While most investors hate market corrections, they offer great opportunities to add solid stocks to your portfolio for the long term. With the Nasdaq composite index has fallen about 27% this year at the time of writing, several growth stocks have also undergone significant correction. Let’s discuss five such top stocks that look very attractive right now.
Electric Vehicle (EV) Maker Stock Rivian (RIVN 0.15%† has corrected about 77% this year and is 86% below its all-time high of $172. The stock’s market cap, which crossed $150 billion days after listing, has fallen to $22 billion.
Rivian did well in the first quarter, producing 2,553 vehicles. On May 9, the number of vehicles produced rose to about 5,000. Importantly, the company expects to meet its target of 25,000 vehicles by 2022. With more than 90,000 pre-orders for its R1 truck and SUV, along with an initial order of 100,000 electric vans from AmazonRivian has some visibility of the question.
Since Rivian is a loss-making young EV maker, the stock carries risks, but the company’s progress so far looks very encouraging. If you are considering buying the stock, now may be a good time to do so.
The stock of leading EV charger provider ChargePoint (CHPT 1.54%† has fallen by about 50% so far. ChargePoint is the largest public level 2 charging provider for EVs in North America, capturing approximately 70% of the market.
Its land-and-expansion model and diverse revenue streams have enabled ChargePoint to grow its revenue significantly in recent quarters. As the leading payer in a long-growth industry, ChargePoint appears well positioned to grow. The year-to-date decline in the share price offers a more attractive entry point for long-term investors.
A large proportion of investors regret not buying Tesla (TSLA -0.73%† stock three years ago when it traded near $35. Then an investment of $10,000 three years ago would have increased more than 15 times to $152,000 today. If you’ve considered buying the high-flying stocks at the time, but haven’t, now could be a good time.
Tesla stock is down about 30% this year, though it posted solid performance in the first quarter. As the chart above shows, the stock’s price-to-earnings (P/E) ratio of nearly 99 is well below its historical average level. The forward P/E ratio, which is based on expected earnings for 2022, has also fallen to more attractive levels.
Tesla’s future P/E ratio has fallen to about 58, from 86 at the start of the year. Overall, Tesla stock looks much more attractive now than it did in January.
Stock of solar microinverter manufacturer Enphase Energy (ENPH 0.71%† has fallen by almost 23% so far this year. The solar components specialist is growing its quarterly sales by an average of 46% year-on-year over a five-year period. At the same time, profits also increase. Enphase’s microinverters are in huge demand as they offer several advantages over other inverter options on the market.
Given the expected growth in the use of solar energy, Enphase has a long growth career. The 120 stock’s price-to-earnings ratio looks high, but it’s still below the five-year average. Furthermore, Enphase Energy’s future P/E of approximately 41 is well below 53, where it stood at the beginning of the year.
Nvidia‘s (NVDA) -1.11%† Graphics cards are in increasing demand due to their widespread use, including in emerging areas such as artificial intelligence, autonomous vehicles, robotics and virtual reality. In addition, demand from these segments is expected to grow in the coming years. Nvidia believes it has $1 trillion in opportunities for its various offerings.
Shares of Nvidia have fallen 45% so far this year, partly due to concerns about overvaluation. The stock’s P/E of 42 is well below its five-year average P/E ratio of nearly 69. The future P/E multiple of nearly 29 looks very attractive compared to a ratio of 68 at the start of the year. year. In short, this could be a great time to add Nvidia to your portfolio.
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