7 growth stocks to buy during a stock market crash

If investors weren’t already worried, they should follow the release of the inflation numbers on September 13th. The United States had already experienced two consecutive quarters of GDP contraction. That news was released in late July. Although two consecutive quarters of GDP contraction meet the technical definition of a recession, economists have hesitated to say that a recession has occurred.

Unfortunately, primary inflation in August reached 8.3%. It was higher than the 8% predicted by many economists. More ominously, core inflation, which excludes food and energy, reached 6.3% yoy, up from 5.9% the previous month. The Fed rate hikes are not working and there is now no chance that the Fed will become less aggressive.

In short, the chances of a stock market crash have just increased again. Other economists will be wondering aloud if we are in a recession. While growing stocks may look unappealing during a huge stock decline, the bear market won’t last forever, so it’s still worth buying some growing stocks for long-term investors.

Here are seven of the best growth stocks to buy during a stock market crash.

XPeng (XPEV)


Source: Andy Feng / Shutterstock.com

XPeng (NYSE:XPEV) stocks will be attractive during the next stock market crash.

For one, the Chinese electric vehicle maker is minimally exposed to the US market because it doesn’t sell vehicles here. Instead, XPeng gets its revenues from the Chinese and European markets.

And despite the blockages in China and other bottlenecks, XPeng is doing well. The company reported that its revenues increased 97.7% year-over-year in second quarter earnings. It is clear that the demand for XPeng’s vehicles is quite resilient.

Additionally, XPeng will begin delivering its new G9 SUV in the fourth quarter. This, along with two other new models that are expected to be introduced in 2023, should keep XPEV shares strong, no matter what the US markets do.

Nio (NIO)

NIO logo, sign atop the North American headquarters and global software development center in Silicon Valley.  NIO is a Chinese manufacturer of autonomous electric vehicles
Source: Michael Vi / Shutterstock.com

Purchase Nio (NYSE:NIO) stock is really a matter of timing. What I mean is that Nio will continue to grow and his actions will appreciate going forward. The stock is currently trading around $ 18.30.

That price could represent a low or maybe the shares will drop further. Either way, Nio’s future is bright. Once the global economy improves, NIO shares will rise.

The company’s growth is simply too good to ignore. In the second quarter, its vehicle sales increased 21% yoy, while its revenues increased 22% yoy to $ 1.5366 billion. Nio lost $ 411.7 million during the quarter. The red ink may deter some investors.

However, the company’s position in the world’s largest electric vehicle market is extremely strong. It will become profitable and very little can stop it from happening.

Nio expects its revenues to increase by up to 39% year-on-year in the third quarter. This strong guide provides investors with greater incentives to consider buying NIO stock now or during any incident.

Coupang (CPNG)

A close-up shot of a Coupang Delivery Vehicle (CPNG).
Source: Ki Young / Shutterstock.com

For the first year after its IPO, coupang (NASDAQ:CPNG) the title seemed to be on its way to becoming a bust. During that time, the Korean e-commerce company’s shares fell from nearly $ 50 to under $ 10.

CPNG has had many problems, but the biggest have been its losses. The e-commerce giant has regularly posted impressive quarterly revenue figures of well over $ 4 billion.

But it was also haunted by losses. For example, in the second quarter of 2021, the company reported revenue of $ 4.478 billion and a net loss of $ 518.6 million.

But Coupang’s financial results are changing rapidly. Last quarter, Coupang’s revenues eclipsed $ 5 billion and its net losses shrank to a whopping $ 75.5 million. Its EBITDA even turned positive, reaching $ 66.17 million.

The company now expects to generate positive EBITDA throughout 2022. That turning point should serve as an excellent reminder that CPNG shares are making an impressive return.

Alphabet (GOOG, GOOGL)

GOOG stock: letters that google make
Source: rvlsoft / Shutterstock.com

Alphabet (NASDAQ:GOOG, GOOG) the shares did not have an easy 2022. As one of the leading names in tech, the Silicon Valley giant has stumbled heavily as interest rates soar and easy money runs out. Google is down 30% in 2022. The July 15 stock split didn’t stop the bleeding either. Since then, the shares have corrected a further 9%.

So what exactly is the good news? Why should investors care about Google with interest rates set to continue to rise and the company that lost its antitrust lawsuit in Europe?

The answer is that GOOG stocks are cheap. Its current P / E ratio is essentially at a five-year low and hovering around 19. Over the past decade, its average P / E ratio has been nearly 27 So even if Google falters further, there is reason. to believe that it will almost certainly rebound to higher levels.

Apple (AAPL)

Apple logo branding (AAPL) and text sign on American multinational boutique dealership store entrance facade
Source: sylv1rob1 / Shutterstock.com

Apple (NASDAQ:AAPL) shares are currently trading at around $ 150. Despite everything that happened in 2022 and everything that may still happen this year, that price has remained stable.

Apple is the most valuable stock in the world measured by market capitalization. So it’s also one of the most scrutinized names. This strongly implies that AAPL shares can continue to hold their value as the market shrinks, as it is unlikely to surprise the Street with unknown and negative news.

Fortunately, AAPL has done well and the analyst’s average price target for the stock is above $ 182.

The company recently unveiled its latest line of iPhones. The company has kept the starting prices of the devices at the same levels as last year. Analysts had expected Apple to raise those prices.

Given stable prices, demand for iPhones could rise next year following strong sales of the devices in 2022. Apple’s shares are showing resilience after the Fed’s third consecutive 75bp interest rate hike, suggesting that AAPL it remains an excellent technology choice even as broader indicators indicate that the economy is approaching recession.

Fiser (FISV)


Source: Wright Studio / Shutterstock.com

Fiser (NYSE:FISV) is a payment processor and consolidated financial stock. The company is particularly known for its commercial solutions which include Clover and Carat.

One of the main reasons to like Fiserv is that it combines security and growth quite well. The stock is only slightly down in 2022 and has fared better than many fintech stocks. The FISV also grew rapidly, with year-on-year revenue growth of 10% in the second quarter and first half of the year. Its EPS gains were particularly strong, as its profits grew 130% yoy in the second quarter of the quarter and increased 128% yoy in the first six months of 2022.

These strong results led the company to increase its forecast for the full year. It now expects its EPS to increase between 16% and 17% in 2022.

Fiserv is among several fintech firms looking to buy the payments arm of the Spanish bank, Sabadell. That deal could cost up to $ 394 million, according to preliminary information.

Fiserv hopes to find himself on the shortlist of shortlisted candidates for unity to be announced in early October. If the FISV is able to buy the payment unit, its shares should increase.

Vertex Pharmaceuticals (VRTX)

Vertex Pharmaceuticals (VRTX) logo visible on screen
Source: Pavel Kapysh / Shutterstock.com

Vertex Pharmaceuticals (NASDAQ:VRTX) the title has some strong and positive catalysts. Overall, it should benefit from President Biden’s strong support for the biotech industry. He recently signed an executive order that is expected to stimulate greater production of biotech materials in the United States.

Additionally, a few weeks earlier Vertx Pharmaceuticals announced that it had received FDA approval for its drug ORKAMBI as a treatment for people one year and older with certain types of cystic fibrosis.

Recent data indicates that CF patients born between 2015 and 2019 have a life expectancy of only 46 years. while more than 30,000 Americans have the disorder. The data suggests that the total addressable market for ORKAMBI is quite substantial, while the company should be able to charge a high price for the drug.

VRTX shares predictably fell following the Fed rate hike. However, they rebounded well on Sept. 22 and are down just 1% today.

At the date of publication, Alex Sirois did not have (either directly or indirectly) positions in the securities referred to in this article. The views expressed in this article are those of the writer, subject to InvestorPlace.com Guidelines for publication.

Alex Sirois is an InvestorPlace freelance contributor whose personal equity investing style is centered around long-term, buy and hold, wealth-creating stock choices. Having worked in a variety of industries, from e-commerce to translation, education and using his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

Leave a Reply

%d bloggers like this: