Today, I am bringing you my five favorite growth stocks for 2022 that I currently do not own. These stocks are on my watchlist, and I would like to add them to my long-term investing portfolio. These are high-growth stocks to hold for the next 10 years.
Four of the five stocks covered were red-hot IPOs in 2021. I personally would like to see a couple more earnings reports, as well as lower prices, before starting a position. With the stock market correction and growth stocks crashing, opportunities will continue to present themselves. The below video will help you prepare your shopping list for stocks to buy in 2022.
My favorite stock on this list is HashiCorp (HCP 0.71%). The company was founded in 2013 to enable IT collaboration and automation. In a nutshell, it allows users to define infrastructure as code throughout the entire life cycle, from development and testing to deployment and operations. HashiCorp's open-source products support cloud, private, and hybrid environments. The company believes that "infrastructure enables innovation," and it offers a suite of solutions that assist businesses with cloud adoption by simplifying infrastructure challenges with provisioning, security, networking, and deployment of applications.
HashiCorp's solutions enable businesses to reduce time to market, improve operational efficiency, boost security, and enable overall simplification of infrastructure deployments. A significant technology trend involves companies moving from on-premise, legacy software to the cloud, and HashiCorp is a leader at assisting with this transition.
In fiscal 2021, HashiCorp's open-source solutions were downloaded over 100 million times. Interestingly, many of the highest-growth software-as-a-service (SaaS) and cloud names have open-source backgrounds. But how does the company make money? Since 2016, HashiCorp has been selling proprietary software as bolt-ons, primarily aimed at large organizations. It sells features such as collaboration modules, enterprise use cases, governance and policy modules, and premium support and services on top of its open-source solutions. HashiCorp does not report annual recurring revenue (ARR), but as of last quarter, the company had around $295 million of implied ARR, which is growing at 50% year over year with a 124% annual net dollar retention rate. HashiCorp has 2,101 customers, of which 558 are worth over $100k annually and 58 are worth over $1 million.
Here are some other key facts about HashiCorp:
- It has 36,000 user group members in over 50 countries.
- It has an ecosystem of over 700 partners, including all major cloud service providers.
- It owns four U.S. patents with 19 pending.
- It hosts two conferences annually with nearly 10,000 attendees at each.
- HashiCorp's tools have been downloaded by nearly 80% of the Fortune 500.
For more information and four additional stock picks, please watch the below video.
*Stock prices used in the below video were during the trading day of Feb. 3, 2022. The video was published on Feb. 3, 2022.