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Beaten-Down Tech Stocks to Buy Now for Long-Term Growth Upside
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Today’s episode of Full Court Finance at Zacks breaks down the current market situation amid the ongoing Russian invasion of Ukraine. The episode then dives into two beaten-down growth stocks, Shopify (SHOP - Free Report) and Block Inc. (SQ - Free Report) , that investors might want to finally take a chance on after tons of their pandemic gains were washed away.
The market plummeted on Monday, sending the S&P 500 deeper into correction territory. The Nasdaq’s 3.6% drop to start the week had it on the cusp of bear market levels. The swift downturn came amid the continued Russian invasion of Ukraine and increased sanctions from the U.S., other countries, and private companies. Predicting what happens next on the Russia/Ukraine front is difficult and the unknowns, coupled with the wild swings might make many investors nervous.
Even after Monday’s big fall and the dip Tuesday, Wall Street hadn’t truly been in panic mode about Russia, with the S&P 500 only down 4% from its late-January levels, which was weeks before the invasion. And sure enough, buyers stepped in Wednesday, with the Nasdaq up over 3.5% through mid-day trading and the benchmark 2.7% higher.
Valuations have already been recalibrated close to pre-covid levels and many growth stocks have seen nearly all of their pandemic gains wiped out. Plus, the U.S. economy has continued to show signs of strength, and interest rates should remain historically low even when the Fed starts to raise them.
Given this backdrop, investors with long-term outlooks might want to start buying or taking small positions in technology stocks that have been battered back down to far more enticing levels.
The first stock we explore today is Shopify (SHOP - Free Report) . The company that helps its clients do all things e-commerce was a superstar long before the pandemic and Shopify is investing in expansion and keeping up with Amazon and others, backed by an impressive balance sheet.
Block (SQ - Free Report) , formerly known as Square, has transformed from a niche maker of small credit card readers into a financial technology power built to thrive in the modern digital economy. Block has expanded its reach into exciting new areas of fintech that offer big growth upside, as Block slowly makes its way to becoming the bank of the future.
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Beaten-Down Tech Stocks to Buy Now for Long-Term Growth Upside
Today’s episode of Full Court Finance at Zacks breaks down the current market situation amid the ongoing Russian invasion of Ukraine. The episode then dives into two beaten-down growth stocks, Shopify (SHOP - Free Report) and Block Inc. (SQ - Free Report) , that investors might want to finally take a chance on after tons of their pandemic gains were washed away.
The market plummeted on Monday, sending the S&P 500 deeper into correction territory. The Nasdaq’s 3.6% drop to start the week had it on the cusp of bear market levels. The swift downturn came amid the continued Russian invasion of Ukraine and increased sanctions from the U.S., other countries, and private companies. Predicting what happens next on the Russia/Ukraine front is difficult and the unknowns, coupled with the wild swings might make many investors nervous.
Even after Monday’s big fall and the dip Tuesday, Wall Street hadn’t truly been in panic mode about Russia, with the S&P 500 only down 4% from its late-January levels, which was weeks before the invasion. And sure enough, buyers stepped in Wednesday, with the Nasdaq up over 3.5% through mid-day trading and the benchmark 2.7% higher.
Valuations have already been recalibrated close to pre-covid levels and many growth stocks have seen nearly all of their pandemic gains wiped out. Plus, the U.S. economy has continued to show signs of strength, and interest rates should remain historically low even when the Fed starts to raise them.
Given this backdrop, investors with long-term outlooks might want to start buying or taking small positions in technology stocks that have been battered back down to far more enticing levels.
The first stock we explore today is Shopify (SHOP - Free Report) . The company that helps its clients do all things e-commerce was a superstar long before the pandemic and Shopify is investing in expansion and keeping up with Amazon and others, backed by an impressive balance sheet.
Block (SQ - Free Report) , formerly known as Square, has transformed from a niche maker of small credit card readers into a financial technology power built to thrive in the modern digital economy. Block has expanded its reach into exciting new areas of fintech that offer big growth upside, as Block slowly makes its way to becoming the bank of the future.