Top Picks for Buying S&P 500 Shares at Present, According to Experts
In the second quarter of 2022, a diverse array of stocks caught the attention of analysts, with strong performances and positive outlooks across various sectors. Here's a look at some of the top picks and the reasons behind their favourable recommendations.
Reddit (NYSE: RDDT), the social networking giant, delivered an impressive Q2 performance, recording a 77.7% revenue growth and significant analyst earnings beats. This strong showing led to a 46.2% increase in the stock price post-results, making it a top buy in the sector at that time.
Fortrea also impressed analysts, reporting Q2 earnings well above estimates and boasting a 39% discount to fair value, along with a 5-star Morningstar rating. The company's management raised 2025 revenue guidance by 6%, indicating confidence in future growth despite some near-term risks.
In the healthcare and pharmaceutical sector, Pfizer and Bristol-Myers Squibb (Bristol) both had strong earnings beats and maintain favourable valuations with positive analyst commentary.
The industrial and defense sector also featured prominently, with stocks like Lockheed Martin (LMT) and Huntington Ingalls (HII) rated 4-star by Morningstar and seen as undervalued or fairly valued in an overvalued sector, suggesting good buy potential.
DLocal Ltd. (DLO), a fintech company, also made the list after reporting a 50% revenue jump year-over-year and raising full-year guidance, which sparked significant bullish option activity, indicating strong investor interest and confidence.
On the other hand, Snap (NYSE: SNAP) showed weaker Q2 results, with misses on EBITDA and a declining stock price post-earnings, reflecting caution.
Other notable mentions include Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA), all of which scored an elite Strong Buy recommendation from industry analysts.
In the industrials sector, Danaher (DHR), a diversified life sciences and diagnostics company, is another top pick. With an average price target of $247.33, DHR has an implied price upside of about 25% over the next 12 months. Despite some challenges such as tariffs and cuts to life sciences research, DHR stock is expected to perform well in the long term.
Howmet Aerospace (HWM), a critical supplier of engineered metal products and components to companies like Boeing and Lockheed Martin, is also a strong choice. Business is good for Howmet Aerospace, with spares business being an important growth driver across segments.
SPGI (S&P Global), one of the best dividend stocks for dependable dividend growth, is another standout. Analysts applaud the financial intelligence company's spin off of its mobility division, which is expected to focus on credit ratings and market intelligence from 2026 onwards.
In conclusion, the second quarter of 2022 saw a diverse range of stocks receiving strong buy recommendations from analysts. From technology and social media to healthcare, pharmaceuticals, industrials, and defense, as well as fintech and tech infrastructure, these picks offer a balanced portfolio for investors seeking growth opportunities. It's always a good idea to consult specialized financial databases or brokerage reports from the specific period for the most accurate buy recommendations. The outlook for equities has brightened considerably in light of the second-quarter earnings season.
Trading in the second quarter of 2022 saw a consensus among analysts favoring stocks like Reddit (NYSE: RDDT) and Fortrea, both of which demonstrated impressive performances and were highly recommended. On the other hand, stocks such as Snap (NYSE: SNAP) showed weaker results, leading to caution among investors. Additionally, industry analysts gave a Strong Buy recommendation to companies like DLocal Ltd. (DLO), Amazon.com (AMZN), Microsoft (MSFT), Nvidia (NVDA), Danaher (DHR), Howmet Aerospace (HWM), and SPGI (S&P Global), indicating potential growth opportunities across various sectors including technology, healthcare, industrials, and fintech.
