10 stocks you should consider before the end of 2022
Hapi Pills
9.11.2024 1:03 AM
With only three months left in the year and a significant drop in most stocks amid a bear market, it’s time to look for new investment opportunities for the upcoming year. In this context, stock prices on the U.S. Stock Exchange are becoming increasingly attractive. That’s why, in this article from Hapi, we’ll highlight 10 stocks you should consider studying before the year ends.
Please note, these are not investment recommendations, and there are no guaranteed returns when investing in the stock market.
Block has built an impressive financial ecosystem for individuals and businesses. Through Square, it has revolutionized the financial industry with a suite of payment processing devices and software. Additionally, Cash App facilitates person-to-person money transfers and offers investment options in an accessible and intuitive way for everyone. The company was founded by former Twitter CEO Jack Dorsey.
The stock has had a tough year, with a decline of over 60%. While Block’s earnings and revenue in Q2 2022 were lower than the previous year, they still exceeded expectations. Although the company has not yet achieved net profitability, its gross profits exceed $4.42 billion.
The renowned entertainment company faced significant setbacks in its main theme park operations due to pandemic lockdowns.
Gradually, it recovered its revenue to pre-2020 levels and even surpassed them in Q2 2022, reporting $21.5 billion in sales, representing a 26.3% year-over-year increase. Nevertheless, the stock is still 20% below its pre-2020 market crash price.
Disney Plus, the company’s streaming platform, has maintained its user growth, from 50 million at launch to 137.7 million subscribers last quarter. As a result, Disney increased its U.S. streaming market share to 18%, positioning digital media as a key future revenue driver.
Amazon currently holds the lowest-performing stock among companies with a market capitalization over $1 trillion in this bear market. Over the past 12 months, its stock has fallen by about 30%, erasing nearly all gains made during the pandemic.
While almost half of Amazon’s revenue still comes from its e-commerce platform, sales growth from this segment has slowed. However, its cloud computing service, Amazon Web Services, continues to grow exponentially, with a 33% year-over-year increase in Q2 2022.
Visa facilitates payments between merchants, consumers, businesses, and financial institutions worldwide, with a presence in over 200 countries. It’s a relatively simple business: Visa earns money each time someone uses a card with its logo.
In the last quarter, Visa achieved an 18.7% revenue increase from the previous year, with earnings of $1.74 per share. This is a positive sign in the face of recession fears, as it indicates that family spending remains strong after the pandemic. However, the stock is still 5% below its early 2020 price.
With a market capitalization exceeding $2 trillion, Microsoft is the most valuable company on this list. Despite its size, its revenue continues to grow by double digits, with a 12% increase in the last quarter compared to the previous year. Microsoft boasts strong financial fundamentals: an ROE of 47.15%, an operating margin of 42.05%, and a current ratio of 1.78 — impressive figures all around!
Microsoft is highly diversified across multiple software and hardware business lines and continues to make acquisitions to increase its influence. For example, it acquired LinkedIn in 2016 and Activision in 2022. This constant innovation and collaboration allow it to thrive long-term.
Alphabet, best known for its Google search engine, has several highly profitable business lines such as Android, Google Drive, Google Play, and YouTube. Alphabet’s P/E ratio currently sits below 18.27, making it an uncommon value for a tech growth stock.
The company’s revenue grew by 13% in the last quarter, but the stock continues on a downward trend. One recent development capturing investors’ attention is Alphabet’s release of new “Made by Google” products for customers, including the Pixel 7, Pixel 7 Pro, Pixel Watch, and Nest smart home devices.
The Chinese giant has been heavily impacted over the last two years. Political and economic risks in China have not spared this company.
Since the Trump administration, Alibaba has faced delisting threats from the New York Stock Exchange. Additionally, Chinese President Xi Jinping imposed significant sanctions on BABA and founder Jack Ma following critical remarks about Chinese policy. Moreover, investors in the People's Republic of China fear a potential real estate bubble.
Beyond market noise, the intelligent investor will focus on Alibaba’s operations. While BABA’s revenue did not grow in Q2 2022 compared to the same period last year, revenue from its cloud business rose by 10%. Additionally, its Forward P/E ratio is just 10, a relatively low number for a mature tech company.
Etsy is an e-commerce platform that found success by focusing on a niche: vintage and handmade products. With this unique value proposition, it has built a marketplace that rewards artisans and connects customers with rare items.
Unfortunately, Etsy’s growth has slowed recently, possibly due to fading pandemic-driven demand. This has caused the stock to drop more than 67% from its peak; however, it also presents a potential buying opportunity at a more attractive price.
Shopify operates a platform that enables businesses of all sizes to sell products online easily, starting at $29. It includes a range of tools allowing entrepreneurs to operate smoothly on this platform from start to finish.
Shopify generated over $5 billion in revenue last year, with a 15.7% year-over-year sales growth. However, it still has ample room to increase its market share. The stock has taken a hit due to recession fears and a potential decline in consumer confidence.
This company has undergone a significant shift in focus. Since acquiring Oculus, the global leader in virtual reality devices, Meta has redirected its efforts toward developing the metaverse. However, it’s impossible to ignore that META is a well-established company.
Meta Platforms manages social media giants like Facebook, Instagram, and WhatsApp, with over 3.7 billion active users monthly. Nearly half of the global population uses its services regularly.
Currently, the stock price is less than half of its peak in September 2021. This sharp decline made it the most purchased stock by major investors in Q2 of the year.
"Be fearful when others are greedy and greedy when others are fearful" — Warren Buffett.
As the most famous investor of all time said, times of crisis bring the best investment opportunities in the U.S. Stock Exchange. In this bear market, we should focus on high-quality stocks available at low prices.
That said, please remember that these are not investment recommendations, and stock market investments do not guarantee returns. Hapi aims to democratize access to stock and cryptocurrency investments from Latin America. If you want to take advantage of investment opportunities that arise during recessions, open your account now here. Don’t wait—there’s no time to lose!
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