It's been a challenging year regardless of whether you've been invested in the stock market for decades or just started working on Wall Street. The first half of the year was the worst for the S&P 500 in more than 50 years.
Things have been more difficult for the growth-dependence of the index. Since hitting its all-time high in November, the index has plummeted. Despite a small rebound from its lows, the index is still in a bear market.
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There is an interesting fact about bear markets. Every bear market decline and stock market correction has been erased by a bull market rally. All large declines in the major U.S. indexes are opportunities for long-term investors to take advantage of.
Growth stocks offer some of the best valuations on Wall Street. There are five fantastic growth stocks you'll regret not buying.
If you don't scoop it up on the decline in the stock market, you will be kicking yourself. There are short-term concerns that don't affect Nio's long-term growth.
A glimpse of the company's ability to ramp up production has already been given to us. In the month of June and July, Nio delivered over 12 thousand electric vehicles. Nio's management thought it would hit an annual run-rate of 600,000 EV by the end of the year. It will not be a problem for Nio's expansion once part availability improves.
The company's innovation can be seen on a number of fronts. Nio has introduced new vehicles to broaden its appeal. The top battery upgrade on the ET7 sedan can allow it to travel 622 miles on a single charge.
The battery-as-a-service subscription was introduced in August 2020. Buyers get a discount off the purchase price of their EV, and can upgrade their batteries at a later date. The benefit for Nio is high margin monthly subscription revenue.
Exelixis is a great buy if you're looking for growth companies that aren't as well known.
The thing about healthcare stocks is that they are defensive. No matter how bad the U.S. economy or stock market is, patients will still need healthcare services. Drug stocks like Exelixis can be found under this floor.
The blockbuster drug Cabometyx is the reason why this cancer-drug developer is so special. Cabometyx can be used to treat first- and second-linerenal cell carcinoma. More than $1 billion in sales potential is offered by these indications. There are at least six dozen clinical studies currently underway to assess Cabometyx as a monotherapy or combination therapy in an assortment of cancer types.
Exelixis is making money. There was $2 billion in cash, cash equivalents, and restricted cash equivalents at the end of March. With so much capital on hand, the company has been able to fund many drug development partnerships.
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Visa is a third fantastic growth stock that you'll regret not buying while it's down. Visa has sustainable competitive advantages that make it less likely that it will suffer during times of economic weakness.
Visa and its peers are helped by the disproportionate amount of time the US economy spends expanding. Recessions don't last very long. Visa shareholders can take advantage of the growth of the U.S. and global economy if they are patient.
Visa is the top market for consumption in the world. In the U.S., it held a larger share of credit card network purchase volume than the next closest competitor.
Visa's runway is lengthy. Visa was able to get into underbanked regions with the Visa Europe acquisition because most global transactions are still being conducted in cash. Or it could use its payment infrastructure to enter the Middle East, Africa, and Southeast Asia region. Visa shareholders should expect sustained double digit growth.
The fourth growth stock that is an amazing value is U.S. marijuana stock Columbia Care. Columbia Care is a smart way to play the U.S. pot industry if you are also bullish on multi-state operators.
The U.S. cannabis industry is expected to grow throughout the decade. According to the cannabis research firm, the US legal weed market will grow from $29 billion in sales in 2021 to an estimated $60 billion by 2026. Those who keep score at home have a compound annual growth rate of 16%.
Cannabis has acted as a nondiscretionary item during the COVID-19 epidemic. Consumers are buying even if the economy is bad.
Columbia Care has a growth strategy and is about to be acquired. Acquisitions have been used by Columbia Care to expand its retail presence. It has a footprint in most high-dollar markets and is a major player in Colorado.
Combining the two companies will create anMSO with more than 130 operating dispensaries and a footprint in 18 states. It's going to be the leading wholesale pot company in the U.S., with a rapid expansion of its retail presence. The icing on the cake is that Columbia Care is trading at an 8% discount to the all-share buyout price offered by Cresco.
Datadog, a cloud-based application monitoring and security company, is the fifth and final fantastic growth stock you will regret not buying. Datadog is the fastest-growing company on the list with a compound annual growth rate of 74% over the next four years.
Datadog's rapid growth is not a secret. Businesses were moving their data to the cloud before the swine flu hit. The shift has accelerated since the Pandemic hit. Datadog is perfectly positioned for what could become a sustained hybrid-work environment because it offers solutions that allow businesses to monitor and secure their applications.
The most impressive thing about Datadog isn't its customer growth. The company has been able to grow organically from its existing clients. Datadog had a 19-quarter streak in which it had a dollar-based net retention rate of at least 130%.
Datadog stated at the end of 2020 that 22% of its customers were using four or more products. 34% were using four or more products and 12% had graduated to six or more. Datadog has grown its business from within.
With a consistently growing total addressable market and the company having pushed into recurring profitability, now is a great time to invest.