Nasdaq Bear Market: 5 Sensational Growth Stocks You'll Regret Not Buying on the Dip

Nasdaq Bear Market: 5 Sensational Growth Stocks You’ll Regret Not Buying on the Dip

These game-changing stocks are ripe for the picking following a peak decline of 34% in the Nasdaq Composite.

This year has served as a kick-in-the-pants reminder that the stock market doesn’t move up in a straight line — even if 2021 made you believe it did. The first half of 2022 saw the benchmark S&P 500 produce its worst return in more than a half-century.

But things have been even worse for the growth-centric Nasdaq Composite ( ^IXIC 0.00%), which has lost as much as 34% of its value from its peak and has decisively pushed into a bear market . Image source: Getty Images. On the surface, there’s no denying that bear markets can be worrisome. The velocity of moves lower during these periods of heightened volatility certainly has the potential to make investors question their resolve to stick around. However, bear markets are also a bona fide wealth-building opportunity. That’s because every double-digit percentage move lower in the major indexes, including the Nasdaq Composite, has eventually been recouped (and then some) by a bull market rally.

This looks to be the perfect time for patient investors to consider buying the innovative growth stocks that have been hit hard by the 2022 bear market. What follows are five sensational growth stocks you’ll regret not buying during the Nasdaq bear market dip. Upstart Holdings

The first extraordinary growth stock investors will be kicking themselves over if they pass it up on the Nasdaq bear market dip is cloud-based lending platform Upstart Holdings ( UPST -6.82%). Although rapidly rising interest rates and a weakening U.S. economy are bound to slow down the number of loan applications Upstart processes in the near term, the company brings clear-cut competitive advantages to the table that should translate to big wins over the long run.

For instance, Upstart’s loan-vetting platform relies on artificial intelligence (AI). Leaning on predictive technology has allowed Upstart to process and approve nearly three-quarters of all loan applications online. This saves the company’s approximately six dozen lending partners both time and money.

What’s been particularly interesting about Upstart is that its AI-driven loan platform has led to a broader swath of applicants being approved. On average, Upstart-approved loans have a lower credit score than the traditional loan-vetting process. But in terms of loan delinquencies, Upstart approvals have similar delinquency rates to persons ushered through the normal loan-vetting process. In other words, Upstart can expand the loan pool for banks and credit unions without increasing their credit-risk profile.

This is also a company that’s just starting to spread its wings into considerably larger addressable markets. Until recently, Upstart predominantly focused on personal loans. But with the company now vetting/processing auto loans and small business loans, its addressable market, based on loan originations, has grown tenfold. Intuitive Surgical

A second phenomenal growth stock you’ll regret not scooping up as the Nasdaq plunges into a bear market is robotic-assisted surgical systems developer Intuitive Surgical ( ISRG -2.03%). Despite very short-term concerns about optional surgical procedures being pushed out to a later date, Intuitive Surgical’s dominant market share and operating model make it a no-brainer buy on weakness.

When the June quarter came to a close, Intuitive Surgical had installed 7,135 of its da Vinci surgical systems worldwide. While this might not sound like a large figure, it’s far more than its competitors by a long shot.

To add to this point, each da Vinci machine ranges in cost from $0.5 million to $2.5 million. When coupled with the intangible cost of training surgeons to use the da Vinci surgical system, it means hospitals and surgical centers are highly unlikely to switch to a competitor once the purchase is made.

Intuitive Surgical also benefits from its razor-and-blades operating model , which should help the company’s operating margins expand over time. During the 2000s, the company generated most of its revenue from selling its pricey but mediocre margin, da Vinci systems (the “razor”). However, the bulk of revenue now comes from selling high-margin instruments with each procedure, as well as from servicing these systems (the “blades”). As the installed da Vinci base grows, so will Intuitive Surgical’s higher-margin sales channels. Image source: Pinterest. Pinterest

The third sensational growth stock begging to be bought during the Nasdaq bear market dip is social media stock Pinterest ( PINS -2.93%). Although ad spending could prove challenging until the U.S. economy finds its footing, Pinterest looks poised to excel over the long term.

Ideally, Wall Street and investors would like to see Pinterest’s monthly active user (MAU) count […]

source Nasdaq Bear Market: 5 Sensational Growth Stocks You’ll Regret Not Buying on the Dip

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