5 troubled stocks to buy at a reduced price

IIt’s not exactly a secret. The market has been going through a rough patch lately. Stocks have been everywhere, facing new volatility amid lingering concerns over the COVID-19 pandemic, inflation, months of mixed employment numbers and the possibility of another correction. During the last season of results, a constant trend was noted by investors; companies grew strongly, although at times slower than in the early days of the pandemic, and stocks still fell rapidly.

Volatility has plagued many sectors of the stock market in recent times. But does that mean investors should run for the hills? Absolutely not. Right now, forward-thinking long-term investors have a great opportunity to buy great stocks from high-quality companies at a great price. And nowadays, bargain stocks are plentiful.

If you’re shopping as we wind down 2021 and head into the new year, these are five unstoppable stocks to consider adding to your portfolio at a discount.

Image source: Getty Images.

1. Fiverr

As “The Great Resignation” drags on and Americans continue to quit their jobs in record numbers, many are turning to self-employment in order to gain more flexibility in their careers and seek financial freedom. Freelance market shares Fiverr International (NYSE: FVRR) are down 47% from last year, but their business continues to thrive.

In the most recent quarter, the company reported that revenue grew 42% year-over-year, while active buyers and active spend per buyer rose 33% and 20% per buyer, respectively. compared to the previous year.

In a recent study of more than 1,000 hiring managers and human resources professionals in the United States, Fiverr found that 54% of them “said workers leaving their companies do not re-enter the workforce – and instead choose to work for themselves ”. The study also found that 30% “said people are quitting their jobs more now than before COVID because they want more flexibility.”

As one of the largest independent platforms in the world, Fiverr will continue to benefit from this rapidly changing workforce as people wonder when, where and how they want to make money, not just for a unique pandemic but beyond. Now seems like the perfect time for patient investors to grab those top quality stocks on the market.

2. Teladoc

Few actions have generated the hype that Teladoc Health (NYSE: TDOC) did so at the start of the pandemic, but stocks have now fallen significantly from their all-time high – down 54% in the past year. Yet, as has been the case with many declining stocks this year, the business and growth outlook for Teladoc is still excellent.

Teladoc is the industry leader in a market expected to reach a valuation of $ 225 billion by 2030. In the first nine months of this year, not only Teladoc’s revenue has grown by 108% compared to the same period of 2020, but the total number of visits to its platform has increased by an incredible 59%.

While Teladoc’s bottom line is still weighed down by the costs associated with its buyout of Livongo in 2020, the company is profitable on an adjusted EBITDA basis and expects to almost double its revenue this year compared to the previous year. last year. If you want to invest in a leading healthcare company with the potential for long-term, sustainable growth and a successful business, Teladoc is a smart stock to buy now.

3. Zoom

Speaking of battered stocks, the market hasn’t been kind Focus on video communications (NASDAQ: ZM) recently. In fact, the stock has fallen 53% in the past year. I took full advantage of Zoom’s bargain price earlier this year, and the company’s consistently strong financial results continue to strengthen my confidence in this decision.

It is true that the business is not growing at the same rate it was at the start of the pandemic, but it was natural to expect an adjustment as more and more people settle into a mix of remote control, hybrid and back to the office. work situations. Despite this, the company’s revenue jumped 35% year-over-year in the most recent quarter, while its net profit jumped 72% from a year earlier. Additionally, the number of customers contributing over $ 100,000 in revenue over the past 12 months has increased – expect it – 94% to 2,507 from the same quarter in 2020.

Not only is the company very profitable, it also does a great job of building loyalty and expanding its customer base. If you’re looking for high-quality, high-tech stock at a great price, Zoom is an obvious choice to consider.

4. Soft

soft (NYSE: CHWY) is trading around 48% lower than a year ago amid a general slowdown in growth stocks and normalization of business activity from 2020. That said, the online pet retailer is still in great shape from a business point of view.

Chewy has an incredibly diverse, rapidly growing business – from supplies, bedding, food and toys to prescription drugs through their online pet pharmacy. Chewy even offers a telehealth service that allows pet owners to connect with licensed vets for just $ 14.99 per cat or $ 19.99 per video call. The company is quickly proving to be an all-in-one solution for a wide range of pet needs of its customers.

In the first nine months of 2021, Chewy’s net sales increased 27% from the previous year. Although the business is still not profitable, Chewy reduced its net loss by 91% compared to the same period in 2020. The business closed the third quarter with 20.4 million active customers, a jump of 15 % compared to last year. With the stock currently trading below $ 60, now seems a great time to take a second look at the business.

5. Airbnb

Last, but not least, is a title that has intrigued me more and more in recent months. Airbnb (NASDAQ: ABNB) is not a new name for most investors. But the company only made its public debut about a year ago, in what was arguably one of the worst times the travel industry has ever seen. The company’s shares have actually risen more than 15% since the start of the year, but have fallen around 7% over the past month amid continued volatility in the stock markets.

While the company got off to a bumpy start through 2021, it has made significant progress with every earnings report, so much so that the last quarter blew analyst and investor expectations. Not only was its third-quarter revenue of $ 2.2 billion the highest in Airbnb history (up 70% year-over-year and 36% from in the same quarter in 2019), but its net income hit an all-time high, jumping 280%. from the period of one year ago. And compared to the third quarter of 2019, Airbnb’s net income increased by 213%.

Airbnb’s third quarter was also its first quarter where Adjusted EBITDA exceeded $ 1 billion ($ 1.1 billion, to be exact). Not only are more people booking Airbnb stays than ever before, but long-term company stays (28 days or more) represent 20% of gross company nights booked during the three-month period.

As more and more people travel, they are also changing the way they travel. Whether it’s to adapt to a work-from-home lifestyle, to enjoy the comforts of home away from home, or for some other reason, Airbnb will be part of that future as we go through different phases of the pandemic. . Now seems like a great time to invest in this stock and capitalize on its serious growth potential.

10 actions we prefer at Fiverr International
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* Returns of the portfolio advisor as of December 16, 2021

Rachel Warren is the owner of Teladoc Health and Zoom Video Communications. The Motley Fool owns and recommends Airbnb, Inc., Chewy, Inc., Fiverr International, Teladoc Health, and Zoom Video Communications. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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