2022 has been brutal, but the market is far from lost.

The tide has been going out on the market as of late — and especially on high-growth technology. The Nasdaq Composite Index is down some 30% from all-time highs, but many individual stocks have been beaten down even more than that.

The reasons for this vicious crash are numerous, but here’s the thing about tides: They don’t go out and stay out forever. Eventually, quality companies will weather the storm and make a comeback. Three Fool.com contributors think that Qualcomm ( QCOM 2.40%), MercadoLibre ( MELI 9.96%), and Zebra Technologies ( ZBRA 6.36%) will make a quick turnaround once the selling has abated. Here’s why. Image source: Getty Images. A chip giant turning over a new page

Nicholas Rossolillo (Qualcomm): For a number of years, investors pretty much forgot all about mobile chip giant Qualcomm. As 5G mobile networks started to go live and 5G-enabled phones hit the market, shares began to emerge from their slumber as growth was reignited. But then 2022 happened, and most of Qualcomm’s gains were suddenly erased. Data by YCharts. I believe that is a mistake that investors will rectify sooner than later. Granted, there is concern that there could be a slowdown in consumer spending on electronics and mobile devices. That isn’t slowing Qualcomm down much, though.

Second-quarter fiscal 2022 (the three months ended March 27, 2022) revenue was up 41% year over year to $11.2 billion, and adjusted earnings per share were up 69% to $3.21. Free cash flow was $2.2 billion, a healthy 20% margin. $1.7 billion of that amount was returned to shareholders via a dividend ($764 million, currently yielding 2.3% a year, and share repurchases worth another $951 million). That kind of investor-friendly behavior is exactly what will do well in a rising interest rate environment.

Even better was Qualcomm’s outlook. For its fiscal third quarter, revenue is expected to rise another 30% to 40%, building on the 65% boom the chip designer enjoyed in Q3 2021. Adjusted earnings per share are forecasted to be up 43% to 54% year over year. This outlook excludes the recent acquisition of the Arriver advanced driver assist software business.

Bear in mind that Qualcomm isn’t just a smartphone chip company anymore. While 5G should keep its handset business on a steady incline for the next few years, its automotive and Internet of Things segments are booming as mobility technology begins to be incorporated en masse in new industrial applications. Shares currently trade for 21 times trailing-12-month free cash flow , but only 10 times one-year forward expected earnings. That’s incredibly cheap, and a deal that won’t be ignored forever. This is a great entry point in global e-commerce companies

Billy Duberstein ( MercadoLibre ): At its recent lows, Latin American e-commerce leader MercadoLibre was down nearly 68% from its highs set back last summer, and it’s still down well over 50%. That’s in spite of delivering sterling recent earnings results by most metrics.

While many e-commerce companies are delivering tepid growth as they lap the difficult comparisons from a year ago, MercadoLibre continued to deliver, both literally and figuratively. E-commerce revenue grew 44% on 32% gross merchandise volume (GMV) growth off difficult comparisons. The higher revenue growth was thanks to MercadoLibre charging more for its growing logistics services, as well as increased merchant advertising. Both should allow MercadoLibre to continue increasing its take rates and grow more profitable in the future.

Meanwhile, its MercadoPago payments platform continues to grow like gangbusters, up 81.2% in the quarter, buoyed by skyrocketing 138% off-platform payments growth. That means customers are using MercadoPago to pay for a wide variety of goods and services, not just on MercadoLibre’s e-commerce platform. Given the size of the Latin American market and the continuing penetration of digital commerce and payments, investors should be cheering those growth rates.

But they weren’t — although that may have had more to do with macroeconomic and marketwide forces hurting all growth stocks. If there was one thing to quibble with in the report, it was that operating margins slipped from 6.6% in the year-ago quarter to 6.2% last quarter.

However, MercadoLibre is still in hyper-growth mode, so fluctuations in operating income shouldn’t matter that much. Furthermore, management actually breaks down the different sources of profit and loss, and last quarter’s declining margins were due to heavier investments in research and development and technology, as well as growing credit losses due to the hyper-growth of the consumer credit book. The company […]

source 3 Stocks That Could Quickly Rebound After the Tech Stock Crash

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