5 Growth Stocks That a Volatile Market Can’t Stop
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It’s not all doom and gloom for some growth stocks. Despite the benchmark S&P 500 index being down 14% year-to-date, and the technology-focused Nasdaq having fallen 24% on the year, there are many stocks that have bucked the downturn trend and continued to grow at a strong clip.
Investors willing to look around and allocate capital outside their comfort zone can find stocks that are continuing to post huge gains with no slowdown in sight. While it can be difficult to feel optimistic in a bear market, there are still opportunities to grow wealth in difficult times such as the one we are experiencing now.
Here are five growth stocks that a volatile market can’t stop.
|MOS||The Mosaic Company||$59.31|
Occidental Petroleum (OXY)
Energy is king this year as prices for oil and natural gas sit at multi-year highs, driven by increased global demand coming out of the pandemic and the war in Ukraine that has seen many nations, including the U.S. and Canada, place embargoes on supplies of Russian crude oil. The S&P 500 Energy Index is up 67% YTD as the share prices of oil and gas companies continue to rise across the board. But for truly spectacular returns, investors should look to Occidental Petroleum (NYSE:OXY).
So far in 2022, OXY stock has gained 126% to now trade at just over $70 a share. In the last 12-months, the stock has increased 140%, completely trouncing the broader market. The Houston, Texas-based company is involved in both oil and gas exploration and refining, with operations in the U.S., Middle East and Colombia.
With the price of West Texas Intermediate (WTI) crude oil currently hovering around $115 a barrel and forecast to climb higher as the year progresses, Occidental Petroleum’s share price can be expected to continue gaining in coming months. In addition to the huge gains in its share price, the stock also pays a dividend that currently yields 0.73%, for a quarterly payout of 13 cents a share.
Another company that is associated with the energy sector that has posted outsized gains this year is Halliburton (NYSE:HAL). Halliburton controls most of the world’s hydraulic fracturing (fracking), a process by which natural gas and petroleum are released from the Earth’s bedrock.
Halliburton, which is co-headquartered in Houston and Dubai, is also the second-largest oil field service company in the world, providing oil and gas companies with drilling, site evaluation and well construction services in the field. With the global oil and gas industries booming this year, business at Halliburton is going gangbusters. And the boom times are reflected in HAL stock.
In the past six months, HAL stock has increased 88%, including a 73% increase so far in 2022. At $41.49 a share, Halliburton’s share price is currently sitting at a 52-week high. However, it is still below the all-time high of nearly $70 per share that it reached in 2014, which was the last time prices for crude oil and natural gas were this high.
Looking ahead, Halliburton can be expected to continue its outperformance as oil and gas companies increase both their exploration activities and extraction from existing field sites. Currently, Halliburton’s stock dividend yields 1.16% for a quarterly payment of 12 cents per share.
The Mosaic Company (MOS)
Second only to the energy sector in terms of growth this year is agriculture. Ukraine is one of the world’s “breadbaskets” and a leading producer of crops such as wheat, barley and corn. With war raging in the Eastern European country, it is impacting food shipments and supplies, raising concerns that a global shortage could arise later this year. Already, consumers around the world are experiencing high levels of food inflation. Bank of America recently forecast that food prices in the U.S. will rise by 9% this year from 2021 owing to the war in Ukraine. Against this backdrop, The Mosaic Company’s (NYSE:MOS) stock has been surging in recent months.
MOS stock has increased 71% in the past six months, including a year-to-date gain of 46%. At $59.31 a share, the stock is now trading at its highest level in a decade. The Tampa, Florida-based company is the largest producer of potash and phosphate fertilizer in the U.S. These ingredients are critically important to farmers planting and growing crops. With pressure mounting on American farmers to increase their crop yields this year to compensate for what’s being lost in Ukraine, demand for potash and fertilizer is sky high right now, benefitting The Mosaic Company and its stock.
The company’s dividend currently yields 1%, good for a quarterly payment of 15 cents per share.
For another agriculture play, look north to Canada and the wilds of Saskatchewan. That’s where Nutrien (NYSE:NTR) is based, which is the world’s largest producer of potash and third largest maker of nitrogen fertilizers. With a market capitalization of about $27.50 billion, Nutrien is also one of Canada’s largest publicly traded companies. Headquartered in Saskatoon, Saskatchewan with some 25,000 employees, Nutrien exports its potash and fertilizer all over the world — from Europe to South America.
As with The Mosaic Company, business is booming this year as nations big and small ramp up their domestic agriculture production. And that is benefitting NTR stock.
Over the last year, NTR stock has risen 49%. Since January of this year, the company’s share price has increased 23%, and shows no signs of slowing anytime soon. While the share price has run far, it is still below its all-time high of $117.25. With demand elevated as we enter the summer growing season, investors can expect that Nutrien’s share price will continue to outperform this year. And like the other securities on this list, Nutrien pays a dividend. The current yield is 2.04%, which equals a quarterly payment of 49 cents a share.
It’s far from a household name and most investors are unlikely to have heard of it, but shares of biotechnology firm Celularity (NASDAQ:CELU) are up 109% this year. Celularity is focused on cancer treatments at the cellular level. The company is also developing treatments for infectious diseases and degenerative diseases that afflict people.
Like most small biotech companies, Celularity is still working to develop and commercialize its various medical treatments. But the company is showing enough progress that investors are buying the stock, sending its share price sharply higher in the process.
The latest news from Celularity is that it has successfully completed a $30 million private placement offering, a move that infuses the company with cash on which it can fund its operations. The company is also riding high after the U.S. Food and Drug Administration (FDA) granted “fast track” designation to one of its therapies aimed at treating gastroesophageal cancer. News that the FDA has put one of the company’s drug candidates on the fast track toward approval helped to lift its stock price in recent months.
As a small biotech company that is still in start-up mode, CELU stock does not currently pay a dividend. But the share price remains affordable at under $10 and there’s no arguing with its gains this year, especially when compared to broader market returns.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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