10 Stocks That Could Double Your Portfolio in 2022

It's a new year, which is a good time to rethink your investments. The stock market has surged over the past three years, but things could change in 2022. There's uncertainty around the recovery from the coronavirus pandemic as the omicron variant sweeps the nation, and the Federal Reserve has promised up to three interest rate hikes, which could squeeze growth stocks.

After a number of high-flying tech stocks in sectors like software as a service faltered in 2021, it could be time to look elsewhere for growth. Keep reading to see 10 stocks that could power your portfolio higher in 2022.

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.

CarParts.com (NASDAQ: PRTS) has been a big winner during the pandemic, up 400% since it began. However, a recent pullback in the stock -- along with ongoing supply chain constraints in auto manufacturing, sky-high used car prices, and the company's own disruptive strategy -- puts it in a position for a strong performance this year.

Over the long term, the company is targeting 20% to 25% revenue growth and adjusted earnings before interest, taxes, depreciation, and amortization margins of 8% to 10%. But its valuation shows the market is taking a dim view of its future growth potential, trading at a price-to-sales ratio of 1.

Recently, CarParts.com's growth has been supply constrained. Demand has been strong, however, and with two new warehouses set to come online this spring, the company's growth could reaccelerate later in the year.

ALSO READ: 3 Top E-Commerce Stocks to Buy Right Now

The ad tech industry has also taken off during the pandemic as digital advertising has gained new relevance during a time when people have spent more time in front of screens and less time out in the physical world. At the same time, interest in areas like streaming has surged, driving a new ad market in connected TV (CTV), or ad-based streaming television.

Perion Network (NASDAQ: PERI), an Israeli ad tech company, has been a beneficiary of this trend with the stock up nearly 300% since the beginning of 2020. However, Perion seems poised for more gains as it's carved out a unique niche in the ad tech sector with its Intelligent Hub that serves both brands and publishers, both ends of the advertising market. That, along with strong growth in CTV, recently led the company to raise its guidance in 2021 and 2022. The stock is also very reasonably priced at a price-to-earnings ratio of 27, which seems to underestimate the company's growth potential, with revenue expected to increase 29% in 2022 after 42% growth in 2021.

Cryptocurrency remains the Wild West of the stock market, but no one can doubt that Coinbase Global (NASDAQ: COIN) is a viable business. The largest cryptocurrency exchange is highly profitable and has competitive advantages with more than 120 different crypto coins available on its exchange.

Predicting what happens with cryptocurrency in 2022 may be a fool's errand, but if interest surges in the digital tokens like it did in the second quarter of 2021 with Dogecoin, Coinbase will be sure to capitalize.

With the company at a price-to-earnings ratio of just 13, the market seems to be betting that its growth will be at sluggish at best. If crypto trading spikes in 2022, expect Coinbase to be a big winner.

Revolve Group (NYSE: RVLV) has benefited from a recovery in apparel sales after a lull during the pandemic, as well as a bump in overall online retail.

The influencer-driven online apparel company managed well through the pandemic as profits grew in 2020 even as revenue growth flatlined. More recently, revenue has surged as the company has begun investing in long-term growth again with the top line up 62% in Q3 2021.

Revolve's business is geared toward occasion wear, selling clothes for events like parties, weddings, and music festivals. If the pandemic wanes by the summer, the conditions could be perfect for Revolve to boom. With the stock down more than a third since its peak in November, the upside potential looks considerable.

ALSO READ: Why Revolve Group Crushed Q3 Earnings

Pinterest (NYSE: PINS) was a winner for much of the pandemic, but the stock fell through 2021 as its user growth has declined over much of the year. While that might normally be a warning sign, it's more a result of a surge in interest during the lockdown period, and most of the users the company is losing appear to be low-value ones.

Meanwhile, its revenue and profitability have surged thanks to new advertiser and user products, and management indicated in its most recent earnings report that the user decline appears to have hit a bottom.

In 2022, user growth is likely to return, and the company should continue to deliver strong growth on the top and bottom lines. Currently, Pinterest looks like a bargain at a price-to-earnings ratio of 34 after falling more than 50% from its peak in February. For the high-growth social media stock, that presents a great buying opportunity.

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.

Few industries were hit as hard by the pandemic as the travel sector, but Airbnb (NASDAQ: ABNB) is emerging with a considerable lead over its rivals. The home-sharing leader's business model has a flexibility that hotel chains on online booking agencies do not. The company can easily add new inventory in areas in high demand, such as rural areas near cities during the pandemic, and it's also benefited from interest in long-term stays, a category hotels can't really compete with.

The company has already returned to record levels in many key metrics by Q3 2021, which included a surge in profitability thanks to earlier layoffs and more conservative marketing spending.

If the pandemic fades this year and travel makes a full return, Airbnb is likely to be a prime beneficiary.

Law enforcement doesn't come up on investors' radars a lot, which is part of what makes Axon Enterprise (NASDAQ: AXON) so interesting. The company makes Taser stun guns, body cameras, and cloud software and databases such as Evidence.com and Axon Records. The latter help law enforcement manage and process the significant amount of data that agencies collect.

There are a number of catalysts that could drive the stock higher. In fact, the company recently doubled its addressable market from $27 billion to $52 billion by making Tasers available to individual consumers and by expanding to justice software, an adjacent market to law enforcement.

Additionally, the company is adding new products like Axon Records and other cloud-connected products. With few direct competitors, Axon has strong competitive advantages, and the stock could reward investors in 2022 as its market is growing significantly.

ALSO READ: Why Axon Is Poised for Massive International Growth

Fed Chair Jerome Powell has projected as many as three interest rate hikes this year, and in an inflationary environment with rising interest rates, commodities are often a good bet.

Resolute Forest Products (NYSE: RFP) makes a variety of timber products, including paper, pulp, and tissue, and the company has been pivoting more of its business to wood products, which has been a smart move as lumber prices have boomed.

With supply chain constraints remaining and housing demand strong, Resolute Forest Products looks to be in good shape for 2022. The stock is also remarkably cheap at a price-to-earnings ratio of less than 4 based on 2022 expected earnings. If the company delivers on that forecast, investors could also be rewarded with another special dividend or more share buybacks.

The real estate market is still red hot, and that leaves an opening for a disruptor like Redfin (NASDAQ: RDFN). The online real estate brokerage has been growing rapidly thanks to the expansion of its iBuying program, RedfinNow.

After Zillow shut its own iBuying business, Zillow Offers, in Q3 due to poor execution, some investors balked at the wisdom of iBuying. But that left an opening for Redfin, which has taken a more conservative approach to the home-flipping market. In fact, in the most recent quarter, RedfinNow sold homes above the company's forecast price. Meanwhile, the company continues to expand into new markets, driving its more traditional brokerage.

If the real estate market remains strong, and the company continues to execute in iBuying, the stock looks like a promising recovery candidate in 2022.

A year and a half after its IPO, Lemonade (NYSE: LMND) is trading near its all-time lows, down roughly three quarters from its high.

The insurance disruptor boomed with other growth stocks earlier in the pandemic, but it has since faded as it's putting up wide losses and investors balked at its valuation.

However, there are a number of reasons to believe that Lemonade shares could surge in 2022. The company continues to grow briskly with what it collects in premiums up 84% to $347 million in Q3 2021, while revenue doubled to $35.7 million.

Lemonade also expanded into car insurance, acquiring Metromile, which gives it licenses in 49 states, allowing it to tap into one of the biggest insurance markets and to bundle homeowners and car insurance. Lemonade has been gaining traction with millennials, and its growth should benefit from Metromile.

With that acquisition and an already-strong growth rate, 2022 could mark an inflection point for the stock.

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.

After the S&P 500 gained nearly 50% over the past two years, the market seems due for a slowdown in 2022. But if there's one lesson from the pandemic to keep in mind, it's that uncertainty rules the market.

2022 is likely to see another round of uncertainty with factors like the omicron variant, rising interest rates, and geopolitical tensions in China and Russia poised to move the market.

Still, there are always winning stocks to be found, and barring a major crash, there will almost certainly be some winners. Keep an eye on the stocks on this list as many of them have the growth, valuation, and recovery tailwinds that should make them winners in 2022.

Jeremy Bowman owns Airbnb, Inc., Axon Enterprise, CarParts.com, Inc., Lemonade, Inc., Perion Network, Pinterest, Redfin, and Revolve Group Inc. The Motley Fool owns and recommends Airbnb, Inc., Axon Enterprise, Coinbase Global, Inc., Lemonade, Inc., Pinterest, Redfin, Revolve Group Inc, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends the following options: short February 2022 $65 puts on Redfin. The Motley Fool has a disclosure policy.