The Pros’ Picks: 22 Top Stocks to Invest In for 2022 – Kiplinger's Personal Finance

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Wall Street’s analyst community is broadly optimistic about the market’s prospects for the year ahead – but they’re torn about where exactly those gains will come from. In other words, 2022’s top stocks to invest in could come from numerous corners of the market.

Just consider the headwinds that the pros are factoring in as the new year approaches. Inflation. Supply-chain chaos. The potential for more COVID disruptions. Sky-high equity valuations. And none of that accounts for potential “black swan” events in 2022.

Still, the consensus direction for the stock market’s arrow remains up for 2022. Infrastructure spending and a resumption of the economy’s rehabilitation should help prop up equities in general, goes Wall Street’s thinking.

“We expect solid economic and earnings growth in 2022 to help U.S. stocks deliver additional gains next year,” says Ryan Detrick, chief market strategist for LPL Financial, the largest independent broker-dealer in the U.S. “If we are approaching – or are already in – the middle of an economic cycle with at least a few more years left (our view), then we believe the chances of another good year for stocks in 2022 are quite high.”

Also noteworthy is LPL’s S&P 500 target for 2022, which stands at 5,050 at the midpoint. That represents a roughly 10% gain from when the call was made Dec. 20, but closer to 5% from today’s prices. Plenty of other Wall Street strategists have similar targets. Thus, if you want anything more than a mid-single-digit return in 2022, you might need to stray from the index and instead delve into individual picks.

But where should you begin?

Here are 22 of the pros’ highest-conviction stocks to invest in for 2022. We used TipRanks data to unveil the crème de la crème, as viewed by Wall Street’s analyst community. Each stock currently earns a consensus Strong Buy rating based on opinions from analysts surveyed by TipRanks. 

As of today, these stocks are expected to produce upside of between 10% and 82% over the next 12 months – handily more than consensus S&P 500 projections. And like Kiplinger’s best stocks for 2022, they represent just about every corner of the market.

Data, including consensus price targets and ratings, is as of Dec. 28. Stocks listed in reverse order of projected 2022 returns.

1 of 22

Charles Schwab


  • Market value: $161.6 billion
  • TipRanks consensus price target: $95.80 (10% upside potential)
  • TipRanks consensus rating: Strong Buy

Financial stocks can thrive in an environment of rising interest rates and high liquidity. Banks can earn even more on their lending products (think mortgages and car loans), and services firms that make money from trading volumes will collect more in fees. One firm that has done particularly well is Charles Schwab (SCHW, $85.50), which is involved in both these services, as well as wealth management.

SCHW shares, which are poised to finish 2021 up by about 60% or so, aren’t expected to have as explosive a 2022, but they’re still among the pros’ favorite stocks to invest in.

Deutsche Bank’s Brian Bedell, who calls SCHW stock a “top pick,” is encouraged by Schwab’s “balanced focus on organic growth, client service, [and] merger integration,” as well as its “ability to generate significant financial operating leverage to higher interest rates and client asset growth.”

He also sees much more upside to shares than the analyst average price target, which implies 10% returns over the next 12 months. Bedell’s $120 PT would see Schwab shares return another 40% from current prices.

Jefferies also calls Schwab a “top pick” among brokers, asset managers and exchanges. “Areas where SCHW could flex its muscle on the competition include: options pricing, payment for order flow (PFOF) practices, deposit pricing as well as asset management products (both third party and advice services),” Jefferies’ analyst team says.

Wall Street is plenty bullish in general, with eight of 10 covering analysts issuing Buy calls on SCHW over the past three months. See which other analysts are in the Schwab Buy camp on TipRanks.

2 of 22

Applied Materials


  • Market value: $141.8 billion
  • TipRanks consensus price target: $175.84 (10% upside potential)
  • TipRanks consensus rating: Strong Buy

A perfect storm materialized for the semiconductor industry over the past couple years: a digital transformation and ecommerce boom for electronics combined with shipping backlogs and work shortages.

Among the beneficiaries has been Applied Materials (AMAT, $159.64).

The California-based integrated circuit producer has been integral to the domestic tech industry, as the majority of chip manufacturing is located in Taiwan and elsewhere overseas. The boom in the importance of data centers, 5G, and the Internet of Things (IoT) has kept demand for AMAT’s products strong.

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CFRA recently added Applied Materials to its favorite chip stocks to invest in, upgrading shares from Buy to Strong Buy.

“We see upside to estimates driven by two trends: 1) AMAT continuing to gain market share in process control, more specifically wafer inspection and e-beam technology with leading-edge customers, and 2) demand from foundry/ logic capacity expansions evident in Intel’s higher capex guidance and Samsung’s plans to triple its foundry capacity by 2026,” says CFRA analyst Keven Young.

The analyst adds that demand also should be supported by the U.S. and Europe, which are “looking to boost their own chip manufacturing presences, which will likely be done via smaller and less efficient fabs, boosting WFE capital intensity and benefitting equipment suppliers.”

A solid 12 of 15 analysts covering AMAT shares have called it a Strong Buy or Buy, versus just three Holds and no Sells of any kind. Hear what else the pros have to say about AMAT on TipRanks.

3 of 22

Coca-Cola


  • Market value: $253.3 billion
  • TipRanks consensus price target: $64.53 (10% upside potential)
  • TipRanks consensus rating: Strong Buy

Coca-Cola (KO, $58.65) has been slower than most to recover from its COVID-recession losses, but it’s primed to enter 2022 nipping at its previous all-time highs. The beverage maker has been experiencing strong momentum in sales of mini packs and Coke Zero Sugar, and expects significant growth from its recently acquired British coffee chain, Costa Coffee.

Evercore ISI analyst says that while KO would like to continue innovating on a meaningful level, the “vast majority of innovations don’t work.” The company is so well-entrenched in its consumers’ interests that changes to formulas in its syrups and new flavor options are often shunned for classic offerings.

Furthermore, along with rebounding sales from households, the reopening of restaurants and other food purveying establishments should result in higher sales volumes of Coca-Cola products, as these end markets make up a sizeable portion of KO’s profits.

Credit Suisse analysts (Outperform) believe KO is one of the best stocks to invest in among consumer staples picks, calling it a “top pick.”

“With the pandemic’s worst likely passed, we think Coke is now poised for a period of mid-single, maybe even double-digit topline growth and high-single digit bottom line growth (ahead of guidance),” says Credit Suisse (Outperform, equivalent of Buy). “In recent weeks, a series of meetings with management and industry participants affirmed this view.”

Six of eight analysts surveyed by TipRanks categorize Coca-Cola stock as a Buy. Check out their price targets and analysis at TipRanks

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Lowe’s


  • Market value: $170.9 billion
  • TipRanks consensus price target: $280.44 (11% upside potential)
  • TipRanks consensus rating: Strong Buy

Home improvement boomed during the depths of the pandemic while individuals were stuck at home. Do-it-yourself trends and design interest pushed stocks like Lowe’s (LOW, $253.70) to new heights. Shares in the home improvement retailer have more than doubled from their pre-pandemic peak, and they could improve further still in 2022 as continued COVID flare-ups prompt homeowners to continue investing in their houses.

Wells Fargo Securities analyst Zachary Fadem is among 12 of 16 covering analysts who have said LOW stock is a Buy over the past three months.

“[The] LOW market delivery model is expanding nationwide in the next 18 months with long-term potential for higher conversion, margin expansion and higher inventory turns,” says Fadem, who has a $295 price target on Lowe’s stock, implying 16% upside across 2022.

“The key takeaway from LOW’s investor event was that it’s well positioned to gain market share next year independent of the macro backdrop,” adds UBS analyst Michael Lasser (Buy). “Plus, it has several levers that it can pull to generate margin expansion in a variety of top-line scenarios.”

Lasser also likes Lowe’s valuation, which is cheaper than both the overall market and rival Home Depot (HD). Check out Wall Street’s average, highest and lowest price targets for LOW on TipRanks.

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Johnson & Johnson


  • Market value: $446.7 billion
  • TipRanks consensus price target: $189.83 (12% upside potential)
  • TipRanks consensus rating: Strong Buy

Johnson & Johnson (JNJ, $169.67) could be set up as one of the best stocks to invest in well past 2022, forecasting high pharmaceutical sales growth through 2025 and limited impact from expiring patents.

Wells Fargo Securities analyst Larry Biegelsen (Overweight, equivalent of Buy) notes that J&J’s 2025 target for pharmaceutical revenues backing out COVID vaccine sales is $60 billion, which implies 5.7% compound annual growth and is better than consensus expectations for $55 billion.

Biegelsen is also optimistic about the company’s drug pipeline.

“Between now and 2025, JNJ expects roughly 50 approvals/filings, comprised of 36 line extensions of existing products and 14 novel therapies with $1 billion-plus peak sales potential each,” he says. “While there is inherent clinical and regulatory risk in pharmaceutical development, we concur with JNJ’s assessment that much of its Pharma growth through 2025 is de-risked because it’s mostly driven by in-market products.”

Of the seven analysts who have sounded off on J&J stock over the past three months, six are in the bull camp, according to TipRanks. TipRanks offers up a full analyst rundown of JNJ shares.

6 of 22

Altria Group


  • Market value: $87.0 billion
  • TipRanks consensus price target: $53.11 (12% upside potential)
  • TipRanks consensus rating: Strong Buy

Although doctors have pooh-poohed cigarettes for some time, analysts still have no problem recommending Marlboro parent Altria Group (MO, $47.38) to investors. That said, Altria has expanded far past traditional tobacco products in recent years, investing nearly $13 billion in e-cigarette producer Juul, as well $1.8 billion in cannabis company Cronos Group (CRON).

It remains to be seen whether Altria will attempt a full takeover of Juul, a company that has resonated strongly with younger individuals. The e-cigarette industry is considered a threat to traditional cigarettes, and as such, Altria might benefit from fully owning one of the space’s top names. (Juul boasts a 40%-plus e-cigarette market share.)

The potential upside in cannabis investing lies with regulators. It all depends on which companies will be poised to benefit if and when federal legalization is enacted. Jefferies analyst Owen Bennett believes Altria’s exposure to the domestic cannabis industry is underappreciated, contending that “the stock is getting zero credit” in this field.

Bennett calls MO shares a Buy and sees shares hitting $53 over the next 12 months. Here’s what other analysts have to say about MO shares.

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Chevron


  • Market value: $228.5 billion
  • TipRanks consensus price target: $135.06 (14% upside potential)
  • TipRanks consensus rating: Strong Buy

For Chevron (CVX, $118.56), just like many other energy stocks, oil giveth, and oil taketh away.

Oil prices’ collapse in 2020 amid travel restrictions and slumping demand slashed CVX prices by more than half. However, U.S. crude has since surpassed its pre-COVID peak, and Chevron shares have recovered in kind. No wonder then, that optimism about energy prices has Wall Street considering CVX among their top stocks to invest in as we head into 2022.

Even with new COVID-19 variants emerging, global governments are hesitant to lockdown their populations and thereby thrust their nations into economic recessions again. That bodes well for oil-price stability in the new year.

BMO Capital analyst Phillip Jungwirth is among 14 of 18 analysts covered by TipRanks who have issued a positive opinion on the stock over the past three months. He notes that CVX is generating robust free cash flow and is in a good position to raise its dividend and maintain its membership in the Dividend Aristocrats.

He also notes that Chevron recently elevated its stock buyback program, from $2 billion to $3 billion annually to $3 billion to $5 billion.

UBS upgraded CVX in November, to Buy from Neutral, lauding the company’s financials. “We expect a continuing high quality dividend and share buybacks ready to step up further with the balance sheet already the lowest geared in the sector and set to fall further,” says UBS analyst Jon Rigby. See what the rest of the Street has to say about CVX.

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Alphabet


  • Market value: $1.9 trillion
  • TipRanks consensus price target: $3,368.75 (15% upside potential)
  • TipRanks consensus rating: Strong Buy

Search leader Alphabet (GOOGL, $2,933.74) has benefitted handsomely from the accelerated digital transformation. That’s allowing the technology conglomerate to invest its fortunes into a wide-ranging array of new innovations and initiatives.

In addition to its lucrative advertising business, the communication services stock deals in everything from cloud-based solutions to data centers to personal and home devices – and even autonomous driving systems via its Waymo subsidiary.

GOOGL is among the best stocks to invest in, according to most analysts who cover it. A whopping 25 of the 27 analysts to weigh in on shares of late call the stock a Buy.

Tigress Financial Partners’ Ivan Feinseth goes a step further, calling GOOGL a Strong Buy and giving it a $3,540 price target (21% upside potential).

“[Alphabet’s] increasing AI-first focus is driving greater product functionality and significant growth opportunities,” says Feinseth, who notes that GOOGL is on his firm’s Research Focus List and in its Focus Opportunity Portfolio. “GOOGL’s strong balance sheet and cash flow enable the ongoing funding of key growth initiatives, strategic acquisitions and the further enhancement of shareholder returns through ongoing share repurchases.”

Check out other analyst price targets on GOOGL at TipRanks.

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Laboratory Corporation of America


  • Market value: $29.4 billion
  • TipRanks consensus price target: $354.38 (16% upside potential)
  • TipRanks consensus rating: Strong Buy

One of the world’s largest clinical laboratory network operators, Laboratory Corporation of America (LH, $306.81) – better known to some as just “LabCorp” – earns a solid Strong Buy consensus rating from the Street.

Among its many verticals, the lab network firm engages in drug development and various medical testing methods. Several of its laboratory provisions at the moment are in key areas, including genomic and polymerase chain reaction (PCR) testing.

Of late, the healthcare stock has made an impression on shareholders by lavishing them with cash. In early December, LabCorp authorized a $2.5 billion stock buyback plan and announced that it will initiate a dividend in Q2 2022, aiming for a dividend payout ratio of 15% to 20% of adjusted earnings.

Mizuho Securities’ Ann Hynes (Buy) is bullish on the stock and the new dividend.

“We view the introduction of a dividend is positive as we believe a key reason for the historical valuation difference between LH and Quest Diagnostics (DGX, rated Buy) was the lack of a dividend at LH,” she says. “We remain Buy-rated on LH and we are buyers on any weakness related to this announcement.”

She’s one of eight analysts who have included LabCorp in their top stocks to invest in over the past three months. No pros have offered up a Hold or Sell call during that stretch. See what other analysts have to say about LH on TipRanks.

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DuPont de Nemours


  • Market value: $41.7 billion
  • TipRanks consensus price target: $95.10 (18% upside potential)
  • TipRanks consensus rating: Strong Buy

An rising economic tide will typically lift most cyclical boats, and that includes materials stocks such as DuPont de Nemours (DD, $80.45). One of the largest chemical and specialty materials companies in the world, DuPont produces many of the most basic synthetic components that allow other industries to thrive.

It’s also banking on some wheeling and dealing to move the needle in 2022.

With the $5 billion buyout of engineering materials maker Rogers Corp., announced in early December, “DuPont will become a faster-growing, higher-margin, and less cyclical company with increased exposure to high-growth secular end-markets including EVs, Advanced Driver Assistance Systems, 5G and clean energy,” says Deutsche Bank analyst David Begleiter, who rates the stock at Buy with a $95 price target.

Meanwhile, Argus Research analyst Bill Selesky (Buy, $95 PT) has a “favorable view” of both the Rogers acquisition, as well as the planned divestiture of most of the Mobility & Materials segment.

“The divestiture will allow DuPont to focus on faster-growing, higher-margin businesses, while Rogers should help the company to expand its presence in the electric vehicle, 5G telecom, and clean energy markets,” he says.

Begleiter and Selesky are part of a recently unanimous bull camp for DD shares.

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Analog Devices


  • Market value: $91.6 billion
  • TipRanks consensus price target: $209.29 (20% upside potential)
  • TipRanks consensus rating: Strong Buy

Considered an advanced leader in the semiconductor space, Analog Devices (ADI, $174.38) has been mitigating the impacts from supply crunches and ramped up its output to meet the overwhelming demand for its high-capacity chips.

The overall semiconductor industry has seen an incredible period of growth, and many of its largest components are still poised for further upside as the global economy continues to transition toward digitalization. The biggest obstacle to growth, of course, is the rate at which semiconductor firms can produce their highly sought-after chips.

Nonetheless, more than a dozen analysts have ADI among their top stocks to invest in during 2022, believing the chipmaker up to the task.

“The team continues to see the sustaining of the demand/supply gap, strong bookings and backlog, continued lean channel and direct customer inventories, and extended but stable lead-times – all early-cycle indicators,” says JPMorgan analyst Harlan Sur (Overweight). “Looking ahead, ADI continues to see a strong revenue growth profile in FY22 given the aforementioned trends combined with the team’s ability to increase supply growth throughout the year and pricing tailwinds.”

Sur adds that his team thinks the industry is only 40% through the current up-cycle, “which we believe should extend well into CY22 and possibly into CY23.”

Sur’s price target of $220 implies a 26% jump in ADI shares across 2022. Moreover, JPMorgan’s Buy-equivalent call is one of 14 made over the past three months, countered by just three Hold calls. See what the rest of the Street has to say about Analog Devices.

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Suncor Energy


  • Market value: $36.4 billion
  • TipRanks consensus price target: $31.67 (27% upside potential)
  • TipRanks consensus rating: Strong Buy

Calgary-based integrated energy firm Suncor Energy (SU, $24.99) has performed entirely as expected as 2021 draws to a close, with a roughly 55% year-to-date performance more or less equaling the broader energy sector.

Suncor hasn’t exactly had it easy. The pandemic not only weighed heavily on shares, but it also forced SU to cut its dividend from 46.5 cents per share to 21 cents. Things are getting better, however; the company recently announced it would double its dividend to 42 cents per share. Suncor also plans to repurchase shares and repay its debts at a faster rate.

Specializing in synthetic crude derived mainly from the Athabasca oil sands deposits in Alberta, Canada, the company expects higher energy prices in 2022 as more economies return to pre-pandemic output.

Eleven out of 13 analysts surveyed by TipRanks have recently released bullish notes on Suncor. That includes UBS’s Lloyd Byrne, who calls the stock a Buy.

“Looking out, we see the opportunity to improve results and reduce the risk premium in the stock through strong operational performance, initiatives to improve brownfield ops, and incremental returns of excess cash to shareholders,” Byrne says. Check out opinions and price targets for SU on TipRanks.

13 of 22

General Motors


  • Market value: $82.9 billion
  • TipRanks consensus price target: $74.08 (30% upside potential)
  • TipRanks consensus rating: Strong Buy

A couple of the industrial sector’s representatives on this list of 2022’s top stocks to invest in come from the automotive industry. That includes General Motors (GM, $57.11), which is one of several auto giants shifting away from internal combustion engine (ICE) vehicles and toward electric vehicles (EVs).

Indeed, GM has invested heavily in a robust pipeline that should see the automaker produce dozens of EVs by 2030, effectively making it a stalwart in the industry.

“We believe the GM EV transformation story heading into 2022 is starting to get recognized by the Street as we believe a EV driven re-rating is now in process,” Wedbush analyst Daniel Ives (Outperform) said in November. “With the Tesla trillion-dollar valuation and growing EV appetite among investors for new innovative EV stories, the vertical integration capabilities of GM and conversion of its massive customer base to electric vehicles over the coming years represents a transformational opportunity for [CEO Mary] Barra & Co. looking ahead.”

“We believe GM has a golden opportunity to lay the groundwork and ultimately convert 20% of its massive customer base to EVs by 2026 and north of 50% by 2030,” adds Ives, who says GM shares could hit $100 over the next 12 to 18 months, or a 75% return from current levels.

He’s not alone. Over the past three months, General Motors’ stock has earned 11 Buy calls versus just two Holds. Here’s what other analysts have to say about GM’s future.

14 of 22

Salesforce.com


  • Market value: $251.6 billion
  • TipRanks consensus price target: $340.63 (33% upside potential)
  • TipRanks consensus rating: Strong Buy

2021 was a year of continued economic acceleration, particularly in industries that involve cloud-based or digital transformation companies. One of the largest and most fundamentally sound of those companies is Salesforce.com (CRM, $255.45), which is highly rated by some of Wall Street’s most accurate analysts.

Salesforce.com provides enterprise-level customer relations and general management software solutions, as well as data analytics and communications tools. The firm completed its massively expensive takeover of business communication platform Slack this past July – a development many analysts were ultimately bullish on.

After reporting its October earnings on Nov. 30, Wedbush’s Ives opined that despite its in-line operating margin outlook, “Salesforce’s customer diversification, product portfolio breadth, and ratable SaaS model is continuing to gain significant momentum in the field as the digital transformation spending cycle kicks into its next gear of growth.”

Argus Research’s Joseph Bonner is plenty bullish too, reaffirming a Buy rating in early December.

“Salesforce is well positioned to exploit the secular trends in enterprise software toward digital transformation focused on customer experience, software-as-a-service cloud solutions, data analytics, and platform software services, and away from higher-cost on-premise solutions,” he says. “We think that Salesforce has seized the center of the converging enterprise cloud/customer relationship management universe.”

Among TipRanks-surveyed analysts, 23 have called Salesforce.com a Buy over the past three months, versus just two Holds and no Sells. Find out what other analysts have to say about CRM.

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Beauty Health


  • Market value: $3.5 billion
  • TipRanks consensus price target: $32.50 (38% upside potential)
  • TipRanks consensus rating: Strong Buy

Sometimes an industry can use a cleansing – even in beauty. Category-creating Beauty Health (SKIN, $23.52) has enjoyed firm reception of its flagship brand, the HydraFacial. This non-invasive treatment is paired by the company with its community of estheticians and partners, and considers itself to be a bridge between the “skin correction” and “skin care” realms.

After going public via a reverse SPAC merger in late November 2020, SKIN shares have more than doubled. Analysts remain bullish going into 2022, however, with four of the five pros who have weighed in on Beauty Health in the past three months calling it a Buy – this despite the company’s CEO, Clint Carnell, announcing he would step down from the top spot effective the start of the new year. (Executive Chairman Brent Saunders will act as interim CEO until a permanent replacement is found.)

Jefferies analysts came away pleased after a November meetup with management and list SKIN among its stocks to invest in for 2022.

“The CEO transition pressured shares creating a degree of near-term uncertainty, but we left our hosted event with optimism that a new appointment will bring skills that will accelerate the growth thesis – multi-brand through M&A, amplified organic growth, new consumer product expansion, and un/undertapped international markets,” Jefferies’ team says. “The scope of the biz is changing to be quickly bigger and demands a CEO with scaled experience. This frees Mr. Carnell to do what he does best – finding small emerging brands, brokering capital & talent to drive growth, upsizing biz 2x-3x, and prepping it for sale.

SKIN shares have earned Buy ratings from four of the five analysts covering it. See what they have to say on TipRanks.

16 of 22

RH


  • Market value: $11.4 billion
  • TipRanks consensus price target: $771.29 (46% upside potential)
  • TipRanks consensus rating: Strong Buy

As mentioned in our discussion of Lowe’s, the COVID-19 pandemic spurred homeowners to splurge on improving their homes. That wasn’t just good for DIY companies – it also was a boon for home furnishing retailers such as RH (RH, $528.99), which most people know as Restoration Hardware.

RH shares are up a whopping 569% from the market’s March 23, 2020, low – an impressive figure, but one that reflects some cooling-off of late. Shares had delivered as much as an 820% gain through August but have since lost more than a quarter of their peak value.

That’s OK. RH has consistently beaten earnings estimates – an impressive feat considering rising shipping costs and ongoing supply-chain constraints. (RH imports much of its domestic product from Chinese manufacturers.) To deal with inflationary concerns, the company has hiked its prices several times, but RH’s largely well-to-do consumers have digested them with little change in behavior.

That’s why analysts largely see RH as one of the top stocks to invest in for 2022.

JPMorgan analyst Christopher Horvers (Overweight) highlights a laundry list of initiatives in store for 2022:

“RH reiterated that a number of new initiatives remain on track for FY22, including the launch of RH Contemporary (with a dedicated sourcebook, freestanding gallery, dedicated website and national advertising campaign), RH England gallery opening in spring/summer, RH Guesthouse in NYC, the unveiling of the World of RH web portal, the lift off of RH1 and RH2 charter planes, the sailing of RH3 the yacht, and the expansion of RH In-Your-Home service.”

Horvers is one of seven analysts tracked by TipRanks who have sounded off on RH shares over the past three months. All seven have been Buys. Check out RH price targets at TipRanks.

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Twilio


  • Market value: $46.2 billion
  • TipRanks consensus price target: $421.76 (63% upside potential)
  • TipRanks consensus rating: Strong Buy

Twilio (TWLO, $259.09) capitalized on the pandemic shift to digital and app-based commerce. The company provides a platform through which firms can better communicate with their customers, across multiple application channels.

As more companies switch to tech-centric operations, Twilio’s communication APIs (application programming interfaces) are increasingly essential to reaching consumers and offering proper customer service. Moreover, the company has expanded beyond simple SMS and messaging platforms and now also offers voice and video products, which are becoming standard in the customer service realm.

As high-capacity software becomes more ubiquitous in business, the necessity of APIs grows in tandem with that standard.

Unsurprisingly, from the Feb. 19, 2020, start of the COVID bear market through the same time in 2021, TWLO shares returned 232% versus just 17% for the broader market. However, the market has since pivoted hard, away from COVID plays and toward reopening plays, and Twilio’s stock has suffered a 40% decline since February as a result.

A rebound opportunity, then, is why many analysts have TWLO among their top stocks to invest in as we enter 2022.

“Every company is increasingly realizing technology is table stakes, serving as a strong tailwind to Twilio,” say RBC Capital Markets analysts, who rate the stock at Outperform. “We believe Twilio plays a crucial role in allowing companies to communicate with customers across all channels.”

RBC is among the 17 of 18 analysts producing Buy calls on TWLO over the past three months. Here’s what those other analysts have to say about TWLO.

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JD.com


  • Market value: $102.3 billion
  • TipRanks consensus price target: $108.29 (64% upside potential)
  • TipRanks consensus rating: Strong Buy

Chinese stocks, facing intense regulatory intervention, were a disaster in 2021. E-commerce giant Alibaba (BABA) lost more than half of its value. Private tutoring firm TAL Education Group (TAL) hemorrhaged a whopping 95% across the year.

Online retailer JD.com (JD, $65.87) has been relatively stable, shedding “just” 25% since the start of 2021. The online marketplace has invested heavily in robotics and drone tech to reach its billions of users. It’s impressively vertically integrated across its logistics and storage network, and it’s considered well-poised to continue capturing Chinese market share.

Analysts see more than 60% upside potential out of JD shares in 2022, making it potentially one of the best international stocks to invest in – but extreme caution is warranted. A late December note from Stifel’s analysts, in response to Chinese internet giant Tencent (TCEHY) scything its stake in JD.com to 2.3% from 17%, shows the frustration bulls are constantly being subjected to.

“While there is no fundamental business impact to the ownership change, investors have viewed JD as being aligned with Tencent in its battle with Alibaba. For this reason, we view the change as a negative but also believe JD’s business is performing very well,” they say. “Given the changing operating conditions in China that never seem to end, it is difficult to have any conviction in shares of companies like JD at the moment. Just as you think the environment may be normalizing, you take the next punch to the face.

“We continue to believe conditions will improve at some point, but at the moment, that assessment has never seemed more wrong.”

And yet, Stifel’s analysts finished the note by reiterating their Buy rating. See what other analysts have to say about JD shares.

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Zynga


  • Market value: $7.2 billion
  • TipRanks consensus price target: $10.58 (65% upside potential)
  • TipRanks consensus rating: Strong Buy

Once a social-media gaming giant known for titles like FarmVille and Words With Friends, Zynga (ZNGA, $6.40) eventually declined in relevance as promising sequels failed to find footing and connect with users. However, at the onset of the pandemic, as individuals were stuck at home on their phones and tablets, the game developer saw a hike in interest for its hyper-casual time-killing games.

These games are distinct for their minimalist and highly addictive nature, and are a part of a rapidly growing segment within the industry.

Zynga has been focusing on scaling its business and releasing exciting new titles. Moreover, the increased strategic direction placed on user acquisition and retention has helped in driving ad revenues.

ZNGA is highly rated by Wall Street’s analysts, with 12 out of 13 ratings within the past three months categorized as Buys. Among them is Stifel, which has a $12 price target on ZNGA shares.

“The company made a subtle change to its outlook, now targeting bookings to increase by low double-digits, whereas prior commentary suggested this rate of growth would be organic,” Stifel analysts wrote in November following the company’s quarterly report. “Also, the company has made good progress around the integration of Chartboost, which should deliver $20 million-$30 million in synergies in ’22.”

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Fisker


  • Market value: $4.8 billion
  • TipRanks consensus price target: $27.00 (66% upside potential)
  • TipRanks consensus rating: Strong Buy

The nascent electric vehicle industry is a popular place to look for growth. While many established automakers are transitioning their fleets to include electric options, pure-play EV maker Fisker (FSR, $16.28) has revived its brand and is focusing on the luxury SUV market.

The company is led by Henrik Fisker, a seasoned automotive veteran who has designed high-performance vehicles for multiple luxury manufacturers. Its hopes are currently resting on the Fisker Ocean, a mid-size premium SUV slated to hit the mass market during the second half of 2022.

“Using CATL’s LFP batteries, the base Ocean comes with about 240 miles of ranger per charge and starts at $37,499. The vehicle also has two more expensive trims, the Extreme ($68,999) and Ultra ($49,999) variants, which use CATL’s NMC battery chemistry and come with 350/340 miles of range, respectively,” says Deutsche Bank. “The middle trim seemingly offers particularly good range and acceleration for the price, with 340 miles of range and 0-60 in just 3.9 seconds for just $49,999.”

Fisker doesn’t have a large analyst following at just seven pros currently, but 66% projected upside on average signals that they believe this moonshot could be one of 2022’s top stocks to invest in. See what the pros have to say.

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Sonos


  • Market value: $3.8 billion
  • TipRanks consensus price target: $49.50 (67% upside potential)
  • TipRanks consensus rating: Strong Buy

Sonos (SONO, $29.57) manufactures a scalable smart-speaker platform for homes and businesses. The company boasts a high rate of customer retention thanks to its options, which have expanded in variety over the years.

Jefferies analyst Brent Thill (Buy) notes that 46% of new Sonos product purchases in 2021 originated from existing users. “This is evidence that [Sonos’] approach is resonating with consumers” he says, “and gives us continued confidence that customers are willing to wait for products.”

Thill also believes Sonos is underestimating its own potential in 2022.

“We believe SONO likely provided somewhat conservative FY22 guidance as it weighs the impacts of a challenging supply to its outlook,” he says. “We note that in 2021, SONO was a beat-and-raise story, with original FY21 guidance calling for 13% growth at the high end of the range vs 29% actual growth.”

The company also enjoyed an important intellectual-property victory in 2021, when a U.S. trade judge said Google had infringed upon five Sonos patents. These and other patents are expected to only become more relevant amid the rise of audio and voice recognition/command applications.

Just two analysts have weighed in on SONO shares of late, though both have called the stock a Buy, giving it a consensus Strong Buy rating. Here’s what Sonos’ recent analyst coverage looks like.

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Under Armour


  • Market value: $8.5 billion
  • TipRanks consensus price target: $32.31 (82% upside potential)
  • TipRanks consensus rating: Strong Buy

Consumer retail spending has picked up thanks in part to capital injections into the economy. That’s good news for sports equipment and apparel retailer Under Armour (UAA, $17.77), which has been effectively rangebound over the past five years.

Deutsche Bank analyst Gabriella Carbone says UAA is “an attractive long-term story that is returning to consistent top-line growth with significantly improving flow-through and profitability.”

“UAA has further runway to expand gross profit margin through SKU reductions, vendor negotiations, more premium pricing and fewer markdowns,” adds Carbone, who rates Under Armour’s shares at Buy with a $36 price target that implies the stock will double within the next year.

She’s not alone. From a price-target standpoint, UAA is one of the best stocks to invest in for 2022; analysts’ average price target issued over the past three months is more than $32, or 82% upside from current levels. Find out what other analysts think about UAA at TipRanks.

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