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Pro: these are the three stocks that I think are promising for 2022

on Jan 3, 2022
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  • Degus Wright recommends investing in companies with a high barrier to entry.
  • He names UnitedHealth Group and KeyCorp as two of his top picks for 2022.
  • Wright also likes United Microelectronics Corporation on attractive valuation.

Investors should consider putting their money in companies that have a “high barrier to entry” in 2022, says Decatur Capital’s Degas Wright.

Wright’s remarks on CNBC’s ‘Worldwide Exchange’

One name in particular that pops out to him is UnitedHealth Group Inc (NYSE: UNH). On CNBC’s “Worldwide Exchange”, Wright said healthcare technology will drive growth for the multinational insurance company this year.

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Healthcare technology platform makes up about 25% of their revenues, and it is growing. If you go to a doctor’s office and they hand you a clipboard, it’s an indication that the records have not been digitized, which is a great opportunity for United Health.

The Minnesota-based managed healthcare firm has a footprint in 130 countries and is scheduled to report its fourth-quarter and full-year financial results on January 19th. The stock gained more than 40% in 2021.

What else does he like for 2022?

Another name he likes is KeyCorp (NYSE: KEY) – a bank holding company that BofA double upgraded to “buy” in December with a price target of $27 a share. According to Wright:

KeyCorp is a U.S. regional bank, about $23 billion in market cap and is doing quite well. It also has a very unique acquisition strategy. It has acquired B2B digital platform, an analytical consulting company, and also a digital lending organization. Great growth.

KeyCorp closed the recent year with a 45% gain in the stock market. The CEO of Decatur Capital is also following United Microelectronics Corporation on attractive valuation. The Taiwan-headquartered semiconductor company is trading at 20 times versus the industry average of 33 times.