There is no doubt that as an investor, this year has been a challenging one.Since hitting an all-time closing high in January, the iconic Dow Jones Industrial Average has entered correction territory with a drop of more than 10%, while the benchmark S&P 500 briefly into bear market.
It’s a tougher process for companies that rely on growth stocks Nasdaq Composite (^IXIC 3.33%), the intraday peak-to-trough decline was as high as 31% as of the end of last week. This also firmly places the index in a bear market.
While the speed of the downside during pullbacks and bear markets can be frightening, and sharp declines can tug on investors’ heartstrings, history has repeatedly shown that sharp pullbacks Ideal time to spend your money on work. Every crash, bear market, and double-digit correction in history — including the dot-com bust of the Nasdaq Composite — was eventually cleared by a bull market rally.
Many of the cheapest stocks on the market right now happen to be growth stocks. Here are four stellar growth stocks you’ll regret not buying when the Nasdaq is bearish.
The First Phenomenal Growth Stock Worthy of Long-Term Investors’ Attention is E-commerce Platforms ebay (ETSY 4.98%). While inflation, currently at historically high levels, is adversely affecting lower-income consumers, Etsy has several key advantages that should help it maintain double-digit growth rates for a long time to come.
This Etsy’s biggest differentiator is the composition of its merchants. While most online retail platforms are impersonal and purely based on volume, Etsy merchants are almost always small businesses that create unique merchandise or offer customizable services. No platform has allowed merchants to engage with shoppers on a more personal level, which is why Etsy is so untouchable from a competitive standpoint.
Another impressive aspect of Etsy’s operating model is that it can Convert casual shoppers to habitual shoppers. A “habitual buyer” is someone who has spent a total of at least $200 and made at least six separate purchases during the preceding 12-month period.
Even taking into account that the retail environment has slowed due to inflation, Etsy saw the number of habitual buyers on its platform grow 224% between the end of 2019 (pre-pandemic) and the end of 2021. This incredible growth should allow the company to gradually charge merchants more for advertising and various services.
Etsy looks like a staggering bargain at roughly 20 times Wall Street’s forward earnings estimates.
Another special growth stock you’ll almost certainly regret not buying the dip is Biotechnology company Novax (NVAX 17.46%)While Novavax missed some well-known low-hanging fruit in developed markets by delaying filing for emergency use authorization for its COVID-19 vaccine in some key markets last year, the company appears poised to capitalize on its lead vaccine and other pipeline developments.
Novavax COVID-19 vaccine NVX-CoV2373 has many competitive advantages. For example, it is a protein-based vaccine, not a messenger RNA-based vaccine. This has the potential to encourage COVID-19 vaccine holders to get vaccinated.
What’s more, it’s one of only three COVID-19 vaccines in the world Reaching the elusive 90% threshold for vaccine efficacy (VE). Such a high VE should make Novavax the main product for booster injections in developed countries, as well as initial vaccinations in emerging markets.
equally intriguing is a potential advantage of Novavax in developing combination vaccines such as influenza and COVID-19.While Novavax lags behind rivals in bringing its COVID-19 vaccine to market, it may be the first (if not This First) bring the combination vaccine to pharmacy shelves.
You can buy Novavax shares for just over twice Wall Street’s expected 2022 earnings.
The third growth stock you’ll regret not snapping up on the Nasdaq’s bear market dip is a data mining company Palantir Technology (PLTR 5.86%)Despite its previous nosebleed multiples on sales and adjusted earnings — Palantir’s stock is down more than 80% from its all-time high — it has all the necessary tools to make patient investors richer.
What makes Palantir such an attractive stock is that no other company can offer the scale of the solution it can.its artificial intelligence– The powered Gotham platform serves government entities and facilitates missions and data aggregation. At the same time, its Foundry platform helps enterprise customers understand their data to simplify their operations.
Gotham has been a driving force for Palantir for the past few years. Large government contract wins, which typically last four to five years, drive 40% (or more) annual sales growth. But go forward, OEM is the golden ticket for companies to get rich. Gotham has a tangible ceiling (ie, Palantir allows only so many government entities to use its solutions globally), and Foundry’s potential is just the tip of the iceberg.
Palantir is a company that provides consistent sales growth of 25% to 30% per year. There is simply no substitute for the services it can provide.
us marijuana stocks is another area where you’ll find exceptional growth at incredible value – and if you don’t buy at those prices, you’ll probably blame yourself. The name to consider now is the polymorphic operator (MSO) Cresco Laboratories (CRLBF -2.35%).
The big problem for U.S. marijuana stocks is overcoming the lack of reform at the federal level. Marijuana is widely expected to be legalized (or at least expected to have banking reforms) with Democrats in control of Congress. While none of this has come to pass, three-quarters of states have approved weeding in some way, including 18 that allow adult consumption and/or retail sale. Even if the federal government fails to pass marijuana reform, Cresco Labs has plenty of organic opportunities.
Like most MSOs, Cresco has a thriving retail business. As of the end of March, the company had 50 operating pharmacies, Announce acquisition plan MSO Columbia Nursing (CCHWF 0.52%) in an all-stock transaction. Assuming the deal closes, Columbia Care’s acquisition growth strategy should give Cresco a sizable retail footprint.
But what really sets Cresco apart from other MSOs is its Industry-leading wholesale businessAlthough wholesale marijuana has lower profit margins than retail, Cresco has more than 575 dispensaries in California, the nation’s largest weed market, giving it the volume it needs to make wholesale lucrative.
Expect Cresco Labs to maintain double-digit annual sales growth for years to come.