Why to explore the 5 fastest growing NZX stocks in 2022?

Highlights

• Growth stocks have the ability to knock the market with strong revenue growth and a business development strategy.
• RAK expects an EBITDA between $44 million and $49 million for FY22.
• PGW raised its FY22 operating EBITDA guidance to nearly $58 million

Investors need to consider many factors like a company’s financials, earnings history, dividend performance, growth plans and many more to pick a growth stock. Growth stocks can give some of the best rewards, but they come with substantial risks.

Let’s look at 5 NZX growth stocks that can be looked at for the next year.

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Rakon Limited (NZX:RAK)

Rakon, a leader in providing frequency control products, grew its underlying EBITDA by 132% to $26.4 million for the first half ended 30 September 2021 due to persistent demand for its solutions globally.

RAK expects an EBITDA between $44 million and $49 million for FY22. The Group is expected to do well, given that it will be able to manage COVID-19 induced challenges and difficulties in obtaining raw materials and parts to fulfil orders.

RAK ended the day 1.96% in green to close at $2.08.

PGG Wrightson Limited (NZX:PGW)

PGG, a major supplier to the agricultural market, experienced strong trading performance in Q1 of FY22 and saw positive indicators in the period as farmers and grower clients get prepared for their production requirements.

DO READ: 5 NZX Agriculture stocks that can be good options ahead of 2022

Given excellent trading in the first half of FY22, PGW raised its FY22 operating EBITDA guidance to nearly $58 million.

PGW ended the day unchanged to close at $5.1.

Heartland Group Holdings Limited (NZX:HGH; ASX:HGH)

Heartland, a financial services provider, delivered an NPAT of $87 million and registered a 5% growth in its finance receivables in FY21. HGH was also conferred with the 2021 Bank of the year- Savings award by Canstar for the fourth year in succession.

The Group has a revenue target range of $93 million to $96 million.

HGH ended the day unchanged to close at $2.52.

Briscoe Group Limited (NZX:BGP; ASX:BGP)

Leading homeware and sports goods retailer, Briscoe, registered a 9.52% rise in its total group sales for the 39 weeks to 31 October 2021, making total sales of $496.9 million for the period. However, the sales were impacted partially amid the August lockdown.

RELATED READ: Which are the 4 fastest growing NZX stocks to explore in 2022?

Briscoe projects its NPAT to be nearly $85 million for FY22, above last year’s $73.2 million.

BGP ended the day unchanged to close at $6.82.

Fletcher Building Limited (NZX:FBU; ASX:FBU)

Fletcher, a manufacturer of building products, posted solid revenue of $8.1 billion and net earnings of $305 million in FY21. The Group benefitted from a solid residential market in NZ but was impacted by a slower commercial and civil market in Australia.

ALSO READ: How are these 5 NZX REITs doing amid rising property prices?

It paid a total dividend of 30cps for FY21. FBU has targeted an EBIT margin of 10% by FY23.

FBU ended the day 1.08% in green to close at $7.33.

Bottom Line

Deciding on a particular growth stock varies on the investing style of an investor.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)