What to invest in 2022? | BigBitMarket broker reveals the stocks with huge upside!
London, UK, 3rd Jan 2022, ZEXPRWIRE, BigBitMarket broker Robert Lem reveals the list of stocks that will give you double, or triple-digit returns in 2022.
According to Robert Lem, “These stocks have a positive fundamental outlook, and if their situation improves as predicted, they will give a great return on the current prices. It is advised not to hold for them for too long but instead take some money off the table at certain intervals.”
Blue Dart Express Ltd.
Blue Dart Express Ltd. is a leading player in India’s fast-growing express distribution industry with more than two decades in providing integrated logistics solutions to its clients, spanning multiple industry sectors, including financial services, e-commerce, business process outsourcing, etc.
Blue Dart Express Ltd. has become the market leader in its category and has been expanding very rapidly by acquiring logistic companies at a CAGR growth rate higher than the industry CAGR growth rate for the last five years. A promising future of the logistic sector can be seen through the number of regulatory changes introduced in this sector, which is leading to an increased level of competition.
The major concern for any investor in a cyclical sector is the fluctuations in its earnings. The company enjoys a sustainable advantage over the other players in this space due to its diversified customer base, which helps it contain lower profitability from a single customer / vertical.
The Indian logistic sector has been growing at a CAGR of around 16% to 18% in the last five years due to an increase in e-commerce sales, modernization of the supply chain through adoption of logistics automation technologies, increasing number of middle-class households.
Blue Dart Express Ltd.’s earnings have always been volatile, but it has proved its ability to sustain itself by improving its operating margin year after year.
Occidental Petroleum Corp. (NYSE: OXY)
Occidental Petroleum Corporation is an international oil and gas exploration and production company. The company is expected to realize the benefits of the expansion projects in North America, which will increase its production by 20% to 25% in 2022 compared to 2016 levels.
The success of the Permian basin has led Occidental Petroleum Corp. (NYSE: OXY) to initiate its exploration activities in the southern zone of this field. The company is also initiating Muskegon’s expansion project, which will further increase production by 25% after 2020 completion.
Occidental Petroleum Corporation (NYSE: OXY) has one of the lowest debt ratios, with less than 19% net debt-to-cap ratio.
Being one of the largest integrated oil companies, it is expected that Occidental Petroleum will continue to raise its dividends above 10% per annum for the next five years. The company has raised its dividend by 20.5% over the last three years and will continue to do so.
Penn National Gaming (NASDAQ: PENN)
Casino gambling is one of the largest and fastest-growing sectors in the US. The sector has been rapidly growing since 2009 at a CAGR of 5%.
Penn National Gaming, Inc. (NASDAQ: PENN) operates casinos and horse racing facilities, focusing on slot machine entertainment. It derives its revenue from various sources, including a slot machine, table games, dining, and hotel operations.
Penn National Gaming’s most promising business segment is the real estate investment trust that owns a significant number of its casinos. These properties have been in operation for almost three decades and are cash-generating machines producing high returns on equity. Penn National is an industry leader, with around 18% table games and 6% slot machines. The number of gaming outlets for Penn National is expected to increase by 2020, which will augment its revenue growth; the company aims to earn $1 billion in incremental annual revenues post 2018.
Fox Corp. (NASDAQ: FOX)
Fox Corp. (NASDAQ: FOX) is a media and entertainment company that operates through two segments, namely the news segment and the sports programming segment. The company’s news channel business expanded in 2017 with its successful launches in Europe.
Fox Corporation has been growing at an above-industry growth rate for almost five years due to its revenue diversification, strong balance sheet, and returns on equity. It has successfully increased its revenue from the sports programming segment by 70% in 2016 due to the new BAMTech platform launch by MLBAM. Fox Corporation’s entertainment network business also contributed almost 60% of its total revenue in 2016.
Fox Corp.’s debt-to-cap ratio is quite low, which implies that it will be able to take on more debt in the future without breaching any regulatory limits.
The two segments together generated $8 billion of free cash flow over the last ten years, illustrating its ability to generate high returns on capital employed.
Kingold Jewelry (NYSE: KGJI)
Kingold Jewelry Inc. (NYSE: KGJI) is China’s leading luxury watch and jewelry manufacturer and retailer. The company has witnessed robust growth due to its strong brand name, geographical diversification, and expansion into newer markets such as Japan and South Korea.
Kingold’s revenue grew at a CAGR of 36% over the last five years to over $1 billion in 2016. This growth has been primarily driven by a rise in some retail outlets from 226 in 2010 to 859 at present and also via e-commerce sales which have increased significantly since 2014.
Kingold operates its retail segment through an omnichannel model, including physical stores, mobile websites, e-commerce, and other emerging channels. The company’s retail expansion is driven by its omnichannel presence, enabling it to capture the growing Chinese luxury watch market.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.