Are you looking forward to investing in U.S. stocks in 2022? A well-diversified stock portfolio is recommended for you. Risks related to market volatility are lower for such portfolios than those concentrating on a single industry or sector.

At present, fears are ripe related to the spread of the Omicron variant of the pandemic across nations. Any trade and travel restrictions to curb its impacts will hamper corporate margins and profitability. Companies are already dealing with supply-chain restrictions, labor issues and cost-inflation headwinds.

On a positive note, the counter-measures taken by corporates and the government are likely to limit the impacts of the aforementioned headwinds. The government has decided to hike interest rates three times in 2022 to curb the impacts of inflation. Also, suitable steps to limit the spread of the virus are being considered. Then again, the companies have resorted to effective pricing actions as well as considered developing a reliable supplier base and actions to manage costs.

Also, industrial production has flourished, unemployment has lowered, international trade activities have improved, and consumer spending has increased in the first three quarters of 2021. The U.S. GDP grew 6.4% in the first quarter of 2021, 6.7% in the second quarter and 2.3% in the third quarter. The International Monetary Fund projects the U.S. economy to expand 6% in 2021 and 5.2% in 2022.

Using the Zacks Stock Screener tool, we have zeroed in on five stocks from the top-ranked industries that are worthy investment options for 2022. The selected stocks’ performances have been impressive in 2021 and their growth opportunities are solid for the year ahead.

Selected Top-Rank Industries

The selected industries are in the top 5% of the more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.

The Zacks Electronics - Parts Distribution industry has advanced 41.1% in the past year. The industry’s earnings estimates for 2022 have increased 23.9% over the past year. Looking at the aggregate earnings estimate revisions, it appears that analysts are keeping more faith in this group’s earnings growth potential.

Then again, the Zacks Building Products - Mobile Homes and RV Builders industry has risen 44.7% in the past year. Its earnings estimates have increased 92.9% for fiscal 2022 (ending March 2022) and 45.5% for fiscal 2023 (ending March 2023).

The past year’s price returns of the Zacks Retail - Regional Department Stores industry is 89.5%. Its earnings estimates have advanced 367.4% for fiscal 2022 (ending January 2022) and 286.6% for fiscal 2023 (ending January 2023) in the past year.

For the Zacks Building Products - Retail industry, the past year’s price return is 50.6%. Its earnings estimates for 2022 have been increased by 20.8% in the past year.

The Zacks Fertilizers industry has grown 42.2% in the past year. Its earnings estimates have been raised by 401.2% for 2022 in the past year.

5 Potential Winners for 2022

The selected companies currently sport a Zacks Rank #1 (Strong Buy), and have a VGM Score of A or B, market capitalization > $2 billion and year-to-date price changes of more than 20%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Builders FirstSource, Inc. (BLDR Quick QuoteBLDR - Free Report) : Based in Dallas, TX, the company is a supplier of construction services, building materials and manufactured components. Its customer base includes remodelers, professional homebuilders, consumers and sub-contractors. Its market capitalization is $16.3 billion.

The company’s VGM Score is A. In the past year, BLDR’s shares have gained 106% compared with the Zacks Building Products - Retail industry’s growth of 50.7%. In the last reported quarter, the company’s earnings beat was 117.31% and that for the last four quarters was 71.45%, on average. In the past 60 days, BLDR’s earnings estimates have increased 50.2% for 2022.

CF Industries Holdings, Inc. (CF Quick QuoteCF - Free Report) : This is a manufacturer and distributor of nitrogenous fertilizer and other nitrogen products globally. Its nitrogenous fertilizer includes urea ammonium nitrate solution, ammonia, ammonium nitrate and granular urea. It is based in Deerfield, IL. CF presently has a $15.8-billion market capitalization.

The company has a VGM Score of B and it gained 85.7% compared with the Zacks Fertilizers industry’s growth of 42.2% in the past year. CF’s earnings surprise was negative 1.03% in the last reported quarter.The earnings surprise was 97.82%, on average, for the last four quarters. In the past 60 days, the Zacks Consensus Estimate for CF Industries’ earnings increased 101.8% for 2022.

CF is poised to gain from healthy demand for nitrogen fertilizers and a rise in nitrogen prices. Also, the efforts to boost shareholders’ value and lower debts are other boons for CF Industries.

Kohl’s Corporation (KSS Quick QuoteKSS - Free Report) : This is a retail company offering beauty, apparel, home, footwear, accessories and other products in the United States. It is based in Menomonee Falls, WI. KSS presently has a $7-billion market capitalization.

The company has a VGM Score of A at present. Kohl’s has gained 23.5% compared with the Zacks Retail - Regional Department Stores industry’s growth of 89.4% in the past year. KSS’ earnings surprise was 139.13% in the last reported quarter.The same was 114.45%, on average, for the last four quarters. In the past 60 days, the Zacks Consensus Estimate for Kohl’s earnings has increased 21.1% for fiscal 2022 (ending January 2022) and 14.8% for fiscal 2023 (ending January 2023).

Strength in digital operations, robust partnerships, promotional efforts, pricing actions and strategic framework are beneficial for the company. A healthy liquidity position and shareholder-friendly policies raise the company’s attractiveness.

WESCO International, Inc. (WCC Quick QuoteWCC - Free Report) : The Pittsburgh, PA-based company is a well-known distributor of electrical construction products in North America. It serves customers in the construction, utility, hospitals, industrial and other markets. Its market capitalization presently is $6.6 billion.

The company presently has a VGM Score of B. Over the past year, WESCO International’s shares have gained 65.5% compared with the Zacks Electronics - Parts Distribution industry’s growth of 41.1%. Its earnings surprise in the past reported quarter was 7.03%. The same for the last four quarters, on average, was 30.75%. In the past 60 days, the Zacks Consensus Estimate for WCC’s earnings has increased 9.1% for 2022.

WESCO International is well-placed to benefit from strengthening businesses in multiple markets, solid contract wins and partnership contracts, and focus on upgrading infrastructures. Its solid cost-saving efforts and gains from acquired assets are also beneficial.

Winnebago Industries, Inc. (WGO Quick QuoteWGO - Free Report) : The company manufactures and distributes recreational vehicles (RVs) in the United States. It also builds quality boats, mobile medical clinics, law enforcement command centers, and mobile office space. The company is based in Forest City, IA, and presently has a $2.5-billion market capitalization.

The company currently has a VGM Score of B. In the past year, the stock has gained 25.2% compared with the Zacks Building Products - Mobile Homes and RV Builders industry’s growth of 44.7%. Its earnings beat in the last reported quarter was 53.28%. WGO’searnings surprise for the last four quarters was 39.58%, on average. In the past 60 days, the Zacks Consensus Estimatefor WGO’s earnings has increased 27.9% for fiscal 2022 (ending August 2022) and 11.2% for fiscal 2023 (ending August 2023).