Stocks to HODL in this Market Crash

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“Be fearful when others are greedy. Be greedy when others are fearful.”

First of all, it is vital to know that nobody and I mean NOBODY can tell where the market is heading in the future. That’s right, not even the biggest hedge fund manager or financial advisor can tell what the stock price is going to do (and certainly not the people on CNBC…). Nevertheless, the game is finding the golden needle in the haystack when it comes to stock picking, and here is me trying to do just that.

These are 3 of my strongest conviction stocks. Which are all Growth Stocks. Without a doubt the start of 2022 has been rough on high PE stocks however they still have the potential to deliver stellar returns in the next +5years. For young investors who are able to take on more risk the following stocks might be a good addition to your portfolio.

1. Pinterest ($PINS)

A social media company which am sure most of you know about already. Pinterest IPO price back in April 2019 was $19 and now, two years later, it trades at just $22. In those two years Pinterest revenue grow from $1.14B(in 2019) to $2.58B(in 2021). That is an increase of slightly more than Double. It also went from a net losing company to a net profit company. This was partly due to the pandemic, Pinterest stock price surged over 300% during 2020. However recently it came back to earth losing 70% from its heights. This might scare some investors away, but remember that we as long term investors want to buy and accumulate shares at low prices and sell at tops. In this case Warren Buffett’s most famous quote

“Be fearful when others are greedy. Be greedy when others are fearful.”

definitely applies. So why do I expect Pinterest to grow? Here is what I like about Pinterest stock:

  • Its market cap is $15B(as of May 2022). Elon Musk offered to buy Twitter for $44B. That is 3 times more! How does Pinterest compare to Twitter? Pinterest has 431 million monthly active users compared to Twitters 330 million. TWTR’s yearly revenue is about twice what PINS generates. However, PINS is more profitable with a gross margin of 70% versus TWTR’s 63.7%.
  • Its Price to Sales Ratio is currently about 5. This is lower than its valuation during the Covid crash back in March 2020.
  • As of Q1 2022, Pinterest’s average revenue per user (ARPU) was $1.33, up 28% year over year. ARPU is growing at a rapid pace and is expected to continue on this trend for the foreseeable future.
  • Pinterest is an attractive advertising medium for brands and creators. Given it’s a relatively positive and political independent platform. Moreover partnerships with e-commerce companies like Shopify and WooCommerce strengthens Pinterest future outlook.

To conclude on PINS; the current market price of $22 gives PINS a relatively cheap valuation given the potential here. I am a buyer at these levels. In my opinion there is good money to be made here if you have a longer time frame.

2. DraftKings ($DKNG)

The rise Of the IGaming Industry in the US is kicking off. Betting companies, such as: $DKNG $PENN $RSI, are growing revenue at 30%-40% a year. From IPO price (in April 2020) Draftkings raised an outstanding +300% in just a year and a half. However the story nowadays is very different, DKNG is -80% off its highs and -54% YTD. I see this as an opportunity to get in low. With mobile sports betting in just 17 states (approximately 36% of the U.S. population) the path for growth is clear as day. The opportunity of increasing the user base is huge. DraftKings Outlook:

  • DraftKings are expected to reach profitability from 2025 onwards according to analysis.
  • Revenue is expected to grow to $4.7B in 2026.

As a long term investor, I see these periods of market uncertainty as great buying opportunities for my personal strong conviction stocks.

3. Advanced Micro Devices ($AMD)

For those who don’t know, AMD is an American semiconductor company. With the rise in demand for computer chips, the potential AMD has is huge. However, some of this growth is already priced in as seen from its PE ratio of 35. With that said AMD is still growing exponentially, and as seen from the latest quarter Q1 2022, AMD can still beat expectations and set the stock even higher. Right now AMD is already in a good position holding 16% of the desktop CPU market. As an investor in AMD what’s I look for is the chip market growing substantially while AMD maintaining their market share. Company news am excited about:

  • AMD is investing in long-term growth with some acquisitions — Pensando and Xilinx. These acquisitions are aimed for AMD provide products to large corporations as AMD looks to push into higher-margin markets.
  • Q1 2022 Earning were a blast reporting a record quarterly revenue.

Q1 2022 Earnings Highlights

Revenue: $5.89 billion, versus $5.52 billion expected, up 71% year-over-year.

EPS: $1.13, adjusted, versus $0.91 expected, up 117% year-over-year.

  • AMD said it expected $6.5 billion in sales in the current quarter, ahead of
  • AMD has a track record of crushing earnings ever since I originally began investing in it, back in April of 2021.

Personally I am very excited about AMD’s future, under $100 AMD is a buy!

Those are the Three Stocks am most excited about! Let me know what you think about them and leave some of your favourite stocks down below. (Always like to checkout the hottest stocks in town). Please always remember to do your own due diligence and take care.

(This article is just my views and is definitely not personal advice.)