Merging company

3 main growth stocks that could continue to crush the market in 2022

Market volatility can be confusing for people looking for a calm way to reach their financial goals for 2022. But growth stocks have long been one of the best ways to increase wealth over time. , although they tend to be more volatile than, say, the blue chip dividend aristocrats.

Ford (NYSE: F), Textron (NYSE: TXT) and Wallbox (NYSE: WBX) are three growth stocks that could continue to crush the market in 2022. Here’s what makes each a great buy now.

Image source: Ford Motor Company.

From solid to growth spurt

Daniel Foelber (Ford): Lucid group (NASDAQ: LCID) and Rivien Automobile (NASDAQ: RIVN) grabbed the attention of the auto industry in 2021 after the two electric vehicle (EV) newcomers were made public and pledged big plans for 2022 and beyond. Lucid and Rivian ended the year with expensive valuations of $ 62.6 billion and $ 93.4 billion, respectively, compared to just $ 83 billion for automaker Ford. And that’s after Ford’s stock price gained more than 136% in 2021.

Longtime industry watchers may be scratching their heads and wondering how a mainstay like Ford can be classified as a growth stock. Make no mistake, Ford is a bulky company with a massive workforce and manufacturing footprint. But it is also one of the most aggressive EV investors, arguably ahead of its electric truck competitors like Rivian or General Motors.

Demand for Ford’s F-150 Lightning electric pickup is so strong that Ford has had to stop taking reservations after surpassing 200,000 in December. On January 4, it announced it was increasing its F-150 Lightning capacity to 150,000 units per year in response to better than expected demand. The Lightning is getting a lot of attention. Well Named. But the Ford Mustang Mach-E and E-Transit electric vans should not go unnoticed. Ford sold more than 27,000 Mach-Es in 2021, more electric vehicles than Lucid expects to sell in all of 2022. Given its strong brand and exciting new products, Ford is distinguished as one of the leading automakers to buy in 2022 and hold onto for years to come.

Textron to have another strong year in 2022

Lee Samaha (Textron): The company’s performance in 2021 (up almost 60%) could be the subject of a trivia question in the future. It has been a difficult year for the aviation and defense industries, let alone companies exposed to vehicle production, but Textron has turned the tide. The reason?

It comes down to its business jets and planes in its key Textron Aviation segment. Business jet departures are significantly higher compared to 2019, even with a slowdown in 2020. Thus, the strength of Textron Aviation throughout the year has encouraged management to increase its profit and profit guidance. cash flow for the full year 2021.

Additionally, there are three reasons why Textron may have another strong year in 2022. First, the resurgence of the COVID-19 pandemic is putting more pressure on commercial aviation, which is likely to further encourage spending on business jets. This is great news for Textron’s Cessna business jets.

Second, Textron Systems (military equipment, robotic ground vehicles, general aviation engines, air support to the US military) was affected in 2021 by the withdrawal of the US military from Afghanistan. This should create an easier hurdle for the company to overcome in 2022.

Third, Textron’s industrial segment generates 55% to 60% of its revenue from the fuel systems and functional components business, which is expected to benefit from an increase in vehicle production in 2022 as the industry shrinks. recovering from the semiconductor shortage that limited production in 2021.

All in all, Textron is forecast for another strong year in 2022. Trading at just 17 times its expected free cash flow in 2021, the stock remains good value.

A growth value to recharge

Scott Levine (Wallbox): Admittedly, Wallbox does not have a long commercial history in 2021. The action went public after merging with a specialist acquisition company (SPAC) in October. The EV charging stock has provided electric returns to investors during its presence in the market. From its public market debut on October 4 until the end of the year, Wallbox shares have climbed more than 102%. And while it’s clear that many bulls logged into Wallbox last year, there’s reason to believe this under the radar game has extra room to work in 2022.

There is no doubt that electric vehicle manufacturers have received the lion’s share of attention over the past two years, but the importance of electric vehicle chargers cannot be overlooked. In business since 2015, Wallbox is already experiencing strong growth in its EV charging offers. For example, the company reported revenue of $ 55 million in the first three quarters of 2021, which is over 280% growth from the same period in 2020. If the company hits its forecast sales for the last quarter of the year and declares $ 24 million on the top row, this will translate into revenue of $ 79 million, an increase of 230% from the $ 24 million dollars declared in 2020.

Although Wallbox has a stronger presence in Europe, the company is making inroads into the US market, which is another important area of ​​growth. In the third quarter of 2021, Wallbox announced the development of a 120,000 square foot manufacturing facility in Texas. Management expects production at the Lone Star State plant to begin in the second half of 2022 and eventually reach an annual manufacturing capacity of 290,000 and 500,000 by 2027 and 2030, respectively.

If the company continues to develop its manufacturing facility on time (and within budget) and achieves its revenue forecast, the market is likely to expect and take notice.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.