3 Growth Stocks That Could Double Again in 2022

Investing in growth stocks such as Green Thumb, WELL Health, and Nuvei can help you deliver outsized gains in 2022 and beyond.

| More on:
Hand arranging wood block stacking as step stair with arrow up.

Image source: Getty Images

The last decade has seen a spectacular rally in growth stocks, especially in the tech space. As equity markets continue to trade at record highs, investors might be worried about a pullback in growth stocks. However, it’s impossible to time the broader market, which means it makes sense to focus on strategies like dollar-cost averaging instead. Here, we’ll look at three stocks that should outpace the TSX in 2022 and beyond.

Nuvei

The first stock on my list is fintech giant Nuvei (TSX:NVEI), which is a global payment technology partner for businesses. It provides intelligence and technology that allows clients to remove payment barriers, optimize operating costs, and increase acceptance rates.

The Nuvei proprietary platform connects merchants with customers in 204 markets all around the world while supporting 480 local and alternative payment methods.

Nuvei stock went public last September and has since returned 229% to investors. This stellar growth is supported by the company’s enviable growth metrics. In the second quarter of 2021, Nuvei reported sales of $178.4 million, which were 114% higher compared to the year-ago revenue figure of $83.3 million.

The total transaction volume on the Nuvei platform rose 146% to $21.9 billion in Q2. This allowed Nuvei to increase its EBITDA by 112% to $79.4 million while adjusted net income almost tripled to $38.9 million in the second quarter of 2021.

WELL Health Technologies

Shares of WELL Health Technologies are down 3% year to date, trading 15% below all-time highs. However, the stock has returned a whopping 7,720% to investors since its IPO in April 2016.

WELL Health aims to disrupt the healthcare space by leveraging technology and streamlining clinical processes. It has aggressively acquired companies to gain market share in North America making WELL Health one of the largest health-tech companies in the continent. These acquisitions have been highly accretive to the company’s top line and profit margins.

In fact, WELL Health is on track to report sales of $441 million in 2022, up from just $414,000 in 2017. This indicates a compound annual growth rate of 154% for the firm. Despite its market-thumping gains, WELL stock continues to trade at a reasonable valuation given its market cap of $1.56 billion. We can see that its price-to-forward-2022-sales ratio is less than four times, making it a top bet for growth and value investors.

Green Thumb Industries

The final stock is cannabis giant Green Thumb Industries (CNSX:GTII), a company that operates in the rapidly expanding south of the border. While the prospect of marijuana legalization in the U.S. will be a major driver of revenue growth for Green Thumb, investors should note it has already increased sales from $16.5 million in 2017 to $556.7 million in 2020. Its profitability has also improved from an operating loss of $23.8 million in 2018 to an operating profit of $106 million in 2020.

In the second quarter of 2021, Green Thumb sales rose by 85.4% year over year to $221.9 million. It also reported a net income of $22.1 million compared to a loss of $12.9 million in the year ago period.

Green Thumb’s wholesale business segment is gaining traction rapidly, as its packaged products are available in 12 states. It also has a strong balance sheet with $359 million in cash and $197 million in debt.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Green Thumb Industries.

More on Tech Stocks

edit Sale sign, value, discount
Tech Stocks

Got $1,000? 2 Stocks to Buy Now While They’re on Sale

These two top Canadian growth stocks look underpriced right now to buy for the long term.

Read more »

Two seniors float in a pool.
Tech Stocks

Could Nuvei Stock Help You Become a Millionaire?

Nuvei stock is favourably priced today for growth focused investors to buy. Could the stock enhance your chances to build…

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Tech Stocks

2 Revolutionary Stocks I’d Buy Right Now Without Hesitation

Microsoft (NASDAQ:MSFT) and another tech titan that's worth watching going into March.

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

2 Top Tech Stocks Under $20 Per Share

Tech stocks are known for making millionaires. While it is difficult to identify them, these two tech stocks, each under…

Read more »

Growth from coins
Tech Stocks

2 Canadian Growth Stocks to Buy and 1 to Sell

The recent volatility in the stock market has created all kinds of opportunities for long-term investors.

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

3 Cheap Tech Stocks to Buy Right Now

Given their long-term growth prospects and discounted stock prices, I am bullish on these tech stocks.

Read more »

A worker uses the cloud for paperless work. tech
Tech Stocks

Wanna Beat the Market? Try These 2 Tech Stocks That Look Undervalued Today

Here's why undervalued TSX stocks such as Vitalhub can help you generate outsized gains in the next 12 months.

Read more »

Redwood trees stretch up to the sunlight.
Tech Stocks

These 3 Magnificent Stocks Keep Driving Higher

Constellation Software, Dollarama and another TSX stock have consistently generated positive investment returns. Here’s why they belong in your retirement…

Read more »