Please ensure Javascript is enabled for purposes of website accessibility

Want a 54% to 244% Return? Try These Growth Stocks, Wall Street Says

By Anthony Di Pizio – Jan 15, 2022 at 6:10AM

Key Points

  • The metaverse is set to be worth $800 billion by 2024, and Unity Software is positioned to capture a slice.
  • has grown its customer base by 395% in less than two years, and that bodes well for future revenue gains.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The tech sector is having a rough couple of months, but top Wall Street firms have identified some enticing opportunities.

The new year is still fresh, but the stock market is off to a bumpy start to 2022. The S&P 500 index, which is followed for its diverse array of sectors, has already fallen by 2.4% since Jan. 1. 

The technology sector has fared even worse, but that presents some opportunities given its history of, and potential for, high growth over the long term. Some individual tech stocks in particular have received a strong vote of confidence from Wall Street analyst firms for their innovative business models focused on driving the future. 

These two could supercharge your portfolio this year with a potential upside of 54% to 244%, according to analysts.

A smiling person playing a game with a virtual reality headset on.

Image source: Getty Images.

1. Unity Software: Implied upside of 54%

When it comes to platform technology, you'd be hard-pressed finding a more exciting company than Unity Software (U 3.03%). It's effectively an advanced creative studio for programmers and developers, whether they're making games, films, or 3D renderings for industrial purposes. But since it supports virtual and augmented reality, its most exciting future use might rest with the metaverse.

The company's flagship Unity Pro is a full-service platform for game developers from creation to operation. It allows developers to build their product and deploy it to closed platforms like Sony's PlayStation, and Microsoft's (MSFT 1.45%) Xbox. Then, Unity Pro offers analytics on player behavior, an advertising solution, and a plug-in for in-app purchases. In 2020, over 50% of all mobile, console, and PC games were made with Unity. 

The company has experienced tremendous growth recently, especially among its highest-spending customer base. At the end of 2019, it had 600 customers that each spent $100,000 or more annually. And in the most recent period, the third quarter of 2021, that number grew to 973, a 62% increase in less than two years. Naturally, this has driven a surge in revenue.



2021 (Estimate)



$541 million

$1.08 billion


Data source: Unity Software. CAGR = compound annual growth rate. 

Unity's 2021 estimate is pending its official fourth-quarter result. But in 2022, analysts are expecting revenue to exceed $1.4 billion and for the company's net loss per share to inch closer to breakeven. If revenue growth continues at the current pace, profitability won't be far off.

Wall Street investment bank Morgan Stanley has a $185 price target on Unity's stock, a 54% gain from the current price of $120. But as developers turn their attention to the metaverse, which could be an $800 billion opportunity by 2024, investors might find Morgan Stanley's price target to be conservative over the long term. 

A digital face appearing amongst computer code and a digital background.

Image source: Getty Images.

2. Implied upside of 244%

Enterprise artificial intelligence (AI) company (AI 2.34%) has blazed its own trail in an emerging high-tech industry. Most companies don't have the resources (nor can they attract the talent) to build their own AI applications in-house. fills that gap with a suite of pre-built solutions that can be fully customized to meet the needs of companies in 14 different industries.

AI delivers unprecedented benefits in the business world. Its predictive capabilities can help forecast consumer trends, or even anticipate crucial equipment failures, which is how oil and gas companies use's applications. The fossil fuel industry is a prime example of a legacy sector that lacks the technological resources to build its own AI tools, and that's why has developed an entire portfolio specifically for it in collaboration with oil services company Baker Hughes is also being recognized by its peers in the tech industry. It has collaborations with the cloud computing arms of Microsoft and Alphabet's Google. Together, the companies are leveraging AI to help a range of industries including manufacturing, healthcare, and financial services.'s customer base has exploded by 395% from 21 in fiscal 2019 to 104 today, highlighting soaring demand for advanced AI applications.


Fiscal 2019

Fiscal 2022 (Estimate)



$92 million

$249 million


Data source:, Yahoo! Finance.'s stock has fallen by 83% from its all-time high, as investors appear to have initially overestimated the company's growth rate. But that presents an enticing opportunity to buy it at a heavy discount, especially given the significant growth in customer numbers, which is likely to accelerate in the future as more companies seek the benefits of AI.

Wall Street firm Needham has attached a $103 price target to's stock, which represents a whopping 244% gain from today's price. That's an encouraging thumbs-up, especially when considered alongside the heavy-hitting tech titans is working with. This stock could really supercharge your portfolio in 2022 and beyond.

Anthony Di Pizio has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool owns and recommends Alphabet (A shares), Alphabet (C shares),, Inc., Microsoft, and Unity Software Inc. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.