5 Best Performing Growth Stocks in 2022

In this article, we discuss 5 best performing growth stocks in 2022. If you want to see more stocks in this selection, 12 Best Performing Growth Stocks in 2022. 

5. ATI Inc. (NYSE:ATI)

Number of Hedge Fund Holders: 27

YTD Share Price Gain in 2022 as of December 29: 91.78%

P/E Ratio as of December 29: 277.73

ATI Inc. (NYSE:ATI) is a Texas-based company that manufactures and sells specialty materials and components worldwide. The company operates in two segments – High Performance Materials & Components and Advanced Alloys & Solutions. ATI Inc. (NYSE:ATI) is one of the best performing growth stocks this year, with shares climbing 92% year-to-date. The company’s Q3 non-GAAP EPS of $0.53 was in line with market estimates. Revenue over the period climbed nearly 42% year-over-year to $1.03 billion, outperforming Wall Street consensus by $93.2 million. ATI Inc. (NYSE:ATI) expects ongoing strength in its key markets, particularly aerospace and defense, to drive profitable revenue growth.

On August 5, Wolfe Research analyst Tinma Tanners upgraded ATI Inc. (NYSE:ATI) to Outperform from Peer Perform with a $33 price target following the company’s Q2 “beat and raise.” The analyst has conviction that the stock has “more room to run” given the view that aerospace upside “has legs” and that the legacy sheet business can earn more as compared to the past.

According to Insider Monkey’s third quarter data, 27 hedge funds were long ATI Inc. (NYSE:ATI), compared to 22 funds in the last quarter. D E Shaw is the largest stakeholder of the company, with 3.4 million shares worth $90.4 million. 

4. Targa Resources Corp. (NYSE:TRGP)

Number of Hedge Fund Holders: 30

YTD Share Price Gain in 2022 as of December 29: 40.65%

P/E Ratio as of December 29: 69.18

Targa Resources Corp. (NYSE:TRGP) owns, operates, acquires, and develops a portfolio of midstream energy assets in North America. The company operates in two segments, Gathering and Processing, and Logistics and Transportation. Targa Resources Corp. (NYSE:TRGP) was incorporated in 2005 and is headquartered in Houston, Texas. The company expects to generate full year adjusted EBITDA between $2.85 billion and $2.95 billion, despite volatile commodity prices. It is one of the best performing growth stocks of 2022.

On December 8, Citi analyst Spiro Dounis initiated coverage of Targa Resources Corp. (NYSE:TRGP) with a Buy rating and a $95 price target. The analyst launched coverage of 23 midstream stocks with a “constructive cash flow outlook” but acknowledges the “need to be selective in this environment.” He named Targa Resources Corp. (NYSE:TRGP) as one of his top picks in the sector. 

According to Insider Monkey’s data, Targa Resources Corp. (NYSE:TRGP) was part of 30 hedge fund portfolios at the end of Q3 2022, compared to 32 in the earlier quarter. Stuart J. Zimmer’s Zimmer Partners is the largest stakeholder of the company, with 3.5 million shares worth $212 million. 

3. Helmerich & Payne, Inc. (NYSE:HP)

Number of Hedge Fund Holders: 30

YTD Share Price Gain in 2022 as of December 29: 106.1%

P/E Ratio as of December 29: 949.40

Helmerich & Payne, Inc. (NYSE:HP) was founded in 1920 and is headquartered in Tulsa, Oklahoma. The company provides drilling services and solutions for exploration and production companies. The company operates through three segments – North America Solutions, Offshore Gulf of Mexico, and International Solutions. Despite falling short of FQ4 earnings expectations, analysts focused on Helmerich & Payne, Inc. (NYSE:HP)’s improving margins and commitment to return cash to shareholders.

On November 18, Susquehanna analyst Charles Minervino raised the price target on Helmerich & Payne, Inc. (NYSE:HP) to $65 from $62 and kept a Positive rating on the shares. The analyst said day rates, margins, and activity are all trending well, which supports his upward EBITDA revisions.

According to Insider Monkey’s data, 30 hedge funds were long Helmerich & Payne, Inc. (NYSE:HP) at the end of Q3 2022, compared to 26 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 1 million shares worth $37.4 million. 

2. First Solar, Inc. (NASDAQ:FSLR)

Number of Hedge Fund Holders: 45

YTD Share Price Gain in 2022 as of December 29: 67.70%

P/E Ratio as of December 29: 166.10

First Solar, Inc. (NASDAQ:FSLR) is an Arizona-based company that provides photovoltaic solar energy solutions in the United State, Japan, France, Canada, India, Australia, and internationally. On December 12, First Solar, Inc. (NASDAQ:FSLR) stock rose on news that the company will become part of the S&P 500. It is one of the best performing stocks this year, with shares jumping nearly 68% year-to-date as of December 29. 

On December 23, Daiwa analyst Jonathan Kees initiated coverage of First Solar, Inc. (NASDAQ:FSLR) with an Outperform rating and a $175 price target. EBITDA should rebound from 2022 lows and the Street “may not have fully factored in the rebound in forward estimates,” the analyst told investors.

According to Insider Monkey’s data, 45 hedge funds were long First Solar, Inc. (NASDAQ:FSLR) at the end of Q3 2022, compared to 26 funds in the last quarter. D E Shaw is a prominent stakeholder of the company, with 899,979 shares worth $119 million. 

Here is what GDS Investments has to say about First Solar, Inc. (NASDAQ:FSLR) in their Q4 2020 investor letter:

“First Solar recently announced blowout results for its last fiscal quarter with earnings and revenues handily beating estimates. The Biden Administration should only accelerate the inevitable shift away from fossil fuels toward renewable energy as the costs associated with solar energy production reach parity with coal and oil production. As the following chart by the International Energy Agency makes clear, demand for oil should plateau in the 2030’s and, by the 2040’s, would account for less than 20% of global energy consumption.”

1. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 75

YTD Share Price Gain in 2022 as of December 29: 34.01%

P/E Ratio as of December 29: 55.59

Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals worldwide. The company was founded in 1876 and is headquartered in Indianapolis, Indiana. On December 12, Eli Lilly and Company (NYSE:LLY) declared a $1.13 per share quarterly dividend, a 15.3% increase from its prior dividend of $0.98. The dividend is payable on March 10, 2023 to shareholders of record on February 15. Eli Lilly and Company (NYSE:LLY) is one of the best performing growth stocks of 2022. 

On December 14, JPMorgan analyst Chris Schott raised the firm’s price target on Eli Lilly and Company (NYSE:LLY) to $400 from $380 and kept an Overweight rating on the shares. The analyst sees “encouraging” core product and pipeline traction.

According to Insider Monkey’s third quarter database, Eli Lilly and Company (NYSE:LLY) was part of 75 hedge fund portfolios, compared to 70 in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest position holder in the company, with 2.4 million shares worth $802.8 million. 

Here is what ClearBridge Global Growth Strategy has to say about Eli Lilly and Company (NYSE:LLY) in its Q3 2022 investor letter:

“In the U.S., we initiated a position in pharmaceutical maker Eli Lilly (NYSE:LLY) as it brings out new drug candidates for diabetes and Alzheimer’s disease. New drugs impact diabetes but have also demonstrated significant weight loss for patients who are overweight and have other co-morbidity issues as a result. Lilly is one of the two key players in diabetes care and we believe the potential market opportunity is much higher than the consensus forecasts as we are seeing evidence of accelerating adoption.”

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