In this article, we discuss the 12 best American stocks to buy in 2022. You can skip our detailed analysis of these stocks and the current market situation, and go directly to 5 Best American Stocks To Buy in 2022.
The beginning of 2022 brought along something investors hadn’t witnessed since the early days of 2020: wariness and apprehension. All major stock benchmarks saw their biggest quarterly losses in two years in just the first quarter of 2022, including a 4.6% decline for the S&P 500 as well as a 9% drop for the Nasdaq Composite. After what can only be called a turbulent January and February, March brought some much-needed relief to the U.S. stock market. The S&P 500 rose 3.6% during that month, providing some semblance of recovery from a torturous correction during the first two months of the year during which stocks had dropped by as much as 13% from their all-time highs.
That isn’t to say, that the market has recovered completely. In fact, many experts are concerned that the rising rates to control inflation might go too far and trigger a recession in the United States. Not to mention, the war in Ukraine has not only triggered a costly humanitarian crisis but also caused economic damage that will contribute to a significant slowdown in global growth in 2022 and add to inflation. According to the information provided by the International Monetary Fund (IMF), global growth is projected to slow from an estimated 6.1% in 2021 to 3.6% in 2022 and 2023.
Although there are numerous flags that herald a recession, several market experts argue that the United States may avoid such a situation altogether. This belief apparently stems from the fact that consumers and corporations currently have healthy balance sheets. According to the Fundstrat’s Head of Research, the S&P 500 could surge to 5,100 by the end of the year as long as the US economy avoids a recession, representing a potential upside of 13% from the current levels.
As the year unfolds, investors are currently wondering which stocks to place their bets on. With the analyst community carrying a mixed bag of opinions, it’s important to keep a close eye on the market and make your own judgments. To that end, investors should probably focus on stocks with strong business fundamentals, resilience in the face of inflation, room for growth, and solid financial positions. Some of these stocks include The Walt Disney Company (NYSE:DIS), Alphabet Inc. (NASDAQ:GOOG), and Micron Technology, Inc. (NASDAQ:MU), among others.
12. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 61
Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical company based in Indianapolis, Indiana. Founded in 1876, the company is best known for its clinical depression drugs Prozac and Cymbalta, with products sold in approximately 125 countries.
The company recently delivered upbeat profit and sales for the first quarter of 2022. According to its earnings report, the healthcare giant earned $2.62 per share on an adjusted basis, surpassing analysts’ estimates of $2.13 per share. Additionally, Eli Lilly and Company (NYSE:LLY) posted revenues of $7.8 billion, up 14.76% on a year-over-year basis, crossing expectations of $6.68 billion.
11. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 63
Intuitive Surgical, Inc. (NASDAQ:ISRG) is an American corporation that is involved in the development, manufacturing, and marketing of robotic products that are designed to improve clinical outcomes of patients through minimally invasive surgery, most notably through the da Vinci Surgical System.
The company recently announced better-than-expected financial results for the first quarter of 2022. As per its earnings report, Intuitive Surgical, Inc. (NASDAQ:ISRG) reported an EPS of $1.13, beating market estimates by $0.05. The revenue for the quarter came in at $1.49 billion, an increase of 15.14% on a year-over-year basis, surpassing estimates by $62.12 million.
10. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
One of the largest healthcare companies in the world, Johnson & Johnson (NYSE:JNJ) is a New Jersey-based corporation that develops medical devices, pharmaceuticals, and consumer packaged goods. Its top products include Tylenol, Stelara, and Invega, among other medical devices.
As of April 19, Johnson & Johnson (NYSE:JNJ), reported a 6.6% increase in the quarterly dividend, from $1.06 per share to $1.13 per share. The company also released its earnings report for the fiscal first quarter of 2022 on April 19, with a reported EPS at $2.67, surpassing market estimates by $0.10. Additionally, the company reported a revenue of $23.43 billion.
9. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 83
Micron Technology, Inc. (NASDAQ:MU) is an American producer of computer memory and computer data storage including dynamic random-access memory, flash memory, and USB flash drives. Based in Boise, Idaho, Micron Technology, Inc. (NASDAQ:MU) is a major player in the semiconductor space.
Out of the 924 elite hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 83 were long Micron Technology, Inc. (NASDAQ:MU) with stakes worth $5.5 billion. This is an increase from 63 funds in the preceding quarter, with stakes amounting to $3.84 billion. Paul Marshall and Ian Wace’s Marshall Wace LLP is one of the leading stakeholders in Micro Technology, Inc. (NASDAQ:MU), with over 5.4 million stakes worth approximately $507.3 million.
8. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 86
T-Mobile US, Inc. (NYSE:TMUS) is one of the largest mobile communication firms in the United States, offering voice and data services to millions of consumers. A decent US stock, the Washington-based wireless network operator outperformed forecasts for subscriber growth during Q1 2022. The company is reaping the benefit of its 5G cellular network leadership and saw its phone-bill customers increase by 589,000.
Among the hedge funds tracked by Insider Monkey, 86 were bullish on T-Mobile US, Inc. (NYSE:TMUS) at the end of the fourth quarter of 2021, with aggregate positions worth $6.06 billion. Andreas Halvorsen’s Viking Global is the biggest stakeholder in the company, with 13.14 million shares valued at $1.52 billion.