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Got $5,000? These 2 Stocks Could Be Bargain Buys in 2022

Investing in stocks that are falling can be tough to do; nobody wants to look at their portfolio and see red. But if you're investing for the long haul, you know that short-term trends could subside, and this year's sell-off stock could be next year's top performer.

That's exactly what I think of with AstraZeneca (NASDAQ: AZN) and Beyond Meat (NASDAQ: BYND). Both of these stocks have been falling recently, but heading into next year, things could look a lot better. If you can afford to invest $5,000 into these stocks, here's why you should consider doing so.

Image source: Getty Images.

1. AstraZeneca

Shares of COVID-19 vaccine-maker AstraZeneca are down 5% over the past three months, while the S&P 500 has soared by more than 5%. The company released its third-quarter results on Nov. 12, which disappointed investors as it fell short of earnings expectations. The stock sank more than 6% on the day.

But next year, things could look much different. Up until now, AstraZeneca hasn't been trying to make a profit from its COVID-19 vaccine. But now that the pandemic is turning into more of an endemic, the company is going to focus on turning a profit on the vaccine on any new orders.

That means an increase in price. The company has been selling its vaccine for just a few dollars per dose, well below what other COVID-19 vaccine makers are charging countries.

For the period ending Sept. 30, the company's COVID-19 vaccine generated over $1 billion in revenue. Meanwhile, rival vaccine-maker Moderna reported $4.8 billion in product sales for the same period, and Pfizer's COVID-19 vaccine generated $13 billion in revenue, also during the same interval.

While it's unclear just how much higher AstraZeneca's COVID-19-related revenue may climb on an increase in the vaccine's price, its top line is likely to get a boost next year nonetheless. Plus, it completed the acquisition of healthcare-company Alexion Pharmaceuticals in July, which has already started contributing to AstraZeneca's financials this past quarter to the tune of $1.3 billion in new revenue. Alexion's focus on rare diseases expands AstraZeneca's product mix and can set it up for some great gains over the long term.

Although AstraZeneca incurred a net loss of $1.7 billion this past quarter, that's largely due to the acquisition of Alexion, as its operations are typically profitable. (In each of the previous four quarters, AstraZeneca has reported a profit margin of at least 6%.)

As it integrates Alexion into its business and eliminates inefficiencies and redundancies, the company's financials will improve. That, combined with the additional revenue from the new business plus an increase in COVID-19 sales, could set the stock up for a terrific performance in 2022.

2. Beyond Meat

Beyond Meat's stock has been falling fast as it's down 36% in just three months. What was looking like it might be a promising year for the company amid reopenings has stalled due to the delta variant causing a spike in COVID-19 cases.

The company had a bad earnings report and the stock has become a better buy in November. Although sales of $106.4 million for the period ending Oct. 2 rose 13% year over year, the company disappointed investors with a net loss of $54.8 million that was more than double the $19.3 million loss it reported in the same period in 2020. Beyond Meat doesn't project a picture of getting much better in the final quarter of the year, as it expects net revenue to fall within a range of just $85 million to $110 million.

There's no shortage of bearishness surrounding Beyond Meat right now. But heading into next year, a lot can change. What's important is that the company has some great growth opportunities in place.

Beyond's sales were up 13% this past quarter, but that was driven primarily by growth in the international markets, where revenue more than doubled to $38.9 million. In the U.S. market, sales of $67.5 million declined by 14%.

However, if supply-chain issues resolve next year and COVID-19 case numbers come down as people receive booster shots, there's reason to believe that the U.S. numbers could strengthen with a return to normalcy in the economy. And fast-food restaurant McDonald's recently launched its McPlant burger (which features a Beyond Meat patty) in multiple U.S. cities. If successful, that could also lead to some improved financials for Beyond in 2022.

Although the growth stock is beaten up today, a year from now, today's price could look like a bargain.

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David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Beyond Meat, Inc. The Motley Fool recommends Moderna Inc. The Motley Fool has a disclosure policy.


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