3 Growth Stocks to Buy Now

Nutrien Inc. is among the growth stocks to buy now that have strong growth histories and a sustainable long-term growth runway ahead.

| More on:

This year has started off with a boom! Equity markets are up, many companies are thriving, and it seems as though we’ve shaken off a lot to get here. From value stocks to energy stocks, the year has been good. Many growth stocks, on the other hand, have not fared as well. But others are among the best stocks to buy right now. What does 2022 have in store for them?

Let’s not be fooled. Looking ahead, there are many things to worry about. For example, inflation is rising, and that’s never a good thing for markets or the economy. Without further ado, here are three growth stocks to buy in 2022.

A growth stock to buy that’s soared 38% so far in 2022

Nutrien Ltd. (TSX:NTR)(NYSE:NTR) was formed through the January 2018 merger of PotashCorp and Agrium. It’s the world’s largest fertilizer producer and agricultural input retailer, with a vertically integrated business. It benefits immensely from its scale, and is thus driving efficiencies and ultimately, cash flows.  

best stocks to buy right now

The investment thesis for Nutrien is actually quite simple. The global population is increasing. As a result, the agricultural industry can be expected to experience steady and growing demand for the foreseeable future. So Nutrien’s stock price is soaring in 2022. This comes after many years of stock price underperformance and it’s a welcomed revaluation of the stock. It’s no longer grossly undervalued, but it is still attractive.

This is due to the growth profile of the company. In fact, in the last five years, revenue has grown 52%. Also, operating cash flow has grown almost 90%. In short, valuations are more than reasonable considering Nutrien’s growth profile and long-term viability. This makes it one of the best growth stocks to buy now.

How is an insurance stock a growth stock?

For the next growth stock to buy, let’s shift gears. Intact Financial Corp. (TSX:IFC) is the largest provider of property and casualty (P&C) insurance in Canada. The company has grown and perfected its leadership position over the years, benefitting its shareholders along the way. Essentially, strong returns, a growing dividend, and industry excellence has become a way of life for Intact.

growth stocks to buy now

Intact has grown in large part due to acquisitions. This insurer is blazing along, taking advantage of its fragmented industry. Acquisitions have not only added scale and diversification, but also significant cost savings along the way. All told, its net operating income per share (NOIPS) grew at a compound annual growth rate (CAGR) of 15% since 2009. Check out Intact’s most recent results where its NOIPS increased 19% and earnings per share increased 51%, and you’ll see why this is one of the best stocks to buy right now.

Intact remains on course to continue to consolidate the fragmented P&C market while generating positive growth and returns.

The last of the growth stocks to buy now is turning waste into profits

Finally, the last growth stock that I’d like to highlight here is Waste Connections Inc. (TSX:WCN)(NYSE:WCN). Waste Connections is an integrated solid waste services company. It provides waste collection, disposal, and recycling services in the U.S. and Canada. It’s a high quality company in a booming industry.

Growth stock best stocks to buy now

Over the last many years, growth rates have been strong for this company. In the last five years, revenue has grown at a CAGR of 6%. More importantly, cash from operations has grown at a CAGR of 7.4%. In the latest quarter, this growth has intensified, with year-over-year growth of 16% and 20% respectively.

This business is defensive. It’s an essential one that can withstand economic troubles. This is a very positive characteristic, especially in today’s environment. In my view, this is a top defensive growth stock to buy now. It’s a stock to buy because it’s a strong, quality company that has tremendous cash flows and a history of returning this cash to shareholders.

Motley Fool: the bottom line

The three growth stocks listed in this article are some of the best stocks to buy right now. They’re leaders in their respective industries, and they’ve built sustainable competitive advantages that will carry them through the next phase of their growth.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Karen Thomas has no position in any of the stocks listed in this article. The Motley Fool recommends INTACT FINANCIAL CORPORATION and Nutrien Ltd.

More on Stocks for Beginners

construction workers talk on the job site
Energy Stocks

Best Stock to Buy Right Now: Baytex vs Suncor?

Suncor and Baytex stocks both look like solid companies offering growth and dividends. But which is the better buy?

Read more »

profit rises over time
Top TSX Stocks

3 Reasons to Buy Enbridge Like There’s No Tomorrow

Have you considered buying Enbridge (TSX:ENB)? Here are 3 reasons to buy Enbridge today for lasting growth and income.

Read more »

An investor uses a tablet
Stocks for Beginners

If I Could Only Buy 2 Stocks in the Last Half of 2024, I’d Pick These

I’m looking to buy two stocks over the next month. Here’s a look at my picks and why you should…

Read more »

dividends grow over time
Stocks for Beginners

The Smartest Growth Stock to Buy With $2,000 Right Now

Do you have $2,000 to invest for the long term? These three TSX stocks have and will continue to deliver…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

OpenText stock has fallen in the last few years, but that could mean this top tech stock remains an undervalued…

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer REIT Stocks to Buy Right Now for Less Than $200

REITs have long been touted as some of the best dividend stocks out there if you want recurring, strong income.…

Read more »

grow money, wealth build
Dividend Stocks

3 Top High-Yield Stocks to Buy in November

If you want passive income, high yield dividend stocks are the clear choice. These are the best, and safest, out…

Read more »

Stocks for Beginners

Where will Loblaw Stock be in 5 Years?

Want a great food stock that can provide growth and income? Here's why Loblaw stock can offer that and more.

Read more »