4 Reliable Stock Ideas Under $100 per Share for 2022

4 Reliable Stock Ideas

Looking for solid stock ideas to make 2022 a profitable year but can’t shell out hundreds or thousands per share? The following article covers four stocks, all priced at $100 or less per share, that we estimate will beat the market in 2022.

Stock market volatility has been on the rise recently due to several factors including geopolitical uncertainty, global trade wars, rising interest rates, etc. However, despite this volatility, there will be opportunities if you can identify quality investments with strong fundamentals and hold them long enough.

Not everyone on this list pays a super high dividend, so income investors may be turned off, but the potential returns are great. We believe it may not be easy finding such profitable stock ideas like these at today’s prices, so we’ve done all the work for you! Let’s dive into the list…

Cloudflare (NET)

Price (previous close) = $95.87

Market cap = $30.58B

Dividend Yield = N/A

5-yr monthly beta = 0.80

Forecasted growth (current year) = 160%

Average 12 month analyst target price = $153.95 (19 ratings)

From 2019 to 2020 alone, its revenue grew by 47%. With more than four million customers worldwide, Cloudflare provides website security services, content delivery network solutions, cloud computing, digital marketing, fraud protection, mobile optimization, software development tools, web hosting, etc.

It was founded in 2009 by CEO Matthew Prince, who served as an engineer at Fidelity Investments before starting his own company. The company is headquartered in San Francisco, California. Its current price suggests an upside potential of over 61% based on average analyst targets, bringing with it some of the greatest potential of these stock ideas.

Based on its impressive year-to-date performance, we think it could even cross above $100 next month, even given the bearish sentiment that is currently influencing the market in general. The key driver behind its success continues to be its robust business model innovations. In fact, according to CNBC, the company introduced new products and services every three days last quarter.

Its focus on innovation and efficiency makes it one of the best tech picks around. The company’s 52% decrease in free cash flow year over year suggests the innovation is far from over. Lastly, because Cloudflare already offers high margins and strong recurring revenues, it won’t need to raise capital again anytime soon.

Therefore, unlike other stocks on this list, you shouldn’t need to sell shares if you don’t want to exit your position within the next 12 months. Hang on through the dips in this investment timeframe.

Affirm Holdings, Inc. (AFRM)

Price (previous close) = $37.33

Market cap = $10.37B

Dividend Yield = N/A

5-yr monthly beta = N/A

Forecasted growth (next year) = 45%

Average 12 month analyst target price = $84 (14 ratings)

This provider of a unique digital and mobile-first platform, Affirm serves the US and Canada. Its solutions include a point-of-sale payment function, merchant commerce offerings, and a customer-focused app. The company was founded in 2012 and its headquarters are located in San Francisco, CA.

In the first quarter of 2021, the company announced that it was able to grow its list of merchant customers from 6,500 to more than 102,000. Most of these customers came along after the company began offering its Shop Pay services on Shopify. Their active customer count rose by 1.6 million to top 8.7 million customers total.

Affirm’s quarterly revenue rose 55% between Q1 and Q2 of 2021, reaching a total of $269.4M in that period. However, its acquisition of PayBright for $142M contributed to the company posting a net loss for the quarter. Based purely on share price returns, this has not been one of the more profitable stock ideas, but we believe the growth is coming.

On top of their agreement with Shopify, Affirm has secured a deal with Amazon to be its buy now, pay later service vendor for purchases over $50. That deal is good through 2023 as of this time.

Looking forward, the company is expected to post revenues of around $1.3B for 2022. That is opposed to the $870M it brought in last year. This represents an annual revenue growth rate of 49%. At this pace, the company is expected to churn our revenues of roughly $1.9B in 2023, which represents a YoY growth rate of 45%.

Pinterest, Inc. (PINS)

Price (previous close) = $23.86

Market cap = $15.86B

Dividend Yield = N/A

5-yr monthly beta = 1.9

Forecasted sales growth (next year) = 26.5%

Average 12 month analyst target price = $40 (25 ratings)

Pinterest is an online platform where users create “pinboards” consisting of images as well as text links that link back to websites or social media posts. More specifically, it allows consumers to discover, save, comment on, sort, and share interesting topics via visual search. It also brings up one of the more compelling stock ideas.

Founded in 2010 by Evan Sharp and Ben Silbermann, Pinterest serves advertisers, publishers, businesses, artists, designers, and others interested in creating custom branded boards. Today, millions of users engage with Pinterest daily across platforms including desktop computers, tablets, smartphones, smart televisions, game consoles, streaming devices, etc.

Although many pundits expected Pinterest’s popularity to fade following Google’s crackdown on sites engaging in clickbait tactics, it actually gained traction among influencers and brands alike after the update. Nowadays, 90% of marketers say Pinterest is important to their overall strategy.

Due to its phenomenal user engagement rate, Pinterest’s monthly active users has increased to approximately 460 million. That said, it posted negative user growth in Q2 2021. This was likely due to the re-opening of the economy and businesses in general after the government’s reaction to COVID.

Pinterest’s most recent earnings was forecast to show an EPS of $0.45 and a revenue of $827M. Instead, it posted an EPS of $0.49 and revenue of $847M, clearly beating analyst estimates.

Comcast Corporation (CMCSA)

Price (previous close) = $46.64

Market cap = $214.39B

Dividend Yield = 2.32%

5-yr monthly beta = 0.92

Forecasted revenue growth (next year) = 12.1%

Average 12 month analyst target price = $59.56 (16 ratings)

Comcast is well known for its cable TV offerings. With the prevalance of the “cut the cord” mentality, it’s estimated that approximately 56% of paying cable TV customers will leave each over the next two years. Comcast and DirecTV lost nearly 5 million customers from 2017 to 2019.

A vast 82% of people surveyed said they get more entertainment out of streaming than cable TV. However, it’s not all gloom and doom. Don’t forget that Comcast is also a provider of broadband services. In fact, according to Statista, Comcast gets over 31% of the market share compared to its seven major competitors. In second place is Charter at 29%.

CMCSA is a good value right now. Its stock carries a price to book ratio of 2.17, which is below the industry average of 2.26. Its P/E ratio is 12.98 compared to the 19.40 posted by Charter Communications.

Where Comcast annihilates Charter, however, is in its debt to equity ratio of 1.0. Charter’s is 4. Cash flow in terms of dollar per share is $6.36 compared to the industry average of $3.19. The company is also the only one on this list to pay a dividend. It currently yields 2.32%, which grows around 8.7% yearly, making it one of the more solid divided plays in the industry.

In Sum

Many analysts feel that the COVID pandemic market reactions have caused these stocks to hit bottoms, although we are waiting to see what happens with the current situation in Ukraine. That has already caused a significant drop in the market overall and a large increase in oil prices. These stock ideas should be able carry weight despite this. Hang onto these stocks through the dips and you should notice nice returns over the next 12 to 18 months.

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