As 2021 is coming to an end, I’m on the prowl for new investment opportunities in 2022. Many businesses, especially the blue-chip companies, have delivered outstanding performance over the past year. But as a consequence, they often carry a high price tag. Are there cheaper stocks that can double in 2022 for me to add to my portfolio? I’ve found two that might just do that. Let’s take a look.

GoPro

GoPro (NASDAQ:GPRO) is a word synonymous with action cameras. And this reputation garners a lot of loyalty from its customers. This is clearly shown by the firm’s 1.34 million paid subscribers.

After a bit of a bumpy road, the camera manufacturer has made a notable comeback with its smart shift toward a direct-to-consumer sales strategy. This decision has also led to it cultivating some significant growth in its subscription service. Looking at the latest quarterly report, subscription revenue is up by 143% year on year. And it doesn’t look like this will slow down anytime soon, especially with lockdown restrictions now essentially over. That’s why I believe the stock has the potential to double in 2022.

The company is targeting its annual recurring subscription revenue to reach $90m at the start of next year. With the subscription revenue currently at 30% of total sales, as an investor, I am bracing myself for exponential growth in the stock price of GoPro. And, the recent launch of HERO10 Black will undoubtedly help push sales even higher in the coming months.

But this is by no means guaranteed, and the group does have some challenges to overcome. For one thing, GoPro has a history of losing money. And as a consequence, it has racked up quite a bit of debt that will likely gobble up most of the profits generated once it becomes profitable. This is quite concerning. But having said that, I think the risk is worth the potential reward. That’s why it’s on my list of stocks that might double in 2022.

Nuvei Corporation

The Montreal-based electronic payment processing company, Nuvei Corporation (NASDAQ:NVEI), was in the spotlight in 2020 after it became the largest technology IPO in Canadian history. The IPO frenzy continued for the fintech stock when it got listed on the NASDAQ exchange through another IPO, raising a further $425m.

Nuvei offers a single integrated platform through which their customers connect with the clients irrespective of country, currency, or payment type. The fintech business has a network of more than 200 global markets, transacts over 150 currencies through 480 payment methods. That’s a lot of optionality for customers. And with electronic transfers slowly becoming the more dominant payment system, I think it’s fair to say the demand for such services is high. That’s why this stock is on my list for companies that could double in 2022.

Looking at the latest financial results, the firm has managed to expand its trading volume in all of its operating regions. As a result, revenue has almost doubled in the last nine months. When combining this with its recent acquisition of Simplex to add cryptocurrency transaction support, I think it’s fair to say the growth could continue being explosive over the long term.

But despite this stellar growth, this is by no means a guaranteed victory. The payment processing industry has relatively low barriers to entry. So, it’s not surprising to see a vast collection of rival firms offering similar services. If Nuvei cannot expand and retain its customer base, the stock could easily start tumbling. For now, the triple-digit growth has me bullish about the stocks ability to double in 2022.

Final thoughts on stocks that can double in 2022

Being cautiously optimistic is the approach I am taking while entering 2022. These two picks for stocks that can double in 2022 look promising in my mind. But they aren’t without risk. Only time will tell if I made the right call.

Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned at the time of writing. Views expressed on the companies, assets and strategies mentioned in this article are those of the writer and therefore may differ from the opinions of analysts in The Money Cog Premium services.