3 Unstoppable Growth Stocks To Buy If There Is A Stock Market Selloff

The stock market continues to keep investors on their toes, with the S&P 500 It’s down about 19% year to date, but it’s up 6% in the last six months. As we approach the start of a new year, you are likely evaluating the health of your portfolio and considering which stocks you want to buy, hold, or add.

While growth stocks have fallen out of favor with many investors over the past year, and there are certainly growth-oriented companies that won’t return to their previous highs, some winners remain. Amazon (AMZN -0.67%), Shopify (STORE -0.82%)Y Veeva Systems (VEEV -0.96%) That’s three winners to consider adding to your portfolio before the year is out. If you’re worried about another sell-off in 2023, each of these companies has what it takes to hold out for the long haul.

1. Amazon

Amazon needs no introduction. The tech giant has remained a winner for investors through its fair share of market cycles, surviving the bursting of the dotcom bubble and the Great Recession. It hasn’t all been sunshine and rainbows for investors in the 25 years since Amazon became a publicly traded company. For example, at the height of the dot-com bubble two decades ago, Amazon stock dropped as much as 90% in total value.

However, long-term investors in Amazon have been rewarded with compounding returns time and time again. Over the past decade, Amazon has generated a generous total return of over 609% for investors.

Amazon’s success, while many other tech companies have failed over the years, can be attributed to a variety of catalysts. These range from the strength of its leadership to the diversity of its business model and its track record of disrupting lucrative and fast-growing markets. As things stand today, Amazon remains a central presence in the worlds of electronic commerce and cloud computing while continually expanding its footprint in key markets ripe for additional disruption such as telehealth, grocery delivery and entertainment.

Amazon controls approximately 38% of the e-commerce market in the US. Keep in mind that the US e-commerce market represents a significant portion (nearly $905 billion) of the global addressable e-commerce space , which is worth $5.7 trillion. .

Amazon’s other key business segment, Amazon Web Services, saw revenue increase 27% year-over-year in the most recent quarter alone, even as overall revenue growth held steady but moderated by 15%. The company continues to exceed Alphabet Y Microsoft as the leading dog in the cloud computing space, with a 34% share of this $57 billion market.

Near-term economic factors, such as rampant inflation that increases the cost of doing business and declines in consumer spending, will inevitably affect Amazon’s pace of growth. However, these factors are not specific to Amazon and are affecting companies in virtually every market sector. In the long term, Amazon’s strong collection of businesses and strong balance sheet (the company had $58.6 billion in cash and available investments at the end of the most recent quarter) can help it weather the storm and continue to deliver growth for investors for years to come. . ahead.

2.Shopify

Shopify’s journey over the past year has been anything but smoothly paved, and long-term investors in stocks have certainly had a bumpy ride. Shopify’s stock has plunged 72% over the past year as investors have increasingly lost faith in growth-oriented companies and sought more stable vehicles in which to invest their capital.

As a Shopify shareholder, I had to revise my thesis for owning the shares multiple times over the past year. However, I continued to hold out through the storm for a variety of reasons. First, much of the Shopify stock sell-off that investors have witnessed hasn’t been tied to lasting, long-term changes in the underlying business. Meanwhile, Shopify remains one of the world’s leading ecommerce platforms, used by everyone from mom-and-pop businesses to huge global brands.

Even as growth has slowed compared to pre-pandemic levels, and it would have been unrealistic to think that the high boom would continue indefinitely, Shopify has continued to optimize its merchant services and tools, invest in its fulfillment network, increase sales revenue, and increase your cash position. While things like the macro environment, changes in consumer spending, and Shopify’s aggressive growth strategies have weighed on its bottom line, those net losses are narrowing (the company pared its $1.2 billion net loss in the second quarter to $158 million in the third). fourth).

Shopify leads the ecommerce platform market in the US with a 25% market share. It is also ranked #2 globally, with a 19% market share, second only to WooCommerce. Stepping back and looking at Shopify’s growth over the past decade, the company has generated total revenue growth of 585%, while its operating cash flow has increased by 6,280%.

Personally, my thesis to buy Shopify remains intact, and not because near-term headwinds like a potential recession aren’t likely to affect your business. But in the long term, I still believe the company can continue to execute on its vision as a leading one stop shop for merchants to start a business of any kind from anywhere in the digital age.

Shopify’s continued growth and massive market presence bode well for its future success, well beyond what lies ahead for investors in the next year or two. For risk-tolerant investors, the stock remains an attractive buying opportunity, even in the current bearish environment.

3.Veeva systems

Like most other cloud computing stocks, it’s fair to say that it hasn’t been a great year for Veeva Systems stock. Shares are trading down about 34% year-to-date, but again, this isn’t tied to company-specific factors or enduring headwinds.

Veeva Systems is a bit unique in that cloud action universe in which it focuses its services exclusively on the life sciences industry. It does so on a large scale, with renowned clients such as Merck Y Modern rely on your software to streamline daily operations.

Over the past 10-year period, Veeva Systems has increased its annual revenue and profit by the respective amounts of 1,300% and 2,200%. It has also increased its operating cash flow by 2,400% in that time period. The stock has also been a strong performer for investors over the years, generating a total return of nearly 400% over the 10-year period. Meanwhile, analysts believe the company can increase its annual revenue by 13% on average over the next five years alone.

It’s true that many companies are cutting costs right now, and some cloud businesses are taking a hit. Veeva recently announced that it was cutting ties with Sales forcea long-term partner in serving customers in the pharmaceutical and biotech industry, once its contract expires in 2025. However, Veeva continues to expand and build on its existing partnerships, with more than 1,000 customers and counting.

The types of customers that Veeva Systems serves also tend to be more resilient than most in a downturn environment due to the non-cyclical nature of their industry. And even the cost-cutting measures are unlikely to affect Veeva Systems to much in the long term. The company’s software and services are an essential component of operations for some of the world’s largest pharmaceutical and biotechnology companies to run on a daily basis.

Its software helps these companies perform many tasks, including simplifying the clinical trial process, managing regulatory submissions and registrations, simplifying data management, and managing quality control and compliance initiatives. This gives Veeva Systems tremendous room to grow both inside and outside of today’s environment. As such, for long-term investors, the stock could represent a welcome addition to a well-diversified portfolio.