The close of 2021 brought an upsurge in many markets due to the restabilization of supply chains and the relative return to normality the world is experiencing. Even though inflation and interests are expected to slow growth, there are fortunately still several booming industries. We’ll be taking you through a look at three stocks with high returns and low risks for you to consider. Each looks fantastic on paper and is backed by a sound corporate vision.
The Williams Companies, Inc. (WMB)
The World Bank’s Commodity Markets Outlook released in October of 2021 forespells 2% further growth for the energy sector despite the skyrocketing energy prices seen during the last quarter. In light of the relative lack of volatility, the Tulsa-based natural gas processing energy infrastructure company, The Williams Companies, Inc., shows all the key characteristics of a low-risk, high return stock. On the 17th of December 2021, Wells Fargo & Company adjusted the price target from an already desirable $31 to $34. The higher price objective is a sign that WMB stock may climb by 29.13% from its present price.
Towards the close of 2021, Williams Companies showed 47.96% annual growth with excellent liquidity of 205.71%, putting working cash on9 hand at roughly $214 million. With a 5-day moving average of $28.09 in December, Williams certainly appears to have solid growth on the way during the flourishing first quarter. Looking closer at the company reveals that the Board of Directors has started a share buyback program as of the 8th of September that enables Williams Companies to repurchase $1.5 billion in shares. This reacquisition of approximately 5% of its shares clearly indicates that the enterprise feels its shares are trading far before fair value.
The Roblox Corporation (RBLX)
If there’s one innovation booming in the technology sector more than anything else, it’s the metaverse, and Roblox is set to cash in. When one considers that it is not only the stock that is up in earnings but also the player base which has risen by 35% for the year to 49.4 million players, the facts start to hint towards a very good year for RBLX stock. On the 1st of September, a virtual-reality-based Vans skateboarding simulation was launched called Vans World. Nike followed on the 18th of November, with Nikeland allowing players to try out the latest in digital apparel. To close off a string of successful launches into countless new markets, Roblox had its price target raised to $150 from $88 by Morgan Stanley.
Don’t let the November sell-off deter you from considering this stock. Investors didn’t take kindly to a slight decrease in average bookings. However, The Roblox Corporation climbed in earnings by over 40% in the last quarter of 2021, which leads many to believe that the current dip is an opportunity to buy. Roblox pins the decline in bookings to not being able to monetize experiences from new geographic locations fast enough, and if this is the case, RBLX stock may indeed have room to grow. After all, at the time of writing during the close of December 2021, the Roblox Corporation was trading within a 52-week range of $60.5 to $141.60 and closed at a day’s range of 93.27 to 102.32. Reaching $150 would spell massive reward for investors.
CES Energy Solutions (CESDF)
No discussion about low-risk, high return stocks would be complete without mentioning at least one penny stock. With 2022 poised to be steady for the energy sector, CES Energy Solutions appears a solid investment following a fantastic year and the payout of its very first dividends. The Canadian energy company supplying fluid drilling, speciality chemical production and resources to increase the lifespan of oil fields generates 67% of its earnings in the USA and the rest in Canada. CESDF is a hot penny stock that’s already climbed 100%
Despite impressive annual performance leading some to wonder whether it’s tethering off, the prevailing analyst opinion is that it’s still growing and moving with good momentum. After all, CES does seem to be raising its market share in several key industries. Growth attained to a dividend already hints towards more incredible performance in the year ahead. Combining its metrics on paper with the company’s asset-light model that allows it to quickly address drilling demands across regions covered and CESDF stock trading with a 2021 high/low of $1.86/1.78 clearly arises as one to watch.