This year, there have been ups and downs for the stock market. The Nasdaq Composite, Dow Jones Industrial Average, and S&P 500 are the three main indices, and they are all down by 22%, 12%, and 16%, respectively. Investors should keep in mind that over the last ten years, the same indices have increased by 285%, 140%, and 180%, respectively.
With that in mind, it looks like a fantastic moment to buy discounted equities right now. So let’s look at three growth stocks that are begging to be purchased.
Alphabet
Alphabet (GOOG -0.69%), (GOOGL -0.66%), is the first high growth stock I am monitoring. Alphabet immediately makes me think of size. Alphabet is the third-largest American corporation with a market valuation of $1.4 trillion, behind only Apple and Microsoft.
And that makes sense. Alphabet is home to a number of well-known businesses, such as YouTube, Google Cloud, and its omnipresent Google Search company. Alphabet’s growth is extraordinary given its wide range of profitable business divisions. The most recent quarter saw a 12.6% increase in quarterly revenue. Additionally, the business is reasonably priced.
The price-to-sales ratio for Alphabet is at 5.4, which is still well below the five-year average of 6.6. Alphabet should now be considered by long-term investors wishing to add a top growth company with established business areas.
Snowflake
Snowflake (SNOW -2.05%) is currently the second-best growth stock to own. The business has an application for cloud computing called Data Cloud that enables users to collect their data, run analyses, and come to conclusions. Data siloing is an issue that Data Cloud assists clients with resolving since it has grown more prevalent as businesses use cloud services from several providers.
Shares of the corporation recently increased by more than 17% after it released outstanding financial reports. Snowflake reported $497 million in sales for the fiscal second quarter (the three months ended on July 31), above average projections by around $30 million. The company’s income increased by an astounding 83% year over year, and its client base soared to 6,808, up 36% from the previous year. If there is one important lesson to be learned from Snowflake’s stellar quarter, it is that the company’s explosive expansion is still going strong.
Lululemon
Lululemon (LULU -2.31%) is the third and last growth stock on my list that is an absolute must-buy. The business creates and markets athleisure-related apparel, footwear, and accessories.
Despite widespread worries about an impending recession, Lululemon has so far in 2022 shown exceptional growth. In the previous year, revenue totaled $6.6 billion. Revenue increased 31.6% from the prior year in its most recent quarter (the three months ending on May 1, 2022).
However, it’s important to keep in mind that Lululemon has more to offer than just their well-known yoga clothes and ubiquitous belt packs. In fact, Chief Executive Officer Calvin Mcdonald believes that by expanding sales to males and boosting footwear sales, Lululemon would be able to quadruple its revenue by 2026.
If the business achieves its objective, it seems to be a buy. Despite having a 39 price-to-earnings (P/E) ratio, Lululemon remains affordable when compared to other companies. The company’s average P/E ratio over the last five years is 54, demonstrating that market participants were ready to pay a premium for Lululemon.
After the market closes on September 1, the firm releases its results. It would be good for long-term investors to buy into any dip.
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