Here are JPMorgan's top stock picks for 2022

Published Wed, Dec 8 202110:59 AM ESTUpdated Wed, Dec 8 20213:28 PM EST

JPMorgan expects the bull market to chug along in the year ahead on the back of the economic recovery from the pandemic. The Wall Street firm just revealed its top picks for investors in 2022. JPMorgan set its 2022 S & P 500 target at 5,050 , which represents a roughly 8% gain from Tuesday's close of 4,686.75. The equity benchmark has climbed about 25% this year during the economic reopening, though fears about the withdrawal of Federal Reserve monetary stimulus and the emergence of a new Covid-19 variant have caused heightened volatility into the year-end. "Looking ahead, we continue to see market upside, though more moderate, on better-than-expected earnings growth with supply shocks easing, China/[emerging markets] backdrop improving and normalizing consumer spending habits," JPMorgan strategists said in a Dec. 7 note. The firm believes most of the upside in stocks should be realized between now and the first half of 2022 as monetary and fiscal policies remain supportive. The second half of next year will see some sideways action, the bank said. JPMorgan broke down its top picks in both value and growth sectors for 2022: In the value space, the bank is bullish on a number of industrial names, including Caterpillar , Dow , General Motors and Lennar. General Motors recently raised its 2021 earnings guidance on strong pricing , resilient consumer demand and a stronger-than-expected supply of semiconductor chips. Bank of America was also highlighted in the value picks. The bank has benefited from the economic reopening as well as better-than-expected loan losses and record advisory and asset management fees . The stock is up about 45% this year, beating the broader market. AbbVie , Allstate , Cheniere Energy and Qualcomm were also named in JPMorgan's top value names. On the other end of the spectrum, JPMorgan is advising clients to pay attention to a slew of growth names next year. The bank expects Big Tech leaders Apple and Amazon to have another strong year. JPMorgan sees a rebound in Disney shares after a tough 2021. In its fiscal fourth-quarter earnings report, the media giant missed Wall Street estimates across the board, including Disney+ subscriber numbers. Disney's stock is down about 16% this year. JPMorgan set a price target on Disney at $220, which would translate into a roughly 45% gain next year. Eli Lilly , Danaher and Constellation Brands are some of the other growth picks from JPMorgan.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 29, 2021.

Brendan McDermid | Reuters

JPMorgan expects the bull market to chug along in the year ahead on the back of the economic recovery from the pandemic. The Wall Street firm just revealed its top picks for investors in 2022.