In 2023, Wall Street experienced a remarkable year, with the Dow Jones reaching record highs and the Nasdaq Composite gaining 43%. Despite this, the Nasdaq remains over 7% below its 2021 peak. Long-term investors see potential in this, as historical trends indicate that market downturns are eventually followed by bull market rallies.
Here are four outstanding growth stocks that could be missed opportunities after the Nasdaq bear market dip:
1. **Mastercard (NYSE: MA):** A fee-based business, Mastercard may face challenges during a potential 2024 recession. However, its avoidance of lending and focus on underbanked emerging markets contribute to a 40%+ profit margin. The company’s growth potential in emerging markets makes it an attractive investment.
2. **BioMarin Pharmaceutical (NASDAQ: BMRN):** Despite a seemingly high valuation, BioMarin focuses on ultrarare diseases, providing a competitive edge. With a projected 43% annualized earnings growth over five years and a strong position in the rare-disease drug market, BioMarin presents an opportunity for long-term investors.
3. **Etsy (NASDAQ: ETSY):** An e-commerce platform driven by personalization, Etsy’s merchant base consists of small businesses offering customized products. The company has capitalized on habitual buyers and displayed fee-pricing power. While a recession in 2024 may pose challenges, Etsy’s unique model and growth potential make it a compelling choice.
4. **Meta Platforms (NASDAQ: META):** With a majority of revenue from advertising, Meta could be impacted by a potential recession. However, its vast user base across platforms like Facebook, Instagram, WhatsApp, and Messenger provides strong ad-pricing power. Meta’s operating cash flow, balance sheet strength, and relatively cheap valuation make it an attractive investment.
Investors considering these growth stocks should weigh the potential impact of a recession in 2024 while recognizing their long-term growth prospects.