St. Patrick's Day Sale
Growth stocks have gotten a bad rap in the beginning of 2022. Many fell to 52-week lows as Motley Fool investors and others looked for stable returns from passive income stocks. However, not all growth stocks are created equal.
In fact, this year there are growth stocks that should see massive returns in 2022. So let’s look at three you may want to consider today.
Waste Connections
Waste Connections (TSX:WCN)(NYSE:WCN) recently received a boost from one analyst recommending the company for solid performance in 2022. There were several reasons behind this. Waste Connections isn’t affected by inflation or supply-chain risks, it was durable even during the pandemic, and it continues to grow through acquisitions and investments.
Therefore, Waste Connections is a safe, solid company among growth stocks for Motley Fool investors. Furthermore, it offers a dividend of 0.67% as of writing. While I wouldn’t call it valuable at these levels, it certainly is bound for more growth as a protection against inflation. Especially with a consensus target price of $191 as of writing.
Shares are up 25% in the last year, compared to 13% for the TSX.
DRI Healthcare Trust
Another research report came out for DRI Healthcare Trust (TSX:DHT.UN), touting the company as a strong buy for both passive income and among growth stocks. While other health care companies focus in on biotech or pharma, which come with risk, DRI instead acquires royalties on medical products that have “significant life-saving potential.”
It’s the diversified portfolio as well that allows the company to offer such a strong dividend and growth trajectory for Motley Fool investors. It can provide consistent cash flow, while still looking for further opportunities to bring in more royalties. All while receiving a 4.37% dividend yield, with analysts projecting the company to perhaps double in the next year.
Shares are down 24% in the last year.
BRP
Finally, analysts are also bullish about the future of BRP (TSX:DOO)(NASDAQ:DOOO), and believe it’s one of the growth stocks that could double in the future. This could happen if it merely returned to its historical performance. This comes from a variety of catalysts coming together to create the potential compound annual growth rate (CAGR) of between 7% to 10% in the next few years.
A new See-Doo Switch could generate $600 million in revenue per year in the next few years, management stated recently. Furthermore, its Ghost boating project once unveiled this spring should hep the company reach its $1 billion in revenue target for 2025. Finally, entering the motorcycle segment should result in $500 million in annual revenue. Yet it remains at a discount compared to this growth potential, trading at 11.2 times earnings, with a $137 target.
Shares of BRP are down 5% in the last year, compared to the 13% among growth stocks on the TSX.
Foolish takeaway
These three growth stocks have substantial opportunity in the next year, and beyond. Each is in an industry with sustainable growth, with analysts boosting targets across the board. For Motley Fool investors wanting growth in their portfolio, I would certainly consider these.
