Is a market crash imminent? No one knows for sure, but on the day that I’m writing this, the S&P 500 has pulled back by more than 4% — a big move. Will that continue? We can’t know. A pullback of some sort, potentially triggering a recession for a while, is likely at some point, though, because crashes and corrections simply happen every few years or so — and several indicators are pointing to a crash.
You shouldn’t keep any short-term money (funds you expect to need within the coming five, if not 10, years) in stocks, and if you’re following that guideline, you should plan to just ride out any downturns. Better still, downturns present great buying opportunities. Here are some growth stocks to consider buying the next time the market corrects.
Missed AI’s “Act 1”? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
1. Eli Lilly
Eli Lilly (NYSE: LLY), home to popular GLP-1 weight-loss drugs such as Mounjaro and Zepbound, has been a blockbuster performer, averaging annual stock price gains of nearly 40% over the past five years. (It’s up some 57% over the past year, too, as of early November.) It’s no surprise, then, that the stock seems somewhat overvalued, with a recent price-to-sales (P/S) ratio of 14.7, above the five-year average of 13.3.
You could invest in it now if you plan to hold for many years, but buying after a market pullback will get you in at a lower price and boost your eventual gains.
The company is performing quite well lately, posting a 39% year-over-year increase in revenue for its third quarter while management upped its projections for the full year. It’s true that its pricing has gone down a bit, but that was more than made up for by increased volume. Lilly also faces competition, but it remains a major player in the GLP-1 world and is expanding there, too, such as via its oral drug Foundayo.
Of course, Lilly is not solely a GLP-1 specialist. It’s also home to Kisunla for Alzheimer’s disease, Ebglyss for eczema, and cancer drug Jaypirca, among other medications.
2. Micron Technology
Micron Technology (NASDAQ: MU) is a major semiconductor company specializing in memory and storage chips. It’s been posting boffo gains lately, as it supplies memory chips used in artificial intelligence (AI) processing, and AI has been growing briskly. Micron’s shares have averaged annual gains of 47% over the past decade, much of that due to outsize gains in recent years. Over the past year, for example, shares are up 265%!
