Analysts this week have named the top stocks on their must-watch list heading into the new year.
Cowen on Monday called Mastercard and Micron two of its favorites for 2022, Citi went all in on Nvidia, and Morgan Stanley said Wells Fargo was top of mind.
Wall Street's favorites inspired CNBC's "Trading Nation" to ask its own traders for the stocks they are most excited about as 2021 winds down.
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"I'm very happy to hear Nvidia is on that list, because our two biggest positions right now are Nvidia and Amazon. But I'm not going to bore you with those, because pretty much everybody already knows the story for those two companies," Mark Tepper, president of Strategic Wealth Partners, said Monday.
Instead, Tepper is on the hunt for an "under-the-radar" play with "multibagger potential," meaning a stock that is expected to return at least 100%.
"My high conviction play for 2022 is Indie Semiconductor. It's an automotive play," Tepper said. "They manufacture the next generation of chips for advanced driving assistance systems in autonomous driving. And if you think about it, the current generation of chips, they're not that great. There's plenty of room for improvement. They need to be safer, they need to be more efficient."
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After the stock dropped nearly 20% from a record high set in November, Tepper sees a potential entry point.
"I think it's the perfect time to initiate a position. I think it's going to be a big returner in 2022," said Tepper.
Michele Schneider, director of trading research at MarketGauge Group, is looking instead to the alternative energy space.
"The amount of money that's actually been committed to alt energy versus, let's say, oil and gas is still minimal with a goal of getting to be carbon neutral by 2050. So we're looking at PBW, for example, which just held major support," Schneider said during the same interview.
The PBW clean energy ETF fell below $73 on Monday before bouncing back. It has managed to hold above $70 during the past four sell-offs since May.
Schneider adds that food and soft commodities should outperform next year after climbing over the past month.
"With La Nina around the corner and still issues with supply chain and labor as we're going into next year, I think DBA would probably be the all-encompassing ETF to look at. It broke out over a 10-year downtrend this year and that to me means it's got a lot more upside," she said.
The DBA agriculture ETF has risen 23% in 2021, on track for its first positive year since 2014 and best annual performance ever.
Disclosure: Strategic Wealth Partners holds shares of Indie Semiconductor.
