Nasdaq is an American stock exchange based in New York City. Due to its size, it is considered one of the world’s largest and most essential exchanges, making it easy for companies with international interests to trade shares—Nasdaq Composite Index tracks over 5000 companies across various industries, including technology and biotechnology.
Since the start of 2022, the Nasdaq has slipped by 27%, signaling a bearish trend throughout the year. However, tough times give rise to new opportunities, and we can anticipate a bullish run in the future, though the timing is uncertain. Hence, we bring forth ten good companies on Nasdaq for you to invest in at the tail end of 2022.
Amazon
NASDAQ: AMZN
Amazon has a strong foothold in cloud computing and e-commerce. It has grown exponentially over time and expects to maintain double-digit growth throughout this decade.
While Amazon’s stock price may not be as high as it once was, it is still a fantastic company. Amazon’s success with their Kindle ebook reader and their Prime membership program has given them a leg up on competitors like Barnes and Noble, who have failed to compete with them on pricing. They are also branching out into other businesses, such as grocery stores, where they have already seen success.
Amazon recently faced a supply chain crisis that has restricted its cash flows, resulting in its stocks plummeting by around 40% over the year. Yet, Amazon is a powerhouse with dominant market positioning and financial power to weather this storm. It expects a prosperous future with the company expanding its revenue through sources such as Amazon Prime membership, AWS, etc.
Due to the bearish market throughout the year, Amazon’s price has fallen to being the cheapest during the last six years. So you may get a good deal by purchasing Amazon’s shares at the tail end of 2023.
Mercado Libre
NASDAQ: MELI
Founded by Argentinian entrepreneur Marcos Galperin, Mercado Libre is one of the largest internet marketplaces in Latin America. The company has created a website allowing buyers and sellers from all over the world to trade. With investors’ interest starting to shift towards emerging markets like Latin America, investors may be looking for opportunities in the NASDAQ with companies like Mercado Libre in 2022.
What is Mercado Libre?
Mercado Libre is an e-commerce and electronic auction platform which is gaining recognition as the Amazon of Latin American countries due to its top positioning in the area. In addition, its rapidly growing media Mercado Pago (logistics) and Mercado Envios, Mercado Credito (lending) have lent it great success.
Why invest in MELI?
Although in the initial stages of development, these businesses showcase the immense prospect of MercadoLibre. With the growth in mobile technology, its fintech and e-commerce are experiencing rapid expansion. This development makes it a good investment from the variety of similar companies available at Nasdaq.
Vertex Pharmaceuticals
NASDAQ: VRTX
This company is currently at an all-time high, and many experts believe that this can continue for some time.
With a market capitalization of $81 billion, it’s one of the larger pharmaceutical companies in the world. Vertex’s stock has been increasing steadily since 1991, when it first became a public company. Analysts are projecting its stock will keep going up with no significant dips or crashes.
Why invest in VRTX?
VRTX has overseen a 38% growth in 2022, which seems to be only the beginning for this biotech firm. It is a market leader in treating cystic fibrosis, which has been a source of enormous profit for them.
Now, they are venturing into treating blood disorders and sickle cell diseases with their partner company, CRISPR Therapeutics. Moreover, they have products providing solutions to type 1 diabetes and pain management in their pipeline. It may be an excellent decision to get in on Vertex with the present standing of its CF treatment and a host of potential revenue streams for the company.
Intuitive Surgical
NASDAQ: ISRG
Since Intuitive Surgical was founded in 1995, it has grown exponentially and currently owns about 70% of the market share for robotic surgery.
In 2022 Intuitive Surgical reported revenues of $6.1 billion, with adjusted earnings per share of $3.78. The company is constantly updating its product lines so that it can improve its product as well as offer new features.
The future looks very promising for Intuitive Surgical because the demand for minimally invasive procedures is on the rise due to faster recovery times, less scarring, and better cosmetic outcomes. Considering how profitable they have been in previous years, it is easy to see why this company would be on this list.
Why invest in ISRG?
ISR is known for providing robot-based surgical services. Its unique product is the Da Vinci System, a robotic system costing $0.5- 2.5 million for cardiac, gynecologic, and renal procedures. This system has established Intuitive as the market leader in its segment, with no competitor reaching close to its sales figures.
Till September 2022, they have sold 7364 of these systems to healthcare organizations. The Da Vinci system’s advanced technology, expensive nature, and requirement of extensive training before usage make it less likely to be replaced by customers. Consequently, it has grabbed NASDAQ investors’ attention as a worthwhile venture.
Costco
NASDAQ: COST
Costco Wholesale Corporation (COST) is a warehouse membership retailer that provides an assortment of high-quality products, including food and sundries, appliances, clothing, electronics, jewelry, and more.
COST also operates as an e-commerce website for all its members. The company’s net sales grew by 82 million in 2021 and improved comparable store sales performance. As it currently trades at a price more than 11 times than in 2009, Costco can be considered one of the best stocks to buy this year.
Why invest in Costco?
The annual fees we pay for shopping at Costco is a high margin source as they do not incur tangible costs like warehousing, transport etc. 2022 saw a growth in their $120 Executive membership, which accounts for 72% of their sales. These signs can encourage potential investors to justify their investment in Costco.
Etsy
NASDAQ: ETSY
Etsy is a website that offers handmade and vintage items and artisan crafts. Founded in 2005 by three men, it has grown into a global e-commerce site that attracts more than 20 million people monthly.
When did Etsy release its first IPO?
The company released its IPO (initial public offering) on April 16th of 2015, and raised $268 million from shares sold at $16 per share. The stock price rose steadily for the first few months after the IPO but dropped during early 2016 due to concerns about competition and slowing growth.
In 2022, however, following an increase in revenue and a change in management, the stock began climbing again. Now it currently trades at around $119 per share. Its niche market expanded tremendously during the COVID-19 pandemic, achieving growths equivalent to twice of any other e-commerce business.
Why invest in ETSY?
Surviving the intense competition against Amazon is no mean feat, but Etsy has passed the test of its time, securing a 141% growth in sales volume during 2022’s second quarter. It has recently acquired a digital fashion resale store, Depop. It continues to embark on a path of success with its pricing power, powerful network effect, etc., making it a viable investment option.
Moreover, they employ a razor-and-blade approach, earning low margins within the system but high margins from its servicing and maintenance. This method signifies strong revenue streams for Etsy, which can propel it further.
Grupo Aeroportuario del Sureste
NASDAQ: ASR
Mexican stocks have been on the rise since Donald Trump’s election. Grupo Aeroportuario del Sureste, or ASUR, is a Mexican airport operator that has seen its stock climb an astonishing 57% since November 2016. The company has a lot of room for growth and will likely continue to be on an upward trend for years to come. So far, this is the only Mexican stock on our list.
Also, Grupo Aeroportuario del Sureste has held up well in a dwindling market, achieving an 8.4% growth in 2022. It has been continuously outperforming the market due to increased travel demand.
Why invest in Grupo Aeroportuario del Sureste?
With airports in prime locations such as Cancun, Medellin, Puerto Rico, and San Juan, it has seen a considerable traffic increase over the past few years. Recently, Zacks Rank, a successful stock-choosing model based on earnings estimates, has placed ASR as the second most demanded stock. The latest data showcases it has risen by 15.3% throughout the year, while the other transportation stocks have lost an average of 15.5%. It has the potential for growth in the upcoming times.
Palo Alto Networks
NASDAQ: PANW
In recent years, Palo Alto has focused on integrating new technology into its product line and has seen significant growth. In 2017, they launched a new firewall called PA-5030, which had capabilities that made it more effective against ransomware attacks.
Furthermore, the company’s revenue increased by 34% from 2016 to 2017, and in 2022 its revenue will be above 5 billion. While some analysts believe this stock is overpriced due to its price-to-earnings ratio being 60% higher than its industry peers, these investors should keep an eye on how well the company does over time and how well its integration of technology works out for them.
What is Palo Alto Networks?
Palo Alto Networks is a network security company at the forefront of the development of the Next-Generation firewall in a bid to enhance cloud security and its service platform. It has been rapidly expanding by acquiring start-ups such as Twitslick, PureSec, and Demisto and has turned itself into a force to be reckoned with in the network security space.
Why invest in Palo Alto Networks?
The stock price has increased more than 30 percent since 2021. Even under a recession, cybersecurity continues to remain vital for businesses. So, it is unlikely that Palo Alto will suffer as there will be no compromise on this front from the consumers. So it may be viewed as the perfect defensive asset, but only that it has a massive upside through its best-in-class security offerings, which have yielded substantial revenue and growth.
Tesla
NASDAQ: TSLA
Elon Musk’s Tesla is a pioneer in electric cars and has shown strong growth over the past decade. It’s not just a car company anymore, either—Tesla also owns SolarCity. Tesla stock could be worth looking into for long-term investors. However, it has had its share of rough patches lately.
In September 2018, TSLA lost about $4 billion of its market value after the US Securities and Exchange Commission (SEC) subpoenaed documents from both Tesla and Mr. Musk regarding his tweets about taking the company private at $420 per share.
Why invest in Tesla?
Tesla has been a revolutionary company in the electric vehicle segment. Over the last five years, it has undergone exponential growth of more than 2300%. Recently, its price has been falling due to different reasons, such as the semiconductor crisis, CEO Elon Musk liquidating his holdings, etc.
Nevertheless, Tesla has a bright future as the world is driving to adopt EVs fully. Tesla is among the significant players in e-mobility. Also, its energy business has been showing quite promising signs. As a result, Tesla expects a 5-year EPS growth of 18.7%, which outperforms the industry’s figures of 18.7%.
Applied Materials
NASDAQ: AMAT
One of the stocks on this list is Applied Materials. This company has a market capitalization of $92 billion in 2022 and is headquartered in Santa Clara, CA. It specializes in semiconductor equipment, equipment for producing display panels, and software products.
Applied Materials is a major semiconductor company with the highest revenue for its sector. As its machines tilt towards the more resilient foundry and logic, it has primarily outperformed the dwindling market.
Why invest in Applied Materials?
Applied Materials had sales of $11 billion last year, with a net income of $1.6 billion dollars. It pays an annual dividend of about 2.4%. Applied Materials stock trades at about 34 times earnings and has a dividend yield of 3.8%.
They have managed high margins even during an inflationary economy and have provided returns to shareholders through buy-backs worth $7 billion. Apart from traditional system sales, their business model encompasses sales of high-margin spare parts, services, and subscription fees. Being the gateway to the technological transition toward AI, it will undoubtedly experience more growth over the coming years.
Invest wisely and do your research.
Investing can be difficult with so many companies on the market. It is best to do your research. There are so many factors to consider, and no one can predict the future with certainty. But some general rules apply across all types of markets. Diversify, don’t try to time the market, control your emotion and stay disciplined.
Forbes Recommendation: Amazon, Facebook, Alphabet, Netflix, Microsoft Azure Infrastructure Services, PayPal Holdings Inc., LinkedIn Corporation, eBay Inc., Apple Inc., Alibaba Group Holding Ltd., Nvidia Corporation
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