History teaches us that recessions make the rich richer and the poor poorer. This is because wealthy people know that market declines are the best time to take advantage of the economy and its cycles. On the other hand, the poor get swept up by the market they don’t even understand.
Value investors are looking at 2022 as a feasible year to invest, with the Federal Reserve broadcasting a series of rate increments to tame the ballooning inflation. Even the stock market is anticipating a jerky year, so investors are being cautious and are shifting away from fast-rising growth stocks that have overwhelmed market watchers since the crash back in 2020.
This is the perfect time to stop being a market observer and begin being an active player in the investing space.
If you want to make headway, it’s necessary to think beyond the obvious opportunities and weigh up holistic approaches that will render good returns despite the challenging environments. This involves darting beyond fashionable growth investments to value stocks that might have been on the rocks but still offer long-term upside.
Here are the massively undervalued stocks that you should invest in 2022:
1. Airbnb (ABNB) – $110.40 per share
At the time of writing, Airbnb is down 44% in the last six months and is currently at $110.40 per share. This company is quite a good investment since, although the covid-19 pandemic could’ve liquidated it, it still managed to bring in $6 billion in revenue in the last 2021.
In the previous year, tech companies have been stamped out lately. Yet, this underlying business remains quite valuable. Experts are eyeing this stock as a possible giant competitor to the entire hotel industry. This stock would soar to more than $200, so getting this stock now will give investors 50% gains in the coming years.
2. Adobe (ADBE) – $395 per share
Compared to the PDF reader you have on your computer; Adobe is a lot bigger. It has a lot of graphic-editing-related products to offer, which are necessary in this world that is rapidly digitizing.
They offer the most popular tools in the creator economy, so they’re sure to flourish as time goes by. From video editing to logo banners, these creatives touch Adobe at some point.
Just like Airbnb, Adobe has been down in the past six months. However, this company’s record has shown consistent growth since its launch. In about 12 months, this stock’s price would get its retracement back, giving its investors about 40% returns. The emergence of Web 3.0 would surely make creatives explore further, and this only means more profit!
3. Nvidia (NVDA)- $166 per share
Metaverse is the future, and this cyberspace will run on graphics— which Nvidia is hailed to be a superstar. They are known for the excellent software they produce, including virtual reality games, augmented reality gaming, and of course, metaverse worlds.
The company is a goliath when it comes to the GPU market. Thus, there’s no way they wouldn’t be able to make a bank in the next decades. This niche is growing exponentially faster than anything else in the market. Everything that we’ll see coming will rely on the kind of software Nvidia will produce.
Nvidia makes about a 35% profit margin, bringing in $25 billion in revenue. The best-case scenario we can get from investing money now is doubling that money in the next twelve months.
4. Nike (NKE) – $109 per share
This well-recognized shoe company had it rough at the start of 2022, having its stocks down 21% in the first two months. Not to mention the production disruptions hamper the company due to the raging pandemic.
But despite the rough road it’s walking, it’s not going to go bankrupt anytime soon. Nike has a winning culture that was exemplified by its ability to introduce iconic products that its customers can’t seem to get enough of.
The company managed to bring $45 billion in revenue in the previous year. How much more when all the pandemic charades and the market recovers? You could receive as much as 50% returns in 12 months if you start buying NKE now.
5. Unity Software (U)- $36 per share
Unity Software is an aggressive stock, but it’s good to include such an investment in your portfolio, especially because a few of these could outpace everything.
The software Unity produces allows ultra-realistic graphics. In the coming years, uncanny valley, which is a point where it becomes pretty difficult to determine whether you’re seeing computer-generated imagery or an actual human— and Unity is playing a big role in this.
Unity has been down over 80% in the coming months, and this is the perfect asymmetric risk opportunity that has the tremendous potential to deliver outstanding returns.
6. Under Armour (UAA) – $11 per share
If you jumped in at Under Armour stocks in April 2020 when stocks were just about $8 per share, you could’ve liquidated your money at $21 per share in October 2021. Nearly threefold your investment!
UAA has been down again by 60% in the past six months, which opens up a great opportunity to purchase the stock. The projected value of this stock is around $20 in the next twelve months.
7. PayPal (PYPL) – $76 per share
PayPal is too techy for older people to care about but a bit ancient for kids in the Web 3.0 to find cool. However, although PayPal seems to be a bit long in the tooth for the new generation to find cool, it’s still massively making money and is continuously increasing inactive users.
Reports say that about 22% of online transactions are handled through PayPal. Currently, it’s trading at about $76, which is way too low for its all-time high price of $300. You could raise your money fourfold if you buy this undervalued stock now.
This massively underrated stock is bound to grow since more and more people all over the globe are getting access to online marketplaces.
8. Square (SQ) – $78 per share
Jack Dorsey, the Twitter founder, is one of the brains behind Square payment solutions. This stock’s performance isn’t doing well in the past six months and was down by 70%.
In the middle of 2020, Square is just at $85 per stock and reached $265 per stock in October 2022. Since the stock is back at under $80, it would be a great idea to ride on the wave and make huge returns out of it.
9. Coinbase (COIN) – $66 per share
Coinbase is the biggest regulated cryptocurrency exchange in the United States and considering that digital currencies are getting widespread, we can guess where this stock is heading.
Coinbase is down from $350 per share to $66. But whether crypto prices are up or down, this emerging sector is making about 25% up to 50% margin. In this entire list, Coinbase might bring you the best trade.
10. Starbucks (SBUX) – $70 per share
We all love branded companies, and Starbucks is probably one of them. Its stock price was down by 35% in the last six months, from $115 to just around $70. Despite this, the company managed to make $30 billion last year.
As the world returns to the busy normal, we will be seeing more people drop by Starbucks to get a quick coffee. Since the business keeps a culture of writers, entrepreneurs, and designers working in their coffee shop— we might see freelancers and work-from-home workers get their job done in the store. Of course, this means good revenue.
