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Top 3 Stocks in Each Category to Look Out for 2022

20 June 2022

Investors in the stock market invest typically for one of two reasons: They believe that the price will rise and allow them to sell the stock at a profit, or they intend to collect the dividends paid on the stock as investment income.

But there are some stocks that can satisfy both objectives, at least to some extent, but different types of stocks can be classified into one of 3 categories:

  1. Income Stocks
  2. Value Stocks
  3. Growth Stocks

Investors who understand the characteristics of each type of stock can use this knowledge to grow their portfolios more efficiently.

In this blog, we will take you through all three categories of stock and the best stocks in each category you can consider buying.  Read On!

Best Stocks to Buy in Each Category in 2022

In this blog, we have composed a list of the Best Stocks in Each Category for 2022. 

S.No.

Name of Stocks

Industry

 

Income Stocks

 

1.

Coal India Limited

Mining, Refinery

2.

Indian Oil Corporation Limited

Energy: Oil and gas

3.

Power Finance Corporation

Financial Services

 

Value Stocks

 

4.

Sonata Software Limited

Global IT Services

5.

Avanti Feeds Limited

Aquaculture 

6.

HCL Technologies Limited

Information Technology

 

Growth Stocks

 

7.

Bajaj Finance Limited

Non-Banking Financial Company

8.

Britannia Industries Limited

Food

9.

Muthoot Finance Limited

Microfinance

Factors to Remember Before Investing in the above-mentioned Stocks by Category

  • Income Stocks are stable but provide a high dividend yield. The dividend yield in stocks is a financial ratio that tells investors how much a company pays out in dividends each year in relation to its share price.
  • Although Income Stocks are less risky and pay frequent dividends, their return will likely be lower than Value and Growth Stocks.
  • The stock price of Value Stocks might have dropped due to public perception regarding factors that have little to do with the company’s current operations.
  • Growth Companies may currently be growing at a faster rate than the overall markets, and they often devote most of their current revenue toward further expansion.

You may also want to read 6 Different Criteria to Categorize Stocks

Performance Overview of the 3 Best Stocks in Each Category

  • Income Stocks

The stocks that offer regular and steady income to their investors, usually in the form of dividends, over a period of time with low exposure to risk are known as Income stocks.

1) Coal India Limited

Coal India Limited is an India-based coal mining company. The Company is mainly engaged in mining and production of coal and also operates coal washeries.

The 52-week high/low is the highest and lowest price at which a Coal India stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of Coal India are Rs.209.00 and Rs.132.75 as of 15 Jun '22.

2) Indian Oil Corporation Limited

Indian Oil Corporation Limited is an India-based oil company. The Company's segments include Petroleum Products, Petrochemicals, and Other Business Activities. Its Other Business Activities segment includes gas, oil and gas exploration activities, explosives and cryogenic business, and windmill and solar power generation.

The 52-week high/low is the highest and lowest price at which an IOCL stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of IOCL are Rs.141.50 and Rs.101.90 as of 15 Jun '22. 

3) Power Finance Corporation

Power Finance Corporation Limited is an India-based non-banking financial company. The Company is primarily engaged in providing financial assistance to the power sector.

The 52-week high/low is the highest and lowest price at which a Power Finance Corporation Limited stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of Power Finance Corporation Limited are Rs.153.75 and Rs.101.80 as of 15 Jun '22.

  • Value Stocks

Undervalued companies can often provide long-term profits for those investors who do their homework correctly. A value stock trades at a price below where it appears it should be based on its financial status and technical trading indicators.

4) Sonata Software Limited

Sonata Software Limited is a global technology company. The Company is primarily engaged in the business of delivering information technology (IT) services and software solutions.

The 52-week high/low is the highest and lowest price at which a Sonata Software stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of Sonata Software are Rs.1,024.90 and Rs.7612.85 as of 15 Jun '22.

5) Avanti Feeds Limited

Avanti Feeds Limited is an integrated seafood company. Its segments include Shrimp Feed, Processed Shrimp, Power, and Shrimp Hatchery.

The 52-week high/low is the highest and lowest price at which an Avanti Feeds stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of Avanti Feeds are Rs.674.85 and Rs.7384.20 as of 15 Jun '22. 

6) HCL Technologies Limited

HCL Technologies Limited is an India-based technology company. The Company offers its services and products through three business segments: IT and Business Services (TBS), Engineering and R&D Services (ERS), and Products & Platforms (P&P).

The 52-week high/low is the highest and lowest price at which an HCL Technologies stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of HCL Technologies are Rs.71,377.75 and Rs.960.30 as of 15 Jun '22.

  • Growth Stocks

Growth Stocks have some common characteristics, although individual investors may tweak the numbers for their own purposes.

As the name implies, growth stocks are the stocks of companies that by definition are those that have substantial potential for growth in the foreseeable future.

7) Bajaj Finance Limited

Bajaj Finance Limited is an India-based non-banking financial company. The Company's consumer lending products include consumer electronics, furniture, digital products, e-commerce purchases, and daily spending financing. 

The 52-week high/low is the highest and lowest price at which a Bajaj Finance stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of Bajaj Finance are Rs.8,050.00 and Rs.5,284.20 as of 15 Jun '22.

8) Britannia Industries Limited

Britannia Industries Limited is primarily involved in the manufacturing and sale of various food products. Its product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk, and yogurt.

The 52-week high/low is the highest and lowest price at which a Britannia Industries stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of Britannia Industries are Rs.4,153.00 and Rs.3,050.00 as of 15 Jun '22.

9) Muthoot Finance Limited

Muthoot Finance Limited is an India-based gold financing company. The Company is a non-deposit-taking, non-banking financial company, which is engaged primarily in the business of financing.

The 52-week high/low is the highest and lowest price at which a Muthoot Finance stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of Muthoot Finance are Rs.1,721.95 and Rs.71,023.00 as of 15 Jun '22.

Conclusion

A truly diversified portfolio has all three: Income, Value, and Growth Stocks. If you find only one kind in your holdings, consider the benefits of diversification.

If you are just starting out, plan your investments with a good mix of income, value, and growth stocks.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww.

To read the RA Disclaimer, please click here
Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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