3 Growth Stocks to Buy Before a Big Rally

It’s certainly no secret the past few weeks have been rough on the market. The S&P 500 is now down 6% from its early January high, yet it remains vulnerable to more selling following the mostly unfettered gains logged in 2020 and 2021.

As the cliche goes, though, investors have thrown some babies out with the bathwater. That is to say, the profit-taking has been rather indiscriminate, dragging down some stocks that didn’t deserve such a drubbing.

They’ll bounce back, of course — quality is always (eventually) reflected in a stock’s price. The thing is, it just makes sense to step into the best of these names while their stock prices have yet to rally, before other investors notice and then fix their mistakes. Here’s a rundown of three of the best growth stocks primed for a rebound following sizable sell-offs.

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Etsy

Amazon may be the dominant name in the e-commerce arena, but its sheer size lends itself to mass merchandising. Listings of one-of-a-kind, handmade, and vintage goods just don’t work well there. Because consumers still want to buy these types of items online, Etsy (NASDAQ:ETSY) has stepped into the sizable niche and taken over it. The Etsy website now boasts 5.2 million active sellers serving 89.4 million active buyers; these numbers continue to move higher even after their pandemic-driven surges.

There’s a reason the company has achieved this unlikely growth — two reasons, actually.

The first of those reasons is, the company is still refining a relatively young product. In September, for instance, the company unveiled an interactive platform called The Etsy House that allows consumers to virtually browse a home featuring some of the site’s best home products. In May of last year, Etsy announced a collaboration with pop-culture personality Nicole Richie, which highlights some of the star’s favorite creators selling their wares on the site. These are just a couple of examples of how the company continues to widen its net by building a more engaging platform for its users.

The second reason is, as big as e-commerce has become, most shopping is still done offline. The U.S. Census Bureau reports that during the third quarter of last year, only 13% of the country’s retail consumption took place online. The other 87% is still up for grabs, and consumers are still getting used to the idea of buying more than the mere basics using the internet.

Between these two factors, it’s not surprising the Wall Street analyst community believes Etsy’s top line will grow more than 20% this year, driving a similar increase in earnings. What is surprising is the fact the stock’s value has declined over 50% from November’s peak.

Booking Holdings

Just when it looked like the pandemic was winding down, pow! The omicron variant of COVID-19 ripped across the planet, causing more infections than we saw in 2020 and into early 2021 when many assumed the pandemic was at its worst. New…