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3 Stocks to Buy Now for Big 2022 Growth Potential

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Today’s episode of Full Court Finance at Zacks dives into the quick bullish turn that pushed the S&P 500 back up to new highs ahead of Christmas and on the Monday before New Year’s Eve. Investors might want to take advantage of the current positivity and buy strong stocks still trading at discounts heading into 2022.

The Nasdaq jumped back above its 50-day moving average once again to end the Christmas-shortened week. Meanwhile, the benchmark index, which climbed above that technical threshold earlier last week, broke closing records last Thursday. The S&P 500 continued its recent run of success to start the last week of 2021, finishing up 1.4% on Monday for its 69th record close of the year.  

The Tech-heavy Nasdaq also surged 1.4% on Monday, as Wall Street appears determined to keep the Santa Claus rally going. Wall Street poured back into stocks once it became clear nationwide lockdowns weren’t on the table in the U.S. amid a rise in covid cases.

Impressive runs to close 2021 from Apple, Microsoft, and other mega-cap technology stocks have, however, clouded the fact that many great stocks are trading at enticing levels. Many stocks that appear to be worth considering as long-term positions within well-diversified portfolios are trading far below their highs to end the year, with valuations that mark discounts to their pre-covid days.

The first stock up is Mastercard (MA - Free Report) . The global credit card powerhouse with an expansive backend processing network is slowly transforming itself into a complete fintech firm built to thrive in a world that’s moved further away from cash.

Mastercard has beefed up its cryptocurrency efforts and is prepared to enter the booming ‘buy now, pay later’ space. MA’s outlook calls for impressive top and bottom line growth and Mastercard stock is trading at a solid discount to its own highs in the final days of 2021.

The next stock we explore is Roku, Inc. (ROKU - Free Report) . Wall Street continued to sell Roku following its Q3 earnings release in early November, which is part of a 50% decline from its highs. Roku has dropped on the back of some supply-chain worries and margin concerns within its streaming TV player unit.

That said, roughly 80% of Roku’s revenue comes from digital advertising and it’s prepared to post huge growth in the coming years as marketers follow consumers to streaming. Roku is also a prime example of a high-flying growth tech stock that’s been hammered to the point where it’s looking rather attractive again.

FedEx (FDX - Free Report) is the last stock on the list today. The global shipping and delivery firm’s efforts to improve its e-commerce offerings helped it thrive during the height of the pandemic.

FedEx is now prepared to thrive in last-mile delivery and its near-term growth outlook is solid. Plus, FedEx shares bounced back in December and mid-month after FDX provided strong guidance and noted that it’s working through rising labor costs.


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