Growth stocks took the backseat when central banks began their rate-hike campaigns to curb soaring inflation. Technology is among the hardest-hit sectors in this new era of high interest rates. Most of the top price performers in 2022 are energy stocks, although they are losing momentum due to the heightening market volatility and declining oil prices.
The energy sector and the broader market lost 20.82% and 6.21% in one month. However, three stocks are rising from their slump. Uni-Select (TSX:UNS), Kinaxis (TSX:KXS), and Hive Blockchain Technologies (TSXV:HIVE)(NASDAQ:HBVT) gained 24.5%, 19.33%, and 17.05% in 30 days. All three are interesting options for growth investors this month.
Impressive earnings growth
Uni-Select is a leading distributor of automotive refinish and industrial coatings and related products in North America. The $1.5 billion company also has a significant share in the automotive aftermarket parts business in Canada and the United Kingdom. At $34.50 per share, the trailing one-year price return and year-to-date gain are 139.25% and 34.03%, respectively.
The impressive financial results in Q1 2022 reflects in the stock’s performance. In the three months ended March 31, 2022, total sales increased 10.7% to US$409.6 million versus Q1 2021. However, the quarter’s highlight was the 3,533.3% year-over-year growth in net earnings to US$7.73 million.
According to Brian McManus, Uni-Select’s executive chairman and CEO, the strong results were due to improvements in underlying demand, price increases, and additional vendor rebates. The company also had significant savings on borrowing costs and derived benefits from operational improvements implemented in 2021.
Management expects sales and profitability to improve in 2022 compared to 2021. The priority or primary focus in 2022 is on organic growth to include the drive toward operational improvements across each business unit.
Back to profitability
Kinaxis is down 18.01% year to date, but its remarkable rally in one month seems to suggest an imminent breakout. The $4 billion company has an extensible, cloud-based platform that delivers industry-proven applications for the digital supply chain.
In Q1 2022, total revenue jumped 70% versus Q1 2021. Moreover, profit reached US$12.52 million compared to the US$1.53 net loss in the same period last year. John Sicard, Kinaxis’s president and CEO, said, “Uncertainty and disruption are the only true constants in today’s supply chain.” The plan is to continue investing to meet the opportunities ahead.
Bullish sentiment
Investors remain bullish on HIVE, notwithstanding the crypto winter. They recommend a buy rating and forecast a price appreciation of 442.2% to $24.94 in 12 months. If you invest today, the crypto stock trades at only $4.60 per share. The $378.31 million cryptocurrency mining company is growth oriented and operates in the emergent blockchain industry.
HIVE uses green energy to mine Bitcoin and Ethereum on the cloud. It conducts its crypto mining operations in state-of-the-art data centre facilities in Canada, Iceland, and Sweden. In June 2022, the company produced 278.5 and 2,542 of Bitcoin and Ethereum, respectively. HIVE attract investors not only for the exposure to cryptocurrencies but also for its hard assets.
Gaining momentum
The three companies in focus are slowly gaining momentum in Q3 2022. Their strong rallies are likely to continue, despite the market uncertainties.
