Growth stocks have been hit hard through the first four trading months of 2022. Tech heavy Nasdaq Composite The index is now down more than 20% from its peak, a performance that once again puts it in bear market territory.
There’s no question about it: there are plenty of risk factors for investors to consider right now. However, there are also great stocks worth buying amid the Nasdaq bear market backdrop. With growth stocks down, here are two companies trading at dramatic discounts that are poised to thrive for the long haul.
1. Interactive Take-Two
Interactive Take-Two‘s (TWO TWO 2.81%) Grand Theft Auto is the most profitable entertainment release of all time and has sold more than 160 million copies since its initial release in 2013. There are a few secrets to the title’s incredible success.
The game is of very high quality and offers an immersive world that brings new experiences with each session. It also has a very popular online mode that keeps players engaged and spending with updates and new game modes. And finally, Take-Two has continued to release graphically updated versions of the title for PC and new console platforms.
The improvements, combined with the game’s fundamental appeal, have driven players to make repeat purchases even though they already own it. Take-Two recently released an updated version of Grand Theft Auto V for SonyPlayStation 5 and MicrosoftThe latest Xbox consoles from. These new releases are likely to re-sell millions of copies and help keep gamers active on the game. grand theft auto online virtual world.
While Grand Theft Auto As the standout property in the company’s franchise portfolio, Take-Two is no one-trick pony. The company is also responsible for successful series, including NBA 2K Y red dead redemptionand a host of other properties.
Even better, the company’s pending acquisition of Zynga means it’s well on its way to integrating mobile properties, including Farm, words with friendsY cartoon explosion. The acquisition of the mobile game specialist will bring new development studios with experience monetizing mobile titles under Take-Two’s corporate umbrella, and should also allow the larger company to get more out of its own franchise portfolio.
With shares down 42% from the high it reached last year, the company is now valued at about $14.2 billion and trading at about 20 times this year’s expected earnings. Take-Two looks cheap, given the strength of the business and its potential for earnings growth.
The trend of digital transformation is affecting virtually every industry under the sun. Cloud-based learning and training software is still a small market with a lot of room for growth and twelve‘s (DCBO 5.75%) category-leading offerings and pioneering position could usher in lasting dominance in the space.
The Toronto-based company went public in 2019 on the Toronto Stock Exchange and then debuted on the Nasdaq the following year. Docebo now has a market capitalization of about $1.4 billion, and its shares are down about 53% from their all-time high.
Docebo is still a relatively small company, but it is growing its revenues at a rapid rate. Sales were up 59% year-over-year in the fourth quarter to reach $29.8 million, and the business has continued to see strong momentum for recurring subscription-based revenue streams. The company also posted a gross profit margin of 79% in the fourth quarter and turned profitable in the quarter, posting a net income of $0.7 million compared to a loss of $1.2 million in the prior year period. .
The software specialist has a cash-rich balance sheet that it can use to fund internal projects and pursue acquisitions to bolster core strengths and connect the business to new markets, and it also appears to be benefiting from a forward-thinking company culture. EITHERf surveyed employees who reviewed their experiences at Docebo At Glassdoor.com, 92% approve of founder and CEO Claudio Erba, and 83% said they would recommend working for the company to a friend.
Even with pandemic-related conditions easing in most of the world, digital services and functions will continue to be increasingly central to long-term business operations and organizational success. Docebo has huge potential for global expansion along with this trend, and long-term investors have found an attractive buying opportunity following big drops in the company’s share price.