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3 Stocks With Unstoppable Growth to Buy for 2022

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After a solid run in the first half of 2021, the US stock market struggled in the latter part of the year, thanks to concerns over higher inflation and resurgence in COVID-19 cases. Despite the highly volatile market situation in the back half of the year, the US stock market is looking to close 2021 on a strong note.

The markets witnessed great turbulences in 2020 as lockdowns and other government restrictions to curb the outbreak brought the economy to a standstill. Nonetheless, the resumption of economic activities, the infusion of government’s stimulus packages and slashing of interest rates to near zero supported the U.S. economy in 2021 amid the pandemic-led slowdown. This led to a strong market recovery with some major indices reaching all-time highs, recently.

Investors are looking forward to a prosperous 2022, with the continuity of positive market trends. Some of the key catalysts like the availability of several COVID-19 vaccines, rapid immunization drives and reopening of economies, can drive the markets higher in 2022.

The vaccination of the majority of the world population raises the chances of returning to the pre-pandemic trends in 2022. However, going back to normalcy could be both positive or adverse on the businesses of several companies.

Therefore we believe that it is safe to invest in those stocks, which have hitherto outpaced the market in 2021, defying the negativities of the COVID-19 pandemic, and have the potential to reap greater returns in 2022.

3 Top Picks

Here we discuss three stocks that promise unstoppable growth in 2022. Apart from having solid fundamentals, the long-term earnings growth rate for these stocks is more than 35%. Moreover, these stocks have a favorable combination of a Growth Score of A and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks proprietary methodology shows that stocks with such a perfect mix of elements offer solid investment opportunities.

Each of these stocks has outperformed the S&P 500 composite on a year-to-date basis.

HeadHunter Group (HHR - Free Report) provides an online recruitment platform offering consisting of career guidance, career consultation, jobs by profession and the opportunity to create an impressive resume for suitable job opportunities. The group provides services to businesses looking to hire able candidates for their organizations.

Shares of HeadHunter have gained 70.9% on a year-to-date basis. Long-term earnings growth rate is pegged at 46.4%. HHR currently has a Zacks Rank #1 and a Growth Score of A.

The Zacks Consensus Estimate for HedHunter’s 2022 earnings has improved 16.6% to $2.04 per share over the past 60 days. Revenues are estimated to grow 27% from the 2021 estimated figure to $265 million.

Zacks Investment ResearchImage Source: Zacks Investment Research

Based in Fort Smith, ArcBest Corporation (ARCB - Free Report) provides freight transportation services and solutions. ARCB is riding on improving freight conditions in the United States.

Solid customer demand and higher market rates are supporting ArcBest’s prospects. Acquisition of MoLo Solutions is expected to bolster ARCB’s growth. The buyout will help the entity serve a wider customer base, secure new customers in a better fashion and gain a strong foothold in the logistics innovation hub of Chicago.

Shares of ArcBest have gained 174.1% on a year-to-date basis. Long-term earnings growth rate is pegged at 45.3%.

ArcBest currently has a Zacks Rank #1 and a Growth Score of A. The Zacks Consensus Estimate for 2022 earnings has improved 26.3% to $7.73 per share over the past 60 days. Revenues of $4.62 billion are estimated to grow 18.4% from the 2021 projection.

Zacks Investment ResearchImage Source: Zacks Investment Research

Tesla (TSLA - Free Report) is the market leader in battery-powered electric car sales in the United States, owning around 60% of the market share. TSLA’s flagship Model 3 accounts for about half of the U.S. EV market.

Tesla evolved into a dynamic technology innovator. With China being the biggest EV market, TSLA’s Shanghai factory is buoying its revenue prospects. Also, production from Berlin and Texas gigafactories is expected to commence this year. In addition to increasing automotive revenues, Tesla’s energy generation and storage revenues are boosting its earnings prospects. Further, low debt to capitalization increases Tesla’s financial flexibility.

Shares of Tesla have gained 51.7% on a year-to-date basis. Long-term earnings growth rate is pegged at 37.5%.

Tesla currently has a Zacks Rank #1 and a Growth Score of A. The Zacks Consensus Estimate for 2022 earnings has improved 1% to $7.80 per share over the past 60 days. Revenues of $71.78 billion are estimated to grow 39.7% from the 2021 guidance.

Zacks Investment ResearchImage Source: Zacks Investment Research

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