If you are buying a financially healthy company with long-term, stable business prospects, and you are planning to hold on to it for long enough, your instinct should be to buy as soon as possible. If you keep waiting for the value to dip, you may waste precious time that the company could have spent growing your capital.
With that in mind, there are three growth stocks that you should consider buying in 2022.
A cargo airline
After more than a year in the slump, Cargojet (TSX: CJT) is finally starting to show some positive activity. However, it may not be a return to the stock’s former growth pace but simply a repeat of the 2021 growth and fall cycle. Cargojet has been a great growth stock for a while, but the unprecedented post-pandemic growth pushed the stock too high and derailed it from its already fast-paced growth trajectory.
It’s improbable that the stock will regain its 10-year CAGR of 39% and double your capital every three years. Still, even if it performs half as well in the long run (in the future), you will not regret buying this company at its current, slightly discounted price. It also pays dividends, but the 0.57% yield might not be enough of a reason to buy this company, unless it starts growing it as rapidly as it can grow your capital.
A U.S.-based tech stock
Hamilton Thorne (TSXV:HTL) is a small venture capital stock representing a U.S. tech company that caters to a particular niche market. Hamilton Thorne has some proprietary laser technologies under its belt and a healthy number of products that it sells to different labs and clinics around the globe. It has an extensive reach, and its customers are stable healthcare organizations in multiple countries.
This has contributed to the stock’s consistent and robust growth, at least in the last five years. And even though the growth is rapidly outpacing the financials, it would still be worth it if the company could keep up its pace for a decade or two more. Its 10-year CAGR of 38% is just as impressive as Cargojet’s, and even at half this pace, the company can do wonders for your nest egg.
A powerful financial stock
goeasy (TSX: GSY) is currently trading at an attractive 27% discount which, after the massive post-pandemic spike, is a relief. And even though its valuation says otherwise, the stock may still be too over-inflated and disassociated from its normal growth pace. Still, if it has already restarted its growth journey, buying it now or at least sometime in 2022 would be a smart move.
With a 10-year CAGR of 39.7%, not only is goeasy one of the most potent growth stocks currently trading on the TSX, but it’s also one of the most stable ones. It’s also an incredibly generous Dividend Aristocrat, but thanks to its robust growth, the yield is usually left in the dust.
Foolish takeaway
Whether you are just starting your investment journey or are near retirement but still growing your nest egg, the three growth stocks should be on your radar in 2022. If they can maintain their growth pace for just one more decade, they could give a powerful boost to your portfolio growth.
