7 Best Long-Term Stocks to Buy for 2022

7 Best Long-Term Stocks to Buy for 2022

Source: Shutterstock We are well into 2022 and already into the first week of March. The market is in turmoil. Have you identified your best long-term stocks to buy now?

The yea rhas several dominant factors serving to shape the market. Covid-19 is still a dominant market force to be sure. It will serve to dictate where the market goes, without a doubt. But it is hardly the only issue to overcome. The economy is dealing with ongoing supply chain issues that have affected our daily lives. And then Russia’s invasion of Ukraine has oil prices at all-time highs.

Consumers are well aware of the real-world consequences this year will bring. We see it in car prices, for one. A report from January noted that the average new car price crossed above $47,000, an all-time high . Then there are groceries. According to IRI the price of kitchen staple foods increased by 9% in 2021. With Russia having officially invaded Ukraine, experts suggest those prices could rise even further.

Those prices are part and parcel of inflation that sits at 40-year highs. Markets will continue to be volatile but finding the best long-term stocks to buy is a strategy to weather the storm. Here are a few to consider. MasterCard (MA)

MasterCard is ubiquitous. It is accepted in more than 210 countries by millions of merchants. Anywhere you can use debit or credit you’ll likely be able to use MasterCard. The company derives revenue by acting as an intermediary payment processor, charging a fee on transactions.

The more open the economy, generally the better MasterCard’s revenues become. More accurately, the stronger the economy, the stronger MasterCard is. MasterCard’s share price held up very well during the pandemic even with the in-person economy shuttered to a significant degree. That’s testament to the ongoing strength of the company which essentially holds a duopoly over processing along with Visa (NYSE: V ).

At the same time, long term investors have to think strategically. MasterCard isn’t the same company it was a decade ago. The landscape has changed and fintechs pose a serious threat to its traditional business. At least one prominent fund believes that the potential negative impact of fintechs has been overstated. The thesis is that these companies depend on the ‘rails’ for electronic payments that MasterCard and Visa control.

As cross-border payments pick up MasterCard remains in a strong position to see increased revenues and its electronic payment position may be more secure than bears have previously suggested. Shell (SHEL)

Shell, formerly Royal Dutch Shell, is undergoing changes that benefit long-term investors. I see it as an energy stock at the confluence of great opportunity. The stock ticker may appear different to some readers. The new SHEL ticker identifier combines former RDS.A and RDS.B shares but doesn’t alter any holdings. Basically, Shell has simplified its structure in order to better respond to taxes and climate pressure as its headquarters are now in London.

The company remains at the confluence of great forces that benefit it in the short and long term. In the short term, Shell has strong tailwinds in the form of rising gas and oil prices. Nearly $9.7 billion of the firm’s $20.1 billion in net earnings in 2021 was derived from its upstream business. Shell won’t be a green energy dominated company for a long time yet. That’s a positive for short-term revenue generation.

And at the same time Shell continues to define its alternative energy strategy with several moves in Q4 alone. Over time this will smooth revenue spikes which energy companies often suffer. It completed the sale of its Permian business in the U.S. in December. It also acquired solar and energy storage developer Savion in the same month. Then, in January Shell started up a hydrogen hydrolyzer with 20 megawatts of capacity. Louisiana Pacific (LPX)

Louisiana Pacific Corp. is a company to watch for its position in the housing market. The company produces engineered wood products that are integral to new home construction and remodeling. That’s important because there’s an ongoing supply gap in the housing market. Builders are moving quickly to close that gap, which means Louisiana Pacific sits in position to benefit.

And it has. New home construction is surging with new home sales hitting a nine-month high in December.

Sales increased by 63% throughout 2021. And Louisiana Pacific intends to invest those strong results in an effort to create an even stronger 2022. CEO Brad Southern noted, “To meet customer demand for our specialty products and accelerate our […]

source 7 Best Long-Term Stocks to Buy for 2022

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