3 growth actions to fuel your financial freedom in 2022


2021 is almost over, and that means it’s time to plan for 2022. With stocks, crypto, real estate, and several other asset classes hovering around historic highs, there is certainly something to be thankful for. This year. However, those gains have come and gone. The challenge now is to find the best places to invest for 2022 and beyond.

Corteva (CTVA -0.15% ), Amyris (AMRS -3.73% ), and Charging points (CHPT -2.37% ) are three growth actions that could bring you closer to financial freedom. Here’s what makes everyone a great buy now.

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Investor confidence in the agro-scientific enterprise is growing

Lee Samaha (Corteva): After a few years of questionable performance, it looks like Corteva is starting to realize the potential of her business. The company was formed as a result of the DowDuPont merger and subsequent dissolution. As such, it is the leading American player in seed and crop protection, competing with international companies such as the owner of Monsanto. Bayer, BASF, and Syngenta.

The company’s potential lies in the expectation that Corteva can improve its productivity and catch up with the kind of margins enjoyed by its peers. One of the ways he can improve his margin is to sell more of his products under his patents. This means that Corteva will reduce the share of revenue it pays in royalties to other companies, and Corteva’s profit margin will increase.

The good news is that the company is making progress on all fronts. For example, management recently reaffirmed its target of $ 2.8 billion to $ 3.1 billion in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2022, from $ 2.5 billion to $ 2.6 billion. in 2021. In addition, management noted that the adoption rate of its Enlist (seed and crop protection) system was better than expected in 2021. In addition, there is a strong pipeline of other products under Corteva’s patents that will arrive in the next few years.

As such, the combination of mid single-digit revenue growth and expanding margins promises to deliver medium-term double-digit profit growth for Corteva.

Supply chain issues have caused this stock to plummet, but it is about to rise again

Scott Levine (Amyris): Shares of synthetic biologist Amyris have both delighted and devastated investors in 2021. While the stock has climbed more than 209% in the first three months of the year, it has come back to earth in the past. second half – especially last month, when it fell 54%. While these are the bears that are most interested in the title right now, the company has several catalysts on the horizon in 2022 that could propel it considerably higher.

One of the main reasons for the stock’s sale last month was concern over supply chain headwinds Amyris was facing and fears that it would continue to plague the company over the years. next months. But Amyris is working to consolidate its supply chain, developing two facilities in Brazil and Nevada, both of which are expected to begin operations in the first half of 2022. According to John Melo, CEO of the company, the importance of the two facilities will have a big impact on his finances. On the company’s third-quarter conference call, Melo said, “These facilities will not only provide us with much more resilience in the supply chain, but will also significantly reduce our operating costs and improve our gross margin. ‘about 1,000 basis points. “

The growth of the business, however, transcends an improvement in its gross margin, as management expects revenue to reach over $ 500 million in 2022 and $ 1 billion in 2023. For some perspective, Amyris said 173 million dollars in sales in 2020, and it has booked sales of $ 357 million in the past 12 months. Looking down on the income statement, investors can expect the company to report positive earnings before interest, taxes, depreciation, and amortization (EBITDA) – a feat it last achieved in 2014.

As companies seek to source their products with sustainable ingredients, Amyris and its line of synbio products are likely to become more and more attractive. For forward-looking investors who have the patience to let this growth story unfold, the recent stock sell-off provides a great opportunity to buy stocks on the cheap, leaving more money available to make investments. splurge on gifts for friends and relatives.

This EV charging stock is gone for the races

Daniel Foelber (ChargePoint Holdings): The largest electric vehicle (EV) charging infrastructure company in the United States, ChargePoint, on Tuesday released third quarter fiscal 2022 results that beat expectations. After generating $ 65 million in revenue, ChargePoint now expects to earn between $ 73 million and $ 78 million in fourth quarter revenue, bringing annual sales to between $ 235 million and $ 240 million. If it met its target, ChargePoint would have increased its revenue by 63% compared to last year. For context, consider that ChargePoint generated $ 146 million in revenue in fiscal 2021 and $ 144.5 million in revenue in fiscal 2020.

The growth rate is impressive, but even if ChargePoint hit its revenue target, it would still have a price-to-sell ratio of 28.7, which is more expensive than some of the hottest growth stocks on the market. However, COVID-19 has stunted its growth for fiscal 2021, and the company may now be racing now that EV investments are on the rise. ChargePoint expects its rise to be directly proportional to the growth rate of electric vehicle sales to passengers in the United States. Between 2020 and 2026, ChargePoint expects sales of electric passenger vehicles in the United States to increase at a compound annual growth rate (CAGR) of 41% as more affordable electric vehicles are brought into service and that consumer demand for electric vehicles will increase.

While still a long way from profitability, ChargePoint is a great catch-all way to expose your portfolio to EV growth without having to risk choosing a particular automaker to win.

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! Questioning an investment thesis – even our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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