Best Shares to Buy in 2022 - Invest with Low Fees!
If you’re interested in knowing what some of the best shares to buy now are then you are in the right place!
The pandemic triggered significant shifts in consumer, business and economic trends not seen since for decades, resulting in a record-breaking stock market rally that could continue in 2022.
Keep on reading to learn more about the best shares to buy in the UK, US, Europe and Asia, as well as how to invest in them with low commissions!
Table of Contents
Global List of Best Shares to Buy
Below is a quickfire list of some of the best shares to buy. These cover a huge range of different themes and sectors such as airlines, digital payment companies, auto companies and more, as well as different regions such as the best shares to buy UK and in the US, Europe and Asia!
Of course, this list is not exhaustive and it’s worthwhile remembering that stock prices go up and down. Be sure to exercise good risk management and only invest what you can afford to lose.
The list of best shares to buy are stocks that have gathered the attention of analysts and larger institutional managers. The list serves as a great starting point to build upon using your own research or using the Premium Analytical tools in the Admirals Traders Room.
So, let’s take a look at the list before we explain the reasoning in more detail further down.
- Volkswagen (VOW3) - A European Value Play Likely to Benefit From EV
- LVMH (LVMH) - A Luxury Fashion Stock with a Solid Supply Chain
- PayPal (PYPL) - An Undervalued Digital Payment Giant
- Disney (DIS) - A Media Giant Set to Benefit from Streaming Boom
- Alibaba (BABA) - An Undervalued Ecommerce Giant
In the next sections, we dig a little deeper into each one of these companies and see what makes them worthy of being on the best shares to buy now list!
Best Shares to Buy UK and Europe
Fund managers have turned increasingly bullish on the prospects of the European and UK stock market after years of underperformance making the region reasonably priced.
According to a Reuters poll of 23 fund managers, most are forecasting new record highs for European stock indices – barring any new headwinds. Combining this bullish outlook with in-demand sectors is a useful methodology to find the best shares to buy this year.
Let’s take a look at a few potentials!
1. Volkswagen (VOW3) - A European Value Play Likely to Benefit From EV
At first glance, a stock like Volkswagen may not seem the most exciting. However, the company is actively involved in one of the most exciting sectors to be in right now – electric vehicles (EV).
By 2025, Volkswagen wants to have 20 per cent of their production volume to be in electric vehicles and have plans to launch 70 different models by 2030, along with 60 battery factories.
From the analysts polled by MarketBeat, there is a much higher number of buy ratings on the stock compared to the same time last year. The highest 12-month price target is at €310.00 which represents a significant upside from the stock’s recent drop.
Source: Admirals MT5, VOW3, Monthly - Data range: from 1 Jun 2005 to 14 Dec 2021, accessed on 14 Dec 2021 at 12:45 pm GMT. Please note: Past performance is not a reliable indicator of future results.
In the chart above, it is clear to see the periods of strength the stock has from the 85.00 price level. While the moves higher have been capped at the descending resistance line shown in black and around the 225.00 price level, the share price is now moving to more attractive levels for long term investors.
Whether this is the best share to buy long term or not will largely depend on your style. Most consumer-facing companies are likely to experience supply constraints from the impact of the coronavirus pandemic.
This could be a headwind for the stock making the stock more suited for longer-term, patient investors who use a value investing methodology.
Value investors often invest for the long-term so being able to buy shares with low fees while collecting dividend payouts is essential. Fortunately, with the Admirals Invest.MT5 account you can do just that and more:
- Invest in German and French stocks with only 0.15% commission
- Enjoy low minimum transaction fees of just EUR 1.0
- Collect dividend payments to build a passive income stream
- Invest in thousands of global stocks from 15 of the world’s largest stock exchanges
2. LVMH (LVMH) - A Luxury Fashion Stock with a Solid Supply Chain
Luxury fashion houses performed very well over the pandemic period. Not only did supply chain issues hike the prices up of their goods but higher wage growth in developed nations saw an increase in luxury fashion purchases.
In the first three-quarters of 2021, LVMH recorded a 46% increase in revenue growth. The company also acquired one of the world’s most famous jewellery brands, Tiffany & Co.
With consumer appetite set to grow in the aftermath of the pandemic, LVMH is a stock that could benefit even more.
Source: Admirals MT5, MC, Weekly - Data range: from 11 May 2014 to 14 Dec 2021, accessed on 14 Dec 2021 at 12:45 pm GMT. Please note: Past performance is not a reliable indicator of future results.
While LVMH could be considered one of the best shares to buy long term the stock is much more suited for momentum growth investing strategies. In this style of investing, there are a variety of ways investors can capitalise on a surging stock price as seen in the chart above.
The traditional form of investing involves purchasing shares of the company. Another option is to merely speculate on the rising share price using Contracts for Difference (CFDs).
This product enables traders to trade on leverage (meaning you can control a large position with a small deposit) and also potentially profit from rising and falling markets.
With Admirals, you can open a Trade.MT5 account and trade CFDs on thousands of different instruments across stocks, indices, currencies and commodities!
Best Shares to Buy US Stock Market
US stock markets had a record year in 2021, following on from a stellar 2020 performance as well. The resilience of the US stock market in the face of new Covid variants and the Fed ending its coronavirus stimulus measures has surprised some analysts.
However, many fund managers point to the TINA trade, an acronym for ‘There Is No Alternative’ asset class to invest for growth. Interest rates are still at record lows (even if they do rise a few basis points) and bonds seem lost.
All these reasons are pointing towards higher prices in stock market indices. So what companies are shaping up to be the best shares to buy long term in 2022? Let’s find out!
1. PayPal (PYPL) - An Undervalued Digital Payment Giant
PayPal was once forecasted to be the next trillion-dollar stock amid a surge in digital payments around the world. However, there is now a lot more competition in the sector causing one investment bank to issue a sell rating on the stock which resulted in a 40% drop in PayPal’s share price.
However, the steepness of the decline – unexpected by most analysts – has now attracted a flurry of buy ratings on the stock. Analysts point to the fact the third-quarter earnings report in 2021 showed a rise in the two most important metrics for a tech company – user engagement and user growth.
Total payment volume also increased as did their merchant base. What has investors most excited are PayPal’s new projects including its tie-up with Amazon, entry into the Buy Now Pay Later market and its cryptocurrency offering.
Source: Admirals MT5, PYPL, Weekly - Data range: from 10 Dec 2017 to 14 Dec 2021, accessed on 14 Dec 2021 at 12:45 pm GMT. Please note: Past performance is not a reliable indicator of future results.
In the long term weekly price chart of PayPal’s share price shown above, it’s clear to the recent drop. Interestingly, the share price is now approaching key levels of support including the horizontal support line shown in black where buyers turned up before in 2020 and the yellow line which is the 100-period exponential moving average.
According to MarketBeat, the highest price target from a poll of 41 analysts is $350.00, which is much higher than current levels. The average price target is $282.00 which is still higher than current levels.
2. Disney (DIS) - A Media Giant Set to Benefit from Streaming Boom
Disney is a company that needs no introduction. Since being founded in 1923 it has come a long way with subsidiaries including well-known names such as Pixar, Marvel, Hulu, 20th Century Studios, Lucasfilm and its Disney Parks and Experiences division.
However, what has most investors excited is the company’s move into online streaming with the Disney+ service. While the industry is filled with other streaming giants such as Netflix and Apple TV+, analysts still remain bullish regarding Disney’s venture due to its content library.
Currently, Disney has more than 118.1 million subscribers. While Netflix has around 214 million subscribers they’ve been going since 1997. Disney+ only launched at the end of 2019. It’s likely the company is on track to meet its long term 260 million subscriber target.
Source: Admirals MT5, DIS, Monthly - Data range: from 1 Apr 2007 to 16 Dec 2021, accessed on 16 Dec 2021 at 15:45 pm GMT. Please note: Past performance is not a reliable indicator of future results.
Shares in Disney had some sharp declines in 2020 and 2021due to the coronavirus pandemic. On each significant decline in the past ten years, the stock has roared higher.
Much of the decline in 2020 and 2021 was due to the closure of Disney’s Park and Resorts division. This is one reason investors are liking the company as it now diversifies into online streaming, creating more revenue streams.
The 50-period (red line) and 100-period (green line) exponential moving averages are still moving higher confirming the long term uptrend. Historically, these lines have served as areas where price has turned and ones to watch this year.
With the MetaTrader 5 trading platform provided by Admirals, you can view live share prices for FREE, while accessing a range of unique cutting edge investing tools.
Best Shares to Buy Asia-Pacific Stock Market
Asia stock market indices took a big hit in 2021, led by huge troubles in China. The Evergrande debt crisis and a government-led crackdown on Chinese internet companies weighed on sentiment in the region.
However, analysts polled by Reuters are now turning increasingly bullish on the region:
- HSBC believes “the markets have been overzealous in selling Chinese stock...we think this market will roar back.”
- Goldman Sachs believes “Chinese stocks will have a better year in 2022 as the market recovers from a major correction.”
While the sentiment is still weak investors also have the option to invest in the broader index. However, the weaker sentiment has sent some stocks to near record lows which could result in interesting value investing stocks.
1. Alibaba (BABA) - An Ecommerce Giant Trading at a Heavy Discount?
Alibaba is considered the Amazon of China. They have a huge e-commerce platform and a fast-growing cloud computing platform. However, the stock experienced a 60% decline from its record high in October 2020 to the lows of December 2021.
From a valuation perspective, the stock is considered to be cheap. It is still a profitable business with revenue growth year on year (even though it slowed last year).
The issue for some analysts is whether or not the Chinese government will allow technology companies to keep on growing. However, even with these risks, analysts point to the potential risk-reward scenario at the current price levels.
Source: Admirals MT5, BABA, Weekly - Data range: from 28 Feb 2016 to 16 Dec 2021, accessed on 16 Dec 2021 at 15:45 pm GMT. Please note: Past performance is not a reliable indicator of future results.
In the long term weekly price chart of Alibaba’s share price above, it’s clear to see the steep decline from its all-time high price level. Towards the end of 2021, the stock price stabilised around key levels of support 131.00.
While this stock may be considered a value play, the risk profile is very different due to the Chinese government situation. Keeping your risk small is essential here as there could be further downside.
However, if overall sentiment improves in the region through 2022 then it could represent an opportunity to build upon.
Best Shares to Buy Rationale
2021 saw some huge divergences between global stock markets. By the end of the year, the US stock market was trading near record highs with European and Asia stock markets lagging behind.
While the coronavirus pandemic threw global markets out of sync, many analysts are predicting for the ‘great reset’ to happen. With central banks around the world continue to support economies by providing cheap credit, that money is expected to flow back into the stock market.
However, at some point, central banks will start to pull back on their support as the Fed has already announced. This is why finding the best shares to buy now will require more analysis of company fundamentals and price to earnings growth.
Some of the core themes to focus on when finding the best shares to buy in 2022 include:
☑️ Hot sectors such as electric vehicles, cybersecurity and digital payment stocks.
☑️ Companies that have strong pricing power that can fight off the threat of inflation. For example, Disney and Procter & Gamble.
☑️ Renewable energy stocks will also be in focus as governments transition to cleaner energy sources.
In each of these situations, there are certain companies that are set to benefit. While no one can ever predict with 100% certainty which shares will do the best and which ones will not, understanding the big picture theme can help to provide an edge.
Stay up to date with all the latest market trends through the FREE Spotlight webinar series where three times a week, three professional traders talk through the markets, providing you with the latest insights and strategies to use.
How to Find the Best Shares to Buy
Buying shares online is actually quite a simple process as our step-by-step walkthrough in a later section will show. However, identifying what shares to buy does require some skill, research and preparation. Even then, there is still no guarantee of success which is why risk management is important.
Best Shares to Buy: Focus on Risk Management
Beginner investors often put their eggs all in one basket expecting their decisions to always work in their favour. For example, an investor might have £10,000 to invest and may choose to invest it all into just one stock. This means there is no capital left if another - perhaps better - opportunity comes along.
Also, a sharp - yet temporary - fall may cause the investor to make an emotional decision and exit early, thinking about short term fluctuations in price rather than the company’s long-term fundamentals.
One risk management technique used by many investors is to spread investments across different types of companies that operate in different sectors. When one sector is not performing well, another sector could be. This helps to build a more diversified and balanced portfolio that can help to balance out the effect of changing market conditions.
For example, an investor who has £10,000 to invest, may choose to invest £2,000 in five different companies throughout the year. Of course, the risk tolerance of each individual is different so it is worthwhile spending a bit of time building a plan on how you want to invest throughout the year.
Best Shares to Buy Analysis: Technical vs Fundamental vs Sector analysis
☑️ Fundamental analysis. This type of analysis involves analysing a company at a financial level. This includes metrics such as sales performance, earnings trends, debt levels, new product announcements, the economic environment and so on.
☑️ Technical analysis. This type of analysis involves analysing a company’s historical trading price via a price chart. Trading patterns and technical trading indicators can often leave clues on who is the most dominant force in the market (buyers or sellers), as well as pinpoint potential turning points in a company’s share price.
☑️ Sector analysis. As discussed in the previous risk management section, having options across different sectors can help in building a diversified and balanced stock portfolio. The criteria aims to identify companies from a range of different sectors such as banks, utilities, financials, energy, retail and so on.
How to Invest in the Best Shares to Buy
Buying and selling shares online can be done in just three simple steps:
- Create a share trading account.
- Download your share trading platform.
- Open a trading ticket and take your first trade!
Let’s have a look at these steps in more detail for a step by step walkthrough on how to buy the best shares for beginners.
Step 1: Open your Admirals Invest.MT5 Account
You can open an online share trading and investing account with Admirals in just a few minutes. Simply click on the Start Trading button on the homepage and fill out a simple questionnaire that is standard for regulated brokers.
Once you’ve done this, you’ll get access to the Trader’s Room, where you can open demo and live trading or investing accounts, manage deposits and withdrawals and access additional cutting edge investing tools.
Step 2: Open your Investing Platform
From the Trader’s Room homepage, simply select Trading Platforms on the left-side menu. This will then give you access to download the MetaTrader 5 trading platform for PC and Mac but you can also use the Web Trader platform as well where you can trade directly from your browser.
Simply follow your computer’s prompts to complete the download of your MetaTrader 5 share trading platform, if you want to access additional features like automated share trading from the MetaTrader Market place.
Step 3: Place your Trade!
Open up your share trading platform and follow these steps to place a trade:
- Open the Market Watch window by selecting View from the menu at the top of the platform or by pressing Ctrl+M on your keyboard. This will open up a list of tradable symbols on the left side of your chart.
- Right-click on the Market Watch window and select Symbols or press Ctrl+U on your keyboard.
- This will then open the window shown below which details all the markets available for you to trade on. From here you can add a wide variety of shares to your Market Watch window by selecting the relevant share or country and clicking Show Symbol.
An example of the Admirals MetaTrader 5 trading platform showing the Symbols window.
After clicking the OK button in the Symbols window you can now view the different instruments in the Market Watch window. To view a price chart of a company’s share price, simply left-click on one of the stock symbols in the Market Watch window and drag it onto the chart area. From here you can now open up a trading ticket:
- Right-click on the chart.
- Select Trading.
- Select New Order, or press F9 on your keyboard.
- A trading ticket will open for you to input your entry price, stop loss and take profit levels and your share trading size (volume).
An example of the Admirals MetaTrader 5 trading platform showing a trading ticket.
Why Buy Shares Online with Admirals?
Here are just a few reasons why you should consider buying and selling shares with Admirals:
✔️Trade with a well-established, regulated company which includes regulation from the UK’s Financial Conduct Authority.
✔️Access the fastest and most popular online share market trading software called MetaTrader which you can use on PC, Mac, Web, Android and iOS operating systems.
✔️Open an Invest.MT5 account with just €1 minimum deposit and invest from just $0.02 per share with minimum transaction fees of just $1 on US stocks.
✔️Open a Trade.MT5 account to trade CFDs and potentially profit from both rising and falling markets while trading on margin.
One of the best ways to get started is to simply test all of the features, products and services provided by Admirals for yourself.
You can do this by opening a FREE demo trading account that enables you to trade and invest in a virtual trading environment until you are ready to go live! ▼▼▼
Admirals is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today!
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