2022 is certainly a year full of challenges – just when we thought that the economy was recovering from the Covid-19 pandemic (which saw the market fell into a bear market in early-2020), uneventful happenings such as Russia’s invasion of Ukraine, worsening of geopolitical tensions between 2 of the biggest superpowers in the world (namely China and the United States), super-high inflation leading to a series of interest rate hikes dented the market recovery.
As at time of writing, both the S&P 500 as well as the Dow Jones Composite Index are on the edge of falling into the “bear market” (where it has fallen by more than 20.0% from its high), while the NASDAQ Index is entrenched in the “bear market.”
With the most recent (announced on 13 September) Consumer Price Index (CPI) at 8.3% (which is very high in my opinion), my opinion is the Fed will likely announce an interest rate hike of 0.75% next week (on 21 September 2022.) Another thing I’d be on a lookout for is whether or not they are done with the hikes this year (if indeed it is, then we could quite possibly see the markets recording another bull run till the end of the year), or if they have more interest rate hikes planned (especially if the hikes are going to be at 0.75% or more, I think the market will react very negatively to it.)
All the above have led to share prices of many US companies tumbling from highs recorded last year – what that means is that for those of you who are looking for opportunities to invest in the US market, you can have a look at the following 46 companies, where their current valuations (based on their current traded price at the time of writing, on 16 September) are below their average valuations – suggesting that their share prices are trading at a ‘discount’ right now.
These are also companies where I have studied their performances over a period of at least 5 years, and I consider them to be stable, and fundamentally sound. Also, these companies have businesses that are very easy to understand (I’m sure when you go through the list below, you’ll recognise at least 50% of the companies.)
Before you continue, do note that this post is not a recommendation for you to go out and buy all the companies in this list blindly – you should first have a good knowledge about these companies first before you make any investment decisions.
- Adobe Inc. (NASDAQ:ADBE)
- Alibaba Group Holdings Ltd (NYSE:BABA)
- Align Technology Inc. (NASDAQ:ALGN)
- Amazon.com Inc. (NASDAQ:AMZN)
- ANSYS Inc. (NASDAQ:ANSS)
- Baxter International Inc. (NYSE:BAX)
- Best Buy Co., Inc. (NYSE:BBY)
- Comcast Corporation (NASDAQ:CMCSA)
- Columbia Sportswear Company (NASDAQ:COLM)
- Costco Wholesale Corporation (NASDAQ:COST)
- Crocs Inc. (NASDAQ:CROX)
- Etsy Inc. (NASDAQ:ETSY)
- FactSet Research Systems Inc. (NYSE:FDS)
- FedEx Corporation (NYSE:FDX)
- Five Below Inc. (NASDAQ:FIVE)
- General Mills Inc. (NYSE:GIS)
- Global Payments Inc. (NYSE:GPN)
- Garmin Ltd. (NYSE:GRMN)
- ICON plc (NASDAQ:ICLR)
- Illumina Inc. (NASDAQ:ILMN)
- Interactive Brokers Group, Inc. (NYSE:IBKR)
- Intercontinental Exchange Inc. (NYSE:ICE)
- Intuit Inc. (NASDAQ:INTU)
- Intuitive Surgical Inc. (NASDAQ:ISRG)
- Kellogg Company (NYSE:K)
- Leggett & Platt Incorporated (NYSE:LEG)
- Logitech International S.A. (NASDAQ:LOGI)
- Mastercard Incorporated (NYSE:MA)
- Mondelez International Inc. (NASDAQ:MDLZ)
- Meta Platforms Inc. (NASDAQ:META)
- Morgan Stanley (NYSE:MS)
- Netflix Inc. (NASDAQ:NFLX)
- Nike Inc. (NYSE:NKE)
- NVR Inc. (NYSE:NVR)
- Pool Corporation (NASDAQ:POOL)
- PayPal Holdings Inc. (NASDAQ:PYPL)
- Quest Diagnostics Incorporated (NYSE:DGX)
- Restaurant Brands International Inc. (NYSE:QSR)
- Salesforce Inc. (NYSE:CRM)
- Sketchers U.S.A. Inc. (NYSE:SKX)
- Shutterstock Inc. (NYSE:SSTK)
- Stanley Black & Decker Inc. (NYSE:SWK)
- The Clorox Company (NYSE:CLX)
- The New York Times Company (NYSE:NYT)
- Zoom Video Communications Inc. (NASDAQ:ZM)
- Zoetis Inc. (NYSE:ZTS)
One of the main reasons I’ve decided to share this list of companies is for those who are new to the US market and looking for a good starting point to start studying about the individual companies – the list above is, in my opinion, a good place to start.
Once again, I’d like to emphasise that the above list is not a call for you to go out there to buy the companies. You should always do your own due diligence before you make any investment decisions.
Disclaimer: At the time of writing, I am a shareholder of Amazon.com Inc., Meta Platforms Inc., as well as PayPal Holdings Inc.
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