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15 Types of Stocks to Buy in 2022

By Rachel Warren - Jun 6, 2022 at 5:03PM
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15 Types of Stocks to Buy in 2022

Here's why you should be investing in the stock market this year

Whether you're brand new to investing in 2022 or have years of investing experience behind you, in an age of innovation and exploration, the market is full of more exciting opportunities than ever before. While valuations across industries and sectors may be beaten down at the moment, that simply creates a window for forward-thinking investors to buy quality businesses on sale.

On that note, here are 15 types of stocks to buy and hold in 2022 and beyond.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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1. Growth stocks

It's no secret that growth-oriented stocks have been struggling lately. However, plenty of companies that fit this profile -- stocks growing earnings faster than their market's average -- with strong businesses are begging to be bought right now. From tech to e-commerce, there are plenty of growth stocks trading at bargain prices with serious upside potential over the next five to 10 years.

ALSO READ: These 3 Growth Stocks Could Be Huge Winners in the Next Decade and Beyond

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2. Value stocks

Whether you like to diversify into more stable, slower-growth companies along with higher-volatility stocks, or simply prefer a more conservative investment approach, tried-and-true value stocks are a stellar investment in any market environment. While value stocks tend to trail the market during bull periods, in a correction or bear market environment, these stocks often perform extremely well compared with companies that fit into the growth stock category.

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3. Dividend stocks

Dividend stocks are a great way to boost your returns in any market environment, not to mention enjoy the added bonus of extra capital that you can reinvest or save as you wish.

ALSO READ: 3 Great Dividend Stocks to Buy in June

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4. Small-cap stocks

If you're an investor with a higher appetite for risk, you might find that you want to diversify your portfolio into companies in the very early stages of growth. Bear in mind, these stocks tend to be more volatile, but young companies with strong competitive tailwinds and robust leadership can certainly be compelling candidates for the long-term investor's portfolio.

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5. Mid-cap stocks

If you prefer investing in companies that are a bit further along in their growth story, mid-cap companies can also provide optimal growth catalysts to a well-diversified portfolio. While companies in this stage of growth may not yet be profitable, when investing in mid-cap stocks, look for signs that the financials are moving steadily in that direction, along with factors like favorable cash positions, consistent and strong management, and healthy addressable markets.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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6. Large-cap stocks

Many of the most popular stocks to invest in are large-cap stocks. These companies are in the later stages of their growth stories, with incredibly established businesses and usually a significant slice of the market or markets in which they operate. When investing in companies that fit into this category, along with the usual key metrics, also look for ones with a history of profitability, continued catalysts for growth, and noncyclical businesses.

ALSO READ: Inflation Bear Market: 4 Large-Cap Stocks to Buy

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7. E-commerce stocks

E-commerce has taken the world by storm over the past several years, and there's certainly no shortage of fascinating companies in this space to invest in. Not every e-commerce stock will be a winner, but the ones with strong sales growth, growing market share, and large untapped market opportunities can be the tide that lifts all boats.

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Healthcare workers stand and smile.

8. Healthcare stocks

While healthcare companies aren't always the most exciting to invest in, these stocks can lend stability, consistency, and balance to the long-term investor's portfolio. Regardless of what is going on in the market, the economy, or the world, patients still need their medicines and vaccines, and doctors still require surgical tools and systems to perform procedures.

This is just a snapshot of the types of businesses available to healthcare investors. The innovation that is set to take place in this space over the next 10 to 20 years alone makes this industry an exciting and profitable space to invest in.

ALSO READ: 100 Billion Reasons to Like This Dominant Healthcare Stock

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9. Tech stocks

From cloud computing stocks to semiconductor leaders to software-as-a-service plays, the tech space offers a broad range of investment opportunities for investors of all preferences and risk profiles.

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10. Digital payment stocks

The fintech boom is far from over, and this market is still ripe for disruption by innovative players with in-demand products and services. This space isn't just occupied by newcomers, so whether you're a more conservative investor or have a higher tolerance for risk, the top fintech companies with diversified business models and solid leadership can continue to generate high rewards for long-term investors.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Previous

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Engineer looking at software data on computer.

11. Software-as-a-service stocks

Software-as-a-service (SaaS) companies include those specializing in areas ranging from videoconferencing software to customer relationship management software. The best SaaS companies power the world we live in and help businesses operate like a fine-tuned machine. The opportunities for investors in this space are virtually endless, and with new players constantly entering the market, there's no telling where the industry could head over the next few decades.

ALSO READ: 2 SaaS Stocks I'm Itching to Buy at the Right Price

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12. Blue chip stocks

Blue chip stocks are typically the household names of investing, companies known for moderate but consistent growth with incredible customer loyalty and robust business models. These companies span a range of industries from tech to healthcare to consumer staples.

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A shopping cart being pushed down a grocery store aisle.

13. Consumer goods stocks

From big-box store retailers to brands that make supplies used by virtually every household across America, there are plenty of reasons to like the resilience and noncyclical nature of companies operating in the consumer goods space.

ALSO READ: 4 Ultra-Cheap, Time-Tested Stocks That Can Turn $300,000 Into $1 Million by 2030

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Neural AI.

14. Artificial intelligence stocks

Do you want to invest in the future of innovation? From companies on the cutting edge of the tech that's powering self-driving vehicles to businesses revolutionizing the process of drug development and delivery with novel AI platforms, this industry is still in the early stages of its long-term growth trajectory.

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A bank teller handing cash to a customer.

15. Financial stocks

Financial stocks are generally viewed as a safe harbor in all types of investing environments. And during high periods of inflation, such as those we are currently living in, these kinds of stocks tend to perform particularly well compared with other industries. This space has changed rapidly over the past decade and presents a variety of investment opportunities, from traditional banks to well-known fintech companies.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Previous

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Person wearing professional attire and glasses looks thoughtfully at tablet.

Finding balance as a long-term investor

A well-known quote from famed investor Peter Lynch goes, "Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves."

There's no denying that it's been a turbulent market period for investors. But, trying to time the market bottom or waiting to invest until the perceived bottom (or peak) occurs could cost you valuable time and money.

A great investing strategy doesn't have to be complicated. Investing in only truly great companies -- and having the patience to keep investing while weathering the market's ups as well as its downs -- is more than half the battle.

The Motley Fool has a disclosure policy.

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