You probably know that the stock market has been disastrously performing if you’ve kept up with financial news. It’s safe to say that 2022 hasn’t been a good year for the stock market. The major indices like the SP 500, the NASDAQ Composites Index, and the Dow Jones Industrial Average have all been nosediving since the year began. The SP 500 is already down 23 percent. Meanwhile, the NASDAQ Composite - focused on tech stocks - has declined by 32 percent. It seems that even blue-chip stocks are no longer reliable because they’ve declined by over 18 percent.
It’s only natural that the stock market’s poor performance this year has sent investors and traders into a frenzy, and rightly so. Traders and investors don’t want to lose their hard-earned money through poor investments, and the current state of market affairs has made it incredibly challenging to discern profitable investments from poor ones. Uncertainty continues to rise as experts believe a mass stock market sell-off is inbound, with a recession following soon.
Most investors and traders often look to withdraw their investments from the stock market, particularly as it creeps closer to a bear market. However, market corrections present valuable opportunities for savvy traders and investors to profit. You can generate sizable returns during a market downturn if you know what you’re doing. Growth stocks are always an excellent option for traders and investors to add to their portfolios, particularly during financially inauspicious times.
You could probably acquire these growth stocks with excellent potential for lower prices if the market cedes more ground in the following months. Let’s explore some valuable growth stocks to consider if a market sell-off occurs.
Growth Stocks to Consider If There’s a Market Sell-Off
Here are some growth stocks to consider if there’s a market sell-off. They include:
Advanced Micro Devices
Advanced Micro Devices (AMD) is a company that produces computer hardware like Central Processing Units (CPUs) and Graphics Processing Units (GPU). As a tech stock, the company hasn’t been exempt from the tech stock bubble crash in 2022. AMD’s share prices have decreased by approximately 29 percent this year. However, the stock continues to trade at 38 times the company’s trailing earnings, outpacing the NASDAQ 100’s average earnings multiple of 25. AMD also has a forward earnings multiple of 23, indicating the company is on track for significant growth.
AMD is a promising stock for traders and investors because the company expects to finish 2022 with revenues of $26.3 billion, increasing by nearly 60 percent over last year. In addition, the company also forecasts an adjusted gross margin of 54 percent.
Furthermore, AMD recently acquired Xilinx. AMD plans to use the acquisition to strengthen its position in the cloud, edge computing, and intelligent devices sphere. AMD’s share of the CPU market has also grown by nearly 19 percent in 2022, and Bank of America expects the company’s CPU market share will continue to grow because of the data center business segment.
ASML Holding is a Dutch company listed on the NASDAQ. The company’s lithography machines play an integral role in helping foundries produce semiconductor chips. Semiconductor chips power the modern world and can be found in electric vehicles, gaming consoles, computers, laptops, tablets, smartphones, and any other electronic appliance you can name. ASML Holding is an exceptional growth stock to purchase because the company acquired seven billion euros worth of net bookings in the first quarter of 2022. The net bookings almost doubled analyst’s expectations, meaning the company now has an order backlog amounting to 29 billion euros. In addition, analysts also predict a 30 percent annual growth for ASML holdings in the next five years, making it an excellent stock to add to your portfolio.
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