The latest and greatest from U.S. News Invested -- their picks of the top ten stocks for 2022. Hope everyone is enjoying the Woodward Dream Cruise this weekend, starting at the one mile stretch on Woodward between 9 Mile and 10 Mile which has the notoriety of being the first paved road in the U.S., built in 1909, something I just learned tonight. (According to the article, the rest of Woodward was paved by 1916.)
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TODAY'S FEATURED STOCK STORY It's been a rough year for stocks. Through Aug. 17, the S&P 500 is down 10.3%, the Dow Jones Industrial Average is 6.5% lower and the tech-heavy Nasdaq is down 17.3%, all despite a recent rally. While a handful of factors are behind the lengthy slump, including the Russian invasion of Ukraine and back-to-back quarters of negative GDP growth, the largest obstacle has been inflation. In response, a slow-moving Federal Reserve made a series of 75-basis-point interest rate hikes. Here's a look at how U.S. News' picks for the best stocks to buy for 2022, made in December 2021, are faring in this difficult environment:
EOG Resources Inc. (ticker: EOG). Entering 2022, inflation had already emerged as a concern. The year-over-year increase in the consumer price index for November 2021 came in at an elevated 6.8%. In June, inflation hit 9.1%, its highest level since 1981. With energy prices emerging as one of inflation's key drivers this year, EOG stock has benefited, and including dividends, the stock is up 33.6% in 2022 through Aug. 17, making it the top performer among the 10 picks. In August, EOG reported second-quarter net income that surged 146% year over year and declared a $1.50-per-share special dividend, its third special dividend announcement of the year.
Grupo Aeroportuario del Sureste SAB de CV (ASR). This next name is a bit off the beaten path, but sometimes that's where the best opportunities lie. Mexico-based airport operator Grupo Aeroportuario del Sureste is up 12.2% in 2022 through Aug. 17. It's no wonder why: Total passenger traffic in the second quarter jumped 19.2% from second-quarter traffic in 2019. With flagship airports in Cancun, Mexico; San Juan, Puerto Rico; and Medellin, Colombia, ASR is reaping the rewards of booming demand in Latin America. ASR stock still trades at modest levels, boasting a 3.6% dividend yield and a forward price-to-earnings ratio of 17.5.
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The best stocks to buy for 2022:- EOG Resources Inc. (EOG)
- Grupo Aeroportuario del Sureste SAB de CV (ASR)
- Visa Inc. (V)
- Microsoft Corp. (MSFT)
- Alphabet Inc. (GOOG, GOOGL)
- Lowe's Cos. Inc. (LOW)
- ASML Holding NV (ASML)
- Medifast Inc. (MED)
- Meta Platforms Inc. (META)
- Upstart Holdings Inc. (UPST)
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