Overall, the U.S. stock market felt like it was in contraction mode all year long in 2022. Consumer prices remained high and an aggressive Federal Reserve made it difficult for businesses to grow their brands.
Yet, believe it or not, there’s been a handful of success stories this year as some tradable companies actually managed to thrive instead of just survive. In fact, Morning Consult just released a list of the fastest growing brands of 2022 among U.S. adult consumers. Some of them, like Stok Cold Brew and Major League Baseball, aren’t publicly traded entities.
Others on the list, however, are publicly traded and nimble investors can take a position today if they’re so inclined. So, let’s take a look at some of the standouts among 2022’s fastest growing brands – META, CROX, ADBE, and ODP – and consider where these stocks may be headed during the next 12 months according to Wall Street’s experts.
Meta Platforms (NASDAQ: META)
It might shock you that Meta Platforms, whose stock is down 65% year-to-date, topped the list of fastest growing brands of 2022. Yet, Facebook remains a very popular social media platform while younger generations are apparently on board with the company’s rebranding into a metaverse-focused business.
As Morning Consult’s report observed, Meta laid off around 13% of its staff, or 11,000 employees, not long ago. So, while Meta’s brand is growing, its headcount is shrinking. That’s not necessarily a bad thing during tough economic times, when fiscal discipline is a must.
Hence, if you’re on board with CEO Mark Zuckerberg’s metaverse-focused vision for the company, you might give META stock a try with a 2023 price target of $150. Now, let’s see how Wall Street’s experts feel about the stock’s potential 12-month trajectory.
What is the Price Target for META Stock?
META has a Moderate Buy consensus rating based on 26 Buys, nine Holds, and three Sell ratings assigned in the past three months. The average Meta Platforms stock price target of $147.24 implies % upside potential.
Crocs (NASDAQ: CROX)
Here’s another company you probably didn’t expect to see on the list. Amazingly, footwear manufacturer Crocs was the number-two fastest growing brand of 2022. Those shoes might look funny, but apparently many young consumers are loyal to the Crocs brand.
Evidently, self-expression is a priority in footwear choice among Millennials and Gen Z shoppers. Morning Consult reports, “Those who say they pride themselves on their creativity tend to show higher purchasing consideration” for the Crocs brand.
As for CROX stock, it’s down 28% year-to-date and Crocs has a trailing 12-month P/E ratio of just 10.6x. Perhaps those funny-looking shoes will continue to score big-time revenues in 2023, and $130 might be a possibility – though as we’ll see now, analysts on Wall Street might not be so optimistic.
What is the Price Target for CROX Stock?
CROX has a Moderate Buy consensus rating based on two Buys and three Hold ratings assigned in the past three months. The average Crocs stock price target of $100.25 implies % upside potential.
Adobe (NASDAQ: ADBE)
Can a diversified software business also be a fast-growing brand? The answer is yes, as Adobe took the number-seven spot on Morning Consult’s list. Clearly, creative design software users continue to trust Adobe to deliver reliable and feature-rich apps/programs.
Adobe hasn’t had an easy year, as the company has faced resistance from regulators in its quest to acquire rival software company Figma. If the deal is approved in 2023, however, Adobe can control even more of its niche market and, hopefully, regain some lost ground for shareholders as ADBE stock is down 41% year-to-date.
It’s also worth noting that Adobe is part of what I call the “Tech Layoff Club,” as the company recently axed 100 of its employees. It’s not unreasonable, then, to bet that ADBE stock could recapture the $400 level during the next 12 months; let’s see if Wall Street agrees.
What is the Price Target for ADBE Stock?
ADBE has a Moderate Buy consensus rating based on 12 Buys and 14 Hold ratings assigned in the past three months. The average Adobe stock price target of $367.22 implies % upside potential.
Office Depot/The ODP Corporation (NASDAQ: ODP)
You’ve probably heard of the Office Depot and OfficeMax office supply store chains, and these brands are controlled by The ODP Corporation. So, you can get exposure to the Office Depot brand through ODP stock – and reportedly, that brand grew quickly in 2022.
There’s surely a level of trust and loyalty involved as Office Depot took 10th place on the list of this year’s fastest growing brands among U.S. adults. Furthermore, it’s commendable that The ODP Corporation kept its sales and diluted EPS fairly steady in Q3 2022 compared to the year-earlier quarter, and even managed to increase its free cash flow during that time frame.
Meanwhile, ODP stock is actually in the green this year so far and The ODP Corporation’s trailing 12-month P/E ratio is quite reasonable at 13.26x. It certainly looks like ODP stock could power its way to $55 or even $60 in 2023, but perhaps the tone on Wall Street is less enthusiastic than that.
What is the Price Target for ODP Stock?
ODP has a Hold consensus rating based on two Hold ratings assigned in the past three months. The average ODP Corporation stock price target of $39 implies % upside potential.
Conclusion: Keep a Lookout for 2022’s Fastest Growing Brands in 2023
Who could have imagined that Meta Platforms, Crocs, Adobe, and Office Depot would be among the top-10 fastest growing brands of 2022? The business world is full of surprises, though, and investors must adapt or be left behind.
I can envision these four stocks continuing to establish brand loyalty in 2023, though I’m also wary because analysts aren’t entirely bullish on META, CROX, ADBE, and ODP stocks. Therefore, it makes sense to continue watching these brands and stocks for continued growth, and maybe consider a small position now in case they exceed Wall Street’s expectations.
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