Keep an eye on these NASDAQ stocks in 2022

Highlights

• The MSCI World Index has delivered a return of 22.31% for the one-year period ending 30 November 2021.
• A 40-year high inflation in the US and the emergence of the Omicron variant are concerns for investors.
• ABNB, DDOG, HRMY, etc., are some of the stocks that investors are looking at for 2022.

The year 2021 so far has been a great one for global equity markets. The MSCI World Index that measures the performance of 1,555 mid- and large-caps of 23 developed markets has delivered a return of 22.31% for the one-year period ending 30 November 2021.

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However, some concerns such as nearly 40-year high inflation in the US might force the central bank to start increasing interest rates in 2022, while the emergence of the Omicron variant has also been a concern for investors. Despite these concerns, as the vaccination drive is progressing in many economies, leading to border opening, analysts are bullish on the markets for 2022. On this note, let us have a look at the 12 NASDAQ-listed stocks that you can look at in 2022.

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1. Airbnb, Inc (NASDAQ:ABNB)

Online marketplace for rental homes, vacation stays, hotel bookings, etc., Airbnb made its debut on the NASDAQ on 10 December 2020 and soon soared above the market capitalisation of US$100 billion.

In Q3 FY21, the company clocked an EPS of US$1.22 per share, while clocking the highest gross profit since the start of the pandemic, at US$1.92 billion. It is also going to be included in the NASDAQ 100 in upcoming yearly rebalancing.

2. Datadog, Inc. (NASDAQ:DDOG)

Another company that could gain next year, due to inclusion in the NASDAQ 100 is Datadog. It is monitoring a security platform, providing services such as end-to-end tracing for cloud applications.

In FY20, the company clocked the highest profit in last four years, at US$473.26 million, as the COVID-19 pandemic proved to be a blessing in disguise for IT companies. The company has a market capitalisation of US$50.1 billion, and its share price touched an all-time high of US$199.68 in November 2021.

3. Snap One Holdings Corp. (NASDAQ:SNPO)

The company provides smart living solutions to make lives more enjoyable, secure and connected. Snap One has secured enough inventory to avoid supply chain issues, helping it to cut through the competition in 2022. The management is also aiming at higher margins and operating leverage in 2022.

With a market capitalisation of US$1.54 billion, the company’s share price last closed at US$20.38 on 14 December 2021, delivering a healthy year-to-date (YTD) return of 23.14% since its IPO on 28 July 2021.

4. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)

Harmony Biosciences is a pharmaceutical company, primarily focusing on developing therapies for rare neurological diseases. The company clocked a 77% increase in revenue to US$80 million in Q3 FY21, compared to previous quarter.

Harmony Biosciences’ shares have delivered a YTD return of 8.38%, as of 14 December 2021, however, the return in the last six months has been a decent 21.02%.

5. Lucid Group, Inc. (NASDAQ:LCID)

California-based electric car maker Lucid is also on our list of stocks to watch out for in 2022. The company is striving to capitalise on the electric car market which seems to have a very bright future, especially after the Glasgow COP26 summit this year, which stressed reducing carbon emissions from the member countries.

The stock made headlines during the beginning of the year when it rallied relentlessly from ~US$10 to a high of US$64.86 in less than two months. LCID shares last closed at US$40.87, delivering a massive YTD return of 307.07%, as of 14 December 2021.

6. Lattice Semiconductor Corporation (NASDAQ:LSCC)

One of the major global concerns of 2021 had been the shortage of semiconductor chips which had even forced some big manufacturers that required these chips to cut down on their production.

Lattice Semiconductor makes these low-powered chips used across industries, clocking a net income of US$47.39 million for the one-year period ending 2 January 2021. The LSCC share price has delivered a YTD return of 65%, last closing at US$75.02 on 14 December 2021.

7. Fortinet, Inc. (NASDAQ:FTNT)

Fortinet is a US-based cybersecurity firm, headquartered in California. The company develops cybersecurity solutions such as antivirus software, firewalls, endpoint security components, etc. It is also on the list to get included in the NASDAQ 100 in upcoming rebalancing.

The market capitalisation of Fortinet stands at US$1.63 billion and clocked a gross profit of US$2.02 billion in FY20. FTNT shares more than doubled this year, delivering a 116.96% return till 14 December 2021.

8. Aspen Technology, Inc. (NASDAQ:AZPN)

Aspen Technology provides software and services for the asset management industry. The company’s earnings per share and revenue for the third quarter have beaten the market’s estimates, clocking US$0.22 and US$10.7 million, respectively.

The company is also on the list of multiple hedge funds, returning a decent 14.08% return this year till 14 December 2021. The company’s market capitalisation stands at US$9.97 billion.

9. AVID Bioservices, Inc. (NASDAQ:CDMO)

AVID Bioservices is a biotech company primarily focussing on the development of biopharmaceuticals derived from mammalian cell culture. The company is expanding its manufacturing and contract development service into the cell and gene therapy market. The new facility for this is expected to be up and running within the first half of 2023.

The market capitalisation of AVID Bioservices is US$1.54 billion, while its P/E ratio is 192.62. This high of a P/E ration is generally associated with a growth stock, as the market demands a premium for a potential bright outlook.

10. Halozyme Therapeutics, Inc. (NASDAQ:HALO)

The next name on our list is also a biotech company, Halozyme Therapeutics. It develops novel oncology therapies specifically designed to target the tumour microenvironment. Between June and September 2021, the company has registered an outstanding increase of 145% in registered royalties.

In the list of top growth stocks of 2022 of Goldman Sachs, Halozyme Therapeutics makes it to the no. 1 spot. Although the company traded negatively for the year with a -18.32% return, a lot of investors are keeping a close eye on it for the next year.

11. StoncCo Limited (NASDAQ:STNE)

StoncCo is a fintech company that provides payment and management tools to its customers. The company haven’t had a good year as it eroded almost 80% of its value to a market capitalisation of US$5.02 billion.

This is a stock in the portfolio of legendary Warren Buffet and major concerns of this Brazilian company is related to the Brazilian economy right now, which has slipped into recession. An 80% drop seems to have a decent value buy for investors, as the daily exchange volume has been on an increase for last few weeks.

12. Palo Alto Networks, Inc. (NASDAQ:PANW)

Palo Alto Networks is the last stock on the list. The company is into providing cybersecurity solutions such as firewalls. Being a tech company and a decent surge of 45.74% in 2021 (till 14 December 2021) has bolstered the market capitalisation to US$50.56 billion, making it another candidate to be included in the NASDAQ 100 from this year end.

Inclusion in indices bolsters demand for the stock, primarily from large institutional funds which are managing ETFs for those indices, as it becomes mandatory to include those new additions in their ETF portfolio, representing that index.

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