Growth Stocks Poised to Rebound if Bull Market Emerges
-
The S&P 500 is nearing a new peak, possibly ushering in the next bull market. When that happens, beaten down growth stocks often rebound strongly.
-
Fintech stock SoFi is down 61% from its highs but has seen accelerating user and revenue growth. It's nearing profitability and trades at a reasonable 4.6 price-to-sales ratio.
-
Airbnb stock has fallen 32% from its peak but grew revenue 18% last quarter. It generates strong free cash flow equivalent to 44% of revenue, suggesting an attractive valuation.
-
Airbnb's growth story is just beginning, with 19% more active listings last quarter. More listings will likely further boost bookings.
-
Both SoFi and Airbnb seem poised to benefit if a bull market takes hold, given their growth potential and currently depressed valuations.