To start the year, growth stocks have seen steep losses across the market. This may be attributed to the potential of increasing interest rates in the United States. If interest rates do increase, it will make it more difficult for growth stocks to borrow money, which will hinder growth in the short term, thus, explaining the widespread selloffs. However, over the long run, increasing interest rates shouldn’t really influence a company’s business. As such, companies that have fallen could see strong recoveries.
In this article, I’ll discuss three high-growth stocks that could experience strong rebounds in 2022. By catching the dip in these stocks, investors could see greater gains.
This stock is known for its ability to rebound
Throughout its short history as a public company, Docebo (TSX:DCBO)(NASDAQ:DCBO) has already exhibited a strong ability to bounce back from steep dips in value. During the 2020 market crash, Docebo stock lost more than 40% of its value. However, after hitting its lowest point, the stock rallied more than 650% to close out the year. Last year, Docebo stock again saw a dip of about 40%. Like clockwork, Docebo stock managed an impressive rally of about 120%.
Today, Docebo stock trades about 40% lower than its all-time high. However, the company continues to execute at a high level. More than 2,600 customers rely on Docebo. This includes the likes of Amazon, which agreed to use Docebo’s platform to power its AWS Training and Certification offerings worldwide. As companies continue to operate remotely for the foreseeable future, Docebo’s LMS software should continue to be in high demand.
This dip doesn’t reflect this stock’s business
In September, Nuvei (TSX:NVEI)(NASDAQ:NVEI) was hit with a short report, causing its stock to plummet more than 60%. However, there wasn’t much information presented in the short report that should’ve caused investors to worry. In fact, analysts saw more than 115% upside in the stock shortly after its initial dip.
Since the start of the year, Nuvei stock has actually beaten the market. Year to date, Nuvei stock has gained about 4.6%. This compares to a less than 1% return by the broader market over the same period. Nuvei provides merchants of all sizes with a payments platform that allows them to complete online, mobile, in-store, and unattended transactions. A clear contender within the ever-growing payments space, Nuvei could see a lot of growth, as it continues to increase its share of the payments market.
The e-commerce industry will drive this company forward
The industry that I’m most looking forward to over the coming years is the e-commerce industry. I believe it has a lot of traction, due in large part to the COVID-19 pandemic. However, even prior to that, it’s clear that consumers have been slowly shifting towards online shopping. This trend is even evident in the grocery space. Companies like Goodfood Market (TSX:FOOD) have seen incredible growth in terms of revenue over the past few years.
In fiscal year 2017, Goodfood reported $20 million in revenue. In fiscal year 2021, the company’s revenue totaled $379 million. That represents a CAGR of more than 100% over those four years. Goodfood has accomplished this by growing its product offering and its distribution reach around the country. Goodfood stock has fallen more than 70% over the past year, but that doesn’t reflect its financials whatsoever. Goodfood stock could rebound strongly once investor sentiment becomes positive again.
