(1:00) - Navigating Your Portfolio Through A Market Sell Off (4:15) - Lessons To Learn From The Past (13:45) - Stocks To Keep On Your Radar (23:05) - A Cautionary Tale: What Happened To The Tech Giants During Early 2000’s? (32:40) - Does The Biotech Sector Have Buying Opportunities Right Now? (37:50) - Big Takeaways From The Stock Market Sell Off: SHOP, SKLZ, ZNGA, SQ, MSFT, PYPL, AMZN, NVTA, ARKG, XBI Podcast@Zacks.com
Welcome to Episode #306 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Kevin Cook, Zacks Senior Stock Strategist and the editor of Zacks TAZR and Healthcare Innovator, joins the podcast to talk about the sell-off in growth stocks.
Should investors be selling, buying more, or dollar-cost-averaging to “save” themselves?
Know What You Own
Kevin’s advice is to do the research. Know your companies.
What do the earnings and sales look like going forward? Does the company have a moat or other advantage? What is your time horizon for this investment?
Not all companies are in the same situation. Many companies IPO’d or came to the public market through a SPAC in the last 2 years. While other growth stocks have been around for a years but had stretched valuations.
But with some growth stocks down as much as 70% year-to-date, should investors be diving back in?
5 Growth Stocks on Sale 1. Shopify ( SHOP Quick Quote SHOP - Free Report)
Shopify’s share price peaked in Nov 2021 at $1763. Shares have tanked since that time, and are down 62% over the last 6 months.
But just when you think the sell-off is over, Shopify shares continue to go lower. They are now trading with a forward P/E of 74, down sharply from the 2021 highs.
Shopify is still expected to grow revenue by 31% to $6 billion in 2022. There’s a big business behind the stock ticker.
Should investors be dipping their toes back into Shopify’s shares?
2. Block ( SQ Quick Quote SQ - Free Report)
Block, formerly known as Square, shares have had a tough 6 months. They’ve slid 59% in that time period.
Block now trades with a forward P/E of 87.3, which isn’t exactly cheap.
Kevin has been following Block for years. Does he think Block has further to slide before it gets attractive for investors?
3. PayPal ( PYPL Quick Quote PYPL - Free Report)
PayPal is another online payment company that was once a high flier and has now come back down to earth.
Shares of PayPal have slid 64% over the last 6 months and the stock is nearly in value territory. It trades with a forward P/E of just 20.8.
Is PayPal a stock growth investors should keep on their wish list?
4. Skillz ( SKLZ Quick Quote SKLZ - Free Report)
Skillz is a small cap mobile esports company that went public through a SPAC in Dec 2020.
At one point, Skillz was valued at $3.5 billion, but as shares have slid in 2022, it now has a market cap of just $880 million.
While earnings are expected to be negative again in 2022, analysts expect the company to grow revenue by 4.3% to $400 million this year.
Shares of Skillz have plunged 69% in 2022. They are trading under $5, at just $2.30.
Should investors be putting Skillz on their wish list?
5. Invitae Corp. ( NVTA Quick Quote NVTA - Free Report)
Invitae soared during the pandemic but shares began to slide in 2022 and are now down 79% in the last 6 months.
Invitae shares have also round tripped since the start of the pandemic and are now down 46% in the last 2 years.
It’s expected to lose $2.98 this year after losing $3.10 per share last year. But Invitae is still expected to grow revenue at a fast clip with revenue expected to rise 39.5% to $642 million in 2022.
Is this a buying opportunity in Invitae as shares have slid under $10?
What Else Do You Need to Know about Growth Stocks in 2022?
Tune into this week’s podcast to find out.