- The concept of “sell in May and go away” is ringing true, but you can still benefit by advantaging broader market circumstances.
- Murphy USA (MUSA): The one name on this list of great growth stocks to buy that’s still killing it, the wages of war may continue to bolster MUSA.
- Alphabet (GOOG, GOOGL): Though suffering from huge losses due to rising recession fears, Alphabet’s ownership of all things internet makes it a long-term buy.
- Kelly Services (KELYA): Specializing in comprehensive employment services, the return to the office could be a boost for KELYA stock.
- Adidas (ADDYY): One of the riskiest growth stocks to buy, ADDYY is now trading at levels not seen since the spring 2020 doldrums.
- NuScale Power (SMR): Controversial for its ties to nuclear power and SPACs, SMR is nevertheless a critical component to our energy infrastructure.
- Coinbase (COIN): Though cryptocurrencies have suffered alongside equities, Coinbase may be one of the better long-term growth stocks to buy.
- Spotify (SPOT): Embroiled in controversy, Spotify maintains significant relevance — and the return to the office shift could help too.
Typically, it’s not a good idea to trade on aphorisms like sell in May and go away. Though some phenomena does seem to carry statistical merit, it’s best to rely largely on the contextual fundamentals of the moment. That said, the aforementioned aphorism is starting to look mighty prescient. Still, it may not be time to give up on great growth stocks to buy in May.
To be clear, acquiring equities at this juncture is fraught with risk. Driving the volatility are two key factors: global instability concerns and rising recession fears. Obviously, Russia’s decision to invade Ukraine worries world leaders as the conflict can prolong, causing substantial disruptions. In turn, the fragile recovery from the novel coronavirus pandemic has met this previously unfathomable obstacle, causing many folks to run away from growth stocks.
However, for the daring, it might be time to press into the equities market. Now, I’m not suggesting that you go in blind and buy anything that’s stained with crimson ink. Instead, several relevant opportunities exist that have unfortunately encountered roadblocks. And if you’re patient, these growth stocks to buy could represent incredibly viable discounts.
Still, let me reiterate: patience is the key for most of these ideas. So if you’ve got the proper mindset, these are the growth stocks to buy in May.
|GOOGL, GOOG||Alphabet||$2,279.64, $2,288.96|
Growth Stocks to Buy: Murphy USA (MUSA)
An operator of retail gas station chains, Murphy USA (NYSE:MUSA) is simultaneously relevant and cynical. Part of the broader transportation infrastructure, Murphy USA helps keep America moving — quite literally. Furthermore, since the company’s locations tend to be near Walmart (NYSE:WMT) stores, they appeal to those who are budget-sensitive. That might be most of us pretty soon.
But because of this dynamic, MUSA is also a cynical investment. Still, cynicism sells, especially during rough times. Thus, while it might not be a feel-good trade, MUSA is easily one of the best growth stocks to buy in May.
Unlike the other names, MUSA is performing very well this year, up nearly 18% on a year-to-date (YTD) basis. More importantly, vehicle miles traveled is back up to pre-pandemic norms. And it might even move higher from here due to the return to normal along with consumer trends like revenge travel.
Alphabet (GOOG, GOOGL)
If recent events have shown us anything, it’s that giants also bleed. Take for instance Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Depending on your view, Alphabet’s Google architecture is either a godsend or a big tech albatross that must be destroyed. Whatever one’s opinion, GOOG stock finds itself down around 20.5% YTD after several disappointing sessions in the technology realm.
To be fair, Alphabet could face some more pain in the near term. Some of its innovations such as autonomous driving protocols might have to take a backseat due to global supply chain disruptions. Furthermore, the company’s YouTube platform finds itself embroiled in geopolitics as it attempts to combat Russian disinformation — and meeting predictable backlash from the Kremlin.
Despite these and many other distractions, it’s important to note that Alphabet continues to rake in the money. In the first quarter of 2022, it generated $68 billion, up 23% year-over-year (YOY). Essentially, the company owns the internet and that hegemony is worth its weight in gold — as proven by its financial performance.
Growth Stocks to Buy: Kelly Services (KELYA)
During the peak of the new normal, a company like Kelly Services (NASDAQ:KELYA) might not have been so appealing. A workforce and staffing solutions provider, Kelly faced tough competition. For one thing, with the federal government providing generous assistance to state unemployment benefits programs, workers had higher standards for what they would trade for their time. And the private sector itself was competing with higher wages.
So, going with a headhunting agency seemed beneath folks. Well, with a recession, beggars can’t be choosers. Cynically, there might be a deluge of white-collar beggars hitting the labor market. The thing is, these folks may have to downgrade their expectations should the workforce favor employers as opposed to job seekers.
As an aside, it’s why you should try to avoid burning bridges unless there are compelling reasons to do so. But the key factor that helps KELYA as one of the growth stocks to buy is the potential return to the office. Moreover, Kelly Services offers myriad opportunities, including call centers and warehouse management, thus fitting many applicants’ profiles.
If you have the stomach for engaging great brands at low prices — that could temporarily go even lower — then you should direct your search for viable growth stocks toward Adidas (OTCMKTS:ADDYY). While its equity units are traded over the counter here in the U.S., the sports apparel brand is famous the world over. Therefore, I’m not as terrified about its trailing-year loss of around 46% as I would be for other publicly traded securities.
That said, Adidas is going to have some trouble points to figure out. While losing the Russia market has been rough for many companies, it’s likely going to be significantly problematic for Adidas. Frankly, the Russians — and eastern Europeans in general — love the brand. From trendy and upwardly mobile people to the youth “shpana” subculture that features prominently in countries of the former Soviet Union, they all have the German sports brand in common.
Still, I expect in the long run that positive sentiment will return to ADDYY. It’s simply too powerful of a brand to ignore. Plus, with the FIFA World Cup over the horizon, the company enjoys some tailwinds.
Growth Stocks to Buy: NuScale Power (SMR)
One look at NuScale Power (NYSE:SMR) and you might be tempted to think that I’ve suffered a catastrophic cranial injury. Rest assured, I am operating with full cognitive abilities — which might not be that reassuring to some of you. However, NuScale may very well be one of the better growth stocks to buy for the long run.
Yes, I understand that SMR entered the public arena via a reverse merger with a special purpose acquisition company (SPAC). For the most part, SPACs have been utter garbage post-business combination. And NuScale is tied to nuclear energy, which may be anathema to many investors due to security concerns.
But what you have to understand is that due to the extraordinary energy density of nuclear power facilities, it’s likely impossible to ignore this sector when discussing energy resilience and independence. Furthermore, NuScale specializes in an advanced technology called small modular reactors (SMRs).
Basically, we’re talking about nuclear power facilities with a smaller footprint, strong safety protocols and structural flexibility, enabling integration that’s impossible for full-scale powerplants. It could very well be the wave of the future so it’s worth putting on your radar.
Perhaps one of the most disappointing sectors during the recent fallout in the broader capital markets is the cryptocurrency space. Proponents have argued until they were blue in the face that decentralization of finance is the future. And that may be the case. However, decentralization alone hasn’t been enough to rescue valuations. Not surprisingly, then, Coinbase (NASDAQ:COIN), a popular crypto wallet and exchange service, has suffered significantly.
As I write this, COIN is down about 69% on a YTD basis, one of the worst-performing growth stocks. Admittedly, the natural instinct, in this case, is to be a conformist, not a contrarian. Those of us who follow the crypto space — even loosely — recognize that it’s a market that’s incredibly volatile. You might be rich one hour, a pauper the next.
Nevertheless, the one factor that should give people hope is that the crypto market is long-term resilient. With mainstream awareness and acceptance of blockchain-based applications, the cat’s out of the bag. While COIN may have some more to drop, you might want to start eyeballing some exposure at these discounted rates.
Growth Stocks to Buy: Spotify (SPOT)
A popular music and podcasting platform, Spotify (NYSE:SPOT) quickly gained street cred for going against the grain in terms of socially acceptable dialogue. Most notably, the company’s flagship podcast The Joe Rogan Experience is well known for voicing honest discussions, even if said talking points are deemed politically incorrect or insensitive.
Of course, Rogan has been generating headlines for not-so-pleasant reasons. He has caused a backlash among fellow celebrities and influencers for his position on Covid-19 vaccines, along with treatment suggestions that arguably have little to no merit. Also, Rogan caused a firestorm of controversy when a video of him using a racial slur surfaced.
These problematic circumstances have seen SPOT stock tank around almost 60% YTD. But have they dimmed enthusiasm for Spotify? No. As CNN attested, celebrities may be leaving the platform but not paying customers. That type of loyalty — despite apparent toxicities — may be enough to make SPOT one of the growth stocks to buy in May.
On the date of publication, Josh Enomoto 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.