Growth stocks that could grow further in 2022

In an expensive stock market that is trading near record highs, it’s not easy to pay for growth stocks. And, as the past few months have shown, there is a lot of risk involved with frequent fliers. There have been massive sales to specialist acquisition companies, software stocks, and electric vehicle companies, among others.

As such, many investors look to more defensive value companies for 2022. There are many definitions of a value stock. Many investors use book value, relative valuations to industry, free cash flow, or valuations to a historical average, among other measures.

Image: The Motley Fool

Focus on video communications

Communication (NASDAQ: ZM) is expected to offer a significant rise in 2022. With a high Wall Street price target of $ 450, the recently beaten Zoom could offer 143% gains in the coming year.

Zoom was a big winner during the pandemic. With the traditional office environment disrupted, remote working and virtual meetings have become commonplace, so much so that “Zoom” has become its verb.

Limited sea

The 12-month consensus course objective for Limited sea (NYSE: SE) reflects an upside potential of 89%. Sea was close to hitting that target in October. However, the stock is down more than 40% from its peak, in part because the company largely missed its earnings expectations for the third quarter, but mainly because of the overall sell-off of growth stocks. .

Sea’s past success is mainly due to its Free fire mobile game. Although Free fire launched four years ago, it’s still the top-grossing mobile game in India, Latin America and Southeast Asia, according to App Annie. It was also the top-grossing mobile battle royale game in the United States for three consecutive quarters. Sea expects even more growth as it rolls out new features.

Teladoc Health

Teladoc Health‘s (NYSE: TDOC) stocks have fallen more than 50% since the start of the year. But Wall Street believes this leader in virtual care could rebound in a major way in 2022. The consensus price target for Teladoc reflects upside potential of nearly 66%.

Why has Teladoc fallen so badly? One of the main factors is that some investors believed that ending the COVID-19 lockdowns would lead to slower growth. Although Teladoc has experienced some slowdown, its business continues to perform very well.

The short-term outlook for the company looks pretty good. Teladoc’s contract with HCSC, the fifth largest health insurer in the United States, will take effect in January 2022. Primary360, Teladoc’s virtual primary care service, also continues to grow.

Coinbase

One of the largest cryptocurrency exchanges in the world, Coinbase is valued at a market cap of $ 66.7 billion. Similar to most other trading platforms, Coinbase derives the majority of its sales from transaction fees. Thus, its turnover depends on the volatility of listed cryptocurrencies, which makes it difficult to forecast future sales and profits.

In the third quarter, the number of users making monthly transactions on Coinbase increased 252% year-on-year to 7.4 million, and it now has 73 million verified users. In addition, the company also enjoys strong profit margins and ended the third quarter with an adjusted EBITDA margin of 50%.

Due to its massive size and expanding user base, Coinbase is the perfect side bet for investors looking to profit from the exponential growth of the cryptocurrency industry. You don’t need to speculate on the long term prospects of specific digital tokens. You can instead buy Coinbase shares if you expect the value of cryptocurrencies to rise in 2022 and beyond.

Free Mercado

MercadoLibre, that is to say the Amazon of South America.

Although the company does not have a games division, it is otherwise similar to Sea in that it benefits from serving an emerging market with low e-commerce and banking penetration. While MercadoLibre faces competition – including from the sea – it is arguably more dominant in its respective region than the sea.

Macroeconomic issues have driven the stock to an all-time low, but I expect a rebound in 2022. Analysts seem to agree, as they

forecast 36% revenue growth and even faster profit growth next year.

Shopify

Although Shopify recently pulled out, SHOP stock set a new all-time high this month, despite news of a rare quarterly shortfall.

Most companies with valuations close to where Shopify is currently trading would collapse upon such failure. As SHOP stock fell, this company’s stock price rebounded to indicate extremely strong demand for these stocks. In other words, investors are waiting for any kind of decline to buy with this stock. This kind of intense investor demand for stocks is hard to find in the market today.

SHOP stock hit an all-time high earlier this month. This sort of positive price dynamic continued this year. Despite various concerns that have largely permeated growth stocks in recent times.

Of course, Shopify’s core business is developing in a very healthy way, and there is a lot to be appreciated in the company’s strong positioning in the ecommerce industry.

Asana

Although the labor management platform’s stock has cooled in recent weeks, it is still up 251% from its September 2020 IPO price of $ 21. He hit his mid-70s in the past three months for a reason.

12 analysts currently cover the ASAN share. Seven of 12 rate a buy, one rate being overweight, and four rate a maintenance. The average target price is $ 103.08, which suggests I’m not crazy to think it may hit $ 100 in 2022.

If you own ASAN stocks, you’ll probably like the fact that Piper Sandler has an overweight rating and a target price of $ 140. That’s a 75% increase at current prices. Brent Bracelin, the analyst covering Asana, raised his price target from $ 85 to $ 140 on November 18.

Reached

It has been about a year since Reached (NASDAQ: UPST) went public, and investors got a taste of the company that uses artificial intelligence (AI) to make loans and assess consumer credit. Upstart has been a big winner this year, with its stock dropping from its IPO price of $ 20 per share to $ 400.

Upstart blew analyst estimates in its first quarter as a public company and has exceeded analysts’ expectations in all four quarters since its IPO. The lowest profit came in the first quarter of 2021, when it exceeded earnings per share expectations by “just” 47%.

It expanded its network of banking partners from 10 to 31 in the third quarter. The company also launched Upstart Auto, the integration of automotive retail software from its acquisition of Prodigy, and its AI-based loan origination software.

About one dealer per day joins Upstart Auto, and the auto loan category is roughly eight times larger than personal loans, significantly expanding Upstart’s target market.

The stock can go up and down depending on company fundamentals now that the frenzy has subsided, and there’s a lot to like in 2022. A year isn’t long when it comes to investing, but Upstart has grown into a much stronger business over the past 12 months.

Stock Rivien

Electric vehicle starting Rivien (RIVN) had a lot to celebrate this year. The American automaker was the first to market an all-electric pickup, the R1T, named MotorTrend Truck of the Year for 2022. Meanwhile, Rivian’s IPO on November 9 was the largest of 2021. But its first post-IPO report delivered a dose of reality to investors. Rivian posted a huge loss, amid a slim production.

Always, A mazon Rivian, backed by (AMZN), aims to ramp up production in 2022. And he’s taking a full-speed expansion approach, even as one Wall Street analyst seems to suggest: What’s the rush?

Meanwhile, Rivian has taken a head start in electric pickup trucks, but faces competition from General Motors (GM), Ford engine (F), and possibly You’re here (TSLA).

It is also focusing on building a charging network in state parks across the country. As part of its efforts to encourage conservation and attract environmentally conscious adventure consumers. Rivian already has agreements with Tennessee and Colorado.


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