2022 was a year that saw inflation reach record highs…soaring interest rates…and an extreme roller coaster ride for equities.
Even with the heightened market volatility in North America, there were still plenty of opportunities for investors to make money in 2022, in particular the energy, transportation and consumer staples sectors.
With the 2022 U.S. midterm elections now in the rearview mirror, new opportunities for profit are almost certain to emerge…for those investors who know where to look.
The following 5 stocks offer the potential for significant growth in the months ahead, and are well positioned to deliver high upside to investors over the next year.
As always, be sure to do your own due diligence before investing in any stock to make sure it’s right for your financial situation and that it is consistent with your acceptable level of risk.
Top Stock #1: Lithium Americas Corp. (NYSE: LAC)
Lithium Americas Corp. (NYSE: LAC) is a Canadian exploration company that is primarily focused on developing and commercializing lithium deposits.
Global demand for lithium has soared – and is projected to continue growing – thanks in large part to the explosion in demand for electric vehicles. The current supply-demand imbalance in the lithium market has contributed to high prices for lithium and makes any company that can bring new lithium sources to market extremely attractive.
Lithium Americas Corp. recently announced plans to split into two lithium companies, with one focused on its Argentina-based lithium assets and the other on its North American properties.
The company’s Thacker Pass project, located in Humboldt County, Nevada, is potentially North America’s best lithium mine, with the largest known lithium reserves in the U.S.
The company has reported that, by September of 2022, it had sent 100 tons of ore from the mine for the production of product samples that can be shown to potential customers and partners. The feasibility study, required before the mine can open, is scheduled for completion in 1Q23.
Top Stock #2: UnitedHealth Group, Inc. (NYSE: UNH)
UnitedHealth Group Incorporated (NYSE: UNH) provides managed healthcare and insurance services. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.
The company’s Optum unit recently acquired healthcare data and analytics company Change Healthcare and has a buyout pending for home healthcare provider LHC Group. These acquisitions are designed to expand the company’s diversification in the healthcare market.
One of the reasons this company is such an attractive investment for 2023 and beyond is its long track record of delivering for shareholders. Inclusive of its dividend, UnitedHealth Group, Inc. has produced 18 positive returns for its shareholders over the past two decades.
In the event of a continued recession, healthcare should provide stable opportunities for growth as the need for healthcare is not tied to interest rates or equities markets. That helps make UnitedHealth Group, Inc. a strong long-term investment candidate.
Top Stock #3: Lockheed Martin Corp. (NYSE: LMT)
Lockheed Martin Corporation (NYSE: LMT), a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide.
The company operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.
Lockheed Martin’s F22 and F35 are among the most modern – and most sought-after – military aircraft in the world and those aircraft are likely to remain in high demand, as well as the company’s drones, helicopters and other products.
Lockheed Martin has traditionally been one of the more attractive defense-oriented investments. And given the tremendous amount of geopolitical uncertainty in the world, the demand for defense materials is not likely to decline any time soon.
Top Stock #4: Vertex Pharmaceuticals (Nasdaq: VRTX)
Vertex Pharmaceuticals Inc. (Nasdaq: VRTX), a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis.
The company saw a steady rise in its share price over the course of 2022 thanks in large part to consistent earnings growth.
Vertex Pharmaceuticals’ cystic fibrosis portfolio brings in billions of dollars in revenue and profit each year. And as we head into 2023, the company is expanding into another treatment area that could drive further growth.
The company, along with its partner, CRISPR Therapeutics, is submitting to regulators their candidate to help treat blood disorders beta thalassemia and sickle cell disease.
Vertex also has a robust pipeline with candidates to help with pain management as well as type 1 diabetes. This could drive significant expansion for the company moving it beyond its current position as a leader only in the cystic fibrosis.
Top Stock #5: Applied Materials, Inc. (Nasdaq: AMAT)
Applied Materials, Inc. (Nasdaq: AMAT) engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
The company is recognized as a leader materials engineering solutions used to produce virtually every new chip and advanced display in the world.
With the projected growth of the semiconductor industry – as high as $1 trillion by 2030 – the company is in excellent position to take advantage, as its equipment will almost certainly be in high demand.
In addition, Applied Materials currently pays a quarterly dividend of $0.26 per share. The company has been raising its dividends consistently for the past five years, which makes it one of the most consistent dividend stocks in the space.