3 Stocks That Could Double In 2022
When looking for stocks that could double in 2022, you usually need to look for one of two things. First, the stock needs to have a business that’s growing incredibly fast. If sales are growing through the roof year-over-year (YOY) then it will warrant a higher valuation. If sales are not growing rapidly then the stock needs to be going through a turnaround of some sort. A vital pivot in its core business will cause investors to look at it through a different lens.
Over the past two years, macro events have greatly impacted the prices of stocks. By macro events, I’m talking about fiscal, natural, or geopolitical events that impact stock prices. For example, COVID-19 caused the entire world to lockdown for months. This sent tech and eCommerce stocks flying. However, it caused restaurant and live event stocks to crash. Nothing had inherently changed about these companies. It was just the circumstances that changed.
Looking forward, 2022 should see fewer macro events. By this point, approximately 60% of the population is vaccinated against COVID-19. I feel as if I’ve been saying this for months. But life should be returning to normal soon. This will allow companies (and stocks) to perform to the best of their ability without being held back by unfair conditions.
Now, let’s turn our attention forward. It’s time to look at three stocks that could double in 2022.
NOTE: I’m not a financial advisor and am just offering information and commentary. Please do your own due diligence before making any decisions. For full disclosure, I own a position in all three of these stocks. Of course, I’m going to own a position in stocks that could double in 2022!
Stocks that Could Double in 2022
No. 3 Sofi (Nasdaq: SOFI)
Sofi is a jack-of-all-trades personal finance company. Right now, the bulk of its business comes from making loans. However, it also has products for investing, money management, and cryptocurrency. Personal finance is currently going through a revolution. Over the past few years, many fintech startups have given consumers better access to financial products. For example…
- Buying stock was a lot harder until Robinhood made it easy.
- Buying crypto was a lot harder until Coinbase made it easy.
- Sending money was a lot harder until Venmo/Square made it easy.
- Managing money was a lot harder until Sofi made it easy.
Sofi currently has about 2.5 million members and it’s rapidly adding more. Through 3 quarters of 2021, its membership has increased by 110%, 113% and 96%
YOY. In particular, its financial service products division is growing very rapidly (179% in Q3 2021). Google trends data also shows that searches for “Sofi” are up. More people searched Google for “Sofi” in September 2021 than at any time in history. It also owns the naming rights to the stadium where the Los Angeles’ Chargers and Rams play.
This all checks off the “rapid growth” box. But what about a vital pivot in its core business?
Upcoming Bank Charter?
Right now, the bulk of Sofi’s sales comes from loans. However, it’s also in the process of applying for a bank charter. Having a bank charter would instantly give Sofi more credibility. It would allow it to increase its lending capabilities and boost its margins. It would also give them more marketing and pricing control. In short, getting approval for a charter would be a very good thing for Sofi.
The good news is that it’s fairly far along in this process. It’s so far along, in fact, that The Sofi Bank already has employees on LinkedIn. The Sofi Bank (In Formation) has already hired a president and many other senior executives. Of course, approval is not guaranteed. This approval will be a very big factor for whether Sofi is one of the stocks that could double in 2022.
I’m writing this article on Dec. 11, 2021. Sofi’s stock price is currently $15.01 per share. For Sofi to double, it would have to reach $30.02 per share.
Stocks that Could Double in 2022 No. 2 Playboy (Nasdaq: PLBY)
Yes, Playboy is still around. Except it’s no longer a magazine. These days, it calls itself “a pleasure & leisure company serving consumers around the world with products, services and experiences to help them look good, feel good and have fun.” It is also one of the underdog stocks that could double in 2022.
Its sales have been on the rise. Over the past five quarters, revenue has increased by an average of 69.95% YoY. This is definitely solid growth. However, I’m more excited about the Playboy turnaround story.
Many people don’t really realize that Playboy is still around. However, it’s still one of the top 20 most licensed brands in the world. It sells products in 180+ countries and has 50 million fans on social media. The Playboy Bunny is one of the most recognizable icons ever.
Despite this, Playboy’s market capitalization is under $2 billion. There’s a good chance that Playboy is the most undervalued brand in the world. For example, it’s currently valued less than Calendly, Masterclass and Quora. If you put the Playboy Bunny next to any of these company’s logos, which would people recognize?
This cheap valuation is most likely because people just aren’t sure what Playboy is/does anymore. Which is fair. I mean, the magazine doesn’t even exist. Hugh Hefner passed away. So, what’s the deal? Well, right now, Playboy makes most of its money from selling apparel and other products direct-to-consumer. It also licenses its brand out to other companies. So, is this enough to make it one of the top stocks that could double in 2022?
The New Playboy
Looking forward, Playboy is investing heavily in the metaverse and NFTs. It is also investing in a creator-led digital platform called Centerfold.
Centerfold is going to be a “creator-led platform” that should be similar to OnlyFans. If you don’t know what OnlyFans is, run a quick Google search. Also, stop lying to yourself. OnlyFans is private, so there’s no way to tell how much money it makes. However, it has paid out approximately $2 billion to members as of November 2020. It’s safe to assume that OnlyFans generates a good chunk of cash. Now, Playboy coming for them.
According to Playboy’s press release, Centerfold will be “the new home for the world’s top creators to interact directly with their fans, expand their communities and build their own personal content and commerce businesses.” It will have everything from music, fashion, art, activism, and adult entertainment. Playboy expects to launch Centerfold in December 2021. However, it’s likely that this will be delayed.
Playboy has also brought in Cardi B to serve as Creative Director of Centerfold. I can’t speak on Cardi’s business savvy. However, when the time comes to spread the word about Centerfold, Cardi B is your girl. She has 117 million Instagram followers. She’s also one of the most outspoken people I’ve ever seen. To use CEO Brian Kohn’s words, she has an “unapologetic commitment to free expression.” I’m stealing this line the next time someone tells me to stop talking.
Right now, Playboy is flying under most analysts’ radar. However, if Centerfold is a success, it would quickly become a top choice for stocks that could double in 2022.
I’m writing this article on Dec. 11, 2021. Playboy’s stock price is currently $34.22 per share. For Playboy to double, it would have to reach $68.44 per share.
Stocks that Could Double in 2022 No. 1 Ford (Nasdaq: F)
As I write this, Ford is up over 150% for 2021. So, I may be a little late to writing this article. With that said, Ford still has plenty of gas left in the tank. In fact, you might say that it has plenty of juice left in the battery. Before I talk about Ford, I want to talk about electric vehicles.
Electric vehicles are currently some of the hottest stocks. Since 2020, Tesla stock is up over 900%. Chinese electric car maker Nio is up almost 800%. Rivian Automotive’s stock popped 70% after its IPO. It currently has a valuation near $1 trillion. Lucid Group’s stock popped 470% on IPO day. It has a valuation of over $60 billion. There’s just one problem. Except for Tesla, very few of these companies actually have cars on the road. For the most part, it has all been prototypes, projections, and hype. Meanwhile, there is one American manufacturer that is entering the electric vehicle market in a big way… Ford.
This carmaker is most definitely a company that’s making a big turnaround.
Ford is in the process of investing $7 billion to electrify its fleet. So far, the early results have been exceptional. Reservations for the electric Ford F-150 were so high that Ford had to stop accepting them. Incidentally, the regular Ford F-150 is the best-selling truck in America for 45 straight years. The Mustang Mach E is currently the second-highest selling electric SUV. It’s only behind Tesla’s Model Y. The recently re-released Ford Bronco is also selling above expectations.
In its Q3 2021 earnings report, CEO Jim Farley stated, “This is the most exciting Ford lineup I’ve seen, but what matters is that customers love our new products and services – and we’re just getting started.”
The transition to electric vehicles is on. When the bulk of consumers makes the switch, it won’t be to a brand new company like Rivian. It will be to the electrified versions of the cars that they already love. When this happens, Ford will become one of the top stocks that could double in 2022.
I’m writing this article on Dec. 11, 2021. Ford’s stock price is currently $21.45 per share. For Ford to double, it would have to reach $42.9 per share.
I hope that you’ve found this article valuable when it comes to learning about three stocks that could double in 2022. Please base all investment decisions on your own due diligence and risk tolerance.
About Teddy Stavetski
A University of Miami grad, Teddy studied marketing and finance while also playing four years on the football team. He’s always had a passion for business and used his experience from a few personal projects to become one of the top-rated business writers on Fiverr.com. When he’s not hammering words onto paper, you can find him hammering notes on the piano or traveling to some place random.