Why visit roller coaster parks when you can invest on Wall Street? In the last four years, all three main stock indexes have experienced bear and bull markets, with the Nasdaq Composite (NASDAQINDEX: ^IXIC) experiencing the most extreme swings.
The innovation-driven Nasdaq lost 33% of its value in 2022, trailing the Dow Jones Industrial Average. The widely followed Nasdaq Composite has gained about 57% and reached record highs since 2023. Wall Street's new bull market is unquestionable. Although the Nasdaq Composite can't be stopped, enterprising long-term investors can still find great growth stock offers. Here are four great growth stocks you'll regret not buying in the new Nasdaq bull market.
Meta Platforms The first amazing growth stock you'll regret not buying with the Nasdaq Composite in a young bull market is Meta Platforms (NASDAQ: META). To be fair, several financial indications imply a recession this year. The majority of Meta's earnings came from advertising last year. In 2024, Meta and its stockholders worry most about economic contractions, which hurt ad-based enterprises.
Recessions are temporary. Three of the twelve U.S. recessions since September 1945 have lasted 12 months, and none have lasted 18 months. Ad-dependent companies like Meta thrive on slow development.
Meta Platforms' premium social media real estate sets it apart. Worldwide, Facebook is the most popular social network. After adding Instagram, WhatsApp, and Threads, Meta attracts about 4 billion monthly active users. Meta receives the most traffic of any social media platform. If the U.S. economy grows, this corporation will have strong ad pricing power.
It's a cash-generating company. Meta Platforms had $65.4 billion in cash, cash equivalents, and marketable securities by the end of 2023, having earned $71 billion. This cash cushion allows the firm to take risks like developing augmented/virtual reality gadgets and expanding its metaverse.
Meta's low price may be the hardest to trust. EPS should double between 2023 and 2027. Based on Wall Street's consensus 2025 cash-flow expectations, it's selling at a 9% discount to its five-year average cash-flow multiple.
Exelixis Cancer-drug developer Exelixis (NASDAQ: EXEL) is another great growth stock you'll regret not buying early in the Nasdaq bull market. Defense is one of healthcare stocks' finest qualities. Due to the unpredictable nature of illness, demand for prescription pharmaceuticals and healthcare services remains constant regardless of the economy. Biotech stocks like Exelixis have very predictable cash flow year after year.
Lead drug Cabometyx powers Exelixis. Treatment of first- and second-line renal cell carcinoma and advanced hepatocellular carcinoma is approved. The indications alone have boosted Cabometyx's annual sales to above $1 billion.
In over five dozen clinical trials, Exelixis is testing its leading cancer medicine as a monotherapy or combo. Advanced pancreatic and extra-pancreatic neuroendocrine tumors and metastatic castration-resistant prostate cancer (in combination with Roche's Tecentriq) met their primary endpoints in late-stage studies, which may lead to label expansion.
Take note of Exelixis' strong balance sheet. Despite not having Meta's vast treasure trove, it ended 2023 with $1.72 billion in cash, cash equivalents, and investments. This is enough to fund the company's own research and cooperation. Wall Street expects Exelixis' GAAP-based EPS to nearly double to $2.50 per share over the next four years.
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