3 hottest growth stocks for 2022
Growth stocks haven’t had the kind of year in 2021 that investors would have liked, but that’s also where the best opportunities lie. If you can find stocks with underlying growth catalysts as strong as ever, they should be the first to not only rebound, but also to outperform the market once macro fears subside. Here are three of those growth stocks screaming buy-outs for 2022.
How could omicron drive this stock up?
Teladoc Health (NYSE: TDOC) surprised the market in 2020 when its shares more than doubled. A year later, the telehealth stock fell 52%. Ironically, Teladoc continues to grow rapidly, and that is exactly what should ignite a fire under the stock again.
In the third quarter, for example, revenue jumped 81% year over year, with patient visits to its platform increasing 37%. From primary care to chronic disease management, Teladoc Health offers a wide range of virtual health services and is already the world’s largest telehealth company.
Teladoc expects its revenues to exceed $ 2 billion in 2021, which would mean solid growth of over 80% compared to 2020.
As for 2022, there are two big catalysts. First, large health insurers like CVS Health‘s Aetna are all set to launch Teladoc services in 2022, which should help to significantly expand the reach and visibility of Teladoc.
Second, the omicron variant appears to be a legitimate threat to trigger a new phase of lockdown. Even if the savings don’t stop, more people will likely be vigilant and choose to avail themselves of essential services in their homes, rather than going out in the next few months. Telehealth is at the forefront of these services, which means that as long as the pandemic continues, sales are expected to continue to grow. All of this growth should be reflected in its course of action.
The boom times are just beginning
Actions of Holdings reached (NASDAQ: UPST) are expected to end 2021 on a strong note despite their price drop over the past two months. This decline does not mean that its heyday is over. On the contrary, the growth of Upstart has just started.
In its third quarter, the company reported a 250% and 201% jump in revenue and net income, respectively. He made a net profit of $ 29.1 million on income valued at $ 228 million. You don’t always see a business in the early stages of its growth making a profit. Upstart’s artificial intelligence-driven lending platform is clearly turning heads, primarily because it filters borrowers based on data points derived from loans to over one million people. This helps reduce risk for lenders and helps borrowers get loan approvals fast and at low rates.
I see Upstart’s revenue reaching $ 1 billion in 2022, which is huge for a stock that debuted on the stock market just over a year ago. The real catalyst for growth is the multi-billion dollar US auto loan market, where the company is just getting started after having established itself in the personal loan business. The growth potential is huge, which means Upstart sales should continue to explode. The same goes for the course of its action.
An incredible stock in a growing industry at high tension
2021 has been an exciting year for electric vehicle (EV) equity investors, teeming with fashionable debuts, sky-high valuations, and all the drama you are looking for in an industry changing the dynamics of the automotive industry. One EV stock that has caught everyone’s attention is Nio (NYSE: NIO), the Chinese electric vehicle manufacturer who wants to overtake You’re here in its home market.
While Nio stocks have lost 43% in the past six months (as of this writing), given the catalysts ahead for Nio, it’s one hell of a growth stock that I would consider now.
For now, here’s what the automaker has planned for 2022: delivery of its flagship sedan, the ET7, from March; delivery of the mid-size sedan ET5, its competitor Tesla Model 3, in September, and entry into at least three new European countries. Meanwhile, Nio is said to be in talks for a partnership with China’s biggest seller of new energy vehicles, BYD.
By January 20, investors should know how many ET7 orders Nio has obtained. Between January 2021 and November 2021, it delivered 80,940 units across its three SUVs, up 120% year-on-year. While the ET7 looks promising, the ET5 could be a game-changer. And if Nio enters the US market between the two, as rumor has it, or goes for a double listing in Hong Kong, the sky could be the limit for his actions.
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