There’s little denying that 2022 has been a difficult year for growth stocks so far. Higher interest rates, recession worries, and inflated values during the epidemic conspired to drive the Vanguard Growth ETF stocks down 34%, worse than the S&P 500’s 24% drop.
Here are three stocks that seem to be very promising today.
Best Growth Stocks to Buy Right Now
1. Airbnb Stock: Revolutionizing the Travel Business.
A lot has changed for Airbnb (NASDAQ:ABNB). After the pandemic drove the home-sharing industry leader to lay off a fourth of its workers, the firm discovered financial discipline and drastically reduced its operations.
Consequently, it is now a profit engine, far from its days as a cash-burning startup. Revenue increased 58% to $2.1 billion in the most recent quarter, with a GAAP net income of $379 million and an 18% profit margin. The company’s free cash flow was $795 million, representing a 38% margin.
Aside from the remarkable recent results, there are numerous more reasons why the stock seems poised for development. The tourism business is soaring now that pandemic restrictions have been lifted, and the rebound tailwind could last at least a few more quarters. With a leading market position in home-sharing, Airbnb should be able to capitalize on many of these tailwinds and turn them into profits. It is definitely a stock to buy.
2. Pinterest Stock: An Underutilized Rebound Option
Pinterest (NYSE:PINS) is one of many pandemic winners that have subsequently faded. The rise in stay-at-home time boosted interest in the image-discovery engine. However, its user base dropped in the previous year after revenue growth, and the stock price plummeted.
However, there are hints that Pinterest may be on the mend. According to Sensor Tower statistics, time spent on the platform increased by 11% in August, the highest level in at least a year.
Despite recent setbacks, Pinterest is still a successful company, and digital advertising is a high-margin industry at scale. In the most recent quarter, the firm recorded adjusted EBITDA of $92 million on sales of $666 million, for a margin of 14%.
While headwinds in digital advertising may impact Pinterest’s short-term performance, the company is well-positioned to rebound whenever macroeconomic circumstances recover, if not sooner.
3. MercadoLibre Stock: A Consistent Growth Engine
Most e-commerce firms saw their growth slow significantly this year as they faced severe comparisons to the epidemic period, but MercadoLibre stock (NASDAQ:MELI) has remained robust.
The Latin American e-commerce company’s e-commerce and payments divisions continue to develop rapidly. In constant currency terms, sales increased 57% to $2.6 billion, with gross merchandise volume rising 26% to $8.6 billion and total payment volume increasing 84% to $30.2 billion.
The corporation is also lucrative, with a net income of $123 million in the third quarter.
MercadoLibre has a lot of upside potential as the Latin American middle-class increases, and the firm expands into vast addressable regions, despite the stock being down 60% from its top last year. A change in market mood might cause the stock to skyrocket
Featured Image- Megapixl @ Koolander
Author Okoro Chinedu 
