The search for growth stocks is always on for many investors. While sentiment for many high-growth stocks is at rock-bottom levels, many growth investors now have opportunities available at much more attractive prices.
This first half of 2022 was the worst year in a very long time in the stock market. This was even more true for growth stocks. In the second quarter alone, the Nasdaq saw a decline of more than 22%. That’s the worst level since the Great Recession.
However, if history is our guide, these declines don’t last forever. At some point, buyers come out of the woodwork to load up on these stocks. Accordingly, the search for quality among explosive growth stocks is on.
The following list includes three explosive growth stocks I think have quality attributes long-term investors may want to consider. For those looking to buy the dip, here are three great options to consider.
Booking Holdings (BKNG)
Still down approximately 15% year-to-date, Booking Holdings (NASDAQ:BKNG) remains a high-conviction pick of many top analysts right now. Analysts seem to believe that the pent-up demand we’ve seen play out in the travel space may continue for years.
All the while, the stock market has discounted this growth in favor of the view that we may be headed into a recession (hence, slower forward-looking growth).
That’s probably true. However, the demand metrics for the travel industry are incredibly strong right now. Consumer balance sheets are solid, evidenced by strong bookings going months out. With many hotels and services now booking out months in advance, Booking Holdings has a rather robust backlog to bank on.
The company’s recent earnings, which saw non-GAAP income of $161 million this past quarter, are notable. For those long the travel trade, Booking Holdings is one of the best ways to gain long-term exposure to this sector right now.
Icon (NASDAQ:ICLR) is a rather interesting growth stock I recently dove into for the first time. Icon assists healthcare companies commercialize and develop their products and services.
Founded in 1990 with just five employees, Icon has grown to an impressive size. This company now employs more than 40,000 individuals worldwide. Over the past 30 years, Icon has been acquiring its way to growth, as well as seeking organic growth for its existing businesses.
Analysts expect Icon to grow alongside the broader market at a clip of around 6.5% annually over the long term. As outsourcing of clinical spending by healthcare companies increases due to labor shortages, Icon stands to pick up much of this slack. Accordingly, I anticipate this company’s growth rate will far exceed that of the sector over the long-term.
No list of explosive growth stocks is complete without discussing Amazon (NASDAQ:AMZN). The world’s largest e-commerce company, Amazon is what most investors think of when they consider growth stocks.
Much of Amazon’s growth of late has come from its cloud (Amazon Web Services) division. AWS has continued to grow at a double-digit pace for years, with many anticipating no slow down, as companies look to migrate to the cloud, using the most trusted partners.
It’s Amazon’s core e-commerce business that has many investors concerned. Given that we may be headed into a recession, online spending could take a turn lower. This is likely to bleed through to the company’s valuation, as revenue and earnings dip.
However, as Amazon continues to transform more into a cloud and logistics company than an e-commerce giant, perhaps the market’s view of Amazon will shift. Those taking a truly long-term perspective on this explosive growth stock may want to take a gander at these levels. After all, Amazon’s valuation hasn’t been this cheap in some time.
On the date of publication, Chris MacDonald has a position in Amazon. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.