Nasdaq Bear Market: 3 Surefire Growth Stocks That Can Double Your Money By 2026
It’s been quite a year for Wall Street and the investment community. The very followed S&P500 produced its worst half-year return in more than 50 years. Meanwhile, the iconic Dow Jones Industrial AverageS&P 500 and technology dependent Nasdaq Compound (^IXIC) all plunged into a bear market. The Nasdaq has the worst of all, with a 34% drop from peak to trough.
While it’s undeniable that bear markets can be nerve-wracking and test the resolve of both regular and new investors, history also shows that they are ideal buying opportunities. Over time, every double-digit percentage decline in major indexes, including the Nasdaq, was eventually erased by a bull market rally.
In other words, now is a great time for long-term investors to go shopping – and what better category to focus on than innovative growth stocks? Although it seems like growth stocks have been reduced to a pulp during this bear market, faster-growing companies have historically outperformed during periods of economic weakness.
The following are three surefire growth stocks you can buy during the Nasdaq bear market that have a real chance of doubling your money by 2026.
The first supercharged growth stock with the ability to double your money by 2026 is a cloud-based lending platform provider Assets received (UPST 3.11%).
There is no doubt that the next two quarters will be difficult for a lending solutions specialist who has never experienced a real economic downturn before. As interest rates rise, the number of loans processed should decrease. But there’s a lot to like about what we’ve seen from Upstart over the past two years.
Before diving into the specifics of the business, consider this: the average economic contraction only lasts a few quarters. By comparison, expansion periods are almost always measured in years. A lending solutions-focused company like Upstart will spend a disproportionate amount of time profiting from expansion rather than navigating a challenging environment.
As for what makes this company so special, look no further than its artificial intelligence-powered lending platform. Instead of using the same credit-score-focused verification process that the banking industry has relied on for decades, Upstart uses machine learning technology to screen applications. Nearly three-quarters of all loans processed through Upstart are approved and fully automated.
In addition to saving banks and credit unions time and money, Upstart helps by expanding the loan pool. The average credit score for loans approved by Upstart is lower than for loans approved through the traditional verification process. However, the delinquency rate between the two processes was similar. This means Upstart can offer more customers to banks and credit unions without worsening their credit risk profile.
The other thing to love about Upstart is that its addressable market is booming. For years, the company primarily focused its efforts on personal loans. But following the acquisition of Prodigy Software in 2021, it has now shifted to creating auto loans. On a combined basis, the auto loan and small business loan markets are 10 times the size of the personal loan space.
Planet 13 farms
A second surefire growth stock that has all the tools and intangibles to double your money over the next four years is the US marijuana stock. Planet 13 farms (PLNH.F -2.38%).
When President Joe Biden took office in January 2021, there was probably no hotter industry than cannabis. But that buzz quickly died down after multiple attempts to pass cannabis reform measures failed in the US Senate. Although Biden has requested a review of the Schedule I classification of marijuana under the Controlled Substances Act, no guarantee of legalization is in the cards.
The good news for Planet 13 and other Multi-State Operators (MSOs) is that legalization is not a requirement for success. With roughly three-quarters of all states green-lighting cannabis to some degree, Planet 13 offers plenty of high-value markets.
Planet 13’s standout differentiator is its approach to expansion. While most publicly traded MSOs have opened outlets in 10 or more states, Planet 13 has only three operating dispensaries. But these are not your average dispensaries. The Las Vegas SuperStore spans 112,000 square feet and features a cafe and event center. Meanwhile, the Orange County SuperStore, which is about 15 minutes from Disneyland, California, has a whopping 16,500 square feet of retail space. These stores offer nostalgia and an experience that traditional pot stores cannot match.
Planet 13’s future involves a SuperStore-style location in Chicago, Illinois, as well as several community stores, each covering approximately 4,750 square feet, in Florida. Only a small number of MSOs are allowed to open dispensaries in legal Florida for medical marijuana. But once allowed in the Sunshine State, MSOs can open as many stores as they want. By 2024, Florida is expected to be the #3 cannabis market in the United States by annual sales.
Planet 13 maintains a unique operating model in the cannabis space and looks set to achieve recurring profitability. This gives it a good chance of delivering triple-digit returns to patient shareholders.
The third surefire stock to buy during the Nasdaq bear market that can double your money by 2026 is a social media specialist pinterest (PINS -1.87%).
Pinterest was a hot business to own during the early stages of the COVID-19 pandemic. But as vaccination rates rose and life returned to some semblance of normality, Pinterest’s monthly active user (MAU) count fell from its peak of 478 million. Investors are usually unhappy when a social media company has a dwindling user count.
However, the decline in MAUs over the past year does not tell the whole story. For example, looking at Pinterest’s MAUs over a five-year period would show a relatively steady upward trend.
But even more important than the total number of monthly active users on Pinterest’s platform is the company’s ability to monetize those users. Even with a decline of 21 million MAUs in the quarter ended June compared to the prior year period, the global average revenue per user (ARPU) Pink 17%, with particularly strong ARPU growth in international markets. Pinterest’s operating results demonstrate that advertisers are willing to pay a premium to reach its 433 million MAUs.
Something else special about Pinterest is the company’s operating model. While most advertising-focused companies depend on data tracking software or other tools to help advertisers target users, Pinterest’s entire platform is built around its users sharing freely and voluntarily what interests them. These interests can be presented to merchants on a silver platter. It’s this subtle differentiation that could help Pinterest become a serious e-commerce player by the middle of the decade.
Finally, Pinterest’s balance sheet is a game-changer. The company ended June with $2.66 billion in cash, cash equivalents and marketable securities, which is more than enough to reinvest in its business and sustain double-digit growth.