2 Leading Tech Stocks to Buy in 2022 and Beyond

2 Leading Tech Stocks to Buy in 2022 and Beyond
2 Leading Tech Stocks to Buy in 2022 and Beyond

Ignore the recent volatility that has overtaken the market.
2022 has been a tough year so far for tech stock investors. Stocks have been hit by slowing growth, rising interest rates and declining earnings.

The revenue decline is largely due to a major shift in purchasing behavior that has caught many tech giants by surprise. However, this does not threaten the long-term growth prospects of the industry leader.

With that in mind, let’s take a look at two tech stocks that look particularly attractive after the end of 2022. Some good reasons to buy Adobe (ADBE 3.39%) and Chewy (CHWY 7.30%) Read

Like many other companies, Adobe stock is trading near its 2022 lows as the new year approaches. But this pessimism seems to go too far.

Of course, today’s digital content platforms are growing more slowly than in the early stages of the pandemic. However, sales were up 13% in the latest quarter ended September 2 and profit was up 12% in the first three quarters of the year. However, the company remains a leader in the software-as-a-service niche market. And the demand for digital creative content will only grow over time. Today, thanks to the $20 billion acquisition of Figma, Adobe is able to reach a much broader range of platforms.

Wall Street fears the acquisition will hit profits in 2023. But prudent investors can get past this problem, along with other short-term concerns such as an economic slowdown. Due to its leadership position, Adobe is likely to outperform the market once the current slowdown in growth passes and the economy recovers. This is good news for patient investors who can buy shares up to 40% cheaper than at the start of 2022.

  1. Crispy
    The pet supply industry is known for being recession-proof, but that’s not the best reason to love Chewie’s stock today. Additionally, pet adoption rates, which skyrocketed during the pandemic, have dropped since last year.

But Chewy was able to generate a 13% increase in sales in its most recent quarter, on top of a significant increase a year ago. And unlike most similar products, profitability grows instead of falling. Chewy had no problem incurring higher costs in the form of price increases in the first half of 2022. Despite these price increases, the company’s truck subscription business achieved a record 73% of sales.
Despite those gains and the fact that non-discretionary pet purchases account for more than 80% of Chewy’s sales, Wall Street has reduced inventory by about 30% this year. The decline sets the stage for strong growth.

Rising costs and slowing demand have affected its business in the last six months. However, Chewy continued to increase its market share, increasing sales and profits, and adding value to the trading platform.

Even with lower consumer spending and the recession in the coming quarters, these growth stocks could deliver strong returns over time, assuming the company continues to perform well. Chewy looks like the winner for 2022 and beyond.

Is it worth investing $1,000 in Adobe Inc. right now?
You must hear this before you think of Adobe Inc.

Analysts from Motley Fool’s Equity Advisor team have released the top 10 current stocks…and Adobe Inc. wasn’t one of them.

Stock Advisor is an online investment service that has outperformed the stock market three times since 2002. The team then announced their top 10 buys of all time.

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