I’m searching for the best penny stocks to buy for 2022. Here’s a great selection I’d buy for next year and look to hold for the long term.
Jobs giant
A buoyant jobs market makes Staffline Group (LSE: STAF) a great buy in my book. This business helps companies recruit and train workers, and it has performed splendidly as the UK economy has bounced back. Revenues jumped almost 5% in the six months to June.
Latest research suggests demand for workers will continue growing, too. According to Hays, some 80% of British employers plans to take on more staff over the next 12 months. Hays’s research also underlined the worsening skills shortage affecting domestic firms. A whopping 86% of companies have experienced skills shortages in the past year, the data shows.
This could also give an extra boost to Staffline Group. Its PeoplePlus division provides services like skills training and apprenticeships. Sales growth across the business could cool if the UK economy keeps struggling, but data such as that just released from Hays makes me reasonably confident recruiters like this could continue to thrive.
Another excellent penny stock
I already have exposure to the construction materials provider CRH. And I’m thinking of buying more of the FTSE 100 stock following its recent share price weakness. However, I believe another good idea could be to buy Breedon Group (LSE: BREE).
This UK share owns and operates several cement plants, ready-mix concrete plants, asphalt plants and quarries. It’s therefore in great shape to make bucketloads of cash (at least in my opinion) as British housebuilding activity increases and infrastructure spending ramps up several notches.
Breedon Group could suffer setbacks, of course, if a shortage of truck drivers persists. Strong demand for its products counts for little if the company can’t get them to its customers. That said, I’d still buy this UK share as its earnings outlook for the longer term looks mightily attractive.
Making money with green energy
If my concerns over UK economic conditions grow, however, I might be tempted to buy Greencoat Renewables (LSE: GRP). As the name suggests, this penny stock operates in the field of renewable energy. More specifically it operates a raft of windfarms across Ireland and mainland Europe.
As energy demand remains broadly stable at all points in the economic cycle, this UK share can expect revenues to keep rolling in during good times and bad. I also like Greencoat Renewables because it’s a great way to make money from the ‘green revolution’ of the 2020s. I’m a fan of its commitment to geographic expansion too (last week it acquired its first assets in Sweden).
It’s important to remember that creating energy from renewable sources can be problematic. The wind isn’t always guaranteed to blow, and this can take a big bite out of the turbine operator’s earnings. Still, I think the risk-to-reward outlook for Greencoat Renewables remains highly attractive. I’d happily add it to my own shares portfolio in November.
Royston Wild owns shares of CRH. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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