2 Growth Stocks to Buy in 2022

Looking for some growth stocks to buy in 2022? The market is full of opportunity. Here are two stellar options for investors to consider.

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Every well-diversified portfolio should contain both income- and growth-focused stocks. Earlier this week, I’d mentioned some superb income stocks to buy in the new year. Now, that focus can turn toward some of the best growth stocks to buy in 2022.

Here’s a look at two stellar growth options to consider.

Whether the market goes up or down, this stock will go up

As the market continues to creep higher, many investors are increasingly looking at inflation. Prices on just about everything have soared in recent months. Frequently purchased items such as household products and food are the two areas that have hit consumer wallets the hardest. And when budgets become tight, many look for less expensive alternatives shopping locations, such as dollar stores.

This is where the appeal of Dollarama (TSX:DOL) comes into play. Consumers initially drawn by lower prices remain shoppers of Dollarama, even when market conditions improve. In other words, the business will attract customers irrespective of whether the market is heading up or down.

That universal appeal has helped Dollarama become the largest dollar store in Canada, with nearly 1,400 locations scattered coast to coast. Worth noting is that Dollarama also has a growing network of stores in Latin America that are branded under the Dollar City name.

Adding to that appeal, Dollarama’s products are sold at fixed price points. Often, this includes bundling several lower-priced items under one price, which provides an increased sense of value.

Third-quarter results from Dollarama for the period up to October 31 were announced earlier this week. The results continued to show strong growth for the retailer. Sales saw a bump of 5.5% over the prior year, while EBITDA surged 11.2%.

Given the bout of inflation we’ve seen in recent months, it wouldn’t be hard to imagine those results will improve further in 2022. This makes Dollarama an excellent addition to a list of growth stocks to buy in 2022.

Massive growth potential awaits with this food investment

Another stock to consider adding to your list of growth stocks to buy in 2022 is Restaurant Brands International (TSX:QSR)(NYSE:QSR). Restaurant Brands is the name behind some of the largest fast-food labels in the business, including Burger King, Tim Hortons, and Popeyes.

In the midst of the chaos of the pandemic, Restaurant Brands seized the moment and recently scooped up its fourth brand: Firehouse Subs. That $1 billion acquisition will likely follow the recipe for success the company used in earlier acquisitions. That included realizing significant synergies and focusing on expanding the brand outside its niche market.

Then there are Restaurant Brands’s other initiatives, which include enhancing its digital apps and modernizing its online ordering and delivery options for the digital world. During the pandemic, those initiatives proved very profitable, as customers swapped dining rooms for drive-thru lanes.

Just noting the long-term potential of the Firehouse deal alone makes Restaurant Brands a great long-term growth pick. Factoring in the company’s stellar experience at integrating and growing new brands only furthers that appeal. That solidifies the stock on any list of growth stocks to buy in 2022.

Finally, if that weren’t reason enough, here are two more reasons to buy. First, Restaurant Brands also offers a tasty dividend with a 3.46% yield, which makes it an ideal buy-and-forget option. Second, despite the immense upside to Restaurant brands, the stock still trades relatively flat year to date.

Growth stocks to buy in 2022

As a reminder, no investment is without risk. Picking the right stocks for your portfolio takes time. Fortunately, both Restaurant Brands and Dollarama offer growth-seeking investors a path forward. Both continue to expand their business, lure in new customers, and innovate operations.

In my opinion, one or even both stocks should be part of any well-diversified portfolio.

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 Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International Inc.

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