North American stocks have been throttled in the late summer and early fall of 2022. The past decade has made it easy for investors to churn out consistent growth. However, this interest rate-tightening cycle has brought us back to a different era. Picking winners is a bigger challenge, but that makes capital growth more rewarding. Today, I want to target three top-growing stocks. Let’s dive in.
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This top energy stock has outpaced the broader market in 2022
Vermilion Energy (TSX: VET)(NYSE: VET) is a Calgary-based company that is engaged in the acquisition, exploration, development, and production of petroleum and natural gas in North America and around the world. Shares of this growing stock have shot up 78% in 2022 as of early afternoon trading on September 28. The stock has soared 145% in the year-over-year period.
The company released its second-quarter fiscal 2022 results on August 11. It delivered funds flow from operations (FFO) of $453 million, or $2.75 per share — up 16% from the previous year. Meanwhile, free cash flow jumped 21% to $340 million, or $2.07 per basic share. Net earnings rose 28% year over year to $363 million.
This growing stock still possesses a very favourable price-to-earnings (P/E) ratio of 5.7. It hiked its quarterly dividend by 33% to $0.08 per share. That represents a modest 1.1% yield.
Here’s another growing stock that is on fire this year
CF Industries (NYSE: CF) is a Deerfield-based company that manufactures and sells hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities. This growing stock has jumped 39% so far in 2022. Its shares have climbed 74% from the prior year.
Investors got to see its second-quarter (Q2) fiscal 2022 earnings on August 1. It posted net sales of US$3.38 billion in Q2 2022 — up from US$1.58 billion in the previous year. Rather than net earnings, investors may want to zero in on its EBITDA. That stands for earnings before interest, taxes, depreciation, and amortization. It gives a more complete picture of a company’s profitability. CF Industries posted adjusted EBITDA of US$1.95 billion in the second quarter of fiscal 2022 — up from US$599 million in the prior year.
Shares of this growing stock currently possess an attractive P/E ratio of eight. It has delivered monster earnings growth and is still trading in favourable value territory compared to its industry peers.
One growing healthcare stock that is worth a look right now
Cardinal Health (NYSE: CAH) is an Ohio-based company that operates as an integrated healthcare services and products company in North America and around the world. Shares of this growing stock have jumped 32% in the year-to-date period. The stock is up 35% over the same time in 2021.
The company unveiled its fourth-quarter and full-year fiscal 2022 earnings on August 11. Cardinal Health posted revenue growth of 11% to US$47.1 billion. For the full year, revenue increased 12% to $181 billion. Meanwhile, non-GAAP (generally accepted accounting principles) operating earnings surged 41% to $450 million in Q4 2022. This healthcare stock is trading in more attractive value compared to its industry competitors. Moreover, it is on track for continued strong earnings growth.
