Nasdaq Bear Market: 3 Strong-Growing Stocks Down More Than 90% That Can Double Your Money by 2025

Since the early 1950s, the benchmark S&P 500 suffered 39 separate double-digit percentage decreases. Investors may not like the fact that stocks can go down, but it happens more often than you might imagine.

It has been a particularly difficult year for those focused on growth Nasdaq Composite (^IXIC 0.53%). The index that was largely responsible for lifting the broader market to new highs has plunged as much as 38% from its November 2021 all-time high. This propels the Nasdaq firmly in a bear market.

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On the bright side, history has repeatedly shown that buying big market dips is a smart move. Innovative companies that offer industry-changing potential can deliver big gains when the next bull market inevitably hits.

The following are three high-growth stocks shot down more than 90% from their respective all-time highs that can double your money by 2025.

Teladoc Health

The first phenomenal growth stock that has the tools and intangibles needed to generate triple-digit returns for investors over the next three years is the telehealth giant Teladoc Health (TDOC -1.43%).

Since peaking in February 2021, Teladoc’s shares have plunged 91%. While valuation certainly played a role, Teladoc was mainly pummeled after it overpaid for applied health signs company Livongo Health. The $18.5 billion deal was largely canceled, which is why Teladoc’s year-to-date net loss is so unsightly.

But there appears to be a light at the end of the tunnel for what has been a shareholder nightmare. Most of the one-time expenses related to the Livongo deal have been written down, which should pave the way for a much cleaner P&L from Teladoc in the future.

More importantly, Teladoc has macro and company specific factors working in its favor. In terms of the former, we have no control over when we get sick or what ailments we might develop. There will always be a demand for virtual tour services, whether the US economy or stock market is doing well or badly.

On a company-specific basis, Teladoc Health is completely changing the way care is delivered. Skeptics may refer to telehealth as a fad that has been aided by the COVID-19 pandemic. However, Teladoc saw sales increase by an average of 74% annually in the six years leading up to the pandemic.

Teladoc is helping the entire treatment chain by making medical access more convenient for patients, as well as enabling doctors to keep tabs on patients with chronic diseases. The end result should be improved patient outcomes, which means lower out-of-pocket costs for insurance companies.

With losses expected to narrow in 2023, don’t be surprised if Teladoc Health bounces back strongly and eventually doubles by 2025.

Novavax

A second notable growth stock that was pulped by the Nasdaq bear market, but is poised to bounce back, is biotech stock Novavax (NVAX -10.11%). Shares of the company have plunged 94% since their February 2021 peak.

Novavax was one of the few drug makers that soared due to the COVID-19 pandemic. Unfortunately for Novavax, its emergency use authorization application has been delayed on multiple occasions in the United States, and the company has struggled to ramp up production of its vaccine. In short, it has missed an opportunity to capture potentially billions of dollars in sales from primary series vaccinations, especially in developed markets.

While Novavax’s woes cannot be overlooked, the company has clearly defined catalysts working in its favor. For starters, Novavax brings differentiation to the table. The company’s vaccine, NVX-CoV2373, is a protein-based vaccine designed to teach a person’s immune system how to fight COVID-19. People who didn’t want to take a messenger RNA vaccine now have an alternative with the Novavax vaccine.

Additionally, NVX-CoV2373 is one of only three COVID-19 vaccines to achieve the elusive vaccine efficacy level of 90%. This should make it a popular choice for initial vaccines and booster injections in the future.

However, most exciting for Novavax is the knowledge that its drug development platform works. Having successfully developed a vaccine for COVID-19, the company can focus on variant-specific COVID-19 vaccines or combination vaccines, such as influenza/COVID-19. Getting the first approved/licensed emergency use treatment out of the way is a major hurdle cleared.

Finally, Novavax finished September with $1.28 billion in cash and cash equivalents. This should be more than enough to boost its clinical programs and provide a relatively solid foundation below its current share price. With many opportunities in Novavax’s future, look for this biotech innovator to double your money by 2025.

A bank employee shakes hands with prospective customers in an office.

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emerging holdings

A third notable growth stock that was taken into the woodshed during the Nasdaq bear market but has the potential to double your money by 2025 is the cloud-based lending platform emerging holdings (upst -1.13%). Upstart’s stock has plummeted an almost unfathomable 95% in 13 months.

The obvious problem for Upstart is the Federal Reserve’s hawkish monetary policy change. With the Fed left with no choice but to aggressively raise interest rates to bring down the prevailing inflation rate, demand for loans has plummeted. To add fuel to the fire, defaults on loans and debits are at a higher risk of increasing when the US economy weakens. Yet even with these headwinds, Upstart’s innovation has potential to disrupt the industry.

For decades, loans have been tracked using boring metrics like credit scores. Upstart is explaining this process by leaning on artificial intelligence (AI) and machine learning. The company’s automated software is getting smarter and more efficient at processing and approving loans over time. During the third quarter, 75% of all loans processed were fully automated. This helps save time and money for its 83 banking and credit union partners.

Additionally, Upstart’s loan verification process is helping to break down financial barriers for prospective borrowers. While Upstart’s approvals have lower average credit scores than the traditional verification process, loan default rates between Upstart’s AI-driven platform and the traditional process have been similar.

There’s also plenty of room for expansion. Through 2021, Upstart focused predominantly on personal loans, a $146 billion loan origination market. But as of this year, it has broadened its horizons to include creating auto loans and small business loans. Auto and small business loans combine for nearly 10 times the origination potential of personal loans.

While it could be a bumpy couple of months until interest rates and bond yields peak, Upstart has the technology in place to double your money by mid-decade.

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