Will the stock market crash again? Absolutely. It is a question of when not if.
There are many investors who expect it to be sooner rather than later. We are already seeing increased market volatility as the number of COVID-19 cases increases in the US The possibility of a second severe wave of outbreaks in the fall may be enough to blow up what some think is a stock bubble.
I don’t want the stock market to fall again soon. But I’ll easily admit that a part of me wouldn’t mind the opportunity to get shares of several of my favorite growth stocks at a lower price. Here are three stocks that I will buy absolutely and positively if the stock market fails again.
From its lowest point on March 16 in the last major stock market crash, Quickly (NYSE: FSLY) It has generated a staggering profit of over 680%. I bought the stock a few weeks ago, too late to get into most of the wild ride, but soon enough to enjoy substantial performance in a short amount of time.
It was quickly a big winner because it is an ideal play for COVID-19. The company’s content delivery and computing network (CDN) platforms accelerate the delivery of applications and data from the cloud, which is increasingly important with companies that enable employees to work from home like never before.
Currently, the shares are trading at more than 33 times sales with a market capitalization of close to $ 8 billion. That is certainly an assessment of nosebleeds. However, I don’t think it’s too late to buy Fastly – the company’s addressable market is projected to be around $ 36 billion by 2022, giving Fastly plenty of room to operate.
I would love to have the opportunity to increase my position on Fastly if it falls back on an overall decline in the stock market. But I doubt I’ll wait to see if it happens. Fastly’s prospects are so tantalizing that I will probably buy more shares regardless of what the stock market does.
2. Livongo Health
Actions of Livongo Health (NASDAQ: LVGO) More than 270% have soared since hitting bottom in mid-March. I didn’t buy the shares until early May, but it still made a big profit in the past few months.
Livongo is another company that has benefited from the COVID-19 pandemic. The company specializes in providing technology that helps people better manage their chronic conditions. Remote monitoring and management of the disease for people with diabetes and hypertension have taken center stage and will likely gain importance even after the pandemic ends.
A price-to-sales ratio (P / S) of more than 36 would be terrifying for most investors. It would be for me too, if I wasn’t sure of Livongo’s growth potential. The company estimates that its addressable market is close to $ 47 billion. But that total only includes the US market and only diabetes and hypertension. Livongo is also targeting other chronic conditions, such as behavioral health issues, and could expand to international markets in the future.
Still, it would be great to buy more Livongo Health shares in a dip or dip. My opinion is that Livongo, like Fastly, should be more resistant than most populations if the COVID-19 pandemic worsens. But it could still back up a bit. If you do, I will be ready to jump.
3. The commercial desk
The commercial desk (NASDAQ: TTD) Shares have soared more than 56% so far this year and have risen more than 180% from their low on March 18. I’m happy to say that I’ve had the shares for a while and participated in all the fun experienced in 2020 so far.
The COVID-19 outbreak presents a risk to The Trade Desk. The company’s programmatic advertising platform makes money when ad agencies buy ads. If the clients of those agencies reduce their advertising budgets, The Trade Desk suffers. That was what happened in March, but it was only a brief setback: the company’s sales quickly recovered.
Yes, The Trade Desk shares are trading at a higher price with a P / S ratio of 27. However, the meteoric rise in connected television (CTV) is driving rapid growth in programmatic advertising. Over the next decade, I expect a large chunk of the projected global advertising market of more than $ 1 trillion to be programmatic, with The Trade Desk as the primary beneficiary.
If another stock market crash occurs in the near future, it is likely due to fears of a second wave of the coronavirus outbreak or a prolonged recession as a result of the pandemic. Either scenario could cause The Trade Desk stocks to falter, especially if advertisers reign in spending. However, my opinion is that it would be only a temporary problem that would present an excellent opportunity to buy The Trade Desk at a low price.