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High-growth companies with positive industry tailwinds.
With ample liquidity in the financial system, 2021 has been a banner year for wealth creation. Be it equities or cryptocurrency, multifold returns over just a few months or even weeks have been frequent.
Of course, there have been speculative stocks to buy among the top performers. However, I prefer to focus on non-speculative stories that can deliver robust returns.
A good example in 2021 has been Marathon Digital (NASDAQ:MARA). With wider acceptance of cryptocurrencies and rising Bitcoin price, the company focused on aggressive mining expansion and its stock has surged by 430% year-to-date. Lucid Group (NASDAQ:LCID) stock is similarly higher by 350% for the year as the company starts deliveries of its first electric vehicle.
Intermediate market corrections are always healthy. However, I believe that positive sentiment is likely to sustain for the markets. I will not be surprised if dozens of stocks deliver multi-fold returns in 2022.
Here are 7 solid stocks to buy for multifold returns in 2022:
While there are several attractive investment themes, I am overweight on cryptocurrency related stocks in this discussion. Even with the recent correction in cryptocurrencies, the medium-term outlook is bullish.
It took only one trading session for RBLX stock to surge from $77 to new highs of $110. I believe that RBLX is likely to be among the hot stocks for 2022. Roblox is a favored name among metaverse stocks, which will be a key investment theme in the coming year.
For Q2 2021, Roblox reported revenue growth of 102% to $509.3 million. Over the same period, the company’s free cash flow was $170.6 million. Considering its robust growth trajectory, Roblox is a potential cash flow machine.
It’s also worth noting that as of Q3 2021, the company reported $1.9 billion in cash and equivalents. Additionally, Roblox raised proceeds of $1.0 billion from a recent senior note offering. The company therefore has a strong buffer for international expansion.
From an industry perspective, the metaverse market was worth $47.7 billion in 2020. Through 2028, the market is likely to grow at a CAGR of 43.3%. Clearly, Roblox has a big addressable market and revenue growth will sustain in the coming years.
With these factors in consideration, RBLX stock is among the top stocks to buy for 2022. I would not be surprised if the stock is among the top performers as the metaverse theme gains traction.
In the past 12-months, Tesla (NASDAQ:TSLA) has surged by over 150%. During the same period, Nio stock has declined 12%. Even with strong quarterly numbers, Nio stock remains depressed.
A key reason is broader negative sentiment toward Chinese stocks. Plus Nio has pursued equity dilution, which has kept the stock sideways. However, a strong break-out rally is likely and Nio stock might be an outperformer in 2022.
One reason to be bullish on Nio stock is the launch of new models. The company plans to launch three new electric vehicles in 2022 based on its Nio Technology Platform 2.0. The new model launch will ensure vehicle delivery growth remains robust.
Another reason to be bullish on Nio is international expansion. The company has already launched in Norway and it’s likely to enter more European markets in 2022.
It’s worth noting that as of Q3 2021, Nio reported $7.3 billion in cash and equivalents. Therefore, there is ample financial flexibility for investment towards international expansion and new product innovation.
Nio also reported 18% vehicle margin for Q3 2021. As deliveries continue to increase, operating leverage is likely to ensure EBITDA margin expansion.
Overall, the electric vehicle industry has a multiyear tailwind and Nio is among the top stocks to buy.
Over a 12-month period, Marathon Digital has surged by over 3,200%. During the same period, RIOT stock trended higher by 1,100%. Both companies have aggressive mining expansion plans and Riot stock looks attractive on a relative basis.
In terms of expansion, Riot currently has a hashing capacity of 2.2EH/s; in the coming year, the company expects to expand hashing capacity to 7.7EH/s. That’s a more than three-folds increase in mining capacity, so Riot is positioned for strong growth in 2022.
Just to put things into perspective, Riot reported EBITDA of $28.8 million for Q2 2021, with a hashing capacity of 2.07EH/s. Coupling upside in Bitcoin with growth in hashing capacity, the company is positioned for quarterly EBITDA in excess of $100 million by Q4 2022.
As the number of Bitcoin on the company’s balance sheet increases, the company will have the financial flexibility to pursue further growth.
Overall, the best part of the rally for RIOT stock might still be due. If the overall sentiment remains positive for cryptocurrencies, the stock is poised to deliver multi-fold returns from current levels.
I strongly believe that 2022 will be another big year for cryptocurrencies. Wider adoption continues and will support crypto prices heading higher. At the same time, inflation remains a concern and Bitcoin is increasingly considered an effective hedge given the limited supply of BTC-USD.
For Q3 2021, Argo Blockchain mined 597 Bitcoin and Bitcoin equivalents. As a result, the company increased its total Bitcoin holdings to 1,836.
In September 2021, the company also ordered 20,000 Bitmain Antminer S19J Pro machines. For Q3 2021, the company’s hash rate capacity was 1.075 ex-hash. With this acquisition, the capacity is expected to increase to 3.7 ex-hash by Q2 2022. Therefore, there is clear growth visibility for the Argo.
It’s also worth noting that the company recently pursued a senior note offering of $40 million. Proceeds from the offering are likely to be used for purchase of mining machines. Additionally, the company will pursue “complementary businesses in the cryptocurrency and blockchain technology industries.”
It therefore seems very likely that Argo Blockchain will diversify beyond mining in coming years. With emerging use cases in the cryptocurrency industry, there is ample scope for long-term growth.
In the last month, HIVE stock surged by nearly 50%, no surprise given the rally in Bitcoin and Ethereum. I believe that HIVE stock has more juice for the next few quarters.
I would consider Hive Blockchain a diversified company involved in the mining of Bitcoin and Ethereum. Through the acquisition of miners, the company has been accelerating revenue growth.
However, the best part of growth is yet to come. For the fiscal year ended March 2021, Hive reported revenue of $66.7 million. On a year-over-year basis, revenue surged by 128%.
An important point to note is that the company’s revenue for Q4 2021 was $33.4 million, compared to $13.7 million in Q3 2021. Even if the last quarter revenue is annualized Hive is positioned for revenue of $130 million for 2022.
However, with the deployment of more miners, the company is on-track for revenue in excess of $200 million. This is likely to keep stock sentiment positive.
It’s also worth noting that for Q4 2021, the company reported mining income of $33.4 million and gross mining margin of $27.7 million. Considering the uptrend in Bitcoin and Ethereum, it seems likely that margins will remain robust.
The sentiment remains positive for oil, with Bank of America (NYSE:BAC) expecting crude to touch $100 per barrel in a colder-than-usual winter scenario. Oil and gas stocks have therefore remained firm.
BORR stock traded at lows of 57 cents in August 2021. Currently, the stock has more than doubled to $1.30. It seems that the rally is likely to sustain considering the outlook for oil.
As an overview, Borr Drilling is an offshore drilling rig services company. The company has 17 operational rigs with six of those available for contracting and an additional five rigs under construction.
There are two reasons to be bullish in terms of revenue and EBITDA.
First, the idle rigs are likely to be contracted should market conditions remain positive. At the same time, new rigs will add to the revenue upside potential.
Furthermore, with favorable market conditions, it’s likely that the day-rates will continue to trend higher. This will translate into EBITDA margin expansion in 2022 and beyond.
As a matter of fact, Borr Drilling turned adjusted EBITDA positive in Q2 2021. For the most recent quarter, adjusted EBITDA accelerated to $20 million. This implies a more than fivefold growth in EBITDA on a quarterly basis.
SNDL stock is another notable name among penny stocks that can deliver multifold returns in 2022. Investors should know that after an extended period of sideways to lower movement, SNDL stock is already on a breakout.
The catalyst for the recent rally was strong numbers for Q3 2021. Sundial also announced a share buyback program. For the quarter, Sundial reported $14.4 million in revenue and $10.5 million in adjusted EBITDA.
A key to strong EBITDA is the company’s investment operations. Sundial has already invested $489 million and expects investment income in excess of $20 million for 2021.
Further, the company has $571 million in cash to be deployed for investments and potential acquisitions. As the cannabis industry grows, Sundial is well positioned for sustained upside in investment income.
Another point to note is that the company already has the largest cannabis retail network in Canada. The company’s own cannabis brands are likely to witness growth with more retail visibility.
In terms of stock price action, Sundial recently announced a share buyback program of 100 million Canadian dollars. This is likely to support the upside in the coming months.
On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modelling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
Article printed from InvestorPlace Media, https://investorplace.com/2021/11/7-solid-stocks-to-buy-for-multifold-returns-in-2022/.
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0.2 Zettahash: Bitcoin's Hashrate Taps New Lifetime High, Mining Difficulty Nears ATH – Mining Bitcoin News – Bitcoin News
by Jamie Redman
Bitcoin’s hashrate tapped a lifetime high on the first day of 2022 reaching 209.39 exahash per second (EH/s). During the last 12 months, Bitcoin’s hashrate has increased by 47.92% from the 141.55 EH/s recorded on January 3, 2021.
The processing power and security dedicated to the Bitcoin (BTC) network has never been higher, and the network tapped a milestone in 2022. According to the one-year hashrate chart hosted on coinwarz.com, BTC’s hashrate tapped a high of 209.39 EH/s on January 1, 2022. At the time of writing, the hashrate is still coasting along the two hundred three quintillion hashes per second (H/s) zone, and 30-day statistics indicate the network briefly tapped 224.32 EH/s on Saturday.
Bitcoin.com News recently reported on the BTC network reaching 194.95 EH/s not too long ago on December 8, 2021. It’s also worth noting that the Ethereum (ETH) network also reached an all-time high tapping 1 petahash per second (PH/s).
On December 22, 2021, the Ethereum network reached 1.0122 PH/s and today’s metrics show ETH’s hashrate is still above the 1 PH/s on Sunday. On January 3, 2021, Bitcoin’s hashrate was 141.55 EH/s or 47.92% lower than today’s BTC hashpower statistics.
Moreover, on June 28, 2021, China’s crackdown against BTC miners caused the hashrate to plummet to 69.11 EH/s. The network’s hashrate has grown 202.98% since that day as a great majority of mining operations relocated to other countries. At the time of writing, the largest bitcoin mining pool is Foundry USA with 19.45% of the global hashpower or 34.79 EH/s. The second-largest mining pool in terms of global hashrate is Antpool with 16.91% of the hashrate or 30.25 EH/s.
There’s only 11 known mining pools mining BTC today and 3.81% of the global hashrate stems from unknown hash or stealth miners. BTC miners have faced two bitcoin mining difficulty increases during the last two epochs. On December 11, the difficulty jumped 8.33% and on the 25th of December, it increased by 0.32%. Bitcoin’s next mining difficulty change will bring it awfully close to the difficulty’s all-time high at 25 trillion. In just over five days, the difficulty is expected to increase by 2.90% to 24.98 trillion.
What do you think about Bitcoin’s global hashrate growing 47% during the last 12 months and tapping an all-time hashrate high on January 1, 2022? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Mad Money’s Jim Cramer Warns About Dogecoin — Says DOGE Is a Security, SEC Will Regulate
The host of Mad Money, Jim Cramer, has warned about dogecoin (DOGE). He said that the meme cryptocurrency is a security and will be regulated. He also questioned the supply of dogecoin. Jim Cramer’s Dogecoin Warning Jim Cramer, the host … read more.
Joe Biden Claims Inflationary Pressure ‘Rests With the Federal Reserve,’ Praises the Fed’s ‘Extraordinary Support’
On Wednesday, U.S. president Joe Biden explained that the country’s central bank was dealing with a large share of the inflationary pressures the American economy is dealing with today. Biden welcomes the possibility of tightening monetary easing and noted that … read more.
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This Tesla owner says he mines up to $800 a month in cryptocurrency with his car – CNBC
North America’s Largest Bitcoin Miner Goes Public With a SPAC Merger (Report) – CryptoPotato
Core Scientific Inc. started trading on Nasdaq through an estimated $4.3 billion merger with Power & Digital Infrastructure Acquisition Corp.
Investors of Core Scientific Inc. (a leading US bitcoin mining company) have reportedly approved a plan to get listed on Nasdaq. The firm started trading under the symbol CORZ.
According to a recent report by Bloomberg, the blockchain infrastructure provider – Core Scientific Inc. – will proceed through an estimated $4.3 billion merger with the special-purpose acquisition company Power & Digital Infrastructure Acquisition Corp. (ticker XPDI).
The latter’s price shares have been on a downtrend after peaking to an all-time high of nearly $15 in November 2021. Since then, it has lost approximately 32% of its valuation.
Speaking on the partnership was Mike Levitt – Co-Founder and CEO of Core Scientific Inc.:
“We’ve worked hard to lay the groundwork that will enable us to achieve our 2022 projections. Our objective is to be the best. Being the best means doing all that we can for our business, the industry in which we participate, and for the bitcoin network.”
The Texas-based company assured it is the largest in the USA in terms of processing power as its combined mining capacity of 6.6 exahash at the end of last year significantly surpassed its rivals. In comparison, Marathon Digital Holdings had a 3.5 exahash in December 2021, while Riot Blockchain was third with 3.1 exahash.
It is also worth noting that Core Scientific mines for itself and provides Internet hosting services for other large-scale miners. Currently, the entity has a stockpile of nearly 5,300 BTC.
A month ago, the American bitcoin miner – TerraWulf – raised $200 million in debt and equity financing from a group of individual and institutional investors to expand its mining capacity. Furthermore, the firm revealed plans to become a Nasdaq-listed public company through a business combination with IKONICS Corporation (IKNX).
In turn, Marathon Digital, which is already a publicly-traded entity, spent almost $900 million to acquire 78,000 Antminer S-19 XP Miners from the Chinese manufacturer – Bitmain. The organization will receive the machinery in the second half of 2022.
Riot Blockchain was also active in the space. In December last year, it purchased the electrical equipment provider – Ferrie Franzmann Industries (known as ESS Metron) for $50 million. As a result, the latter started providing a steady infrastructure supply for Riot’s new mining machines.
Dimitar got interested in cryptocurrencies back in 2018 amid the prolonged bear market. His biggest passion in the field is Bitcoin and he was fascinated with its journey. With a flair for producing high-quality content, he started covering the cryptocurrency space in late 2018. His hobby is football.
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