The markets have demonstrated this year that multi-fold gains may be achieved in a couple of weeks. The activity in equities has been particularly noteworthy this year. There are Christmas shares to purchase that can bring speedy gains with only a few weeks until the festive season. Applying leverage or going overweight on speculative stocks is a dangerous approach to trade.
There is, nevertheless, a smarter way to hunt for quick profits: trade in tactically astute equities without using leverage. Quick profits can be realized if these stocks go higher shortly. Shareholders will have to retain the shares for longer than expected in the worst-case. It is for this reason, we have listed stocks to buy for the Christmas period.
1. XPeng (XPEV)
This stock has had a dramatic rise in its stock price. On a year-to-date basis in 2021, however, the stock has essentially traded flat. Morgan Stanley (NYSE: MS) just predicted that XPEV stock will grow “extremely likely” during the next 15 days.
XPeng recorded 15,613 automobiles delivered in November 2021. The number of deliveries increased by 187 percent year over year. As a result, the company is on a high-growth path that is expected to continue in 2022.
In the third quarter of 2022, XPeng will also release the G9 model. The SUV is intended for worldwide markets, which is the most important factor to remember. In 2022, XPeng is expected to expand into more European countries, which will assist in enhancing car deliveries.
One other incentive to be optimistic about XPeng is the company’s continued development in vehicle profit. The company’s vehicle margin in Q3 2020 was 3.2 percent. In Q3 2021, the margin increased to 13.6 percent. Margin expansion is projected to continue due to robust delivery growth.
Ultimately, XPeng is a high-innovation company that is well-positioned to survive and expand in the electric car industry. The stock appears to be promising in the short and long term at its current price of $46.45.
2. Marathon Digital (MARA)
MARA stock reached $83 highs in November 2021. The stock has dropped dramatically to $42 following a severe pullback in Bitcoin (CCC: BTC-USD). The pullback appears to be exaggerated, and MARA stock is set for a powerful reverse bounce.
Marathon Digital is expected to have a strong year in 2022. To put it in context, Marathon’s mining output as of Q3 2021 was 2.7EH/s. Mining output is expected to expand to 13.3EH/s by mid-2022, according to the business.
This is expected to generate $92.4 million in monthly income for the corporation. This would suggest a possible annualized revenue of more than $1 billion. Marathon Digital’s finest days are yet to come in terms of growth.
Another thing to keep in mind is that the business is solely focused on Bitcoin mining. Marathon, on the other hand, will have a lot more financial flexibility as capacity grows. This will allow for organic as well as acquisition-driven expansion. Marathon’s portfolio is set to become increasingly diverse in the future years.
After a steep fall, Bitcoin is poised to rebound back at some point. Inflation is still a risk, and Bitcoin is seen as one of the best ways to protect against it. Marathon Digital will gain from growing Bitcoin prices due to limited supply and widespread adoption.
3. Target Corporation (TGT)
The consumer industry is one of the most important growth engines in the US economy. Retail spending is an important portion of the consumption industry. TGT is thus one of the best Christmas stocks to purchase.
According to the National Retail Federation, 180 million Americans purchased from Thanksgiving Day through Cyber Monday. Despite omicron’s worry, retail consumption is expected to stay strong.
In November 2021, TGT shares reached a high of $269. The stock is currently trading at $238. Target Corporation has a powerful omnichannel sales network, which is worth noticing. As a result, even if physical store sales decrease as a result of the virus concern, online sales will continue to grow.
The company now has a forward price-to-earnings ratio of 18.8. This is appealing for a stock that pays a 1.47 percent dividend yield. In addition, comparable-store sales have been increasing steadily in recent quarters.
Target plans to invest $4 billion yearly over the next five years in the medium to long term. This will aid in the expansion of the company’s retail platform’s capabilities. As a result, comparable store sales growth is projected to stay favorable.
4. Apple Inc. (AAPL)
Morgan Stanley raised its AAPL stock price objective to $200 in another optimistic call. The stock has been in an upswing for some time, which is sure to persist.
Predicted occurrences for the future year are one cause for the bull sentiment. Apple is working on augmented reality, virtual reality, and autonomous vehicles, according to Morgan Stanley. Possible announcements on these will act as a spur for price increases.
Furthermore, Apple is on a fast-growing path, and the corporation is becoming more diverse. The services and wearables industries have seen substantial growth in recent years. At the same time, in 2022, the 5G phone is expected to be a growth driver.
AAPL stock is also worth owning for dividend investors over the medium to long term. The dividend increase is anticipated to continue, given the expansion in operating cash flows. Apple generated $104 billion in operating cash flow in the previous fiscal year. Strong cash flows also give the corporation the financial flexibility it needs to make strategic acquisitions that will help it expand its innovation pipeline. Overall, Apple’s stock is poised for more gains and is one of the best Christmas stocks to invest in.
5. Intel (INTC)
This stock is one of the most undervalued in the technology sector. The stock is a value purchase with a forward P/E of 14.29.
That isn’t the only reason to think about the stock as one of the best stocks to purchase around Christmas. Intel is intending to IPO its Mobileye self-driving unit, according to recent reports.
The unit is expected to have a market capitalization of more than $50 billion. INTC stock has seen a break-out as a result of this news, which may continue in the following weeks.
It’s also important to note that Intel started the construction of two additional plants in Arizona in September 2021. Amid a global chip scarcity, Intel plans to invest $20 billion in these two factories.
Intel also plans to invest $25 billion to $28 billion in 2022. The company is well-positioned for organic expansion through product innovation, thanks to robust cash flows. “Next-gen discrete GPU for gaming” and “ASIC-based IPU,” among other things, are already in the company’s innovation pipeline.
The important factor to remember is that INTC’s worst may be passed. The stock is quite likely to be in an uptrend in 2022, given the probable listing and expansion ambitions.