Nasdaq Bear Market: 4 Outstanding Growth Stocks You’ll Regret You Didn’t Buy in the Drop

There is no doubt that it has been a challenging year to be an investor. Since hitting all-time closing highs in January, the iconic Dow Jones Industrial Average has entered correction territory with a loss of more than 10%, while the benchmark S&P 500 briefly plunged into a bear market.

It’s been an even harder job for stock-dependent growth Nasdaq Composite (^IXIC 0.00%), which fell as much as 31% on a high-to-low intraday basis, as of last weekend. This also places the index firmly in a bear market.

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While the speed of downside moves during corrections and bear markets can be scary, and big drops can weigh on investors, history has repeatedly shown that sizable pullbacks are the ideal time to put your money to work. All the crashes, bear markets, and double-digit corrections throughout history, including the Nasdaq Composite dot-com bubble burst, have finally been erased by a bull market rally.

Right now, many of the best offerings on the market are growth stocks. What follows are four exceptional growth stocks you’ll wish you didn’t buy in the Nasdaq bear market crash.

Etsy

The first phenomenal growth stock that deserves the attention of long-term investors is the electronic trading platform. Etsy (ETSY) 4.98%). Even though historically high inflation is taking a toll on low-income consumers right now, Etsy has a couple of key advantages that should help it sustain double-digit growth for a long time to come.

The biggest differentiating factor for Etsy is the composition of its merchants. While most online retail platforms are impersonal and based solely on volume, Etsy merchants are almost always small businesses that create unique products or provide customizable services. There is no platform at scale where merchants engage on a more personal level with buyers, which is what makes Etsy so competitively untouchable.

Another impressive aspect of Etsy’s operating model has been its ability to transform occasional buyers into repeat buyers. A “regular shopper” is someone who spends a total of at least $200 during the 12-month period and makes at least six separate purchases.

Even taking into account that the retail landscape has softened somewhat due to inflation, Etsy saw the number of repeat buyers on its platform grow by 224% between the end of 2019 (before the pandemic) and the end of 2021. This incredible growth It should allow the company to progressively charge merchants more for advertisements and various services.

Etsy looks like a screaming bargain at roughly 20 times Wall Street’s earnings forecast for the coming year.

A doctor administering a vaccine to a patient's upper right arm.

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Novavax

Another exceptional growth stock that you will surely regret not buying in the fall is the biotech company. Novavax (NVAX 17.46%). Although Novavax delayed filing emergency use authorization for its COVID-19 vaccine in several key markets last year, thus missing out on some proverbial low-hanging fruit in developed markets, the company appears poised to capitalize. its leading vaccine and other developments in development. .

The Novavax COVID-19 vaccine, NVX-CoV2373, has a number of competitive advantages. For example, it is a protein-based vaccine and not a messenger RNA-based one. This has the potential to encourage COVID-19 vaccine hesitant to get the shot.

Additionally, it is one of only three global COVID-19 vaccines to meet the elusive 90% threshold for vaccine efficacy (VE). Such a high VE should allow Novavax to become a staple for booster injections in developed countries, as well as initial inoculations in emerging markets.

Equally intriguing is the potential that Novavax offers in the development of combination vaccines (for example, influenza and COVID-19). While Novavax fell behind the competition when it brought its COVID-19 vaccine to market, it could be one of the first (if not the first) to get a combined vaccine onto pharmacy shelves.

You can buy Novavax stock for just over double Wall Street’s forecast earnings in 2022.

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Palantir Technologies

A third exceptional growth stock that you will regret not taking advantage of in the Nasdaq bear market crash is the data mining company. Palantir Technologies (PLTR 5.86%). Despite previously trading at bleeding multiples on its sales and adjusted earnings (Palantir shares are down more than 80% from its all-time high), it has all the tools necessary to enrich patient investors.

What makes Palantir such an intriguing stock is that no other company comes close to offering the scale of solutions that it can. Its AI-powered Gotham platform services government entities and provides assistance with missions and data aggregation. Meanwhile, its Foundry platform helps enterprise customers make sense of their data to streamline their operations.

For the past two years, Gotham has been the driving force behind Palantir. Large government contracts won that often last four or five years have driven annual sales growth of 40% (or more). But going forward, Foundry is the company’s golden ticket to riches. While Gotham has a tangible ceiling (ie there are a limited number of government entities around the world that Palantir will allow to use its solutions), Foundry has just scratched the tip of the iceberg in regards to its potential.

Palantir is a company that offers sustained sales growth of 25% to 30% per year. There is simply no replacement for the services you can provide.

Clear jars placed on the counter of a dispensary store filled with dried cannabis buds.

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Cresco Laboratories

US marijuana stocks are another area where you’ll find exceptional growth at incredible value, and you’ll likely be put off if you don’t buy at these prices. The name to consider now is multi-state operator (MSO) Cresco Laboratories (CRLBF -2.35%).

The big problem for US marijuana stocks is overcoming a lack of reform at the federal level. Cannabis was widely expected to be legalized (or at least banking reform anticipated) with Democrats in control of Congress. Even though none of this happened, three-quarters of all states have given marijuana the green light in some way, including 18 states that allow adult consumption and/or retail sales. There are plenty of organic opportunities here for Cresco Labs, even if the federal government doesn’t pass cannabis reforms.

Like most MSOs, Cresco has a thriving retail presence. At the end of March, the company had 50 operating dispensaries and announced plans to acquire MSO care of colombia (CCHWF 0.52%) in an all-stock deal. Columbia Care’s growth-by-acquisition strategy should give Cresco a sizable retail footprint, assuming the deal closes.

But what really separates Cresco from other MSOs is its industry-leading wholesale operations. Although wholesale cannabis produces lower margins than retail operations, Cresco’s access to more than 575 dispensaries in California, the largest US weed market, gives it the volume needed to make wholesale major is highly lucrative.

Look to Cresco Labs to maintain double-digit annual sales growth for years to come.

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