My Top Picks for 2022 come from our mid-cap “Best Months” stock basket; we issued our “Best Months” Seasonal MACD Buy Signal on October 8, 2021, recalls Jeffrey Hirsch, seasonal timing specialist and editor of Stock Trader's Almanac.
With large cap stocks dominating the market for much of this bull run we focused on the lower end of the market capitalization spectrum. Small caps ranged from $50 million to $1billion in market cap with mid-caps in the $1 to 5 billion range. My two top picks for 2022 come from this mid-cap group.
We screen for reasonably solid valuations, revenue and earnings growth and relatively low price-to-sales and price-to-earnings ratios. Then we look for positive price and volume action as well as other constructive technical and chart pattern indications. Finally, we lean towards stocks flying under Wall Street’s radar with a below average number of analysts following them.
A10 Networks (ATEN) was added to our newsletter portfolio on October 15 at $13.30. The company is leading provider of secure cloud application services and solutions for on-premises, multi-cloud and edge-cloud environments at hyperscale.
ATEN enables service providers and enterprises to deliver business-critical applications that are secure and efficient for multi-cloud transformation and 5G readiness. Their products and services help future-proof infrastructures so their customers can provide the most secure and available digital experience.
Their portfolio of state-of-the-art solutions optimize, accelerate, and secure applications and networks for enterprises, service providers, and government organizations. Growing both organically with existing clients and adding new business ATEN exhibits a strong balance sheet and solid growth potential.
A Look Back at 2021's Top Performers
Jeffrey Hirsch offers an update on his Top Picks for 2021:
Avid Technology (AVID) was up 122% in 2021, but the digital media pioneer was closed out of our newsletter portfolio on August 4, a 132% in the portfolio. Peripheral vascular disease treatment and solution provider LeMaitre Vascular (LMAT) remains in our portfolio up 33% since it was added to our list and up 28% in 2021."