Market downturns like the one we are experiencing can be very unsettling for investors, especially those with less experience. Seasoned investors are likely to remember how the market crashed in the past, only to bounce back and hit new highs. You’ll probably also remember that bear markets tend to provide excellent investment opportunities when big company stocks are put up for sale.
Here are three examples: three strong companies with very promising futures and stocks that have fallen in price. See if any pique your interest.
Cash may be king, but more and more people are transacting financially digitally, and one of the leading companies in the “financial technology“sand is PayPal (NASDAQ:PyPL). How big is a player? Well, consider that the market value of him was recently $85 billion, and that was after a stock price drop of 76% from its maximum of 52 weeks.
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PayPal had 426 million active consumer and merchant accounts at the end of 2021, when it employed about 31,000 people. In 2021, you processed a total of $1.25 trillions in payments, with an average of 40,000 transactions per minute. Better yet, the company is more than PayPal payment platform; the company also owns the popular Venmo app, not to mention Zettle, Xoom, Hyperwallet, Honey, and Paidy, among other companies. PayPal noted in its 2022 annual report that “Today, more than 70% of major retailers in North America and Europe, including more than 80% of major U.S. retailers, accept PayPal or Venmo at checkout “.
In its first quarter, PayPal posted a 13% increase in total payment volume (15% excluding currency effects) and a 7% increase in net revenue. It also added 2.4 new net active accounts in the quarter. It ended that quarter with a pretty healthy balance sheet, too, with more than $15 billion in cash and cash equivalents and investments and about $9 billion in debt.
broadcom (NASDAQ:AVGO) It may not be a very familiar name to you, but it’s a huge chipmaker, with a recent market value of close to $200 billion. It is also the product of various mergers and acquisitions with companies such as LSI, Broadcom Corporation, Brocade, CA Technologies, and Symantec.
Broadcom is already a diversified chipmaker, with a range of offerings for the data center, networking, enterprise software, broadband, wireless, storage and industrial markets, among others. In addition to that, it is looking to expand into the world of hybrid cloud computing, which incorporates multiple cloud environments, both private and public, by software acquisition specialist vmware — reportedly for more than $60 billion.
Broadcom is also a solid stocks that pay dividends, with a payment that recently yielded 3.3%. Even better, that dividend has been growing rapidly, averaging increases of 32% per year for the past five years. While many tech-oriented companies have seen their shares fall considerably, Broadcom shares were only down about 27% recently from their 52-week high, a relatively small drop. Clearly the company has much to offer investors.
amazon.com (NASDAQ:AMZN) is known to most people as an online marketplace, with a Prime membership service that offers streaming video, e-books, music, games, and more. Its Amazon Web Services (AWS) cloud computing business is less well known but growing rapidly: AWS revenue grew 37% year-over-year in the company’s first quarter and accounted for 16% of total revenue, compared to 13% the previous year. . And, of course, he has a lot more going on, like his advertising business. Emerging businesses include Amazon Care’s virtual health services, along with Project Kuiper, an initiative to increase global broadband access via satellite. Amazon also hosts devices and services like Alexa, Echo, Fire TV, Fire tablets, Kindle, Ring, Eero, and more.
With its shares recently falling 37% from its 52-week high, amazon.com It has a more attractive price than in recent years. Its recent P/E ratio of 59 may seem a bit steep, but it’s just under half the stock’s five-year average of 120. If you’ve ever wanted to co-own Amazon, this is it. a promising opportunity.
These are just three solid companies with a lot of growth potential, each of which is selling at a much lower price than it has been in a long time. Take a closer look at any and consider them for your portfolio, or go hunting on your own, as there are plenty of others at attractive prices. high growth stocks out there. Whether you have $5,000, $500 or $50,000 to spend, great investment opportunities abound.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. selena maranjian has positions in Amazon and PayPal Holdings. The Motley Fool has positions and recommends Amazon and PayPal Holdings. The Motley Fool recommends Broadcom and VMware. The Motley Fool has a disclosure policy.