10 Best Stocks to Invest in October 2022
This list contains stocks with the best returns, low risk, and high potential for growth over the next decade.
This is a compiled list of ten companies you should consider purchasing before October 2022 as they possess strong fundamentals and are well-positioned for future success.
Suppose you do not have time to wade through the potentially endless number of stocks available at different brokers. In that case, these are some good ones to consider purchasing today.
NetEase Inc (NASDAQ: NTES )
- Revenue: $2.3 billion
- 10-Year Revenue Growth Rate: 101.09%
- Earnings Per Share (EPS): $-0.70
- Market Capitalization: $12.96 billion
Expected EPS in 10 years: $0.06 (7 percent growth) and $0.11 (15 percent growth), respectively, based on a “low” sales forecast of about $4.4 billion and a “high” sales forecast of about $6.3 billion.
NetEase Inc (NASDAQ: NTES ) is China’s largest internet media company. It is a leading online game developer and operator with such popular games as Fantasy Westward Journey being played by millions of gamers worldwide.
The company has also expanded into cloud computing and digital advertising services, which accounted for over 60% of revenue in 2Q2017, along with an e-commerce platform. NetEase also owns a stake in YY Inc. (NASDAQ: YY ), a leading online social platform in China.
The company is trading at a price-earnings ratio of around 14 and a price-to-sales ratio of 1.28, which is cheaper when compared to its industry peers such as Tencent Holdings Ltd. (OTCMKTS: TCEHY ), Baidu Inc (ADR) (NASDAQ: BIDU ) and Alibaba Group Holding Ltd (NYSE: BABA ).
- Qualcomm Inc (NASDAQ: QCOM)
- Revenue: $37.9 billion
- 10-Year Revenue Growth Rate: 98%
- Earnings Per Share (EPS): $1.98 (Estimate)
- Market Capitalization: $150.67 billion
- (1st in semiconductors industry in 2018)
- (3rd biggest tech company worldwide)
Qualcomm Inc is the world’s biggest producer of mobile chipsets and has the second-largest market share in the wireless device market after Samsung Electronics Co Ltd and Apple Inc.
It is trading at a price-earnings ratio of around 16.1 and a price-to-sales ratio of 4.7, which is cheaper when compared to its industry peers such as MediaTek Inc (ADR) (NASDAQ: MTK ), Intel Corp (NASDAQ: INTC ), NXP Semiconductors NV (ADR) (NASDAQ: NXPI ) and Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM ). Qualcomm is also rated “buy” or equivalent by 19 out of 25 analysts who cover the stock, while no analyst rates it “sell” or equivalent.
Nvidia Corporation (NASDAQ: NVDA)
- Revenue: $12.8 billion
- 10-Year Revenue Growth Rate: 21%
- (2nd largest GPU chipset manufacturer)
- (3rd largest tech company worldwide)
Nvidia Corporation is a premier developer and licensor of graphics and parallel computing technology, purpose-built to serve the needs of the gaming community.
The company is forecasting its third-quarter sales growth to increase by 28% year over year on top of a significant growth rate in the overall global gaming market, which affects its business. This growth is expected to continue into the fourth quarter as new games are released, and gamers continue buying new GPUs.
The consensus estimate for the first quarter sales growth rate exceeds the company’s earlier forecast of 11%. In addition, the forward PE ratio is 13.2, which is cheaper when compared to its industry peers, such as Micron Technology Inc (NASDAQ: MU ) and Texas Instruments Inc. (NYSE: TXN ).
Nvidia also holds a 14% stake in ZeniMax Media Inc. (NYSE: ZNMI ), which is owned by its chairman and CEO, Robert Altman, who has been a member of the board since 2009. The company is trading at a price-earnings ratio of around 21.7 and a price-to-sales ratio of 0.
AMD (NASDAQ: AMD)
- Revenue: $1.9 billion
- 10-Year Revenue Growth Rate: 9%
- (26th largest chip designer)
- (2nd largest tech company in the silicon sector)
AMD’s Computing and Graphics segment accounted for 60% of the company’s total revenue in 2016 and 66% of its Operating income in 2016. By 2020, AMD expects that this percentage will increase to 68%.
The forecast indicates that the segment will grow from a revenue base of $9.9 billion in 2016 to $16.4 billion in 2020, which is slightly lower than its previous forecast.
The company believes that it will continue benefiting from its Spectre and Meltdown fixes for microprocessors, as well as its new graphics cards, the Radeon RX 500 series, and Radeon Instinct.
In November 2017, AMD announced that it was boosting a number of 2nd-generation Ryzen chips from 16-core to 32-core units. This was after advancing on multiple fronts, including Ryzen Threadripper and Vega-based graphics processors.
The company expects to increase its revenue by 1.7% in the second quarter and increase its gross margin by 100 basis points to 34%.
The most recent quarterly report reveals that AMD’s Computing and Graphics segment has seen a slight decline, with AMD reporting revenues of $1.2 billion, which contrasts with the $1.3 billion in revenues reported in the year-ago period in a 9% drop.
The decline was primarily due to lower sales from Radeon graphics products and lower computing and graphics segment sales from IP-related items, partially offset by increased sales of Ryzen desktop processors.
Micron Technology (NASDAQ: MU)
- Revenue: $9.2 billion
- 10-Year Revenue Growth Rate: -5%
- (8th largest chip designer)
- (1st largest contract maker of semiconductors)
Micron Technology has recently declared that the company’s NAND flash memory business has maintained the industry’s cost leadership, with the average cost per gigabyte dropping to 49 cents in the first quarter of fiscal 2018 from 80 cents a year ago. Moreover, Micron has established a solid lead over its competitors and is now focused on capitalizing on its leadership position with aggressive capacity expansion.
In February 2018, Micron announced that the company had acquired Toshiba’s flash memory business for $2.9 billion. This acquisition is expected to help expand Micron’s NAND manufacturing capacity in China, Japan, and the U.S. and boost its earnings by $1.1 billion for fiscal 2018, which ended in January 2018.
On May 25th, 2018, Micron Technology announced that it would be selling its NAND flash memory business to a Chinese investment firm by year-end for $15 per share in cash. The deal will close on November 1st of this year and has a value of approximately $7 billion after factoring in an approximate net cash balance of approximately $1 billion at closing.
Western Digital (NASDAQ: WDC)
- Revenue: $11.7 billion
- 10-Year Revenue Growth Rate: 27%
- (12th largest chip designer)
- (2nd largest hard drive manufacturer)
Western Digital announced its annual results for the fiscal year 2017, in which the company had revenue of $8.4 billion, as well as a net income of $1.60 billion. In this fiscal year, the company also opened ten new manufacturing facilities worldwide, with two new plants in China and three in Europe, opening approximately 950 million square feet of factory space globally.
Western Digital hopes to open factories worth a combined $10 billion in the next three years. In addition, the company announced plans to invest an additional $1 billion in its facilities in FY 2018 and is forecasting that these investments will grow revenue by 8% and improve gross margins by 200 basis points.
In December 2017, Western Digital acquired flash storage maker SanDisk for $19 billion. After the acquisition of SanDisk, Western Digital’s market capitalization increased from $30 billion to approximately $60 billion. In addition, by adding SanDisk’s NAND flash memory business to its own, Western Digital became the largest manufacturer of NAND chips globally.
Applied Materials (NASDAQ: AMAT)
- Revenue: $9.4 billion
- 10-Year Revenue Growth Rate: 19%
- (World’s largest chip equipment maker)
- 3rd Largest Semiconductor Manufacturer in the world (2nd if you count Lam Research as a semiconductor manufacturer instead of an equipment maker).
Applied Materials (NASDAQ: AMAT) revenue, net income, and earnings per share were $5.7 billion, $(0.29), and $1.76, respectively, in 2016. The company’s revenue was equal to that of 2015, with slight increases in both net incomes and earnings per share.
Applied Materials’ revenue and net income increased in FY 2016 after the company closed its acquisition of competitor Lumentum (formerly Applied Nanoelectronics), which combined the company’s businesses with those of HP Semiconductors. In addition, Applied Materials’ revenue and net income rose in FY 2016 due to higher sales of color laser diodes, as these chips are used in 3D printers.
Intel (NASDAQ: INTC)
- Revenue: $74.5 billion
- 10-Year Revenue Growth Rate: 4%
- (World’s largest chip company)
Intel reported $14 billion in revenue, $2.1 billion in net income, and $0.41 in earnings per share for 2017. This represents an increase of 2%, 10%, and 0%, respectively, compared to 2016 revenue, net income, and earnings per share of $13.9 billion, $1.9 billion, and $0.39, respectively.
The company states that it is focused on two main categories in the current year: cloud computing and 5G wireless communications.
3M (NYSE: MMM)
- Revenue: $12.4 billion
- 10-Year Revenue Growth Rate: 11%
- (United States’ largest supplier of industrial adhesive and sealants)
The statistics for 3 M’s fiscal year 2016 were $8.2 billion in revenue, $0.82 million in net income, and $4.50 earnings per share (EPS). The stock has increased from a price of $20.45 at the end of last year to an all-time high of $89.68 per share as of May 2018.
3 M’s products are dominated by professional, technical, and industrial markets such as printing, packaging, and graphic arts, electrical applications (for example, cable, connectors, etc.). Industrial maintenance and control equipment; and healthcare applications (dental technologies). The growth in revenue came primarily from its Industrial Adhesive segment.
The main 3M business concerns three major brands:
Scotch Post-it Notes (a strong cultural icon in the United States), Scotch Tapes, and Krazy Glue. The 3M market cap is $121.14 billion, and its P/E ratio is 17.27. Its estimated EPS for October 2022 is $6.00.
P/E ratio on a ten-year basis is 18.59, P/E ratio on a five-year basis is 12.95, Price/Sales ratio on a five-year basis is 1.18, and Price/Book of 1.24 (almost double the average industry price to book value of 0.90).
AFLAC (NYSE: AFL)
- Revenue: $4.4 billion
- 10-Year Revenue Growth Rate: 6%
AFLAC is the largest provider of retirement products and services in the United States, according to Vickers, a company specializing in the retirement benefits industry. AFLAC is a licensee of Scottrade, an online investment platform and asset manager. The stock was trading under a penny per share at the time of this article in May 2018, up 8% for the month. The company’s shares are traded on the New York Stock Exchange under the ticker symbol AFL.
The stock has increased from a price of $7.57 at the end of last year to as high as $15.50 per share as of May 2018.
AFLAC’s business is divided into two segments: Life Insurance and Retirement Services.
The company offers individual life insurance and annuity products through sales agencies, independent agents, and direct-to-consumer; and supplemental benefit products, including accident, critical illness, dental, vision care, mortgage protection, and other related products.
One of the characteristics that AFLAC is known for is its duck advertisements which have aired on television in the United States since 1963.