Everyone likes to talk about stocks, and who doesn’t like some recommendations, eh? So we are here with our list of best stocks to watch out for in 2022. 

Here at Invest Diva, we are value investors. We don’t like to get stuck to our screens all day looking for small opportunities to make a few bucks.

We hunt for long-term opportunities with the goal to buy great stocks at the best, or you can say the cheapest price we can get. And ideally, that’s what you should do too unless your risk tolerance is very high and you’re skilled enough to day trade the markets. 

There are several benefits of value investing, like low risk and volatility, quality investments, diversification, and the eighth wonder of the world, the compounding effect.

So as we finish the first two months of the year and potentially recover from the fall caused by the recent geopolitical events in Russia and Ukraine, it might make a good opportunity for investors to get some of the best stocks at a bargain. 

To help you pick the best possible assets in this ocean of the stock market, we have picked some themes, along with some stocks from those themes, that you can watch out for in 2022 to build a five-star portfolio of your own. 

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Category Kings 

Typically, most value stocks are category kings. Category kings refer to the stocks that are the absolute market leader in their segment. 

These are the companies whose name pops into your head the moment we tell the name of the category. So, for example, what comes to your mind when someone says search engine? Most probably, Google. Similarly, online shopping – Amazon, smartphones – Apple, social media – Facebook, and so on. 

Basically, the bluest of the blue chips or the too big to fail companies, as the folks on wall street like to address them. 

Category kings typically have the biggest chunk of the market share and are typically the ones that are able to continue to grow for the years to come. 

Now, don’t get carried away by phrases like “too big to fail” because not every blue-chip company is worth holding. Remember, Kodak, Nokia, Lehman Brothers, and Blockbuster were all once blue chips that didn’t end up well for their investors. 

So, pick your category kings carefully and only at the price that you are comfortable with and that works well with your risk tolerance. 

Some recommended stocks to watch for in this pack are Disney, Tesla, Google, Amazon, and Microsoft. They’re all market leaders of their segment and a household name that you might be a customer yourself too. 

Also, consider other companies whose products you and your family consume on a regular basis. You might be able to find some good names doing your own research. Also Read: How to Save Money Fast as a Family

Companies Shaping Our Future 

One more theme that is playing out in the market is companies that are shaping our future. In other words, companies that are working on technologies that are almost certain to become big or the standard in the future. 

Also called sunrise industries, and the name is suggestive enough to tell you why. The biggest and easiest examples of this are the EV trend and the green energy trend that we are witnessing right now.

Both of these technologies are going to be the standard in the future, and thus, the companies working in these sectors will witness massive tailwinds that’ll take them further. 

AI, computing, big data, etc., are some other trends that are going to shape our futures. Some stocks to watch out for in these sectors are Nvidia, AMD, and Intel. 

Rare Opportunities

Rare opportunities is not a theme in the stock market but occur when a stock is available at a deep discount because of some recent controversy or troubles that are mostly short-term. 

One such stock that was recently making headlines, and not for all the good reasons, is Peloton Interactive (NASDAQ: PTON). 

The stock is almost 80% down from the all-time highs it made at the beginning of 2021 for a variety of reasons like production cuts, CEO stepping down, layoffs due to restructuring, and safety issues.

But Peloton still has a user base of people who absolutely love its product and the brand, and nothing has changed regarding that. 

Also, the thing about PR is any PR is good PR in the long run. When a company gets such a bad rep in the media, it is also a kind of PR but a bad one in the short term.

However, in the long run, people will eventually forget why they heard the name Peloton, but they’ll still remember the brand name Peloton, which is a huge advantage to any company. 

Now, before you even think about investing in this one, a fair warning that this is a very, very risky investment, which is mostly based on the hope that the company will be able to re-establish its brand name and the trust in their company.

Other Themes and Stocks 

Few other themes that are you can expect to witness tailwinds in the future are sustainability, doing good deeds, women’s businesses, making life easier for folks, and transitioning to the future.

And a few other stocks to watch in 2022 are Netflix, Match, Intuit, FedEx, Facebook, Docusign, Tesla, and Bumble, the dating app. 

Some of the picks here are not the category kings, neither they’re shaping our future, nor are they related to sustainability or something. For example, Bumble.

They’re here just because of their unique business model and how it goes hand-in-hand with our belief and mission of empowering women to take control of their future. 

So these are personal, and you might not even care about them. But there might be some things that you believe in and want to support. You can go for companies whose mission and vision are something that you can connect with. It is called personal investing. 

In conclusion, you’re trying to value invest in companies that are either the category kings or companies that improve our lives, meaning companies that help us do something better, faster and cheaper.

Or even companies that are simply doing something good for humankind and go along with your personal beliefs and faith.