7 Growth Stocks to Buy After the Market Crash

  • Apple (AAPL): Its agreement with MLS will attract more subscribers to Apple’s streaming service.
  • Intel (INTC): Its initial graphics card launch delay hurt the stock, but there's plenty of demand going forward.
  • Mastercard (MA): New fintech firms cannot compete with Mastercard’s infrastructure, and it will survive where many of them do not.
  • Altria Group (MO): Government cannot stop people from smoking, so Altria will continue to make money and reward shareholders.
  • Microsoft (MSFT): Its Azure platform is a cloud-based solution more customers need.
  • NextEra Energy (NEE): An attractive energy investment due to strong visibility for earnings.
  • Shopify (SHOP): The e-commerce platform unmatched by anyone after Deliverr acquisition.
Growth Stocks to Buy - 7 Growth Stocks to Buy After the Market Crash

Source: Shutterstock

The 2022 bear market is in the middle-to-late phase. Consumer confidence is at an all-time-low level. March 2022’s stock market rebound tricked investors into thinking that buying the dip would work. Between April and May, markets tried to rally. Each time, sellers emerged in droves.

The selling throughout this year triggered a bear market with a loss of 20% from the high. This negative crowd might lead to a market crash next. The macroeconomic weakness is only intensifying. The Federal Reserve hiked interest rates by 75 basis points.

Markets haven’t received a shock of this size since 1994.

Buy these growth stocks
Source: StockRover

The central bank reacted to the consumer price index rising by 8.6% with urgency. It is so severely behind in raising rates that it needs to increase that amount.

Stock markets are still unprepared for this. Technology stocks, many of which are down 80% or more, are still overvalued. Retail investors are avoiding companies that do not earn a profit and sold off companies that traded at unsustainable valuations.

But there are still some gems. In the table above, Stock Rover issued strong quality scores for five of the seven stocks in this gallery.

So here are seven growth stocks investors should buy after the market crash. Though since it’s is impossible to time a bottom in the stock market, investors should instead build a stock buying list and ease in at good prices.

AAPL Apple $141.66
INTC Intel $38.63
MA Mastercard $328.83
MO Altria $43.19
MSFT Microsoft $264.89
NEE NextEra Energy $77.90
SHOP Shopify $373.09

Apple (AAPL)

An Apple (AAPL) MacBook Air laptop sitting under bright purple lights.
Source: WeDesing / Shutterstock.com

Apple (NASDAQ:AAPL) has a $2.3 trillion market capitalization title at the end of last week. It is also trading at 21.4 times forward earnings. Markets will struggle to justify Apple at its current price.

At lower levels, investors will find many reasons to own AAPL stock.

Apple is aggressively building its streaming content service. On June 14, 2022, it signed a deal with Major League Soccer. Fans may stream every soccer match on the Apple TV app. It’s also still in play for the NFL Sunday Ticker. This might give Apple a significant edge over other streaming services. Viewers will not have any local broadcast blackouts. Furthermore, they do not need to pay for a traditional pay-TV bundle.

Consumers will cut their spending as inflation rates soar. Many will tune out of traditional TV. Apple’s MLS deal is another reason for sports fans to sign up for the Apple TV app instead.

In the second quarter of 2023, Apple is expecting to release a mixed reality headset. Since sales of computers, tablets and smartphones are not slowing, the company may take its time developing an augmented reality peripheral.

Intel (INTC)

Close up of Intel sign at their San Jose campus in Silicon Valley
Source: Sundry Photography / Shutterstock.com

Intel (NASDAQ:INTC) failed to launch a graphics card at the start of 2022. Impatient investors dumped the stock in frustration. After much delay, the chip giant debuted its GPU in China.

Intel Arc A380 Photon is the first custom GPU based on an Intel Xe-HPG/DG2 architecture. To test consumer response, the company introduced the card in China. It has many technical advantages. It needs 92 watts of power. Furthermore, this model is overclocked and may run as fast as 2450 MHz. The card will have 15.5 Gbps of memory.

Intel chose to bundle the A380 Arc with pre-built systems first. This will shelter the product from GPU price fluctuations.

Why does that matter? This month, cryptocurrency prices crashed. Crypto miners will panic by selling GPUs on the secondary market. But this excess supply should not affect Intel’s GPU launch.

Intel needs to manage through the worsening market conditions. China is slowly emerging from its latest Covid-related lockdown. The PC market is weakening. Consumers already upgraded their systems during the pandemic. Still, as unit prices fall and manufacturers release budget-priced boards for Intel’s Alder Lake, demand will recover.

Mastercard (MA)

Close up of a pile of mastercard credit load debit bank cards.
Source: David Cardinez / Shutterstock.com

Mastercard (NYSE:MA) is fairly well insulated from the crash in fintech stocks. Traditional credit card firms have a stronger, more secure infrastructure and better customer support. Instead of waiting weeks or months for an email reply from a fintech service, customers may get help on the phone.

On May 24, 2022, Mastercard strengthened its cybersecurity consulting practice. It will protect customers with its Cyber Front threat simulation platform. Mastercard’s Cyber Front continues to update its library of over 3,500 scenarios based on real-life threats. By protecting customers in real-time, fintech competitors cannot match this company’s level of security.

Admittedly, Mastercard’s openness to NFTs (non-fungible tokens) and Web 3.0 is a potential distraction. On June 9, 2022, it allowed people to use their Mastercard cards for NFTs purchases.

The crumbling value of NFT suggests that such marketplaces will realize lower sales from here. Still, NFT marketplaces enjoyed more than $25 billion in sales in 2021.

Altria Group (MO)

Altria Group, Inc. (MO) logo of US producer and marketer of tobacco and cigarettes is seen on a mobile phone screen.
Source: viewimage / Shutterstock.com

Altria Group (NYSE:MO) stock fell hard recently after a report said President Joe Biden’s administration will pursue a plan that requires tobacco makers to cut nicotine levels in cigarettes.

For over a decade, Altria has joined other tobacco firms under government scrutiny. Every time MO stock fell, investors bought the dip and Altria stock recovered.

Income investors get $3.60 a share in dividends for taking political risks.

Investors also worried about tobacco consumption falling because of rising gas prices and poor consumer sentiment. This concern is misguided. Cigarettes are a non-deferrable purchase. They are low cost and are a necessity for many customers. Consumers have better ways to save money. They will cut spending on high-priced items or drive less to save on gas.

Furthermore, they may negotiate with employers to work more often at home, cutting travel costs.

Smokers will give up other things before quitting cigarettes. Still, if they reduce smoking only slightly, it will not have a meaningful impact on Altria’s business.

Microsoft (MSFT)

microsoft stock
Source: Peteri / Shutterstock.com

Software sales are weakening but Microsoft (NASDAQ:MSFT) has a broad portfolio to rely on.

In cloud computing, Microsoft’s Azure will keep growing. Corporations need to consolidate their software sources. For example, customers that use Microsoft Office, SQL Server, and Microsoft Teams may consider Azure, too. They would benefit from switching away from Amazon.com’s (NASDAQ:AMZN) AWS. By running on one Microsoft platform, customers will realize efficiencies while cutting down on complexity.

Investors tend to punish all stocks during a market crash, including selling MSFT stock. But then they’ll regret this mistake when market conditions improve.

In five years, shareholders should expect Microsoft to generate at least $400 billion in revenue and nearly $150 billion in earnings.

During the technology software bubble, companies that could not produce a profit got a lot of attention. After investors sold those stocks, they will look for long-term profitable ones. Microsoft will reward investors who have a five to 10 year time horizon.

NextEra Energy (NEE)

Nextra Energy (NEE) website on a mobile phone screen
Source: madamF / Shutterstock.com

Earlier this month, NextEra Energy (NYSE:NEE) announced higher adjusted earnings per share expectations during its investor conference.

On June 14, the firm raised its expected adjusted earnings per share for the next four years to be in the range of $2.80 to $2.90; $2.98 to $3.13; $3.23 to $3.43; and $3.45 to $3.70, respectively. In 2025, its growth rate is between 6% and 8%. This positive trend will lead to regular dividend payment increases.

In the first quarter, NextEra Energy posted non-GAAP earnings per share of 74 cents. Shareholders briefly sold the stock in disappointment over its 22.5% year-over-year revenue decline, to $2.89 billion. Fortunately, the company will clear up uncertainties surrounding established tariffs with the Commerce Department.

NextEra’s Florida Power and Light continue to perform well. In the next four years, the company has strong visibility in the unit’s performance after the settlement agreement. The company will benefit as it realizes over $400 million in run-rate savings in the next few years.

Shopify (SHOP)

Shopify (SHOP) logo on a smartphone which is next to a miniature shopping cart and miniature cardboard boxes
Source: Burdun Iliya / Shutterstock.com

Shopify (NYSE:SHOP) led the decline as investors sold e-commerce firms. On June 14, 2022, producer price index figures fell slightly. This suggests peak inflation, which would benefit Shopify’s business.

Merchant sales volumes recover when inflation rates slow or decline. The Federal Reserve’s aggressive fight against inflation will benefit Shopify’s ecosystem in the end. While the company ignores the stock price dropping, it is investing in fulfillment logistics.

In May 2022, Shopify bought Deliverr for $2.1 billion in cash and stock. The acquisition will give Shopify’s independent business customers an edge. They will have a powerful logistics platform that increases the customers’ satisfaction. Shopify’s moat as the de-facto e-commerce platform strengthens after it combines Shopify Fulfillment Network (SNF) with Deliverr’s Shop Promise. Shop Promise gives customers two-day and next-day delivery. It also expands options for facilitating merchant storage, freight, inventory management, and product returns.

In 2019, Shopify acquired 6 River Systems. The purchase increased the speed and reliability of warehouse operations. The system facilitated inventory replenishment, picking, sorting and packing activities.

On the date of publication, Chris Lau 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.

Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get actionable insight to achieve strong investment returns.


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