Growth stocks have suffered immensely in the first five-months of 2022.The S&P 500 Pure Growth Indexhasdeclined by 22%during this period. However, there are dozens of growth stocks that have corrected by more than 50%. While global economic uncertainties prevail, there are stocks to buy for the second half of 2022 for robust returns.
My focus is on oversold growth stocks to buy that can potentially witness a sharp reversal rally. It’s worth noting that be it a euphoric or a correction, the reactions are on the extreme. On the downside, this presents a good buying opportunity.
A good example is Chinese electric vehicle company,Li Auto(NASDAQ:LI). LI stock has surged by 40% in the last one-month. Irrespective of broad market conditions, there will be such opportunities.
Let’s talk about the stock to buy that can potentially deliver 50% returns in the next six-months. I believe that the stock is also worth holding for the long-term.
Palantir Technologies (PLTR)
Palantir Technologies(NYSE:PLTR) has slumped by 55% in the last six-months. I believe that the stock is worth accumulating below $10.
In terms of positives, Palantir reported a healthyrevenue growth of 31%for Q1 2022 to $446 million. The company also reported adjusted free cash flow of $30 million for the quarter.
It’s also worth noting that the company has guided for top-line growth in excess of 30% through 2025. After a meaningful correction, the PLTR stock seems poised for a rally.
Palantir has also seen a healthy growth in customer count. For Q1 2022, the company added 37 net new commercial customers. With the company ending Q1 2022 with anet dollar retention of 124%, the long-term cash flow outlook seems robust.
Even from a balance sheet perspective, Palantir looks attractive. The company ended Q1 2022 with $2.3 billion in cash and zero debt. There is ample flexibility to invest in innovation driven growth.
Comments