These top-tier companies are begging to be bought following a 34% peak decline in the Nasdaq Composite.
It’s official: All three of the major U.S. stock indexes are now entrenched in a bear market . Since hitting their all-time closing highs, the iconic Dow Jones Industrial Average , benchmark S&P 500 , and growth-dependent Nasdaq Composite ( ^IXIC -1.51%) have respectively shed as much as 20%, 24%, and 34% of their value.
While there’s no denying that bear markets can test the resolve of both tenured and new investors, history also shows that they’re the ideal opportunity to go hunting for bargains. No matter how bad things may appear for the leading indexes, a bull market rally eventually recoups all that was lost. Image source: Getty Images. In particular, the beatdown the Nasdaq Composite has taken has made growth stocks quite attractive. What follows are five amazing growth stocks you’ll regret not buying during the Nasdaq bear market dip. PayPal Holdings
The first phenomenal growth stock that’s begging to be bought during the Nasdaq bear market decline is fintech stock PayPal Holdings ( PYPL -2.96%). Even though historically high inflation threatens to reduce the discretionary spending capacity of low earners, the future for digital payments is bright.
According to a report from Fortune Business Insights, the global digital payment market is expected to reach nearly $20 trillion by 2026. This would equate to a roughly 24% average annual growth rate since 2018. PayPal is one of the leading players in the digital payment space.
Despite higher inflation and weaker domestic/global growth prospects weighing on consumer spending, the total payment volume traversing PayPal’s digital platforms keeps climbing by a double-digit percentage on a constant-currency basis. What’s more, PayPal’s active accounts are more engaged than ever . Over the trailing 12 months (TTM) ended June 30, 2022, the average active account completed close to 49 transactions. That compares to around 41 transactions per TTM at the end of 2020. Since this is a fee-driven operating model, more transactions should lead to higher gross profit.
PayPal’s innovation can’t be overlooked, either. The company recently introduced monthly payment options to its buy now, pay later (BNPL) services for large purchases. It furthers PayPal’s BNPL ambitions following its acquisition of Japan’s BNPL company Paidy last year.
At less than 18 times Wall Street’s forecast earnings for 2023, PayPal has pretty much never been cheaper. Exelixis
A second incredible growth stock you’ll be kicking yourself over if you don’t buy it on the Nasdaq bear market dip is biotech stock Exelixis ( EXEL -1.01%). Despite being weighed down by poor market sentiment, Exelixis has a number of catalysts that can eventually push its share price significantly higher.
It’s no secret that leading cancer drug Cabometyx is what makes Exelixis tick. Cabometyx is approved to treat first- and second-line renal cell carcinoma and previously treated but advanced hepatocellular carcinoma. These indications are enough to lift the company’s lead drug to more than $1 billion in annual sales. Improved cancer screening diagnostics and strong pricing power should push this figure steadily higher.
However, Cabometyx is also being examined in dozens of ongoing clinical trials. While they won’t all be successful, there’s a really good chance of label expansion opportunities increasing Cabometyx’s long-term utility.
Something else to consider is that Exelixis is swimming with cash — about $2 billion in cash, cash equivalents, and restricted cash and equivalents, as of June 30. This hearty capital position has allowed the company to reignite its internal research engine and forge collaborative partnerships to expand its drug pipeline.
A forward price-to-earnings ratio of less than 15 simply doesn’t do justice to a biotech stock offering sustainable double-digit sales growth. Image source: Getty Images. Baidu
The third amazing growth stock investors will regret not scooping up as the Nasdaq plunges is China-based internet search giant Baidu ( BIDU -0.20%). Although regulatory overhangs and China’s zero-COVID-19 strategy have acted as cement weights on shares of Baidu in recent quarters, the company’s clear-cut competitive advantages make it a no-brainer buy at depressed levels.
To begin with, Baidu accounts for the lion’s share of internet searches in China . According to data from GlobalStats, Baidu’s nearly 66% share of China’s internet search market in August was more than six times higher than Microsoft ‘s Bing, its next-closest competitor. Because the Chinese economy spends a substantial amount of time expanding relative to contracting, Baidu is able to command superior ad-pricing power for its internet search engine.
However, it’s Baidu’s investments beyond its foundational cash-cow segment that could […]
source Nasdaq Bear Market: 5 Amazing Growth Stocks You’ll Regret Not Buying on the Dip