My Top 3 Stock Picks for 2022 (Part 1 of 3)

To kick off the 2022 investing year, I have something fun, unique and (hopefully) very profitable for you.

Over the next three days here in Trade of the Day, I’ll post my top three stock picks for 2022.

All three picks are intended to be bought immediately, and I believe each will significantly outperform the S&P 500 over the course of the 2022 calendar year.

Will my top three picks perform?

Or will they fall flat?

That’ll be something you and I can track over this upcoming year.

So let’s dive right in with 2022 top pick No. 1…

This is a play that we’ve already had a lot of success with – and I believe that success will continue this year.

I originally revealed this pick back on September 13, 2021, but it’s still worth buying right now.

The pick is Carrier Global Corp. (NYSE: CARR).

Carrier provides HVAC (heating, ventilating and air conditioning), refrigeration, fire, security and building-automation technologies worldwide.

The company operates in three segments:

  • HVAC
  • Refrigeration
  • Fire and security.

The HVAC segment caters to the heating and cooling needs of residential and commercial customers, providing air conditioners, heating systems, controls and aftermarket components.

The refrigeration segment offers refrigeration and monitoring systems for trucks, trailers, shipping containers, and intermodal and rail transport systems. It also offers commercial refrigeration solutions, such as refrigerated cabinets and freezers.

The fire and security segment provides fire, flame, gas, smoke and carbon monoxide detection, plus portable fire extinguishers, fire suppression systems, access control systems and video management systems.

As we begin 2022, you’ll see that Carrier has a series of major tailwinds going in its favor…

First, as the omicron variant continues to spread faster than any other coronavirus variant we’ve seen, it’s clear that air quality systems will be facing a major replacement cycle. Carrier is perfectly positioned to benefit from this trend.

A recent study performed by the Harvard School of Public Health concluded that indoor air quality is good not only for people’s health and safety but also for a company’s bottom line – through increased productivity, fewer sick days and better cognitive function. This was the first time on a global scale that a new research study had concluded that healthy buildings with enhanced ventilation can improve the cognitive function and health of occupants, which (to me) says that ventilation and filtration are now preeminent healthy building strategies.

Second, you have global warming, which continues to produce hotter and hotter days. According to NASA, 2020 was the hottest year on record. Once again, Carrier is perfectly positioned to benefit from this trend.

And third, the growing threat of wildfires (particularly in California and now in Colorado) makes air quality even more noteworthy – which, again, benefits Carrier.

 

Action Plan: Add it all up, and Carrier has three major catalysts working for it. That’s why it’s my first top pick of 2022. The stock is buyable at current levels – and I believe it’ll be a top overperformer in the 2022 calendar year.

Tomorrow, I’ll reveal my second top pick for 2022, followed by my third (and my favorite) top pick for 2022 on Wednesday. If you want to be notified of my top picks every Wednesday after markets close, then you’re invited to “level up” your membership and join Trade of the Day Plus! My favorite pick for 2022 drops this Wednesday, so lock in your membership now, and you’ll get that pick delivered straight to your inbox.