3 stocks you can buy now & 3 you may avoid?

Highlights 

• Choosing the right stocks to buy has been difficult for investors due to the rising uncertainty and unpredictable economic climate.
• Sectors like aviation, tourism, and hospitality have been the worst sufferers, while sectors like financial and energy have performed well in the current scenario.

Amid the rising inflationary pressure, tightening of monetary policy, soaring gas prices, and increasing global supply chain constraints, the UK economy has been facing a lot of turbulence. Choosing the right stocks to buy has been difficult for investors due to the rising uncertainty and unpredictable economic climate.

Sectors like aviation, tourism, and hospitality have been the worst sufferers during the lockdown phase of the pandemic and are still struggling to recover amid the Omicron fear. However, some sectors have shown resilience and have performed well during the times of high inflation and economic uncertainty, such as energy and financial sectors.

Here are 3 stocks that have performed well in 2021 and are worth adding to your portfolio for 2022.

RELATED READ: Should you buy these 5 hospitality stocks amid Plan B curbs?

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Lloyds Banking Group PLC (LON: LLOY)

Providing both retail and commercial financial services to millions of customers, Lloyds Banking Group PLC is among the largest financial services companies across the UK. The bank has performed well even in this turbulent economic climate and has made contributions towards the UK’s recovery. The market cap of the FTSE100-listed bank stands at £32,903.79 million as of 13 December 2021. It has given a return of 33.30% to its shareholders in the last one year and its year-to-date return stands at 24.63% as of 13 December 2021.

Lloyds Banking Group PLC’s shares were trading at GBX 45.35, down by 4.28%, at the close on 13 December 2021.

Diageo plc (LON: DGE)

Holding a position as one of the largest distillers worldwide, Diageo plc is a London-headquartered beverage alcohol firm operating across the globe. The company recently stated that its earnings are expected to grow by 6%-9% from 2023 to 2025. The market cap of the FTSE100-listed company stands at £91,983.29 million as of 13 December 2021. It has given a return of 31.33% to its shareholders in the last one year and its year-to-date return stands at 37.28% as of 13 December 2021.

Diageo plc’s shares were trading at GBX 3,940.00, down by 0.19%, at the close on 13 December 2021.

BP plc (LON: BP)

One of the world's seven oil and gas supermajors, BP plc is a London-headquartered oil and gas firm. Amid the rising inflation and soaring energy prices, BP is an attractive investment option. The oil major is also pushing for green energy and has started investing in the Electric Vehicles (EV) charging business. The current market cap of the FTSE100-listed company stands at £64,553.96 million as of 13 December 2021. It has given a return of 23.18% to its shareholders in the last one year and its year-to-date return stands at 33.07% as of 13 December 2021.

BP plc’s shares were trading at GBX 335.00, down by 2.22%, at the close on 13 December 2021.

RELATED READ: 3 of best mortgage lending stocks to buy for 2022

Taking into account the current economic scenario, here are 3 stocks that you should avoid buying. 

easyJet plc (LON: EZJ)

easyJet plc is a UK-based multinational low-cost airline group which operates domestic and international scheduled services with its affiliate airlines. Omicron fear has led to a negative impact on its bookings and the situation may worsen in the future. The market cap of the FTSE250-listed company stood at £3,984.10 million as of 13 December 2021. It has given a return of -38.62% to its shareholders in the last one year and its year-to-date return stands at -39.49% as of 13 December 2021.

easyJet plc’s shares were trading at GBX 503.80, down by 4.15%, at the close on 13 December 2021.

International Consolidated Airlines Group S.A. (LON: IAG)

Anglo-Spanish multinational airline holding firm, International Consolidated Airlines Group S.A., holds a position among the world's largest airline groups. Already burdened with debt, the company is impacted negatively by the new travel rules. The market cap of the FTSE100-listed company stood at £6,815.68 million as of 13 December 2021. It has given a return of -15.89% to its shareholders in the last one year and its year-to-date return stands at -17.78% as of 13 December 2021.

International Consolidated Airlines Group S.A.’s shares were trading at GBX 131.30, down by 5.15%, at the close on 13 December 2021.

J D Wetherspoon plc (LON: JDW)

UK-based company J D Wetherspoon plc is a leading operator of pubs, bar, and hotels across the UK and Ireland. The profits of the company have been impacted by Omicron curbs and investors have already started selling off their shares to prevent further losses. The market cap of the FTSE 250-listed company stood at £1,116.26 million as of 13 December 2021. It has given a return of -22.21% to its shareholders in the last one year and its year-to-date return stands at -25.76%.

J D Wetherspoon plc’s shares were trading at GBX 820.00, down by 5.42%, at the close on 13 December 2021.