2 TSX Stocks That Could Double in 2022

Are you looking for growth stocks to add to your portfolio? Here are two stocks that could double in 2022!

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Investing in growth stocks can be difficult. They tend to be more volatile than dividend stocks, and many investors aren’t able to stomach large downturns. However, if you’re willing to buy shares of growth stocks then they’re underperforming, then you may be able to see significant growth over the long run. In fact, buying when shares are trading cheaply could boost your chances in seeing a double return on your investment. In this article, I’ll discuss two TSX stocks that could double in 2022.

This company is growing at a rapid pace

If I had to choose one big winner for next year, it would be Shopify (TSX:SHOP)(NYSE:SHOP). It’s well documented that growth rates tend to slow as companies get larger. At a market cap of $214 billion, it’s safe to say that Shopify is quite large. However, much larger companies have previously shown the ability to double within a year. Because of that, and the growth rate of the broader e-commerce market, I feel confident betting on Shopify here.

Over the past year, Shopify has managed to continue growing strongly. This is despite many investors thinking the company would struggle, as consumers returned to in-person methods of shopping. During Q2 2021, Shopify surpassed Amazon for the first time in terms of consumer traffic. Over that period, Shopify stores saw an average of 1.16 billion monthly unique users. This compares to 1.10 billion monthly unique users on Amazon.

Shopify’s revenue is also continuing to increase at an impressive rate. It was expected that Shopify stores would have a difficult time beating last year’s COVID-19-fueled Black Friday-Cyber Monday sales figures. However, Shopify still managed to post a 23% year-over-year increase in sales. This suggests that Shopify’s growth is robust and could continue even as we exit the pandemic.

A leader in an emerging industry

The renewable energy industry has gotten a lot of attention over the past two years. This is likely due to the increasing interest with respect to finding solutions to address climate change. As a result, companies in that industry have seen massive growth. For example, Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP) stock has seen more than a 100% gain over the past two years.

This year, Brookfield Renewable stock has not done very well. In fact, it has fallen about 19% year to date. However, the company’s business remains very impressive. As of this writing, Brookfield Renewable’s portfolio has the capacity to generate about 21,000 MW of power. That makes it one of the largest producers of renewable energy in the world. Upon the completion of its current construction projects, the company anticipates being able to more than double its current generation capacity.

The decline in Brookfield Renewable stock may be due to a cooling-off period in the stock, as institutional investors lock in gains achieved over the past two years. It’s during times like these when investors should jump on the opportunity to buy shares. Brookfield Renewable is an industry leader with a business that looks as strong as ever.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns Brookfield Renewable Partners and Shopify. The Motley Fool owns and recommends Shopify. The Motley Fool recommends Amazon.

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