New year, new you, new opportunities to get smarter, happier, and richer!
Despite the tumult of the continuing pandemic, Wall Street had itself another fine year. The benchmark S&P 500 registered its second most all-time closing highs in a single year and ultimately more than doubled up its average annual total return of 11%, dating back to 1980.
But no matter how high the broader market indexes climb, there will always be opportunities for investors to grow their wealth and possibly even double their money. As we steam forward into a new year, here are 22 stocks that could double your money in 2022.
Image source: Getty Images.
1. Pinterest
While you'll find plenty of small- and mid-cap stocks with 100%-plus upside potential on this list, don't overlook large-cap stocks like social media giant Pinterest (PINS 1.37%). After all, winners keep winning.
In 2021, Wall Street struggled to digest modest sequential quarterly declines in Pinterest's monthly active users (MAUs). This decline was the expected reaction as coronavirus vaccination rates kept ticking higher and people returned to some activities outside their homes. But this laser-focus on Pinterest's MAUs misses two critical points that make it a screaming buy at its current share price.
To begin with, there's been no slowdown in the monetization of Pinterest's MAUs, even if new user growth is returning to historic norms. The September quarter featured a global average revenue per user (ARPU) increase of 37%, with international ARPU rising 81%. In simple terms, advertisers have proved more than willing to pay up to get their message in front of Pinterest's 444 million monthly users.
Second, Wall Street is apparently forgetting how perfect Pinterest's model is for attracting ad revenue. The entire premise is built on having its MAUs share the things, places, and services that interest them. With no guesswork involved, merchants can effectively target their ad dollars at users who'd be likely to make a purchase. This puts Pinterest on track to eventually become a force in e-commerce.
Image source: Getty Images.
2. PubMatic
One of the smartest ways to potentially double your money in 2022 is to consider putting it to work in cloud-based programmatic advertising technology company PubMatic (PUBM 2.96%).
PubMatic is what's known as a sell-side platform. SSPs go to work for publishers by selling their display space to advertisers. Though its clients can provide input, such as setting the minimum price accepted to sell display space, PubMatic's cloud-based infrastructure handles everything with machine-learning algorithms. By optimizing what messages users see, PubMatic can keep advertisers happy while boosting the pricing power of its clients (i.e., publishers) over time.
What really sets PubMatic up for success is its focus on digital advertising. According to the company, global digital ad spend should average a 10% annual increase between 2019 and 2024 as people shift their content consumption habits. However, PubMatic has consistently grown at two or more times this rate. That's because nearly two-thirds of its revenue comes from mobile and omnichannel formats, which includes connected TV.
Furthermore, the company's clients really seem to love the service, as evidenced by four consecutive quarters of a net dollar-based retention rate of 150% (or more). In simple terms, that means existing clients have spent at least 50% more year-over-year for the past four quarters. With PubMatic consistently crushing Wall Street's expectations, this shift to digital ads could send its shares a lot higher this year.
The facade of the Planet 13 SuperStore in Las Vegas. Image source: Planet 13.
3. Planet 13 Holdings
Cannabis may well be one of the most consistent double-digit growth opportunities of the decade. With the U.S. representing the epicenter of this growth, multistate operator (MSO) Planet 13 Holdings (PLNH.F +1.02%) has a real shot to double your money.
Most MSOs are all about establishing a presence in as many states as possible. That's not Planet 13's modus operandi. It's focused just as much on providing a unique experience for customers as it is on making sales.
Planet 13 has only two operating dispensaries, but there's nothing else like them in the United States. The Las Vegas SuperStore spans 112,000 square feet (that's bigger than the average Walmart), and has a café, events center, and consumer-facing processing center. Meanwhile, the more recently opened Orange County SuperStore has 55,000 square feet of space, 16,500 square feet of which is devoted to selling.
Planet 13's immersive and tech-integrated store designs do tend to work best in tourist-heavy locations. The next three stores to be opened will be in Chicago, Orlando, and Miami. However, the pandemic taught the company the value of appealing to local residents. With a steady stream of local customers mixed in with tourists, this company is ready to push to recurring profitability this year.
Image source: Getty Images.
4. Axon Enterprise
It's not often you see a borderline large-cap company effectively double its total addressable market (TAM) overnight, but that's what Axon Enterprise (AXON 4.81%) dropped on investors with its third-quarter shareholder letter. Axon now believes its TAM is $52 billion, up from a prior forecast of $27 billion.
Axon is the company behind the popular less-than-lethal Taser devices used by law enforcement. It's also responsible for many of the body cameras worn by peace officers, and it provides evidence-database software used in police departments. With many major cities focused on social reforms, Axon's products have become front-and-center solutions for greater law enforcement transparency.
The secret sauce to Axon's TAM nearly doubling is its broadening focus to also include the consumer market. Management plans to roll out its less-than-lethal Taser products to consumers, as well as offer a consumer-focused smartphone app, which'll be unveiled in 2022. Based on management's estimates, the individual consumer market could offer a higher TAM than what law enforcement can bring in.
Likewise, Axon has (pardon the pun) worlds of international potential. Even though domestic sales make up the lion's share of its existing revenue, international sales grew twice as fast as domestic revenue (70% vs. 34%) in the September-ended quarter. Representing close to $15 billion in TAM, overseas markets could be the icing on the cake that leads Axon to double in 2022.
Image source: Getty Images.
5. EverQuote
One company I'm doubling down on is online insurance marketplace EverQuote (EVER 2.34%). I say "double down" because it was a stock I felt would outperform in 2021, but it fell flat in a big way. This year should hopefully flip the script for this fast-paced small-cap stock.
Although the insurance industry is a moneymaker, it's generally slow-growing. EverQuote operates in arguably the fastest-growing subsection: digital advertising. The expectation is for insurance-related digital ad spend to increase by an annualized rate of 16% through 2024.
EverQuote is already working with 19 of the top 20 auto insurers, which allows it to present thorough price comparisons to consumers. Meanwhile, its platform lures in motivated buyers, which essentially means insurers are able to more effectively utilize their marketing dollars. As consumer buying habits shift online, EverQuote's role as a leading insurance marketplace will only expand over time.
Furthermore, EverQuote has moved into new verticals over the past couple of years, including home, rental, health, life, and commercial insurance. These verticals have grown at an even faster rate than its traditional auto insurance segment, and they provide a nice opportunity to book high-margin add-on revenue.
Image source: Getty Images.
6. Novavax
It's no secret that coronavirus disease 2019 (COVID-19) stocks have been on fire since the pandemic began. But one COVID-19 stock still offers incredible upside and the real chance to double in 2022. Say hello to Novavax (NVAX 0.76%).
Although the COVID-19 vaccine field continues to grow, Novavax stands out. The company's vaccine, NVX-CoV2373, was tested in two large-scale studies. It produced an 89.7% vaccine efficacy (VE) in the U.K. and a 90.4% VE in the U.S./Mexico trial. Including Novavax, only three COVID-19 vaccines have produced an efficacy of 90% or higher, which should allow the company to eventually slide in as the global No. 3 COVID-19 vaccine provider.
The mutability of the SARS-CoV-2 virus that causes COVID-19 is also working in Novavax's favor. Instead of simply benefiting from an initial inoculation campaign, the introduction of new viral variants provides Novavax a way to generate recurring revenue. The company's drug-development platform is designed to with speed and efficacy in mind to develop booster shots and variant-specific vaccines.
Best of all, you're getting Novavax at a discount. Short-term regulatory filings delays and production concerns held the company's share price down throughout 2021. Most of these worries are now in the rearview mirror. With the company likely to win numerous emergency-use authorizations this year, it's a good bet to become a key player in the ongoing fight against COVID-19.
Image source: Getty Images.
7. GrowGeneration
Following a 21-month roller-coaster ride, retail hydroponic and organic gardening chain GrowGeneration (GRWG 0.45%) looks ripe for the picking and ready to double.
Between March 2020 and February 2021, GrowGen was one of the hottest stocks on Wall Street, with shares skyrocketing more than twentyfold. But since hitting its 52-week high, shares are now down close to 80%. This huge reversion looks to be based on slowing organic growth, as well as higher inflation, which could weigh on the company's margins. Though its 80% reversion has been less than ideal for existing shareholders, it's the perfect entry point for new investors.
The two-pronged strategy that'll allow GrowGeneration to be a portfolio superstar is its inorganic expansion, as well as its omnichannel presence. In terms of the former, GrowGen has regularly leaned on acquisitions to expand its reach into new and existing high-dollar markets. This is a company with lighting, nutrient, soil, and hydroponic solutions that appeal to both the consumer and enterprise markets, and it has been especially popular among cannabis growers. GrowGen currently has 62 stores in 13 states.
Beyond leaning on buyouts, GrowGeneration is building up its e-commerce presence and focusing on private-label and proprietary brands to lift its long-term margins.
Once valued at more than 10 times sales and over 200 times forecasted earnings, GrowGen now goes for well under 2 two times sales and closer to 40 times Wall Street's consensus earnings for 2022.
Image source: Getty Images.
8. Bark
In the U.S., 69 million households own a dog, according to the American Pet Products Association. Furthermore, pet owners haven't reduced year-over-year spending on their furry family members in over a quarter of a century. This makes dog-focused products and services company Bark (BARK +1.31%) the perfect candidate to fetch investors a double in 2022.
What makes Bark so special is the company's subscription-based operating model. Even though its products can be found in more than 23,000 retail doors nationwide, 89% of the company's revenue derived from direct-to-consumer sales in the third quarter. The subscription model tends to lead to higher customer retention rates, predictable cash flow, and lower overhead expenses. As a result, Bark's gross margin has consistently hovered between a juicy 58% and 60%.
The company's marketing campaigns are paying dividends, too. In less than two years, the number of subscribers has more than doubled from less than a million to approximately 2.1 million, as of September.
And don't overlook Bark's innovation as a growth catalyst. The introduction of Bark Home, which provides basic necessities like collars and beds, and Bark Eats, a service that helps owners craft a customized dry-food diet for their pooch, are the perfect complements to drive add-on sales.
Image source: Getty Images.
9. Kinross Gold
Gold stocks didn't have a particularly good 2021. But the upcoming year could allow Kinross Gold (KGC +0.52%) to regain its luster in a big way.
To state the obvious, gold-mining stocks benefit when the price of the metal they're digging out of the ground appreciates in value. The lustrous yellow metal should benefit from historically low bond yields (i.e., there aren't many ways to generate inflation-topping returns with bonds) and will probably receive a lift from inflation that's hit levels not seen since the Reagan administration. A bounce back year for gold seems likely.
But Kinross isn't just sitting on its laurels and letting the physical price of gold do all the work. The most exciting advancement is the Tasiast 21k project. By the end of March, the company's throughput at the key Tasiast mine in Mauritania should reach 21,000 tonnes per day. By mid-2023, the Tasiast 24k project will be complete, and throughput will advance to 24,000 tonnes/day. These projects will nearly double the annual output of the mine and lower all-in sustaining costs to a mere $560 per gold ounce.
Kinross Gold has a veritable mountain of long-term projects as well, including Fort Knox, La Coipa, and Chulbatkan. The company is regularly replenishing or growing its precious metal reserves.
With Kinross expected to grow its output from 2.1 million gold equivalent ounces (GEO) in 2021 to 2.7 million GEO in 2022, a multiple of 3.6 times this year's estimated cash flow per share is too cheap to pass up.
Image source: Getty Images.
10. Root
All investments come with risk, but some are riskier than others. Innovative insurance company Root (ROOT 1.86%) falls into the high-risk/high-reward category. But if things go right in 2022, shares could very easily double.
Root is attempting to disrupt a stodgy industry that's been pricing auto insurance policies using metrics that have absolutely nothing to do with the quality of someone's driving, such as credit score and marital status. It aims to do this by leaning on telematics. Using sensitive instrumentation found in smartphones, Root can measure G-forces based on braking, turning, and accelerating to determine how safe a driver really is behind the wheel. In short, the company believes it can offer drivers an accurately priced auto insurance policy on the spot.
Initial operating results from Root have been mixed but encouraging. For the time being, the company is reporting sizable per-share losses as it focuses on signing up new customers and building up its brand. However, this hasn't stopped it from reporting gross accident period loss ratios below 100%. Any figure below 100% represents a profitably written policy. While loss ratios have been a bit erratic because of the pandemic, the initial takeaway is that a telematics-based approach can work.
If Root's accident loss ratios stabilize or decline (a lower number means a more profitable policy) in 2022, it could be a big winner.
The all-electric Nio EC6 crossover was introduced in 2020. Image source: Nio.
11. Nio
A year ago, electric vehicle (EV) manufacturer Nio (NIO +14.07%) wasn't a company I'd touch with a 10-foot pole. But after watching management navigate the numerous challenges presented by the pandemic, I'm extremely impressed by the company's execution and have changed my tune -- so much so that I believe, under the right circumstances, Nio could double in 2022.
Throughout the second and third quarters of 2021, the auto industry was constrained by semiconductor chip shortages and other supply chain snafus. This situation held back Nio's expansion efforts. But these issues are now abating, and the company's deliveries are soaring. In November, Nio delivered 10,878 vehicles, which equates to an annual run rate of more than 130,000 EVs. By the end of this year, management is targeting an annual run rate of 600,000 EVs. If this ramp-up continues, quadrupling sales by 2024 is easily doable.
In addition to ramping production, Nio is being driven by innovation. It'll be introducing three new EVs this year, and it will continue to lean on the battery-as-a-service program (BaaS) that was introduced in August 2020. The BaaS program provides battery charging and swap-outs for Nio EV owners for a monthly fee. In exchange, buyers receive a discount off the initial purchase price of their vehicle. Nio is effectively trading some near-term revenue for improved customer loyalty and juicy fee-based margin over the long run.
The topper is that the company is based in the largest auto market in the world, China. Everything appears set for Nio to floor it in 2022.
Image source: Getty Images.
12. Columbia Care
Another marijuana stock with the potential to double your money in the New Year is U.S. MSO Columbia Care (CCHWF +0.00%).
Like Planet 13, Columbia Care has a unique strategy that should pay long-term dividends. First, it tends to focus on a number of limited-license markets, such as Pennsylvania, Ohio, and Massachusetts. A limited-license market caps how many retail licenses are issued in total and/or to a single business. For some MSOs, this can inhibit their ability to dominate market share in a state. But for many MSOs, like Columbia Care, these limitations provide some degree of competitive protection that allows them to effectively build up their brands and garner a loyal following.
The more important growth driver for Columbia Care is its love affair with acquisitions. Since June, the company has closed a $240 million deal to acquire Green Leaf Medical and a $42 million buyout of Medicine Man. The latter should increase Columbia Care's share in the United States' No. 2 weed market, Colorado, while the former gave it a sizable Mid-Atlantic presence.
With sustainable double-digit organic sales growth and a steady diet of acquisitions, Columbia Care could easily top $1 billion in annual sales by 2023 after generating "only" $180 million in sales in 2020.
Image source: Getty Images.
13. Opendoor Technologies
For those of you with a higher tolerance for risk and reward, technology-driven residential real estate company Opendoor Technologies (OPEN 0.69%) could be the ticket to doubling your money in 2022.
Opendoor is the leading company in what's known as iBuying. iBuying happens when a real estate company purchases a home for cash, thereby eliminating the real estate agents that would otherwise take a commission. The process tends to be relatively fast and can quickly put cash in the pockets of those who need it, or who don't want to deal with the hassles of showing a home for months on end. Opendoor keeps a 5% fee on the sales price of a home and deducts the cost of any repairs that need to be done.
What's particularly interesting about Opendoor is that one of its top competitors, Zillow, recently announced it would shut down its iBuying program. Zillow announced in October that it would pause buying homes, and then in November it announced a total shutdown of the segment after miscalculating home values. This hasn't been an issue for Opendoor, which nearly quintupled its year-over-year home sales in the third quarter to 5,988. The company also more than doubled the number of markets it serves, from 21 to 44.
The "risk" for Opendoor is that the Federal Reserve will almost certainly begin raising rates in 2022. In my opinion, this'll only create an incentive for fence-sitting sellers to make the leap. With plenty of liquidity and homes to back up the debt on its balance sheet, 2022 could be a booming year for Opendoor.
Image source: Getty Images.
14. Teva Pharmaceutical Industries
EverQuote isn't the only company on the list that's making a repeat appearance. Brand-name and generic-drug stock Teva Pharmaceutical Industries (TEVA 0.48%) looks to have the puzzle pieces in place to double.
In terms of valuation, pharmaceutical stocks don't come any cheaper. Shares can be scooped up for roughly 3 times Wall Street's forecasted earnings per share in 2022. This exceptionally low price-to-earnings ratio is a function of the opioid litigation Teva and its peers are facing, as well as other factors, such as generic-drug price weakness and a leveraged balance sheet.
Teva's secret weapon continues to be its CEO, Kare Schultz, a turnaround specialist who, since taking over in late 2017, has slashed annual operating expenses by billions of dollars, jettisoned non-core assets, and reduced the company's net debt from north of $34 billion to about $22 billion. There's no question Teva has more financial flexibility now than it did four years ago.
The key to Teva's doubling would be a resolution to the more than 40 state-level opioid lawsuits. The thing is, Teva and its peers recently won an opioid trial in California. With momentum now shifting, Schultz may be able to broker a nationwide deal that involves free or discounted generic medicines, as opposed to a cash settlement. If this litigation overhang disappears, Teva could soar.
Image source: Getty Images.
15. Alliance Resource Partners
What would you say if I told you that an ultra-high-yield dividend stock could double your money in 2022? Better yet, what if I noted that this company in question is primarily a coal producer? By now you probably think I'm nuts, but Alliance Resource Partners (ARLP +1.25%) could very well turn coal into diamonds for its shareholders this year.
There's no sugarcoating that that Alliance Resource had a miserable 2020. Coal demand and per-ton pricing dropped considerably, as did the royalty revenue the company generates from its oil and natural gas assets. It was something of a perfect storm that caused this rock-solid dividend stock to halt its payout. But a turnaround is now well under way.
According to CEO Joseph Craft, the conditions for coal, in terms of demand and pricing, remain favorable into 2023. A big increase in natural gas prices last year has lifted demand for coal production in the Eastern U.S., with capacity utilization of the company's domestic coal fleet hitting a three-year high.
The company also has a track record of securing coal supply and price commitments domestically and abroad well in advance. Based on its expected output in 2021, perhaps 90% or more of 2022's output is already spoken for.
A 7.6% yield with favorable industry trends and a forward price-to-earnings ratio of 4 gives this stock a real chance to shine.
Image source: Getty Images.
16. Ping Identity Holdings
One of the smartest trends investors can put their money to work in this year is cybersecurity. Although most cybersecurity stocks trade at a premium, you can get double-digit growth and value -- along with the potential to double your money -- with Ping Identity (PING +0.00%).
As its name implies, Ping's specialty is identity verification. The company's cloud-based platform relies on artificial intelligence to become smarter and more effective at recognizing and responding to potential threats over time. Ping is especially effective at working with on-premises security solution providers to create a unified platform. Ping is able to layer continuous verification, authentication, and authorization monitoring on users to improve overall data protection.
Admittedly, Ping didn't perform all that well during the early stage of the pandemic. With some of its clients opting for shorter term-based licenses because of pandemic uncertainty, revenue growth stalled. However, annual recurring revenue (ARR) growth hasn't missed a beat. ARR is arguably a better measure of Ping's success, since virtually all of its revenue derives from subscriptions. The company's ARR has consistently grown by the mid- to high teens.
Investors should also be excited about Ping's move to push software-as-a-service (SaaS) subscription solutions. SaaS cybersecurity solutions are high margin and should provide added incentive for clients to remain loyal to Ping. At roughly 6 times Wall Street's projected sales for 2022, this profitable cybersecurity stock is a steal.
Image source: Getty Images.
17. StoneCo
For investors who love risk and reward, fintech stock StoneCo (STNE +1.84%) is an excellent candidate to bounce back strongly in 2022, and potentially even double.
Last year, the Brazilian-focused StoneCo struggled mightily. Its share price dropped in the neighborhood of 80%, with rapidly rising inflation and higher interest rates plaguing the Brazilian economy. Although inflation can be helpful if consumers keep buying goods and services, the costs to service StoneCo's loan segment, which is backed by its debt, becomes more expensive with rising rates.
Though Brazil is entering 2022 in a less-than-ideal scenario, the thesis is that Wall Street has overreacted to StoneCo's recent struggles. As evidence, just take a closer look at micro- and small-business user and service utilization figures, which have all rocketed higher. The company's active paying client base more than doubled to 1.4 million, with its banking client base quadrupling to north of 422,000 in a year.
At some point, StoneCo will have to raise its banking service prices to account for higher interest rates. But the user data clearly shows that Brazil is a largely untapped market for digital purchases and peer-to-peer loans, especially to small businesses and entrepreneurs.
Furthermore, StoneCo has a history of generating adjusted profits, and its price-to-sales multiple has come down from north of 30 to approximately 3.5 times Wall Street's consensus revenue figure for 2022. That's a potential bargain.
Image source: Getty Images.
18. Jushi Holdings
There's an insane amount of value among U.S. MSOs. But if my arm were twisted, small-cap stock Jushi Holdings (JUSHF 3.00%) jumps to the top of the list.
The company is a relative small fry compared with other MSOs. Last month, it opened just its 28th dispensary, with around 10 additional retail licenses waiting to be deployed. What really helps Jushi stand out is its three-state focus: Pennsylvania, Illinois, and Virginia. Last year, this trio is likely to have accounted for roughly 80% of total sales.
Why Pennsylvania, Illinois, and Virginia? They're limited-license markets. If you recall from the discussion of Columbia Care, regulators in limited-license markets purposely encourage competition. While this can be a nuisance for larger MSOs, a smaller pot stock that's angling to build up its brand, like Jushi, can take advantage of these added protections. Both Pennsylvania, where Jushi has 18 of its 28 operating dispensaries, and Illinois limit how many retail licenses are issued in total and to a single business. Meanwhile, Virginia assigns licenses based on jurisdiction.
Additional reasons to be excited about Jushi include management's willingness to deploy capital to make acquisitions in high-dollar markets, as well as having insiders with skin in the game. Approximately $45 million of the first $250 million the company raised came from insiders. Good things often happen when insiders and common-stock holders have the same monetary goal.
Image source: Proto Labs.
19. Proto Labs
A forgotten but undervalued name that could deliver sizable gains, and perhaps even a double in 2022, is digital manufacturing company Proto Labs (PRLB +0.31%).
For anyone who's been investing in the stock market for the past decade, you're probably familiar with the hype and subsequent bubble-popping event that accompanied 3D printing. The application for 3D printers in healthcare and the industrial space remains insanely high. However, the uptake of individual printers sold commercially failed to come anywhere close to lofty expectations. After many years, Proto Labs is the company that looks to have emerged as the clear leader in digital manufacturing.
Despite being plagued by supply chain issues and inflation in 2021, Proto Labs stands out for its operating approach. Rather than having to constantly spend to develop new 3D printing machines to sell to businesses, it acts as a one-stop shop for digital manufacturing services. If a business needs a quick turnaround for a prototype, Proto Labs can lean on injection molding, CNC machining, or 3D printing, to get the job done. Just as you'd go to FedEx for your shipping needs, Proto Labs is the higher-margin one-stop shop for enterprise prototyping needs.
What's particularly encouraging is that all of its segments are growing, including year-over-year double-digit growth from 3D printing and CNC machining in the third quarter. With Proto Labs now valued at 3 times projected sales in 2022, down from more than 12 times sales a year ago, it looks like a value.
Image source: Lovesac.
20. Lovesac
When you think of innovation and growth, furniture stocks probably don't come to mind. That's because the furniture industry is typically reliant on foot traffic into brick-and-mortar stores, and everyone is buying similar wholesale products. But small-cap stock Lovesac (LOVE 1.42%) is completely shaking up the traditional furniture store operating model.
The first way it's differentiating itself is with its furniture. Though it was originally known for its beanbag-styled chairs, called "sacs," approximately 85% of its revenue these days derives from selling modular sectional couches known as "sactionals."
Sactionals can be rearranged in dozens of configurations, which allows them to fit any living space. There are also 200 cover choices for sactionals, meaning they'll match any color or theme of a home. Best of all, the yarn used in these covers is entirely made from recycled plastic water bottles. This combination of functionality, choice, and eco-friendliness is what's made Lovesac a favorite among millennial buyers.
Lovesac's omnichannel presence is the other key component to its success. During the initial stages of the pandemic, when foot traffic to brick-and-mortar furniture stores dried up, the company was able to shift nearly half of its total sales online. Coupling direct-to-consumer sales with pop-up showrooms and a growing number of online and in-store partnerships has helped Lovesac dramatically lower its overhead costs and push to recurring profitability well ahead of schedule.
Image source: Getty Images.
21. Kulicke & Soffa
Even though it outperformed in 2021, semiconductor equipment company Kulicke & Soffa (KLIC 1.74%) looks poised for an even better 2022.
Although "less is more" is rarely a phrase that works on Wall Street, a shortage of semiconductor chips, largely caused by pandemic-related supply chain disruptions, has created a golden opportunity for Kulicke & Soffa to shine. Providing the equipment and machining solutions to help businesses meet their high-tech chip production needs is what generates most of its revenue. This is especially true for the rollout of 5G in connected devices, which represents one of the most sustainable growth opportunities in high-volume semiconductor output.
But there's a lot more to this growth story than just traditional industries and sectors looking to beef up their production. Kulicke & Soffa is set to benefit from the need for more complex assembly equipment in relatively new but hypergrowth industries. Examples the company cited in its Investor Day presentation last September include automotive and industrial infrastructure for electric vehicles and their batteries.
Likewise, my Foolish colleague Billy Duberstein has touched on Kulicke & Soffa's development of machines for micro- and mini-LED displays. Although these premium displays aren't raking in the cash yet, they could become a significant revenue driver within the next three years.
Sporting nearly $700 million in net cash and a forward price-to-earnings ratio of around 10, Kulicke & Soffa appears cheap and fully capable of crushing Wall Street's expectations this year.
Image source: Getty Images.
22. LL Flooring
The 22nd and final stock that can double your money in 2022 is LL Flooring (LL +0.00%), the company that was previously known as Lumber Liquidators until a few days ago.
LL Flooring has faced its fair share of challenges over the past year. There have been pandemic-related supply issues, higher material costs, and difficult year-over-year sales comparisons -- i.e., people were stuck in their homes during the initial waves of COVID-19 in 2020 and spent a lot of money on hard-surface flooring upgrades.
In 2022, a lot of these hiccups will disappear. For example, the company will be up against more favorable year-over-year sales comps this year, and consumers will be looking for deals with lumber prices on the rise. In short, LL's reputation for providing high-quality hard surfaces at lower prices should make its stores a target destination for home remodels.
The company is gaining traction with its Pro program, too. This is the segment that works hand in hand with hard surface installation professionals. By providing Pros with the products and software they need to grow their business, LL Flooring has worked out a mutually beneficial relationship for all parties.
Look for LL to mop the floor with Wall Street's per-share profit projections in 2022.
