Needless to say, 2021 has been a banner year for equities, with the S&P 500 up a stunning 25%. While the going was pretty easy by historical standards, with only one 5% drop year to date, there is a good chance that 2022 could bring some tougher sledding. The tapering of the quantitative easing program, which was designed to keep interest rates low, starts this month, and some feel that the Federal Reserve may be forced to raise interest rates earlier than expected, due to the surge in inflation.
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Given the potential for a more difficult 2022, the analysts at Goldman Sachs are focusing on companies they favor that have accelerating sales growth. A recent research report noted this:
Companies that are able to sustain accelerating sales growth will likely be much harder to find in 2022 amidst tougher year-over-year comparisons and expectations of relatively slower economic growth, particularly in the second half of 2022. Our analysts’ bottom-up forecasts suggest just over 25% of companies in our coverage will see a year-over-year acceleration in sales growth in 2022 as compared to 78% in 2021. Against this backdrop, we look for companies which on our analysts’ estimates will post higher annual revenue growth in 2022 versus 2021 with year-over-year growth rates improving through the first and second half of 2022.
The Goldman Sachs team cited 17 Buy-rated stocks of companies with attractive and accelerating sales growth in 2022 as solid ideas for next year. We screened the list looking for the stocks that had the highest sales growth percentage for next year and found five great ideas for growth stock investors. While all are rated Buy it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision. The stocks are listed in order of the highest sales growth estimates for 2022.
Las Vegas Sands
With casinos open and thriving again, this is a great long-term play for growth investors. Las Vegas Sands Corp. (NYSE: LVS) develops, owns and operates integrated resorts in Asia and the United States.
The company owns and operates the Venetian Macao Resort Hotel, the Sands Cotai Central, the Parisian Macao, the Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, and the Sands Macao in Macao, the People’s Republic of China, as well as Marina Bay Sands in Singapore.
It also owns and operates the Venetian Resort Hotel Casino on the Las Vegas Strip and the Sands Expo and Convention Center in Las Vegas. Its integrated resorts feature accommodations, gaming, entertainment and retail malls, convention and exhibition facilities, celebrity chef restaurants and other amenities.
The company has eliminated its dividend and said that it has ended its plans to open an integrated resort casino in Japan.
Goldman Sachs estimates 91% earnings growth for the company in 2022. The firm has a $68 price target on Las Vegas Sands stock, which is well above the $49.86 consensus target. The share price popped almost 7% on Monday to close at $40.63.
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