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7 growth stocks to buy during a stock market crash


If investors weren’t already worried, they should follow the release of inflation figures on September 13th. The United States had already experienced two consecutive quarters of GDP contraction. This news was published at the end of July. Although two consecutive quarters of GDP contraction meet the technical definition of a recession, economists have been reluctant to say that a recession has happened.

Unfortunately, headline inflation for the month of August reached 8.3%. That was more than the 8% that many economists had predicted. More worryingly, core inflation, which excludes food and energy, hit 6.3% year-on-year, down from 5.9% the previous month. Fed rate hikes are not working and there is no longer any chance that the Fed will become less aggressive.

In short, the odds of a stock market crash have increased further. More economists will wonder aloud if we are in a recession. Although growth stocks may look unattractive during a huge stock decline, the bear market won’t last forever, so some growth names are still worth buying for long-term investors.

Here are seven of the best growth stocks to buy during a market crash.

XPeng (XPEV)

Source: Andy Feng/Shutterstock.com

XPeng (NYSE:XPEV) the stock will be attractive during the next stock market crash.

On the one hand, the Chinese electric vehicle maker has little exposure to the US market because it does not sell vehicles here. Instead, XPeng derives its revenue from the Chinese and European markets.

And despite the blockages in China and other bottlenecks, XPeng is performing well. The company said its revenue soared 97.7% year-over-year in the second quarter. It is clear that the demand for XPeng vehicles is quite resilient.

Additionally, XPeng will start delivering its new G9 SUV in the fourth quarter. That, along with two other new models slated for introduction in 2023, should keep XPEV stock strong no matter what U.S. markets do.

Nio (NIO)

NIO logo, sign atop the North American Headquarters and Global Software Development Center in Silicon Valley.  NIO is a Chinese manufacturer of autonomous electric vehicles

Source: Michael Vi / Shutterstock.com

Purchase Nio (NYSE:NIO) stock is really about timing. What I mean is that Nio will continue to grow and its stock will appreciate in the future. Shares are currently trading around $18.30.

This price could represent a floor or perhaps the stock will fall further. Either way, Nio’s future is bright. Once the global economy improves, NIO stock will skyrocket.

Business growth is just too good to ignore. In the second quarter, its vehicle sales rose 21% year-on-year, while its revenue jumped 22% year-on-year to $1.5366 billion. Nio lost $411.7 million during the quarter. The red ink could deter some investors.

However, the company’s position in the world’s largest electric vehicle market is extremely strong. It will become profitable, and very little can prevent that from happening.

Nio expects its revenue to grow 39% year-on-year in the third quarter. This strong guidance further encourages investors to consider buying NIO shares now or during a crash.

Coupang (CPNG)

Close-up of a Coupang delivery vehicle (CPNG).

Source: Young Ki / Shutterstock.com

For the first year following its IPO, coupang (NASDAQ:CPNG) the stock appeared to be on the verge of becoming a bust. During this period, shares of the Korean e-commerce company fell from nearly $50 to less than $10.

CPNG had many problems, but the biggest was its losses. The e-commerce giant has regularly reported impressive quarterly revenue numbers well over $4 billion.

But it was also marred by losses. For example, in the second quarter of 2021, the company reported revenue of $4.478 billion and a net loss of $518.6 million.

But Coupang’s financial results are changing rapidly. Last quarter, Coupang’s revenue topped $5 billion and its net loss narrowed to $75.5 million. Its EBITDA even turned positive, reaching $66.17 million.

The company now expects to generate positive EBITDA for all of 2022. This turnaround should be a great reminder that CPNG stock is making an impressive comeback.

Alphabet (GOOG,GOOGL)

GOOG action: letters spelling google

Source: rvlsoft / Shutterstock.com

Alphabet (NASDAQ:GOOG,GOOGL) the stock has not had an easy 2022. As one of the leading names in tech, the Silicon Valley giant has stumbled mightily as interest rates rise and easy money dries up. Google is down 30% in 2022. A stock split on July 15 didn’t stop the bleeding either. Since then, stocks have corrected another 9%.

So what exactly is the good news? Why should investors care about Google when interest rates are expected to continue to rise and the company has lost its antitrust lawsuit in Europe?

The answer is that GOOG stock is cheap. Its current price-to-earnings ratio is essentially at its lowest level in five years and hovers around 19. Over the past ten years, its median P/E ratio has been close to 27. So, even if Google weakens further, there is reason to believe it will almost certainly rebound to higher levels.

Apple (AAPL)

Apple logo (AAPL) trademark and text sign on store entrance facade American multinational boutique dealer shop

Source: sylv1rob1 / Shutterstock.com

Apple (NASDAQ:AAPL) shares are currently trading at around $150. Despite everything that happened in 2022 and everything that could still happen this year, this price has remained stable.

Apple is the most valuable stock in the world, measured by market capitalization. So it is also one of the most reviewed names. This strongly implies that AAPL shares may continue to hold their value as the market tightens, as it is unlikely to surprise the street with unfamiliar bad news.

Thankfully, AAPL has done well and analysts’ average price target for the stock is above $182.

The company recently unveiled its new line of iPhones. The company kept the starting prices of the devices at the same levels as last year. Analysts expected Apple to raise those prices.

Given stable prices, demand for iPhones could increase next year following strong device sales in 2022. Apple shares show resilience after third consecutive 75% interest rate hike basis points from the Fed, suggesting that the AAPL remains an excellent technology choice even if broader indicators indicate that the economy is approaching a recession.

Fiserv (FISV)

A hand lingers on a bright blue tech wheel that says "fintech."

Source: Studio Wright / Shutterstock.com

Fiserv (NYSE:FISV) is a well-established payment processor and financial stock. The company is particularly known for its merchant solutions, including Clover and Carat.

One of the main reasons to love Fiserv is that it combines security and growth quite well. The stock is only slightly down in 2022 and has done better than many fintech stocks. FISV also experienced rapid growth, with revenue increasing 10% year-over-year in the second quarter and first half. Its EPS increases have been particularly strong, with its net income increasing 130% year-on-year in the second quarter of the quarter and 128% year-on-year in the first six months of 2022.

These good results led the company to raise its forecasts for the full year. It now expects its EPS to climb between 16% and 17% in 2022.

Fiserv is among several fintech companies seeking to buy the Spanish bank’s payments arm, Sabadell. This deal could cost up to $394 million, according to preliminary information.

Fiserv hopes to be among the shortlist of final bidders for the unit to be announced in early October. If the FISV is able to buy the payment unit, its stock should go up.

Vertex Pharmaceuticals (VRTX)

Vertex Pharmaceuticals (VRTX) logo visible on display screen

Source: Pavel Kapysh / Shutterstock.com

Vertex Pharmaceuticals (NASDAQ:VRTX) stock has some powerful and positive catalysts. Broadly speaking, he stands to benefit from President Biden’s strong support for the biotech industry. He recently signed an executive order that is supposed to spur increased manufacturing of biotech materials in the United States..

Additionally, a few weeks earlier, Vertx Pharmaceuticals announced that it had received FDA approval for its drug ORKAMBI as a treatment for people age one and older with certain types of cystic fibrosis.

Recent figures indicate that CF patients born between 2015 and 2019 have a life expectancy of just 46 years. while more than 30,000 Americans have the disorder. The data suggests that the total addressable market for ORKAMBI is quite large, while the company should be able to charge a premium price for the drug.

VRTX shares predictably fell after the Fed’s rate hike. However, they rebounded nicely on September 22 and are only down 1% today.

At the date of publication, Alex Sirois did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Alex Sirois is an Independent InvestorPlace Contributor whose personal equity investing style focuses on long-term stock picks, buy-and-hold and wealth building. Having worked in multiple industries, from trading electronics to translation to education and using his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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