The FTSE 100 index has done relatively well this year. The index is trading at £7,545, which is a few points below its highest level this year. It has even outperformed its American peers like the Dow Jones and Nasdaq 100 indices. Still, here are the best FTSE 100 index I think have a lot of potential in 2022.
InvestingCube's S&R Levels
Not in Buy Zone
The BT share price has been in a strong bullish trend in the past few months. The stock is trading at 193p, which is the highest it has been since July 5th last year. It is a few points below its highest level in 2021.
The BT stock price has more room to grow going forward. First, the company is considering options for its BT Sport service. A recent report said that the company will sell the business for about £800 million to DAZN.
Second, BT is expected to publish strong results on February 3. The only major challenge will be its cost structure because of the rising wage inflation.
Finally, analysts are bullish on the stock. For example, analysts at Jefferies expect that the stock will rise to 260p. Therefore, it is a good FTSE 100 stock to buy.
The Shell share price has also done well this year. RDSB is trading at 1,918p, which is the highest it has been since January 2020. The stock has jumped by over 140% from its lowest level last year as demand for its product has jumped.
It has more room to grow. First, the company will benefit if the Russian crisis continues and the US adds sanctions. It means that Russia will retaliate by reducing its natural gas supplies to the region. This, will push natural gas prices higher. Royal Dutch Shell is one of the biggest players in the natural gas business.
Second, Shell shareholders will benefit from the recently announced buyback. The company will repurchase stock worth over $5 billion using the funds it received from ConocoPhilips. Third, the rising crude oil prices will lead to more cash flows and higher dividends.
Finally, Shell is a good FTSE 100 stock to buy because of the cost-saving structure that the company has embraced.
The Barclays share price has done well this year. It jumped to a multi-year high of 205p, which was a 2005 gain from the lowest level in 2020. This performance makes Barclays the best performer in the FTSE 100.
The strong performance is because of how the bank is diversified. Its retail business did well as consumer spending and mortgages did well. On the other hand, its investment banking business did well as global deals and trading revenue rose. Therefore, the BARC share price will likely do well in a high-interest rate environment.
Other good buys in the FTSE index are Lloyds Bank, NatWest, Diageo, and Glencore.
Opinions expressed in this article are those of the writer and they should not be considered investment advice. Investors are advised to do their own research or consult their investment advisors.