Despite the Fed's announcement that it may speed up its tapering of bond purchases, and rising omicron variant fears, analysts remain optimistic about the market's prospects in 2022. Given this sentiment, Wall Street analysts expect two beaten-down stocks, Teladoc Health (NYSE:TDOC) and Peloton Interactive (NASDAQ:PTON), to rally significantly in 2022. So, we think it could be worth adding these stocks to one’s watchlist. Read on for a more detailed discussion.Investor fears about the spread of the COVID-19 omicron variant have contributed to stock market volatility. Adding to the concerns, last week, Federal Reserve Chairman Jerome Powell stated that the Fed might consider speeding up the tapering of its monthly bond purchases.
In October, inflation hit a record high of 6.2%, its highest level since December 1990. So, to keep inflation from spiraling out of control, the Fed plans to tighten its monetary policy. Nevertheless, Goldman Sachs Group , Inc. (NYSE:GS) expects the S&P 500 to hit 5,100 by the end of 2022.
The shares of Teladoc Health Inc. (TDOC) and Peloton Interactive Inc . (PTON) have suffered significant price declines recently. However, given their strong fundamentals and solid growth attributes, Wall Street analysts expect these stocks to gain substantially in the next 12 months. So, we think they could be great additions to one’s watchlist.