We have witnessed a great performance from S&P 500 for the last three years. On the other hand, the stock prices are at all-time highs. You can tell that there are persisting inflation and supply chain difficulties. Moreover, there is also a possible interest rate rises in 2022. Thus, finding real value companies has become very difficult. Thankfully, the research team just compiled a list of their best bargain stock ideas. These cheap stocks might outperform the market in 2022 and beyond, especially if investor sentiment shifts toward stocks with excellent cash flow, earnings, and company fundamentals.
Broadcom Inc. (AVGO)
It is a famous and one of the largest and most diverse semiconductor manufacturers in the world. Broadcom, according to the analyst, is heavily exposed to some of the most important growth trends in technology, such as data center networking, artificial intelligence, and 5G wireless communications. Broadcom is a significant benefactor of the present cloud-networking semiconductor upgrade cycle, according to experts, and will have a growing quantity of content in Apple Inc. (AAPL) iPhone 5G models.
Qualcomm Inc. (QCOM)
Qualcomm is a semiconductor business that specializes in high-speed wireless internet. Qualcomm’s business has broadened beyond selling parts for Apple products, according to analysts, and it is now exposed to high-growth tech topics, including Android smartphones, sophisticated automotive technology, and the “internet of things.” Qualcomm shares are fairly valued, according to analysts, considering the company’s growth levers and margin expansion prospects.
Bank of America Corp. (ticker: BAC)
Bank of America’s profits, according to analysts, are susceptible to interest rates when it comes to U.S. megabanks. It is important to know that the banks can easily widen their net interest margin. Furthermore, they can do the same for the interest they pay on certain deposits and the interest they ask people to pay on loans. All of this can happen when there is an increase in interest rates. In 2022, you can expect the Federal Reserve to increase the interest rates three times. According to analysts, it might provide a profit tailwind.
AbbVie Inc. (ABBV)
It is a multinational and very broad pharmaceutical company. However, Humira (rheumatoid arthritis medicine) is the company’s main product. AbbVie has the lowest forward earnings multiple of any stock on our list, with a forward earnings multiple of 9.6. Analysts think AbbVie is their best pharmaceutical bargain selection.
Lam Research Corp. (LRCX)
It is a famous manufacturer of semiconductor wafer manufacturing equipment. In 2022, analysts predict another strong year for semiconductor stocks. According to analysts, Lam is gaining market share in its foundry and logic businesses, with etching and deposition equipment accounting for a greater portion of its revenues. Lam’s serviceable addressable market is expected to grow in the next years, according to analysts. The company’s free cash flow creation, according to analysts, will support increased capital returns to shareholders, and Lam shares trade at a lower earnings multiple than semiconductor peers.
