While there are plenty of investors out there that are channeling their inner contrarians after the market’s rocky start, there are still some great growth stocks that you don’t have to buy on the rebound.
These stocks are in a handful of sectors that are secured by the strong growth that’s reflected at home and abroad. These are the companies that fuel the companies that build an expanding economy.
What’s more, many of these companies are hitting the big stage for the first time. They made their debut last year as the pandemic loosened its grip. But they’re still great values with strong brands and market shares.
They’re also good choices for long-term investors that want to have a stake in the companies that support the physical economy. They’re a great complement to your tech and digital holdings.
Here are seven growth stocks to keep in mind this year:
- Builders FirstSource (NYSE:BLDR)
- Nucor (NYSE:NUE)
- Steel Dynamics (NASDAQ:STLD)
- Canadian Natural Resources (NYSE:CNQ)
- Marriott (NASDAQ:MAR)
- Marathon Petroleum (NYSE:MPC)
- Pioneer Natural Resources (NYSE:PXD)
Growth Stocks to Buy: Builders FirstSource (BLDR)
Even as interest rates rise, the demand for homes continues to rise. Whether it’s single family homes or multi-family units, new structures continue to rise. And existing home sales also remain brisk.
This is great news for BLDR. It’s one of the nation’s leading manufacturers and supplies of everything from roof and floor trusses to stairs and custom millwork. But its focus isn’t the consumer. Most of its business comes from builders, contractors and subcontractors that building new homes and renovating existing homes.
As long as demand remains strong, which looks like a long-term trend at this point, BLDR remains one of my favorite growth stocks.
BLDR stock has gained 70% in the past 12 months and almost 9% in the past month. Yet it only trades a current P/E (price-to-earnings ratio) of 10.
This stock has an “A” rating in my Portfolio Grader.
Nucor (NUE)
When it comes to building anything structural — from bridges to buildings to vehicles — steel is a key component. And when you massive amounts of infrastructure stimulus money swirling around the economies of the U.S. and Europe, demand for steel is growing.
What’s more, these massive spends don’t just happen overnight. This money is distributed, and the projects bid out and are then initiated. That usually takes years for sizable projects. That means consistent long-term demand for NUE products.
Originally begun by Ransom Olds (of Oldsmobile fame) in 1905, it has since become a major U.S. steelmaker with operations across the country. Its size is reflected in its $32 billion market cap.
An afterthought during the low-growth, low-interest rate environment, now it’s time to make hay. The stock gained 124% in the past 12 months and 32% in the past three months. Yet it still has a P/E of just 6 and offers a 1.5% dividend as well.
This stock has an “A” rating in my Portfolio Grader.
Growth Stocks to Buy: Steel Dynamics (STLD)
Another major U.S. steel company with a strong metals recycling operation, Steel Dynamics might make you worried about the price of steel. But it didn’t bother the stock much because investors understand that while prices for steel have dropped in recent quarters, that isn’t likely to last long.
And even if prices drop, they still have a long way to go to reach 2019 levels. And given the geopolitical consequences of Russia’s invasion of Ukraine, that country’s steel producers are no longer in the broader market. What’s more, STLD’s metals recycling business will be a big help in getting a good rating as a sustainable investing company.
STLD stock has gained 71% in the past 12 months and an impressive 27% in the past three months. Yet it still maintains a P/E of 4 and dividend yield of 1.5%.
This stock has an “A” rating in my Portfolio Grader.
Canadian Natural Resources (CNQ)
When CNQ talks about natural resources, it fundamentally means oil and gas, and not just in Canada. It has operations onshore and offshore in Africa as well as in the U.K.’s North Sea. In Canada, where most of its operations are located, it’s a big player in the oil sands.
CNQ is an integrated oil company, which means it has exploration and production (E&P), pipelines and refining segments. That allows it to blend its capacities to better suit market demands.
For example, if prices rise, it can take advantage of its E&P division. If demand rises, it wins in both its pipeline and refining segments. It has been in operation since 1973 and has a $68 billion market cap, so it has seen a few things along the way.
The energy patch is hot, but CNQ remains one of its best growth stocks right now. After a 103% return in the past 12 months and a 37% return year to date, CNQ stock still trades at a P/E of 14. And it has a 3.3% dividend to boot.
This stock has an “A” rating in my Portfolio Grader.
Growth Stocks to Buy: Marriott (MAR)
One industry that has begun to see a bit thaw in its business model is the travel and tourism sector. Covid-19 restrictions are coming down around the world. And as travel opens up, there is significant pent up demand from both business and pleasure travelers.
And in this industry, there’s no reason to get complicated. Stick to the basics at this point. One of the best growth stocks in the industry is also one of the biggest names across the globe, Marriott. MAR has 30 brands and more than 7,900 locations worldwide.
Investors continue to flock to this sector because it was hammered for the past 18 months. But it has been in recovery in the past few months, and MAR stock is leading the way.
MAR stock has a sturdy $55 billion market cap and has gained 19% in the past three months.
This stock has a “B” rating in my Portfolio Grader.
Marathon Petroleum (MPC)
This is the retail and refining (downstream) operation of parent Marathon Oil (NYSE:MRO). It’s one of the largest U.S. refinery operations and sits in the top 50 companies in the Fortune 500. MPC also has a majority stake in a Marathon pipeline limited partnership as well.
That gives MPC stock exposure to both midstream and downstream businesses in the energy patch. That’s a good balance, since midstream (pipeline) business is based on volume through the pipes rather than the price per barrel of oil. That can make a big difference as prices bounce around but demand remains high and growing.
MPC stock gives investors world-class exposure to the two most stable aspects of the energy business and makes one of the top growth stocks in the sector now. The stock has a $44 billion market cap, and it’s up 38% in the past 12 months and 27% in the past three months. Yet MPC stock still delivers a respectable 3% dividend.
This stock has a “B” rating in my Portfolio Grader.
Growth Stocks to Buy: Pioneer Natural Resources (PXD)
If you’re looking for a little more zip in your energy growth stocks, then you may want to look upstream to big independent E&P player PXD. With a $59 billion market cap, this West Texas E&P is a major player in the Permian shale.
E&Ps have fixed costs for getting oil out of the ground. When the price of oil rises, E&Ps’ margins increase accordingly. And now that a major source of oil is now being taken off the market –Russian oil — it means U.S. producers are going to have more business than they can manage.
Already, rising energy prices have made these natural resource stocks attractive, but now their value just got turbocharged.
Having returned 64% in the past 12 months and 40% in the past three months, PXD stock also has a 2.3% dividend.
This stock has an “A” rating in my Portfolio Grader.
On the date of publication, Louis Navellier has positions in BLDR, NUE and STLD in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.