Nasdaq Bear Market: 3 Stellar Growth Stocks That Can Double Your Money By 2025

JTo call 2022 a tough year for Wall Street might be an understatement. At the end of the first half of the year, the benchmark index S&P500 delivered its worst performance in more than half a century.

It’s been an even tougher battle for businesses dependent on growth Nasdaq Compound (NASDAQ INDEX: ^IXIC). The index responsible for driving the broader market higher since the coronavirus crash of 2020 has lost up to 34% of its value in eight months. This puts the Nasdaq firmly in a bear market.

Image source: Getty Images.

But amid this miserable performance, there’s a silver lining. No matter how poorly US stock indices have performed throughout history, every correction and bear market has ultimately been erased by a bull rally. This means that bear markets are a great time for patient investors to grow their money.

This is a particularly good time to consider buying growth stocks, which tend to outperform during periods of weaker economic growth, relative to value stocks. What follows are three stellar growth stocks that have the innovative capacity to double your money by 2025.

Assets received

The first phenomenal growth stock to buy to take advantage of this Nasdaq bear market decline is the cloud-based lending platform Assets received (NASDAQ: UPST).

It wouldn’t be unfair to suggest that Upstart is currently one of the most hated stocks on Wall Street. It’s a artificial intelligence Artificial intelligence-driven lending platform that skeptics expect will be hit by rapidly rising interest rates. Given that Upstart is a relatively new company and hasn’t experienced a real economic downturn (not to mention the extremely short COVID-19 recession), there is clear concern about how it will perform in the future. predictable.

While I’m not suggesting dismissing these tangible concerns, it’s important to recognize how effective Upstart’s AI lending platform was when the US economy was functioning. Instead of the multiple weeks that traditional loan applications can take, Upstart was able to approve approximately three-quarters of all loans automatically. It saves time for loan applicants, and it leads to cost savings for financial institutions.

What’s particularly interesting about Upstart’s loan verification platform is that it has expanded the pool of approved candidates. Relying on AI resulted in applicants being approved with a lower average credit score than the traditional verification process. But what’s important is that the delinquency rate between Upstart’s platform and the traditional process has been similar. This means Upstart can bring banks and credit unions more customers without adding to their credit risk.

Upstart also has history on its side. Although recessions are an inevitable part of the business cycle, periods of expansion last significantly longer than recessions. All Upstart has to do is fight its way through what will likely be economic weakness that will last a few quarters. We have already seen that it can be extremely profitable during long periods of expansion.

Investors with the patience to hold Upstart for three years could be rewarded with a return of 100% or more.

Jushi Holdings

Another amazing opportunity to double your money in three years is to buy a US multistate cannabis operator Jushi Holdings (OTC: JUSHF).

Almost 18 months ago, marijuana stocks couldn’t be stopped. Joe Biden’s victory for the presidency, coupled with the Democrats’ takeover of the US Senate, seemed to pave the way for initiatives to reform and legalize cannabis banks. Unfortunately, COVID-19 and other pressing issues have once again hampered federal legalization efforts. Without progress on Capitol Hill, Wall Street didn’t want much to do with the United States pot broths.

However, legalization is not a requirement for cannabis businesses to be successful. To date, about three-quarters of all states have legalized marijuana to some degree, with 19 states also allowing adult consumption and/or retail. Even if interstate transportation isn’t possible, these organic state-level legalizations provide more than enough opportunity for companies like Jushi to shine.

At the moment, Jushi is a relatively small company. He is close to three dozen operating dispensaries, and he has enough retail licenses in his back pocket to eventually open nearly 50 retail outlets. What is remarkable about its approach to expansion is that many of the states it targets are limited license markets. States that deliberately limit the number of dispensary licenses issued give small players like Jushi a fair chance to grow their brand(s) and build customer loyalty. For Jushi, Virginia, Pennsylvania, Illinois and Massachusetts are its main markets.

Another thing to really appreciate about Jushi is the company’s management team, which has a reasonable number of “skin in gameIt’s another way of saying that executives and insiders have aligned their success with that of their shareholders. For example, CEO Jim Cacioppo, who owns 16.9% of his company’s outstanding shares, bought 100,000 common shares about a month ago. To boot, $45 million of the first $250 million in capital raised by Jushi came from executives and insiders. When the interests of shareholders and executives align, good things happen more often than not.

Investors should expect 30% to 50% annual sales growth through the middle of the decade, with Jushi reaching recurring profitability by 2023 or 2024.

A Nio ET7 electric sedan on display in a showroom.

The all-electric Nio ET7 sedan. Image source: Nio.

Nio

The third stellar growth stock to buy during the Nasdaq bear market that can double your money by 2025 is based in China electric vehicle (EV) manufacturer Nio (NYSE: NIO).

To keep with the theme of this list, there is a seemingly mountainous wall of headwinds currently placed in front of Nio. It faces historically high inflation for parts used in its electric vehicles, shortages of semiconductor chips and product shortages linked to provincial COVID-19 lockdowns in China. Like many automakers, Nio had to temporarily cut production.

But what’s important to note is that these supply chain headwinds are temporary. All signs continue to point to the world’s largest economies pushing for a green energy future supported by electric vehicles and other clean energy transportation. Nio just happens to be based on the largest automotive market in the world.

We’ve already had a glimpse of what Nio is capable of when the supply chain isn’t a constraint. The company surpassed 10,000 electric vehicles delivered in November and December, and had its best month yet when it delivered just under 13,000 electric vehicles in June 2022. Before COVID-19 disrupted production in China, management seemed comfortable with the idea of ​​reaching an annual production rate of 600,000 EVs (50,000 EVs/month) in 12 months.

Investors should also be impressed with Nio’s multiple avenues of innovation. It introduces new vehicles every year, with the company recently unveiling its ET7 and ET5 sedans, as well as its more affordable five-seater SUV, the ES7. The company’s sedan lineup is notable given that the higher battery option offers a longer range (621 miles), compared to most other EV sedans.

Also, Nio launched its Battery-as-a-Service (BaaS) subscription in August 2020. With BaaS, buyers get a discount on the purchase price of their EV and can charge, swap and upgrade their batteries in the future. In exchange for giving up short-term, lower-margin revenue, BaaS members provide Nio with a high-margin, recurring subscription fee. BaaS is also a smart tool for retaining first-time buyers.

With Nio capable of jaw-dropping sales growth and expected to reach recurring profitability no later than 2024, it looks like the perfect candidate to double its value by mid-decade.

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Sean Williams holds positions in Jushi Holdings. The Motley Fool holds positions and recommends Jushi Holdings, Nio Inc., and Upstart Holdings, Inc. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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