With a shaky start to 2022, the majority of the US market has seen a downtrend as valuation concerns plague investor confidence. In particular, the Tech market has been hit particularly hard as investors struggle to pair current valuations and 2022 forecasts in the same ballpark. The downtrend illustrates this risks associated with the stock market and how unforgiving the market can be during bear runs.
So what are the best stocks to buy in 2022 according to Wallstreet analysts? This article will breakdown recent research from the top institutions on Wallstreet, highlighting their picks for 2022. It is worth noting
Apple Stock Remains King In 2022 According to Morgan Stanley and JP Morgan
Both Morgan Stanley and JP Morgan have taken a particular liking to Apple Stock in 2022, naming it their top stock pick for 2022. Firstly, Morgan Stanley analyst Katy Huberty has a $210 price target on Apple Stock, reiterating AAPL as her top pick for 2022.
The analyst noted that Apple had a “clean” December quarter beat while also boosting their March guidance. The analyst was particulary surprised about the Mac and Services growth, being “particularly strong”. With tougher supply constraint in 2021, the analyst noted the strong results “illustrate the strength and stability of Apple’s product and services ecosystem.” The forecast from Morgan Stanley suggest Apple has room to run in 2022, with a total upside of 24%.
The second Wallstreet analyst to name Apple as their top pick for 2022 is Samik Chatterjee from JP Morgan, who lifted their price target on Apple Stock to $210 as well.
Chatterjee remains bullish on Apple, forecasting further revenue growth as iPhone 13 sale realisations come into play. As noted in our previous article, Chatterjee expects iPhone sales to reach 246 million units in 2022 with “substantial upside” relative to consensus expectations.
Amazon Stock Remains a Wallstreet Favourite
Amazon was one of the most upgraded stocks on Wallstreet in 2021. Remarkably, across the board of 42 Wallstreet analysts all 42 have currently listed a Buy rating on Amazon.
JPMorgan analyst Doug Anmuth recently boosted the firm’s price target on Amazon Stock to $4,500 with an Overweight Rating. The analyst highlighted that although Amazon faced multiple macro challenges in Q4, Amazon was able to deliver “solid” Q4 results with strong Web Services numbers.
In addition, Anmuth noted Amazon’s Q1 2022 forecasts were “better-than-feared” by Wallstreet. The analyst expects Amazons revenue growth to re-accelerate in Q2 2022, and Amazon Stock remains one of JP Morgans top stock ideas for 2022.
The new $4,500 target from JP Morgan implies a 42% upside from Amazon’s current trading price. Multiple analysts landed in similar territory following Q4 results, with Goldman Sachs setting at $4,200 target while Barclays increased their valuation to $4,400. Overall, Wallstreet remains extremely upbeat on the outlook for Amazon Stock in 2022.
Wallstreet Sees Big Upside in Nvidia Stock
Another heavily covered stock with overwhelming support is Nvidia Stock. The tech giant manufactures Graphic Processing Units (GPU) for Gaming and specialised markets and is seeing a surge in demand in recent quarters.
Across the board of 39 different Wallstreet analysts, the median price target for 2022 currently stands at $350 a share, implying an upside of 44%.
Bank of America analyst Vivek Arya recently reiterated his Buy rating on Nvidia Stock with a $375 price target after hosting an investor call with the company’s CFO, Colette Kress. The analyst is confident in NVDA stock heading into 2022 with momentum expected across gaming, data center and “nascent omniverse/autos opportunities.”
The analyst calls Nvidia Stock a “top compute pick” and believes the company is best positioned to “address several of the most important, multi-decade secular growth opportunities.”
The Bottom Line: Wallstreet’s Top Stock Picks in 2022
In summary, Apple, Amazon and Nvidia have all been praised as top stock picks in 2022 from Wallstreet analysts. While analysts see upside in these stocks, these tech companies will need to deliver in 2022 as investor sentiment is at a one year low. Do you agree with the Wallstreet forecasts? Let us know in the comment section below.
The information above is presented for informational purposes only and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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