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10 Stocks That Could Double Your Money in 2022

Author: Jeremy Bowman | December 02, 2021

2022 written on a road through a forest.

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Time for a financial reset

2021 is set to wrap up in a month, and it’s been another strong year for stocks. As of Nov. 30, the S&P 500 is up 22%. Even with threats from the new omicron variant and tightening monetary policy, the stock market looks set to finish the year with solid gains.

However, the new year gives investors an opportunity for a mental reset as the year-to-date boards are wiped clean. With that in mind, below are 10 stocks that could double your money in 2020.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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A Stitch Fix clothing assortment.

Source: Stitch Fix

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1. Stitch Fix

Stitch Fix (NASDAQ: SFIX) has had an ugly 2021 with the online styling service’s stock down more than 50% as a short squeeze at the beginning of the year. However, there’s no clear reason for the sell-off. The company has beaten estimates in most of its earnings reports this year, and it just launched its new Stitch Fix Freestyle service, offering a curated selection of clothes to brand-new customers.

A surprise change in the CEO chair may have spooked investors earlier, but overall the company looks poised for a pop, especially if Freestyle delivers strong growth. At this point, a double in the stock would only mean recouping most of this year’s losses, so that should be within the company’s reach, especially as it could benefit from ongoing tailwinds from the reopening.

ALSO READ: 2 Stocks I'm Never Selling

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Person looking at Pinterest images on tablet.

Source: Pinterest

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2. Pinterest

Like those of Stitch Fix, Pinterest (NYSE: PINS) shares have gotten hammered in recent months, with the stock down more than 50% from its peak in February. But Pinterest’s slide is more understandable.

Shares of the searchable-image network have gotten hit as its user base has actually declined over the past two quarters on a sequential basis after it spiked early on in the pandemic.

While that may seem like a concerning trend, there are signs that it will be short-lived. Pinterest said in its third-quarter earnings call that domestic users had held steady in October while international users have returned to growth.

Elsewhere, Pinterest continues to execute with strong monetization, revenue growth, and profitability. In fact, the stock now trades at a price-to-earnings ratio of less than 40 based on this year’s expected earnings. That looks like a mistake, considering the company still has a lot of growth potential.

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Person looking at several different projected images.

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3. Perion Network

Ad tech stocks have been big winners during the pandemic, and Perion Network (NASDAQ: PERI) is among them with the stock nearly doubling this year. However, it may still be underappreciated by investors.

The company provides an intelligent hub for publishers and brands to connect and offers technology to allow brands to publish premium ads with features like QR codes. That, along with some acquisitions and explosive growth in connected TV, has driven strong growth broadly in the business.

In its third quarter, revenue was up 45% and net income according to generally accepted accounting principles jumped by 400%, showing the business is gaining scale. Meanwhile, the stock looks cheap for a company growing that fast, at a price-to-earnings ratio of roughly 25 based on this year’s expected earnings.

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Person shopping in an auto parts store.

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4. CarParts.com

Another pandemic winner that has struggled this year is CarParts.com (NASDAQ: PRTS), which has traded flat through 2021 after booming growth in 2020.

Mostly ignored by the market, CarParts.com is a small-cap stock that sells auto parts online, seeking to disrupt a massive industry. The company sells mostly private-label products, allowing it to underprice competitors, and it's rapidly expanding its distribution capacity with a new distribution center in Florida and an expansion of its Texas facility set to come online in the first half of 2022.

That should help fuel the company’s growth next year, and over the long term it’s targeting 20% to 25% revenue growth and 8% to 10% adjusted earnings before interest, taxes, debt, and amortization (EBITDA) margins. With its stock down nearly 50% from its all-time high earlier this year, doubling in 2022 is definitely a reasonable possibility for CarParts.com.

ALSO READ: 5 Top Stocks to Buy in December

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Lemonade insurance.

Source: Lemonade

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5. Lemonade

AI-driven insurance company Lemonade (NASDAQ: LMND) is another stock with significant disruptive potential in a huge market.

The company is growing rapidly with a disruptive approach that offers instantaneous quotes with AI bots to help guide customers through claims and policies. However, the company is only valued at $3 billion, giving the stock a ton of upside potential, and it’s also down by more than two-thirds from its pandemic-era highs.

In its most recent quarter, revenue doubled to $35.7 million. While the company is operating at a substantial loss as it spends on marketing to grow awareness, its focus on millennials and Gen Z gives it an advantage. Its tech-first approach should also help it steadily grab share from competitors.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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6. Upstart Holdings

Few stocks have electrified the market like Upstart Holdings (NASDAQ: UPST), an AI-based consumer lending company. Upstart connects lenders to loan applicants using proprietary algorithms.

The stock surged by more than 800% this year before cooling off. It’s now down about half from its previous heights, setting the stage for a potential double next year if the company can continue its rapid growth and attract new customers.

Revenue in the third quarter soared 250% to $228 million, and its loan origination volume grew by a similar percentage to $3.13 billion.

Upstart is also profitable, and margins should expand as it grows.

In the most recent quarter, it reported an operating income of $28.6 million, or the equivalent of a 12% margin.

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Airbnb in Joshua Tree.

Source: Airbnb

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7. Airbnb

A company that is worth more than $100 billion may seem like an unlikely candidate for a stock that could double, but Airbnb (NASDAQ: ABNB) has that kind of potential, as the travel disruptor’s recent earnings report showed. Additionally, if the pandemic fades, the company’s chances at doubling look even stronger.

Airbnb laid off a quarter of its workforce during the height of the pandemic and sharpened its focus on profitability. Those efforts are clearly bearing fruit.

In the company’s third quarter, net income more than tripled from Q3 2019, before the pandemic hit, to $834 million on $2.2 billion in revenue. The third quarter is its seasonally strongest time of year, but if the travel industry continues to return to normal, 2022 will see even stronger numbers, making the $100 billion market cap look cheap for the company’s growth potential.

ALSO READ: My 2 Best Growth Stocks to Buy Now

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Worker in blue latex gloves dispensing dose of COVID-19 vaccine through syringe.

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8. Moderna

On the other hand, if the pandemic does get worse, which is an increased possibility after the emergence of the omicron variant, Moderna (NASDAQ: MRNA) looks like a good bet for a stock that could double. Arguably, no other vaccine maker is in a better position to benefit from such an event, and Moderna is also poised for further medical breakthroughs to fight diseases like HIV, cancer, and the flu.

The company already has a hefty market cap at $142 billion, but the stock has been highly volatile in recent months, giving it the potential to double again next year.

In the two days following the announcement of the omicron variant, the stock jumped 35% and was up nearly 70% from its low just a few weeks earlier.

Meanwhile, Moderna’s windfall profits from its COVID-19 vaccine and demand for booster shots should put a floor on the stock if the omicron variant turns out to be less of a threat than some fear.

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Affirm card.

Source: Affirm Holdings

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9. Affirm Holdings

Another breakout stock this year has been Affirm Holdings (NASDAQ: AFRM), the buy now, pay later specialist that has rocketed higher following deals with high-profile retailers like Amazon and Target, as well as the e-commerce platform Shopify.

Like other fintech stocks, Affirm has proven to be explosive, with shares more than tripling from its base to its peak this year, though it has cooled off more recently.

Still, the stock has the ability to double in 2022, especially if it continues to attract more retail giants and take market share from credit card companies.

Gross merchandise volume jumped 84% on a year-over-year basis, or 136% excluding its largest customer, Peloton.

With that kind of momentum, the stock could easily double if it maintains its growth rate and takes steps toward profitability.

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Beagle on leash looking up.

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10. Petco

You might not expect a brick-and-mortar retailer to be a good candidate for a stock that could double, but Petco is more than a typical retail chain. The pet products company has a fast-growing e-commerce business and is moving into services, opening up pet grooming centers, and more importantly, veterinary clinics, including full animal hospitals. It’s also growing membership-based products like insurance and Vital Care, a subscription that offers benefits like discounts on grooming for $19 per month.

In its third-quarter earnings report, the company showed off 15% comparable sales growth and a 32% two-year comp, and EBITDA increased by 17%.

Given those new business lines and a boom in pet adoptions during the pandemic, Petco looks well positioned for steady growth, especially as it trades at a price-to-earnings ratio of 22.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Previous

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Person smiling widely while looking at laptop.

Source: Getty Images

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Surprises await

2022 is just around the corner, and a number of forces that look poised to affect markets are already visible, like the omicron variant, tightening monetary policy, and rising inflation. There are likely to be several other events that rock markets.

Chances are we’ll see a new crop of winners in 2022 as market sentiment and macroeconomics shift, but if you’re looking for stocks that could surge, the ones we've mentioned on this list are a good start.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman owns shares of Amazon, CarParts.com, Inc., Lemonade, Inc., Moderna Inc., Perion Network, Pinterest, Stitch Fix, and Target. The Motley Fool owns shares of and recommends Affirm Holdings, Inc., Amazon, Lemonade, Inc., Peloton Interactive, Pinterest, Shopify, Stitch Fix, and Upstart Holdings, Inc. The Motley Fool recommends Moderna Inc. and recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policy.

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