In our top stocks for the year, the team talks through their personal favourites and what they think will be hot next year.

Phil Rogers

2022 Pick: Auto Trader (LSE:AUTO)

Over the past year, the Auto Trader share price has jumped 21%. The company has performed well despite an uncertain backdrop of the UK economy in 2021. The online automobile marketplace has seen high demand for cars, partly driven by chip shortages which have seen second hand cars hold or even increase in value.

In the latest results for the period ending 30th September, there was much to be positive about. It stated that “we have achieved our highest ever six-monthly revenue and profits”. Added to this was the fact that “consumer engagement and retailer numbers are at record levels”.

Heading into 2022, we think that shares could continue to increase in value with this positive momentum. The business is catering to the growing EV space, along with smart tools such as the online guaranteed trade-in price function.

One risk worth noting is the fact that Covid-19 restrictions might see lower driving demand in Q1/Q2 as people are instructed to stay at home. However, we don’t see this as a serious bump in the road for the long-term.

Jesse Williamson

2022 Pick: Lucid Motors (NASDAQ:LCID)

Lucid Motors have had investor interest ever since the rumour came out that SPAC company CCIV were potentially merging with them. The stock price has been on a rollercoaster this year. $30 quickly became $65 after the rumour was confirmed, before quickly falling back down to $30 after the valuation was announced.

The stock calmed down after that and began trading in a less volatile range. October news regarding initial customer deliveries of the Lucid Air helped the stock climb. Over the following weeks, the stock managed to reclaim the sought after $50 mark. This has also drawn the 50 day average volume from 30 million per day (pre news) to now over 83 million. Demand is continuing to grow. But what risks lie ahead?

Lucid Motors are still only delivering a small amount of cars. Much of the valuation is heavily based on the future potential of sales that Lucid can achieve. The product is highly rewarded, becoming Motor Trend‘s 2022 Car of the Year. The performance is commendable, boasting a 1000-horsepower battery with range of over 500 miles. The foundation is done for Lucid, which is often the hardest part for vehicle start-ups. Now they need to continue progress towards their production schedule.

Today sees LCID introduced to the Nasdaq 100. “Since our successful public listing on Nasdaq in July, and with customer deliveries of the Lucid Air beginning in October, our differentiated EV technology continues to drive a clear demand for, and confidence in, our products and company”, said CFO, Sherry House. 2022 could be the year that Lucid Motors hits $100 as they strive to make a further impact on the EV market.

Robert Henrik

2022 Pick: PayPal (NASDAQ:PYPL)

We believe PayPal (NASDAQ:PYPL) is currently trading at attractive levels and could be a big performer in 2022. The company provides money transfer services and is a key player in the ever-growing interplay between e-commerce and digital payments.

PayPal has ambitiously expanded their products and services across multiple digital finance pillars – AI shopping tools, credit, mobile payments, savings accounts, cryptocurrencies, digital wallets. The tech company has recently announced their new all-in-one personalized app, combining a single place to offer all these new features. With a strong brand name, broader range of services, and simplied user experience, we expect the new customer adoption to give both the company revenues and the stock price a significant boost in the coming quarters.

Wall Street and institutional support also looks strong as ever,  as a Bloomberg survey of equity research analysts indicates that 81% of analysts currently have a “BUY” rating on PYPL, and a 12 month consensus target price of ~50% upside.

AlphaPicks owns shares in Roblox and UpstartTo buy shares in these companies, register here with our preferred partner, EToro.

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