit cautious now that Jeff Bezos has stepped down, and it remains to be seen whether the business can continue to thrive under new leadership. 

In any case, Amazon has the largest market share in the e-commerce industry. Beyond being a marketplace for vendors, Amazon has rolled out its own products to generate even more revenue. The level of competition from the likes of Shopify could make it difficult to retain market share. However, I remain optimistic about this firm’s future, placing it on my top stocks to buy list.

Prosper Ambaka does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. The Money Cog Premium has analysed Shopify. 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.