The Nasdaq Composite Enters Bull Market: Growth Stocks to Consider Buying
Are you looking to capitalize on the current bull market in the Nasdaq Composite? If so, you’re not alone. The technology-heavy index has seen impressive gains over the past 18 months, driven by a surge in interest in artificial intelligence. But according to historical patterns, these gains may just be the tip of the iceberg.
Since 1990, the Nasdaq has returned an average of 215% during bull markets that lasted around 40 months. If the current bull market follows this historical trend, we could see the Nasdaq climb by another 139% from its cyclical low in the next 22 months. While a 61% annual return may seem ambitious, the index has shown strong performance over the past two decades, with a total gain of 2,420% or 11.3% annually.
With this optimistic outlook in mind, two stocks that stand out as potential winners in this environment are Alphabet (NASDAQ: GOOGL) and Roku (NASDAQ: ROKU).
Alphabet, the parent company of Google, is a dominant player in digital advertising and cloud computing. With a wide range of popular products and services reaching billions of users, Alphabet is well-positioned to capitalize on the growing demand for online advertising and cloud services. The company’s recent financial performance has been strong, with revenue and net income both showing solid growth.
Wall Street analysts expect Alphabet to continue growing earnings per share at a rate of 16% annually through 2027. With a current valuation that seems reasonable, Alphabet could be a solid investment for the next three to five years.
Roku, on the other hand, is a leading streaming video platform in the U.S. and has a strong presence in the connected TV market. The company’s recent partnership with The Trade Desk, a major ad tech platform, is expected to further enhance its advertising capabilities and drive revenue growth. Analysts forecast Roku’s sales to increase by 12% annually through 2027, making it a promising investment opportunity.
If you’re considering investing in these growth stocks, now could be a good time to take action. The Nasdaq’s bull market is showing no signs of slowing down, and companies like Alphabet and Roku are well-positioned to benefit from the current economic environment. Don’t miss out on the potential for significant returns in the coming years.