2023-04-06 05:10:00 ET
The S&P 500 and Nasdaq Composite fell into a bear market more than a year ago, and both indexes still trade well below their highs. But history says a rebound is coming. Neither index has ever failed to recover from past drawdowns. That doesn't mean the market will soar any time soon, though -- in fact, some analysts are forecasting a recession in 2023, and that could lead equities lower in the near term.
But no one knows the future, and many growth stocks brimming with long-term potential currently trade at reasonable prices. Shopify (NYSE: SHOP) and Arista Networks (NYSE: ANET) fit that bill. Rather than attempting to time the market, investors should take advantage of the buying opportunities on these two top growth stocks while they last.
Shopify struggled last year as high inflation suppressed consumer spending. Revenue climbed just 21% to $5.6 billion, and non-GAAP earnings fell 94% to $0.04 per diluted share. Unfortunately, the current quarter looks worse. Management says revenue growth will decelerate into the high teens, implying a sequential decline, even as operating expenses continue to climb. That grim forecast, coupled with weak financial results for several consecutive quarters, has the stock trading down 72% from previous highs.
For further details see:
2 Top Growth Stocks You'll Regret Not Buying Before the Next Bull Market