Long positions across the three beaten-down growth stocks discussed below are poised to rebound this year and beyond! Do your research to determine they’re a good fit for your diversified growth portfolio. A basket of solid growth stocks can help you grow your retirement fund faster.
Nuvei (TSX:NVEI)(NASDAQ:NVEI) is my top stock for January 2022 and one of my top growth stocks for the year. The tech stock has fallen more than half from its 52-week and all-time high. However, it has climbed 5% higher than it was a year ago. Certainly, near-term volatility in the tech stock is inevitable, but it can deliver strong price appreciation in the long run, as it executes its growth strategy.
As Michael Hakes, the senior portfolio manager at the Murray Wealth Group, mentioned, Nuvei generates good free cash flow. The company’s trailing 12-month revenue, net income, and free cash flow are US$627.4 million, US$115.8 million, and US$223 million, respectively. 13 analysts are calling for a 12-month consensus upside of close to 88% from the recent $82 level.
Secular growth in renewable energy
Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) has underperformed the stock market over the last 12 months by returning -15%, while the market’s total return was 28%. In the long run, such as over the last three, five, and 10 years, BEP has outperformed, though. (Below is the three-year total return chart comparing the two.)
BEP.UN Total Return Level data by YCharts
As there’s a long way to go for the secular growth trend in renewable energy with the transition to clean energy, BEP’s pure-play and diversified renewable power platform makes it a top growth stock to hold for the long run! Brookfield Renewable has a global geographical reach and develops and operates different technologies, including hydro, wind, solar, and transition.
Its generating capacity is 20,600 megawatts. And its current development pipeline will grow the capacity by about 73%. Over the next five years, management has multiple levers to grow its funds from operations per unit by 6-11% per year. Acquisitions could increase this growth rate. 14 analysts project BEP has upside of about 22% over the next 12 months. The dividend stock also offers an initial dividend yield of 3.4%. Its cash distribution should increase by 5-9% per year.
Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) is another tech stock that can rebound strongly in 2022. It’s down 69% from its 52-week and all-time high. It’s also down 43% from a year ago. Currently, high-growth stocks like Lightspeed stock with high multiples and no profits are out of favour. To rebound, LSPD stock would need to continue on its growth trajectory — at least be able to raise its revenues. If it could turn a profit too, it would be superb.
In the last quarter, Dax Dasilva, founder and CEO of Lightspeed, highlighted that the company reported incredible revenue growth of 193% to US$133.2 million, of which 58% was organic. He also explained about the widened loss as higher expenses from acquisitions. And that on an adjusted basis, the company actually improved on its net loss. He is confident about the payments expansion and growing gross transaction volume. However, he sees a potential headwind for some of Lightspeed’s clients in retail and hospitality with regards to supply chain constraints.
14 analysts project Lightspeed can more than double over the next 12 months for a price target of $123 from the current $51-per-share level.