Volatility in markets offer opportunity to pick quality stocks at attractive prices. The Nasdaq Composite Index is down 11.4% in January as of this writing. During volatile times, it is best to buy stocks of companies with solid, long-term growth prospects.
Here are three such growth stocks to buy in 2022.
Lucid Group
Lucid Group (LCID 5.88%) looks to be one of the most promising electric vehicles (EV) makers right now. Superior battery technology developed over years allowed Lucid to deliver a market-leading range range in its first car, Lucid Air. Lucid Air can go up to 520 miles -- the longest range ever for EVs -- on a single charge. The company has gotten positive reviews from the media for its cars. As of mid-November, Lucid had more than 17,000 reservations for Lucid Air.
Image source: Getty Images.
The company has robust growth plans. It expects to deliver 20,000 vehicles in 2022. The company's manufacturing facility at Casa Grande, Arizona, has an initial capacity of 34,000 vehicles annually. In 2023, Lucid plans to launch its SUV called Gravity. Moreover, the company plans to expand internationally, starting with Saudi Arabia and Europe.
Lucid is backed by Saudi Arabia's sovereign wealth fund, which holds a 62.7% stake in Lucid. Further, the fund likely intends to hold the stake for the long term. That's a positive for Lucid's growth plans.
In short, Lucid has cutting-edge technology, immense buyer interest, solid growth plans, and a strong backing. Further, it is delivering on its plans. Though the electric vehicle market is immensely competitive, Lucid seems to be prepared to take competition head-on.
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XPeng
Chinese EV maker XPeng (XPEV 2.87%) is growing its sales rapidly. In 2021, the company sold 98,155 electric vehicles, up 263% year over year. In December alone, XPeng delivered 16,000 vehicles. Attractive features at competitive prices have contributed to the growth in XPeng's vehicle sales. XPeng offers three electric models: the P7 sports sedan, the P5 family sedan, and the G3 SUV.
XPeng is focusing heavily on developing its driver assistance system. Further, it is developing its own charging network and has more than 600 stations across China. Overall, XPeng seems to be laser-focused on long-term growth, and its recent revenue growth indicates its initial success. In the third quarter, XPeng's revenue grew 187% year over year to roughly $880 million.
Though XPeng is yet to report its fourth-quarter results, its strong delivery numbers point toward robust revenue growth in the latest quarter, too. China is projected to see strong growth in EVs in the coming years, and XPeng looks set to benefit from this expected growth.
Image source: Getty Images.
Enphase Energy
Solar components manufacturer Enphase Energy (ENPH 2.69%) is growing its sales rapidly. In the third quarter, the company's revenue grew 97% year over year. What's more, Enphase has been generating healthy margins on its sales.
Enphase Energy expects continued growth across all its target segments. The company estimates the addressable market for its microinverters to be $5 billion. Further, it expects this to grow to $8.2 billion by 2025. For its storage batteries, Enphase estimates an addressable market of $2.3 billion, growing to $4.5 billion by 2025. Similarly, Enphase Energy sees a large and growing market for its portable energy system.
Enphase Energy recently entered the electric vehicle charging market by acquiring ClipperCreek. It anticipates very strong growth in the residential EV charging market. Starting from microinverters, Enphase has expanded its offerings to batteries, portable energy system, and EV chargers. The company can cross-sell these products, helping it to increase its revenue per customer. Expanded offerings are adding to Enphase's revenue growth.
A growing market, strong sales, and healthy margins make Enphase Energy stock a solid buy. The stock is down nearly 30% so far in January, offering a more attractive entry point for long-term investors.
