If you’re looking to make gains in a bear market, then you need to find the right growth stocks to buy.
Intuitive Surgical (ISRG): Flagship da Vinci systems continue to gain traction with every passing quarter.
Teladoc Health (TDOC): Membership base continues to rise at an aggressive pace despite the pandemic fade.
CrowdStrike Holdings (CRWD): Recurring revenues and retention rates remain impressive and will continue driving robust growth.
Globant SA (GLOB): Has a massive client base who are likely to consume its new services.
Fiverr International (FVRR): Total active buyers are rising at a brisk pace and the addition of new features adds to the stickiness of the platform.
Snap (SNAP): Ads business continues to take its cash flows to new heights.
Boot Barn (BOOT): Strategic efforts are driving sales through its vast brands portfolio.
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Investing in a bear market is typically a tricky proposition. Plenty of stocks are trading at attractive valuations, but selecting the best ones for the long haul can be daunting. Nevertheless, picking up the top growth stocks to buy for a bear market is a potent long-term strategy for investors to grow their wealth over time.
Bear markets like the one we’re in now will eventually end. Virtually every stock has been beaten down by the market, but not every stock will shoot higher when you stretch your investing time horizon. The key to investing is looking for companies with a solid track record in growing their top and bottom lines. Here are seven that offer incredible upside in the future.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) remains a dominant player in the robotic-surgery industry, as demand for minimally invasive surgeries continues to grow at a robust pace. Although demand for elective procedures is far from returning to pre-pandemic levels, its operating results continue to impress.
It posted stellar first-quarter results, where revenues came in at $1.5 billion, compared to $1.29 billion from the same period last year. Growth was attributable to a 19% bump in elective procedures using da Vinci systems. The company’s flagship da Vinci systems continue to be a hit providing surgeons with an in-depth view of the operating fields they’re working on and intricate instruments for precision. Moreover, Intuitive also earns revenues from the sale of accessories and instruments, a figure which shot up 15% to $810 million during the first quarter. The pandemic-led headwinds have faded away, and ISRG can push on toward bigger and better things.
Teladoc Health (TDOC)
Teladoc Health (NYSE:TDOC) is a telehealth services provider covering primary, mental and chronic illness management. Over 3.2 million people in the U.S. booked visits with the company during the first quarter, while its membership base shot up to 54.3 million, both representing record numbers.
Teladoc expects its membership base to rise by 1% to 5% this year, while revenue could surge as high as 23%. Moreover, the ratio of paid visits increased by 23.4% in the first quarter, compared to just 17.5% in the same period last year. If the business can continue to grow at such an impressive pace, it could move quickly toward breaking even.
CrowdStrike Holdings (CRWD)
CrowdStrike Holdings (NASDAQ:CRWD) is one of the leading and fastest-growing cyber security businesses. Its cloud-native platform, Falcon, effectively removes the need for on-site security devices, which is typically quite difficult to scale. Its disruptive offering has enabled it to generate close to 100% revenue growth over a five-year period.
In the most recent quarter, subscriptions rose 57% year-over-year, while annual recurring revenue increased by a remarkable 61%. These growth rates have remained stable over the past year. Moreover, customers using over four modules have grown steadily, allowing the enterprise to keep its net retention rate over its target level of 120%. Moreover, CRWD commands a strong margin profile, with its gross profit margin over 73% on a trailing-twelve-month basis.
Globant SA (GLOB)
Globant SA (NYSE:GLOB) is a popular IT and software development enterprise that has consistently generated double-digit revenue growth over the past several years. It boasts a growing number of blue-chip clients from a wide variety of sectors, which minimizes the volatility in sales. Moreover, it continues to acquire new companies and add new services, which can be conveniently cross-sold to its massive client base.
Demand for internet-related IT services was huge during the pandemic years, which is why GLOB stock was on a tear. Growth rates have normalized but are still highly impressive under the circumstances. In its first quarter, it generated $401.4 million in sales, representing a 48.6% increase from the prior-year period. Moreover, the company has recently provided consulting services, AI-powered tools for software development and customer relationship management, and other products that will drive the next growth phase.
Fiverr International (FVRR)
Fiverr International (NYSE:FVRR) is a leading online marketplace connecting freelancers or independent contractors to businesses and other individuals. Pandemic-led tailwinds have accelerated hybrid and remote working trends, which led to a massive surge in sales for the platform. It has witnessed immense strength across its top line, with gross margins of over 70%.
2021 was a blockbuster year for the business, with a 57% jump in sales on a year-over-year basis to $297.7 million. Nevertheless, investors will likely be disappointed with its 25% to 27% revenue guidance for 2022. However, total active buyers on the platform continue to increase at a staggering pace, which should continue boosting sales. Total active buyers rose by 23% to 4.2 million last year compared to 2020, which is incredible. If it can continue to add new features, it will significantly increase the stickiness of its platform, thereby resulting in massive top-line growth.
Snap (NYSE:SNAP) is a social media giant that has proven to be an anomaly in the sector. Although its stock revalued lower this year, its underlying business continues to make solid progress. It has been increasing its active users, revenues and cash flows at a brisk pace. Moreover, a robust sales forecast has been submitted for the second quarter.
Company revenues shot up 38% in the first quarter to $1.06 billion compared to the same period last year. Moreover, it expects to see 20% to 25% year-over-year growth in sales for the upcoming quarter. Also, its free cash flows for the first quarter came in at an impressive $106 million, which marks the third straight quarter of positive FCF.
Demand for Snap’s ads business is tremendous. The first quarter revealed that upfront commitments from advertising partners and agencies have increased by over 60%. Much of it has to do with the rampant increase in its daily active users. During the first quarter, the company witnessed an 18% increase in daily active users to 332 million. Additionally, Snap has enough liquidity to implement new changes and remarkably positively impact its long-term potential.
Boot Barn (BOOT)
Boot Barn (NYSE:BOOT) is a juggernaut in work-related and western footwear. It has been a highly consistent performer, with a 33% increase in comparable sales during the fourth quarter compared to a 27% increase from the same quarter last year. It experienced massive growth across virtually every merchandise category.
Moreover, after foraying into the casual outdoor segment, the company’s addressable market shot up to $15 billion. Additionally, the addressable markets for work and western have also risen at a rapid clip over the past decade. Also, the company’s recent strategic efforts have proven to be instrumental in driving sales through its diverse portfolio of brands.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.